enabling product innovation platformspdteurope.com/.../2016/07/1-2-gartner...platforms.pdf · this...

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Enabling Product Innovation Platforms

Dr. Marc Halpern, P.E.

PDT Europe

13-14 October 2015

Stockholm, Sweden

#GartnerSYM

1 CONFIDENTIAL AND PROPRIETARY | © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or it's affiliates.

As Product Network Complexity Accelerates, Value Chains Need New PLM Capabilities

#GartnerSYM


As Product Network Complexity Accelerates, Value Chains Need New PLM Capabilities

Supply Chain

Disruptions

Diverse Market

Demands

Maze of Regulations

Material and Resource

Constraints

Manufacturing Vulnerabilities

New Product Innovations

#GartnerSYM


Key Topics

1. Defining Product Innovation Platforms

2. Describing the roadmap to Product Innovation Platforms

3. Identifying best practices to enable Product Innovation Platforms

#GartnerSYM


Key Topics




#GartnerSYM


Value Chain Planning Must Address These Questions for Successful Product Life Cycles

Is it feasible?

Requirements achievable?

Delivery scalable?

Cost and quality targets met?

Timely materials and resources available?

Dead inventory avoidable?

Develop

CommercializeInnovate

Service

RetireProduce

New opportunities?

Lessons learned?

#GartnerSYM


Key Value Chain Performance Shortcomings

Not involved early enough during innovation and

development

Insufficient involvement in design reviews

S&OP and NPI processes are not aligned to

provide adequate business value

"Piecemeal" product by product NPD and NPI

creates unneeded complexityOnly 50% of new and modified products launched are successful in terms of being on time, on budget, and

achieving volume and profitability targets

#GartnerSYM


Product Innovation Platforms: Functional Layering for Continuous Product Innovation

Requirements Management

Systems-Centric Design (Software, Electronics, Hardware, Recipes, and So on)

Product Life Cycle Management (Strategy, Planning, PDM, and Governance)

Portfolio Planning and Management

Simulation and Test

Simulation and Test Data

Big Ideas Big DataVoice of

Customer

IoT

Quality Data Cost Data

… And So on

E.g., Digital Marketing

#GartnerSYM


Extreme Behavior

NEXUS

Global-Class Delivery

Pervasive Access

"Big" Context

NEXUS

"Nexus of Forces" Underpins the Promise of Product Innovation Platforms

Sharing Engineering and Manufacturing

Knowledge

Perform ComputationsAny Time and

Anywhere

Continuous Learning From

Patterns in Systems Data

Collaborate and CommunicateAny Time and

Anywhere

#GartnerSYM


The Major Design, PLM, and Business Suite Vendors Will All Offer Product Innovation Platforms by 2017

Product Innovation Platforms

Autodesk, Aras, Dassault Systemes,

PTC, Selerant, Siemens

Product Design and PLM

Business Suite

IFS, Infor, Oracle, SAP

#GartnerSYM


Impacts of Product Innovation Platforms

Adoption

3%

25%

70%

0

100

2014 2019 2024Workforce

Impact

Heavy

Mixed

Weightless

Impact is categorized according to industry — for example:

• Heavy: Mining, engineering, construction, energy and utilities, military, automobile, and manufacturing

• Mixed: Consumer packaged goods (CPG), logistics, retail, pharmaceuticals, local government, education and healthcare

• Weightless: Insurance, media, banking, advertising and intelligence

Risks

Performance

Integration

Adoption

Payback

Benefits

Customer

Efficiency

Products

#GartnerSYM


Case Study: Product Innovation Platforms Speed Creation and Delivery of Fashion Products

Objective: Be first to the "mass market" with the latest fashion trends

European design office

Collaboration by product innovation platform

Digital content

Suppliers and retailers in

North America and

Europe

Suppliers and manufacturers

in Asia

Russia

Turkey

Ukraine

Belarus

Finland

Cyprus

JordanIsrael

Lebanon

ArmeniaAzerbaijan

Georgia Kyrgyzstan

Tajikistan

Kuwait

QatarBahrain

U. A. E.

Yemen

Eqypt

SudanEritrea

EthiopiaSomolia

Kenya

Tanzania

SyriaIraq Iran

OmanSaudi

Arabia

Afghanistan

Pakistan

India

China

Kazakhstan

Turkmenistan

Uzbekistan

Myanmar

Thailand

Cambodia

Nepal Bhutan

Vietnam

Sri Lanka

Laos

Bangladesh

MalaysiaBrunei

Singapore

Philippines

Taiwan

Indonesia

Indonesia

Japan

Mongolia

South

Korea

North

Korea

East Timor

Papua

New Guinea Solomon Islands

VanuatuAustralia

0

0

1500 Miles

1500 KM

Finland

Austria

Italy

Spain

Morocco AlgeriaTunisia

Libya Egypt

Turkey

Georgia

SyriaIraq

Iran

Kazakhstan

AzerbaijanArmenia

Saudi Arabia

Jordan

Lebanon

Israel

Cyprus

Sweden

Norway

Germany

France

Portugal

HungaryRomania

Bulgaria

Denmark

Poland

Belarus

UkraineCzech Rep.

Slovakia

Greece

Malta

Netherlands

Liechtenstein

San

Marino

Belgium

Ireland

SerbiaMontenegro

Albania

Moldova

Lithuania

Latvia

Estonia

Luxembourg

Andorra

Bosnia

&

Herzegovina

CroatiaSloveniaSwitzerland

Macedonia

Iceland

Russia

RussiaUnited

Kingdom

0

0

500 Miles

500 KM

MEXICO

U.S.A

COLOMBIA

VENEZUELA

CANADA

THE BAHAMAS

CUBA

PANAMA

EL SALVADOR

GUATEMALA

BELIZE

HONDURAS

NICARAGUA

COSTA

RICA

JAMAICA

GREENLANDICELAND

HAITIDOMINICAN

REPUBLIC

PUERTO

RICO

TRINIDAD

Yukon

Territory Northwest

Territoris

Nunavut

British

ColumbiaAlberta

Saskatchewan

Manitoba

OntarioQuebec

New

BrunswickNova

Scotia

Prince

Edward

Island

Newfoundland

& Labrador

Washington

Oregon

California

Nevada

Alaska

Idaho

Montana

Wyoming

Utah ColoradoKansas

Oklahoma

Missouri

Arkansas

LouisianaMississippi

AlabamaGeorgia

Florida

Tennessee

KentuckyVirginia

MD DEWest

VirginiaNorth

CarolinaSouth

Carolina

Texas

New

MexicoArizona

NebraskaIowa

South

Dakota

North

DakotaMinnesota

WisconsinMichigan

IllinoisIndianaOhioPennsylvania

NJ

New

York

Maine

MACT

VTNH

RI

HawaiiHI not to scale

0

0

500 Miles

500 KM

#GartnerSYM


Case Study: Product Innovation Platforms Speed Global Launch of New Food and Beverage Products

Packaging BOM Beverage Recipe

Labeling and Artwork

Collaboration by product innovation platform

Regional suppliers and manufacturers producing regional variants

SOUTH EAST ASIA

AUSTRALIA

NEW ZEALAND

AFRICA

EUROPE

SOUTHAMERICA

NORTHAMERICA

MIDDLEEAST

#GartnerSYM


Key Topics




#GartnerSYM


Senior Executives, Business Operations, IT, Customers, and Suppliers Play Roles in Innovation Platform Success

Customers

Enterprises

Suppliers

Value Chain

#GartnerSYM


0-2 Years 2-5 Years 5-10 Years

Near Term? Medium Term? Long Term?

New Operating/

Business Models!

The Path to Product Innovation Platform Success is Long,Time to Value Can Be Short at Each Stage of the Journey!

#GartnerSYM


Chances of Success with Product Innovation Platform Technology Increases with PDM and PLM Success

PDM

PLM


{Technologies

Growing priority to adopt standards

#GartnerSYM


PLM Maturity Spans Five Key Phases

Reactive

Key Business

Indicators

Status Quo

X

X

Job Performance

Metrics

Few or None

X

X

Processes and

Practices

Ad Hoc

X

X

Technology Disparate

X

Organization Tribal

X

X

#GartnerSYM



Reactive Repeatable

Key Business

Indicators

Status Quo

X

X

Eliminate Waste

Job Performance

Metrics

Few or None

X

X

Time/Efficiency

Processes and

Practices

Ad Hoc

X

X

Robust


X

Functionally

Siloed

Organization Tribal

X

X

"Territorial"

#GartnerSYM



Reactive Repeatable Integrating

Key Business

Indicators

Status Quo

X

X

Eliminate Waste Improving

Product Quality

and Cost

Job Performance

Metrics

Few or None

X

X

Time/Efficiency Productivity and

Scalability

Processes and

Practices

Ad Hoc

X

X

Robust Across Internal

Functions


X

Functionally

Siloed

Coordinated

Organization Tribal

X

X

"Territorial" Internally Cross-

Functional

#GartnerSYM



Reactive Repeatable Integrating Collaborating

Key Business

Indicators

Status Quo

X

X

Eliminate Waste Improving

Product Quality

and Cost

Efficient Product

Innovation

Job Performance

Metrics

Few or None

X

X


Scalability

Enable

Performance

Improvement

Processes and

Practices

Ad Hoc

X

X


Functions

Value-Chain

Involved


X

Functionally

Siloed

Coordinated Connected

Organization Tribal

X

X


Functional

Cross-Value-

Chain Through

NPI

#GartnerSYM



Reactive Repeatable Integrating Collaborating Orchestrating

Key Business

Indicators

Status Quo

X

X

Eliminate waste Improving

Product Quality

and Cost

Efficient Product

Innovation

Efficiently

Expanding

Product Diversity

Job Performance

Metrics

Few or None

X

X


Scalability

Enable

Performance

Improvement

Enable Strategy

Improvement

Processes and

Practices

Ad Hoc

X

X


Functions

Value-Chain

Involved

Value-Chain

Engaged


X

Functionally

Siloed

Coordinated Connected Adaptive

Organization Tribal

X

X


Functional

Cross-Value-

Chain Through

NPI

Cross-Value-

Chain Through

Life Cycles

#GartnerSYM


Key Topics




#GartnerSYM


Choose a Maturity Model Governance Style That Best Fits the Organization

What is your company's culture?

#GartnerSYM


Measure What Matters to Monitor Maturity and Continuously Improve

Key Business Indicators

Job Performance Metrics

Processes and Practices

Organization

Technology

#GartnerSYM


Case Study: Aerospace Company Maps Performance Gaps to Business Functions, Identifying PLM Opportunities

BT

PL

M F

ram

ew

ork

Ma

na

gem

en

t

Platform Governance

Missing

System Engineering

Practices

Project Mgmt. Incomplete

& Inefficient

Missing Tool Best

Practices

Missing Engineering

Method

Concept Reuse

Requirements Mgmt.

Inefficient

Variant Mgmt. Missing

Divisional Silo

Thinking

Missing Leadership

Interface Engineering-

Manufacturing

Change Mgmt.

Inefficient

Knowledge Mgmt. MissingSupplier Collaboration

Inefficient

Supplier Mgmt. by Work

Packages

Heterogeneous Isolated

Tools

IP Protection

Part Designer to

Manager

Internal & External Collaboration

Product Data Management

Configuration Management

Field Support

Project Management

Engineering Change Management

Dig

ital M

anufa

ctu

ringP

roduct P

latf

orm

Managem

ent

Product

Portfolio

Mgmt.

Validation

Engineering Authoring

Requirement Management

Requirem

ent M

anagem

ent System Engineering

Integration & Test

Conformity

Me

ch

an

ica

l

En

gin

ee

rin

g

Ele

ctr

ica

l

En

gin

ee

rin

g

SW

En

gin

ee

rin

g

Analysis & Design

Reuse

Cross-Functional Integration

Service Level of IT

Systems Insufficient

#GartnerSYM


Assess Technology Readiness, When to Manage Risk When Planning IT for Each Maturity Level

Innovation Trigger

Peak of

Inflated Expectations

Trough of Disillusionment

Slope of EnlightenmentPlateau of

Productivity

time

expectations

Plateau will be reached in:

less than 2 years 2 to 5 years 5 to 10 years more than 10 years

obsolete

before plateau

As of July 2015

Cloud-Based CAE, Simulationand Virtual Prototyping

Cloud-Based CAD


MRO PLM Functionality

Cloud Computing in Manufacturing Operations

Model-Based Manufacturing

Cloud-Based PLM ApplicationsInternet of Things for Manufacturing Operations

IT/OT Convergence and Alignment

MPM Frameworks

IndustrialOperationalIntelligence

Product Cost Management

Mobility in ManufacturingOperations

Supplier QualityManagement Applications

System Engineering Software

ISA-95 Integration Standardsfor Discrete Manufacturing Simulation and Test Data Management

Synchronized Bills of Materials

Real-Time SPC ApplicationsSustainable Design PLM

Enterprise Manufacturing Intelligence

Plant Engineering and DesignQuality Process Management Applications

Label and Artwork ManagementProduct Portfolio and Program Management

Simulation and Virtual Prototyping

CAD-Centric PDM

Manufacturing Scheduling

Parts and Materials Searchand Selection

MES Applications forDiscrete Manufacturing

Value-Chain-Centric PDMProduct Requirements

Management

From "Hype Cycle for Discrete Manufacturing and PLM, 2015," 20 July 2015 (G00277491)

#GartnerSYM


Case Study: Aerospace Company Prioritizes Potential PLM Investments at Each Maturity Level

Initiative Evaluation: Business Value versus Feasibility

Simplebut Low Value

High

Low

Low HighInitiative Feasibility

Bu

sin

ess V

alu

eComplex High Priority

Low Priority

14

10

9

11

8

3

4

17

2

6

12

5

1315 Manufacture

Anywhere

Product Platform

Governance

Change

Mgmt.

Variant & Config. Mgmt.

Reuse of

Concept/

Design

PDM Stan-

dardization

PM Tool

& Method

Requirements

Mgmt.

Decisions on

Eng. Standards

IPP Guidelines

Supplier

Integration

Automated Interfaces

Stable Eng. Environment

Tool Best Practices

SW Eng. & System-

Level Integration

#GartnerSYM


Case Study: Aerospace Company Identifies Implementation Program Dependencies to Navigate Maturity Levels

MCAD Best Practices

ECAD Best Practices

PDM Standardization

Decisions on

Engineering Standards

Project Mgmt. Tool and Method

Requirements Management

Automated Interfaces

SW Engineering and System-Level

Integration

#GartnerSYM


Case Study: Aerospace Company Defines an Implementation Program That Orchestrates IT Projects and Maturity Readiness

Year 1 Year 3Year 2

CAD Selection

Program Planning and Adjustments

PDM Program Defined and Launched

CAD Best Practices

Identifying Best Practices/Processes

PDM Standardization

Project Mgmt. Tool & MethodPPM Stabilization

Requirements Management Implementation

Automated InterfacesCAD-PDM Interfaces

SW Engineering and System-Level Integration

PLM Program Execution Incl. Decisions on Engineering Standards

PLM Strategy

Plan Adjustment

PLM Strategy

Plan Adjustment

Legacy Req. Mgmt. Stab.

Future Architecture & Showcase Bid & PM

PDM Rollouts PDM Rollouts

New InitiativeExtension of existing ProjectExisting Project

#GartnerSYM


Change Management Is Key to Achieving EachMaturity Level

#GartnerSYM


Change Management Is Key to Achieving EachMaturity Level

Executives must lead change

Empower the agents of change

Recruit the influencers

Educate the organization

Focus on changes that matter most

Eliminate conflicting commitments

#GartnerSYM


Objective: Improve NPD Performance:

– Leverage R&D better for commercialization

Approach: Convince Executives First:

– Evidence-based business case

– CEO and CTO — global campaign

– Involve business operations and

IT in governance

Results:

– Increased collaboration across global R&D

– Increased the number of new products

per year

– Improved revenue and profitability

Critical Success Factors:

– Incisive analysis of the challenge

– Engaged senior executives

– Business operations involved

Lessons Learned:

– Corporate change must be led from the top

– Aligned metrics are essential

– Clear communications to all stakeholders

is key

Case Study: Industrial Manufacturer Embraces Change Management as Fundamental to Advancing Its PLM Maturity

#GartnerSYM


Create the proper leadership team:

– Organizations must understand their maturity level to define governance style

– Make a compelling business case to get senior executive support

– Establish a governance team including IT, business operations and executives

Establish best governance practices:

– Measure what matters

– Evaluate the key risk factors and mitigate them at each maturity stage

– Adopt technologies that are "appropriately" mature for the business opportunity

Adopt a maturity model and execute against it:

– Invest in change management planning

Key Recommendations

#GartnerSYM


Thank You!Email: [email protected]

Twitter: @mrhalpern4353

mailto:[email protected]

enabling product innovation platformspdteurope.com/.../2016/07/1-2-gartner...platforms.pdf · this...

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