The Multiplication of Disruption

Jamie Gooch

With apologies to my third-grade teacher, I have to confess that I hated learning multiplication. I remember splitting into teams, half the class against the other. A student from each team went up to the chalkboard (back when the boards were not “smart”) and raced to solve a simple multiplication problem, with their teammates cheering/jeering them on.

It was intended to be a fun way to see who had memorized their multiplication tables. I was still evaluating the theories behind addition vs. multiplication, I suppose, or maybe I was just too lazy to memorize the tables. At any rate, I was not fast. Our team often lost.

The Disruption Race is On

As advances in technology converge, companies today are racing to multiply the benefits. What will sensor technologies times simulation times augmented reality equal? What’s the result of system engineering collaboration among mechanical, electrical and software disciplines multiplied by the cloud? What is the product of a digital workflow, additive manufacturing and artificial intelligence? If Becky uses advanced materials with optimization multiplied by automated hybrid manufacturing and Johnny does not, how long will Johnny’s company be in business? The list goes on and on.

The solutions to the obstacles and opportunities caused by technology convergence and business disruption are quickly becoming less theoretical (digital twins, the digital thread, the factory of the future) and more concrete (realized cost savings, new business opportunities, faster time to market), but no less impressive.

At the Siemens Industry Analyst Conference last month, for instance, the company brought Gilberto Ceresa, CIO of EMEA and Latin America operations for Fiat/Chrysler Automotive (FCA), to the stage to discuss how the company is responding to disruption. Ceresa said the merger of Fiat and Chrysler “provided excellent training” for quickly responding to the three major transformations the auto industry is experiencing: the changing role of the driver given a future of autonomous vehicles, the evolution of car ownership and how cars will be fueled.

“Product development engineers and process development engineers are working on the same digital platform,” he said of FCA’s initiative to take advantage of those disruptions. “This platform is a simulation tool that allows engineers to test vehicles in the early stages of the process.”

The platform, which uses Siemens Teamcenter as a backbone, allows FCA to identify problems before physically building anything. It is part of the company’s broader digitalization efforts. “Digitalization will become more and more fundamental to linking the company and its customer, all along the stages of the car’s lifecycle, before and after the sale,” Ceresa said.

Reluctance Out of the Gate

But not all companies are moving as quickly as FCA, and to some startups that embrace the fail fast, learn fast motto, FCA’s pace may seem cautious by comparison.

“Our biggest challenge is customer inertia, getting them to embrace all the technology we’re talking about,” said Tony Hemmelgarn, president and CEO of Siemens PLM Software, during his keynote at the conference. “There’s a lot here. Some of our customers embrace it right away. Some will evaluate, and evaluate and evaluate and decide not to move.”

Timing is everything. Early adopters can get cut by the bleeding edge, but many of digitalization’s multipliers have been shown as tried-and-true productivity enhancers on their own. Still, understanding how the technologies will converge as part of the Internet of Things or a full digital thread can be intimidating. Companies can be paralyzed by indecision on when to jump in, or where to begin.

The good news is, you don’t need to see into the future to move forward along the path to digitalization. Whatever happens will be driven by data, so a solid first step—like the one made by FCA—is to ensure everyone is able to make use of the data to work together efficiently. Start small and be prepared to fail and learn like a startup—or like me in third grade learning multiplication—but start.

Jamie Gooch is editorial director of Digital Engineering. Contact him via [email protected].