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Transforming Product Design and Energizing Innovation With Digital PLM
Transforming Product Design and Energizing Innovation With Digital PLM
May 2019
Contents
“Don’t think you have to be the disrupter to win. A fast-following disruptee will do
very well if you can bring your existing customers and ecosystem along with you.”
> Geoffrey Moore, Zone to Win: Organizing to Compete in an Age of Disruption
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The solution
Digital product lifecycle management (PLM) captures data from the entire product lifecycle, from customers as well
as partners, including suppliers of parts, consumables and services, to provide a far more complete view of how a
product is used and creates value.
Businesses benefit from more accurate and timely manufacturers could only update their products connectedness, from product launch through
data about not only the design-to-manufacture at fixed intervals based on static, anecdotal or to its disposal, recycling or reuse. This allows for
phases of the product, but also the “acquire,” incomplete data, such as customer surveys and “closed-loop” product development, in which
“consume” and “discard” phases when the feedback from dealers or distributors. Today, real-time feedback about customer needs and
customer owns the product – a point at which more intelligent and connected devices allow preferences is designed into the next version of a
manufacturers historically have had only partial real-time, agile and comprehensive analysis of product to increase its success.
or delayed information. In the pre-digital world, customer behavior, usage patterns and social
Digital PLM creates an “enterprise digital thread” of data, linking the complete product lifecycle …
PRODUCT CUSTOMER
Sell Design
Location
Social interactions
Assemble
Manufacture
Usage records
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5 / Transforming Product Design and Energizing Innovation with Digital PLM
With the resulting insights, manufacturers can
make better decisions in the next phase of No ordinary bottle DATE BOTTLED
product design, provide superior service, enhance Alerts retailer on when to rotate stock.
products and speed innovation. Using PLM data
to prove the when, where and how products were
created (such as for Fair Trade coffee) is the new TIME ON SHELF
Informs distributor or store owner
frontier to gaining trust and building brands. how long inventory sits on shelf.
Today, more intelligent and connected devices allow real-time, agile and comprehen-
sive analysis of customer behavior, usage patterns and social connectedness, from
product launch through to its disposal, recycling or reuse.
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Five guiding principles for digital PLM
01 ESTABLISH DIGITAL
CAPABILITIES
EMBRACE SCALE
Put in place the people,
Maximize revenue, profits and
processes and technology
market share with global
capabilities and skills to
rollout and multisite
implementations.
05 02 lead from the front.
What it means: Transform splintered, siloed How it’s accomplished: Businesses need to One approach is to move product data from an
product data into holistic insights usable by articulate how product data is created and can existing PLM system into a new “big data PLM”
everyone from R&D to support, manufacturing and be used by internal and external stakeholders, database that maintains the PLM hierarchical
legal business functions. and then build a unified information flow that data structure and relationships model and
establishes the PLM system as the central also provides near-real-time information, on
Why it’s important: Sharing information repository of all PLM data and the driver of all demand, to all stakeholders in a product data as
throughout the ecosystem creates a real-time, product development decisions. Organizations also a service (PDaaS) model.
easily usable closed loop of insights gained from need to tailor data structures, delivery mechanisms
field performance, customers and engineering and the user interface to the needs of PLM users,
to drive next-generation product strategy. It also while reducing management overhead and
enables decision makers to spend more time maximizing operational agility and flexibility.
analyzing data vs. looking for it.
!
ORDER REPORTS HERE !
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2. Establish digital capabilities
The focus should be on developing key PLM skills and training the existing
workforce on capabilities around cloud, big data, business analytics and
artificial intelligence.
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3. Generate business value from informed decisions
What it means: Turn raw data into informed ❙❙ Instant feedback to research and development
decisions by analyzing multiple scenarios and and design on the features, price points and
understanding how multiple factors – such as designs customers want most.
markets, customer segments, price points and ❙❙ Greater confidence in decisions and more
features – affect each other. precise estimates of value because these are
Why it’s important: A product may appear to based on comprehensive, real-time data.
fail because it has the wrong set of features, poor ❙❙ Less rework to product design and last-minute
quality, inadequate performance or poor pricing. changes due to incomplete or improper decisions.
But each of these defects is the result of a bad ❙❙ The ability to help product ecosystem partners,
decision made by someone using available data such as component suppliers and service
and applying his or her own perception of its effect providers, improve their offerings and (by
on the business. extension) the business’s.
By analyzing data from sensors embedded within How it’s accomplished: It’s essential to speed
products, captured on-demand and in real-time, the analytics process to reduce the time it takes
using modern platforms such as cloud, businesses to find, collect, analyze and present usable data design-to-manufacture phase to the consumption
can enable: to marketers and product designers. Businesses phase, such as data about product reliability,
also need to extend data collection beyond the consumer usage and social media reviews.
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4. Connect stakeholders
Manufacturers and their business partners today need easier, faster access
to quality data.
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Product ecosystem: drug infuser
Ecosystem member Available data Business uses of the data
Manufacturer Frequency of use, mean time between Understand product reliability and performance and all
failure, repair and software update components within it. Refine design of future products. Hold
records, error codes (real and false alarms) components vendors accountable for defects in their products.
performance of individual components.
Customer (hospital or healthcare facility) Frequency of use, mean time between Track total cost of ownership for the device vs. revenue from
failure, repair and software update its use. Evaluate device performance from multiple vendors to
records, error codes, amount and type of guide future product choices. Compare treatment histories
medication dispensed. with medical outcomes to improve care.
Parts supplier (pumps, monitors, valves, Which components were used in which Improve design of future components. Track warranty/repair
chips, control software) devices, and their performance and costs. Prove proper operation of the component to avoid
problem histories. liability. Prove component performance to drive sales to other
manufacturers.
Consumables supplier (drugs, medication or Which supplies were used by which device Better understand usage patterns to guide future design.
other treatment dispensed by the product; and when. Work with consumables vendors to make their products easier
hoses, needles, cleaning agents needed for to use with the infuser design. Possible just-in-time delivery
each use) of consumables based on usage history to minimize hospital
inventory costs.
Service provider (performs ongoing How often repair or preventive Provide product usage insights to manufacturer for a fee or
calibration, preventive maintenance, repair, maintenance was needed, and what kind; to gain preferred partner status and end-customer referrals.
training) which product features were easiest/ Optimize service scheduling and pricing. Improve training
hardest for care givers to use. curriculum.
Medical insurer What services were provided by the Refine policies to ensure coverage is available for treatments
device, to whom, how often, for what that provide the best outcomes. Specify use of infusers that
conditions and treatment outcomes. provide the most accurate and effective treatment.
Prescriber (determines when and how the What services were provided by the Refine policies to ensure coverage is available for treatments
device is used and what dosage of which device, to whom, how often, for what that provide the best outcomes. Specify use of infusers that
treatments should be administered) conditions and treatment outcomes. provide the most accurate and effective treatment.
User (nurses and others who configure Whether treatment was administered Monitor quality of patient care. Identify requirements for device
the settings on the device, add the proper successfully, the caregiver responsible, maintenance or caregiver training.
medication and begin and end treatment for actual flow rates vs. those prescribed, error
patients) codes.
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5. Embrace scale
What it is: Maximize revenue, profits and companies access and analyze information about centric ambassadors that ensures just enough
market share with global rollout and multi-site how customers use their products more quickly customization is done to meet local needs.
implementations. and easily than ever before, and to produce local Organizations also need to feed the PLM system
variants more quickly, possibly even contextualized with data from customer-facing systems to
Why it’s important: Digital makes it more possible, to personalized needs. understand customer needs and create workflows
and more essential, to tackle global markets with to identify essential local needs.
world-class 24x7 service while capturing customer How it’s accomplished: Businesses need to
needs and sharing ideas with global teams. standardize as much of the product design
Approaching PLM from a digital perspective helps as possible, using a team of global customer-
Heated, massaging rear seats for owners who are typically driven.
Digital makes it more possible, and more essential, to tackle global markets
with world-class 24x7 service while capturing customer needs and sharing
ideas with global teams.
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Looking ahead
The use of PLM in a digital context will fundamentally change relationships (for the better)
with customers and product designers, as well as the business model. Four essential
components for getting started with digital PLM include:
Brainstorm how to use product data for your business and others in the product ecosystem. Cut costs through
reduced support calls, returns and recalls. Boost revenue through improved quality, sales of parts and consumables,
and improved products or sales/advertising driven by your understanding of customer usage trends.
Company A tracks reliability, Company A sells that data to the …which uses that data to
accuracy of industrial laser on laser manufacturer… improve the laser and prove its
production line. performance to other customers.
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2 Focus on the customer
“Sell washing machine repair “Sell washing machine usage data “Use customer support records to
history to parts providers …” to water district to encourage improve product design …”
conservation …”
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3 Orchestrate new processes and business models
”How do we build a community of “What other product and service “How do we convince R&D
app developers to enhance this vendors touch our product to trust our product data and
device?” throughout its lifecycle?” feedback from the support staff?”
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4 Assess your product data maturity
The changes unleashed by digital will make the next 10 years both challenging and vastly rewarding to those
who can master the collection, analysis and use of product data. The ability to listen more closely than ever to
the customer – or partner with someone who can – will fuel massive value creation as the blending of a product’s
physical characteristics with its virtual capabilities becomes the rule rather than the exception.
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18 / Transforming Product Design and Energizing Innovation with Digital PLM
Acknowledgments Learn More
Hardik Kansupada is a Senior Director within Cognizant’s Connected Products Practice. He has over 22 years of Take the first step to assess
experience in product development, innovation, PLM, quality management systems, product compliance and product your digital PLM maturity
portfolio management(PPM). Hardik specializes in helping organizations convert digital solutions to reality. He can be and contact us at
reached at Hardik.Kansupada@cognizant.com | https://www.linkedin.com/in/hardik-k. www.cognizant.com/plm.
Jagmeet Singh is a Director within Cognizant’s Connected Products Practice. He has more than 20 years of
experience and specializes in helping companies design and build digital solutions for their products, platforms
and processes. Jagmeet has a degree in automobile engineering from India and executive leadership education
in corporate innovation from Stanford Graduate School of Business, U.S. He can be reached at Jagmeet.Singh@
cognizant.com | https://www.linkedin.com/in/sjagmeet.
About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology
models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient businesses.
Headquartered in the U.S., Cognizant is ranked 195 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn
how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.
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