Companies are investing in the right direction and must continue to do so!
By: Jagmeet Singh, Vice President and Global Head of Digital Engineering Advisory Practice, Cyient
Product engineering, as a core function within organizations, is undergoing significant transformation due to the rise of digital technologies. One of the main challenges many organizations face is determining how to allocate 70% of their engineering budget to “changing the business” rather than merely “running the business.” Tackling this challenge has given rise to emerging trends that are influencing decisions and investments.
Trend 1 – Engineering Data Thread
Core engineering tools such as CAD, CAM, CAE and PLM have significantly advanced product development within engineering organizations. However, despite these advancements, achieving complete data connectivity and traceability remains elusive. Data is transmitted through interfaces and system integrations, but manual, offline manipulation often disrupts the data thread. There is a concerted effort to enhance this data thread by addressing the finer details of information exchange and ensuring digital connectivity. Since the cost of change is most manageable during the design and engineering phase, improving the Engineering Data Thread is crucial. The goal is to streamline and optimize engineering processes, ensuring that all relevant data is accessible, accurate, and effectively utilized from initial design through to the stages before data is handed over to other units.
Trend 2 – Burden of Engineering Legacy Tools
As engineering organizations have evolved alongside technological advancements, their tool stacks have expanded to keep pace. This growth has resulted in a multitude of utilities, accelerators, boutique solutions, and custom scripts that have accumulated over the years. Managing this growing pile, along with its associated maintenance burden, has become costly and challenging. The lack of single ownership, knowledge retention issues, and the deep integration of some legacy tools further complicate the situation. Organizations are now recognizing the need to address these challenges. Investments are being made to simplify and manage the tool stack through consolidations, upgrades, automation, and other methods to ensure resources are directed towards business growth, product innovation, and competitive advantage.
Trend 3 – PLM Value Realization
Product Lifecycle Management (PLM) is lauded as a central system for managing the entire product lifecycle, integrating data across various enterprise systems. However, the complexity of PLM tools, which must interface with ERP, CRM, MES, and other systems, often complicates their effective implementation. PLM systems are designed to streamline processes and enhance data visibility from design to manufacturing, but their customization to organizational needs and integration with existing systems can lead to fragmented implementations. Some organizations have multi-flavours and installations of PLM to serve different needs, hence complicating the definition and value from PLM. Acquisitions have further complicated the role and value realization from the PLM. Hence, the true value of PLM is seldom discussed and is even calculated. This is now getting noticed. Engineering organizations are articulating clear definitions and roadmaps to manage the product data information and its lifecycle view. The intent is clear – they want to ensure that PLM is leveraged to its full potential and its value is realized in helping the organizations innovate products faster, better and cheaper.
Conclusion
While discussions often focus on how AI will transform engineering, the core engineering functions and tools, which AI will take time to affect, also play a crucial role. The complexity within engineering organizations is significant and often underappreciated. These organizations are at the forefront of product innovation and must focus on current investment trends to meet their needs. Engineering organizations have historically adapted to technological changes and will continue to do so. However, they must remain vigilant to avoid accumulating a tool stack that could become a financial burden. A continuous refresh cycle of engineering tools is essential for maintaining a balance between innovation and cost-efficiency.