Last week, I presented at ConX19 (Digital Lifecycle and Future PLM Networks) event organized by IpX – The Institute for Process Excellence. If you around for a long time, you might know IpX through the model known as CM2 focused on Configuration Management.
With roots into military standards such as MIL-STD-973 and later EIA-649, configuration management discipline’s concepts include systems engineering (SE), Integrated Logistics Support (ILS), Capability Maturity Model Integration (CMMI), ISO 9000, Prince2 project management method, COBIT, Information Technology Infrastructure Library (ITIL), product lifecycle management, and Application Lifecycle Management.
IpX is focusing on providing a service to product development organization that helps to improve performance to companies facing significant financial, operational and customer satisfaction challenges. As part of this service, IpX developed The True North Enterprise Calibration Model – a proven set of best practices that enables global organizations to benchmark, assess, and transform the business challenges that impact most organizations. Check more about it on IpX website.
In my presentation Digital Lifecycle and Future PLM networks (TBD), I shared my thoughts about the role of Networks in future enterprise business, product lifecycle transformation. I shared the experience of OpenBOM development.
The last 40 years demonstrated how digital disruption changed many businesses. Here is a slide I captured from the presentation of Prof. Nathan Hartman during ConX19 event.
Digital transformation is about using digital tools and other technologies to change the way companies are doing business. The elements of digital transformations are not limited to technology only, but span across people changes, organization changes, and business model changes. Data plays a key role in this transformation.
One of the main points of my presentation is a conflict between existing PLM business models and the demand for data to be available seamlessly for new digital processes. In the following video, I captured last year, Aras SVP of Strategy, Marc Lind speaks about the “elephant in the room”. This is how Mr. Lind calls the existing business of data locking used by practically all PLM vendors.
So, what is the alternative for existing limitations and old business models and practices? From the technology standpoints, it all starts from migration to new multi-tenant data management platforms. The existing single-tenant PLM platforms making data and business limited to a single company. Multi-tenant data platforms provide a new way to connect companies and make data available.
Network platforms will create a new environment to build new business models for future engineering and manufacturing software.
Please find below my slide deck from the event. I hope, the video of my presentation will soon become available online for sharing.
What is my conclusion? Networks played a tremendous role in the last 15-20 years of business development. Companies used networks to create a new type of services and business models. Network platforms are providing a new and seamless way to use data in a business environment. Also, the new network platforms create an opportunity to build new business models based on data sharing replacing data lock-in of existing PLM platforms. Just my thoughts…
Disclaimer: I’m co-founder and CEO of OpenBOM developing cloud-based bill of materials and inventory management tool for manufacturing companies, hardware startups, and supply chain. My opinion can be unintentionally biased.