Manufacturers Put Their Fate in the Hands of Software Providers

Sometimes it feels like software and IT have a stronger hype machine than most other industries. Often, there is a short gap between today’s inspired slogan and tomorrow’s tired cliché. One term in the latter category is Digital Transformation.

Everywhere I look these days, I see digital transformation – here, a digital topic – there. Oh, and don’t forget the digital twin.

Digital is everywhere, and while the rise of digital technology is real, digital transformation is one of the concepts most prone to hype and disappointment.

Too many IT initiatives have been described as transformative when all they ever did was provide people with tools to work more efficiently or make certain processes more effective.

Recently, I heard this at the ACE 2019 event in Arizona:

It’s easy to get excited about AI, AR, and 3D visual experiences. However, be realistic. The first step is to eliminate spreadsheets and paper documents – to get an accurate product data baseline. We’re not just talking about a digital CAD model but data that includes performance metrics, as-built parts, and historical maintenance work accessible to everyone from technicians to product managers.

Too often, I see this scenario in engineering teams at manufacturing companies, suppliers, and contractors. Most teams in these companies are still using Excel or some variant of spreadsheet solutions.

They love it for its flexibility, but they have reached a point where spreadsheets cannot be used as a reliable source of information.

Inspired by this, let’s agree on the following once and for all!

1. Upgrading software or improving the supply chain is not necessarily digital transformation!

Most transformational technologies in operations come from tried-and-true technologies such as databases and strategic systems like ERP or PDM/PLM software. It rarely comes from emerging or disruptive technologies like AR, AI, or machine learning.

Decision-makers at manufacturing companies should avoid digital buzzwords or getting caught up in hype when evaluating and selecting alternatives to their spreadsheet-based solutions.

2. Companies often don’t know what they really need!

Regarding the selection process, why don’t manufacturing companies take responsibility when evaluating new systems?

Consider this metaphor:

These companies want to compete in a Formula 1 race but choose their race car by only looking at the color, shape, and a short straight-line test. Two reasons why this approach is flawed:

• They didn’t examine the engine, a decisive factor for winning the race.
• They didn’t test the team’s ability to solve potential race-day issues.
• They didn’t try the car on different tracks with various settings.

Many manufacturers don’t spend enough time on details and only scratch the surface when defining requirements and evaluating available PLM solutions.

My question for these companies is: How can they know (and understand) what they really need if they don’t know what’s possible?

The real issue is that companies put their PLM fate in the hands of software providers by shaping requirements to fit a particular solution.

But the software provider doesn’t know the company’s DNA, so the risk of misalignment is high.

3. Make an informed decision this time!

Companies should remember that they are choosing a solution they will live with for a very long time. So why be careless in the selection process?

Do they care about a solution that truly addresses their business problems, or are they just adopting what a vendor selected for them?

It is only when companies truly understand their needs and requirements that they begin asking the right questions and defining accurate requirements.

Too often, it is done too late. The solution has already been chosen, and they cannot escape that scenario again.

My recommendation:

Whatever solution you ultimately purchase, put the responsibility in your own hands!

• Stop scratching the surface on selection criteria.
• Dive deeper into the evaluation process and carefully consider which solution you will live with for the next 5–10 years.

#digitaltransformation #innovation #withlimitations #sdevietnam

SDE Digital Technology Co., Ltd. (SDE TECH) was established in 2014. In 2018, we became a Smart Expert Partner – a leading Siemens Digital Industries Software partner in Southeast Asia – Pacific for Siemens NX (Unigraphics NX), Simcenter, Solid Edge, Tecnomatix, and Teamcenter solutions.

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