Thoughts from the Plane: Unlocking the Link Between PIM and PLM

Amidst the stack of articles I downloaded for reading on my flight back from the Philippines, one in particular stood out - a Concept Paper titled "Managing Circular Business Model Uncertainties with Future Adaptive Design" from the Sustainable Business Unit at RISE Research Institutes of Sweden. The paper not only reinforced my existing beliefs but also shed light on the crucial connection between Product Information Management (PIM) and Product Lifecycle Management (PLM). Let me explore how I think this Concept Paper underscores the significance of this link.

Introduction: Embracing Circular Business Models

The journey towards sustainability in the business world has taken many twists and turns over the years. During the emergence of mass production and consumption, our global manufacturing industry propelled itself forward through linear business models (LBM). These models, by today's standards, are viewed as wasteful and environmentally detrimental. They championed a "take, make, use, and lose" approach, contributing to rapid resource depletion and environmental degradation.

However, the clarion call for a circular economy has emerged, offering an alternative model to address the environmental challenges posed by LBMs. This circular economy, which champions product life extension, is central to slowing resource depletion and reducing the environmental footprint of our economic activities. Embracing circular business models (CBMs), companies can retain significant economic value in their products, while also lessening the environmental impact of their production.?

Circular Business Models and Product Life Extension

In the world of CBMs, product life extension takes center stage. It is widely considered one of the most promising means of slowing down resource flows and limiting the inflow of materials and energy into our economic system. Moreover, product life extension is expected to provide firms with economic opportunities; by adopting circular business models (CBMs), firms may be able to preserve much of the economic value added to products during their production and reduce the environmental burdens associated with these products. Thus, longer product lifetimes are considered central to the value creation logic in CBMs.

Recent research has focused on CBMs and their typologies for creating, delivering, and capturing value through product life extension. However, one formidable challenge looms – premature obsolescence. This occurs when products lose their perceived economic value before their intended lifespan expires. Future uncertainties, those hard-to-predict changes in product contexts, pose a substantial threat to CBMs. To mitigate this risk, the concept of "Future Adaptive Design" emerges as a potential solution which is very well described in the Concept Paper.

Future Adaptive Design: Navigating Uncertain Waters

Future uncertainties can be defined as hard-to-predict changes in product contexts (e.g., stylistic trends, technological compatibility, legal conditions) occurring over the (planned) duration of a product's lifetime and leading to a foreshortening of a product's intended life. This Concept Paper, "Managing Circular Business Model Uncertainties with Future Adaptive Design," makes a compelling case for designing products that can adapt to future uncertainties.

The central argument is clear: to avert the onset of premature obsolescence, we must design products that can adapt to unforeseen changes. The conventional approach of designing products with a fixed, unchangeable structure is no longer sufficient in the dynamic landscape of CBMs. Instead, they call for the need "Future Adaptive Design" - and I fully agree.

From Adaptability to Circular Business Models

Adaptable design research provides a useful starting point in helping to develop and establish guidelines for Future Adaptive Design. However, to date, there appears to be little effort focused on combining adaptable design with circular economy research. This could be in part because traditional adaptable design approaches present a high threshold for usage during CBM innovation processes.

Most existing CBM innovation tools are qualitative in nature and focused on generating initial concepts, whereas adaptable design methods are the opposite: quantitative and detailed-oriented. Thus, the technical and quantitative approaches required in adaptable design may be prohibitively challenging for use in CBM development. Therefore, this conceptual paper addresses the following research question:

For companies wanting to adopt circular business models, what design strategies could help products adapt to future uncertainties, thus reducing the risk of premature product obsolescence?

The paper proceeds as follows: Section 2 presents an overview of their approach. Sections 3 and 4 summarize existing literature from within design engineering and circular economy research. Section 5 details how Future Adaptive Design could be operationalized for CBMs by introducing a conceptual framework of strategies oriented towards product design and business development. Section 6 reflects on limitations, outlines future research, and draws conclusions for designers, business developers, and researchers.

Product Adaptability: The Key to Circular Business Models

In the context of circular business models, the focus inevitably shifts to product adaptability. Product adaptability encompasses various elements such as flexibility, upgradability, and modularity, which collectively contribute to a product's ability to endure and remain relevant over time.

• Flexibility: This refers to a product's capacity to perform different functions without substantial alterations.
• Upgradability: This is the ability to make changes to a product to enhance its performance or meet new requirements.
• Modularity: Products designed with modularity in mind have a segregated architecture, allowing parts and sub-components to detach easily.?

Challenges in Circular Business Models

Circular business models, as referred to by Linder & Williander in the Concept Paper, revolve around deriving value from products after their use in the production of new offerings. This shift from the traditional linear approach poses unique challenges. In linear business models, the focus is on manufacturing and selling new products, often resulting in short product cycles. These cycles, while lucrative for businesses, contribute significantly to resource consumption and waste.

In CBMs, future uncertainties play a pivotal role in product obsolescence. These uncertainties stem from various factors, including changes in stylistic trends, technological compatibility, and legal conditions. This is a critical distinction from obsolescence solely due to a lack of physical durability. In CBMs, obsolescence can occur even when a product is still functional, making it undesirable to users due to factors like aesthetics and changing preferences.

Addressing Future Uncertainties with Future Adaptive Design

To address these challenges, Future Adaptive Design proposes a set of strategies that companies can employ in the design of their products within CBMs:

• Multilayered Modularity and Interoperability: This strategy focuses on creating products with a layered architecture, allowing components to be interchanged and updated independently. This approach facilitates product adjustments and updates in response to unforeseen changes in context, reducing the risk of obsolescence. One key aspect of Multilayered Modularity and Interoperability is developing a layer-based product architecture that enables a product's components to be interchanged and updated as independently as possible. If layer-based product architecture is applied, changes can be made to one layer without affecting the other layers. This helps combat obsolescence and assists in product value being more easily maintained over time, as various updates to a product can be done layer by layer. Interoperability, or the ability for these layers to remain compatible with each other, is a prerequisite to these layers working together because premature product obsolescence will occur if current and future product modules have conflicts and cannot work together.

• Lifecycle Service Planning: This strategy involves planning interventions to maximize a product's lifetime. By foreseeing potential future uncertainties, companies can identify when specific product components may need replacement, addressing issues before they lead to obsolescence. In Lifecycle Service Planning, scenarios are created for the replacement of specific product components due to anticipated future uncertainties. For example, necessary component replacement can arise due to anticipated technical failure. However, changing aesthetic trends, new standards, or upcoming regulations are much harder to anticipate.

• Continuous Service Innovation: Continuous Service Innovation builds upon design strategies like flexibility and service-oriented design. It advocates the use of service offerings to address obsolescence and keep products relevant in light of unexpected changes in context. In contrast with Multilayered Modularity and Interoperability, which focuses on designing a product to allow for interventions, Continuous Service Innovation identifies which tangible (physical product) and intangible (service) interventions could be added throughout the product's lifecycle to prolong its use. Thus, in practice, Continuous Service Innovation could be deployed by monitoring current product usage or consumer behavior over the product lifecycle.?

Environmental Considerations

Extending product lifetimes is promoted as an important avenue to reduce environmental impacts. However, it's crucial to recognize that this isn't a one-size-fits-all solution. In some cases, replacing old products with more efficient ones may have a lower overall environmental impact. Thus, it's essential to conduct a comprehensive environmental assessment when considering product life extension strategies.

While the Future Adaptive Design framework doesn't specifically account for this, it can still contribute to environmental goals. For instance, Multilayered Modularity and Interoperability can enable the upgrading of inefficient product parts to improve product efficiencies. Moreover, a similar approach to balancing ecological costs (environmental impacts) could be integrated into the existing Future Adaptive Design framework. This would ensure that the pursuit of sustainability is not compromised while extending product lifetimes.

The Link Between PIM and PLM: A Vital Connection

As I journey deeper into the realm of circular business models and Future Adaptive Design, I again uncover the vital link between PIM and PLM. These two domains play pivotal roles in shaping the success of businesses as they adapt to circularity.?

The Digital Product Passport and Legal Requirements

In recent times, Europe has introduced the concept of the Digital Product Passport for products sold within its boundaries. This initiative aims to comprehensively track a product's journey, from production to disposal, ensuring transparency and adherence to sustainability standards. Similar legal requirements, such as California's regulations, have also emerged, demanding robust Product Data Governance.?

The Role of PIM and PLM

PIM is the central repository for managing and maintaining product data. It plays a crucial role in ensuring that accurate and up-to-date information about products is available throughout their lifecycle. On the other hand, PLM oversees the entire lifecycle of a product, from ideation and design to manufacturing and maintenance. While both PIM and PLM are formidable on their own, their true potential is realized when they work in tandem.

PIM's Contribution to Circular Business Models

PIM takes the lead in managing product data, ensuring that all stakeholders have access to accurate and consistent information. This becomes especially critical in circular business models, where the transparency of product data is paramount. With PIM, companies can efficiently manage and disseminate information about product materials, components, origins, and lifecycles.

Moreover, as we embrace Future Adaptive Design and its strategies, PIM becomes the backbone of data management. It holds the key to tracking the various layers and components within products, enabling Multilayered Modularity and Interoperability. PIM ensures that product data is organized, standardized, and readily accessible for necessary updates and adaptations.

PLM's Role in Orchestrating Circular Business Models

PLM plays a complementary role, overseeing the entire journey of a product. It ensures that design, manufacturing, maintenance, and eventual disposal are seamlessly integrated. In the context of circular business models and Future Adaptive Design, PLM takes charge of orchestrating the various interventions and updates.?

PLM's ability to map out a product's lifecycle aligns perfectly with the strategies of Lifecycle Service Planning and Continuous Service Innovation. It allows businesses to plan and execute interventions effectively, ensuring that products remain relevant and adaptable throughout their lifetimes.

Conclusion: The Symbiosis of PIM, PLM, and Future Adaptive Design

In the ever-evolving landscape of circular business models and Future Adaptive Design, one fact becomes abundantly clear: the synergy between PIM, PLM, and adaptable design strategies is the catalyst for success. These elements, when woven together effectively, empower companies to not only embrace sustainability and resource efficiency but also thrive in a marketplace marked by uncertainty and change.

As we prepare for the Digital Product Passport in Europe and navigate the complex web of legal requirements, Product Data Governance emerges as a linchpin. PIM and PLM must seamlessly integrate to ensure that product data flows unimpeded throughout the entire product journey, from design to disposal.

The successful adoption of circular business models hinges on this intricate interplay between Future Adaptive Design, PIM, and PLM. These elements, when combined effectively, enable companies to champion sustainability, enhance adaptability, and drive economic value. The future of business is undoubtedly circular, and the journey begins with these intertwined pillars of success. As we embrace the uncertainties of tomorrow, we find solace in the knowledge that the link between PIM and PLM, fortified by the principles of Future Adaptive Design, will guide us towards a more sustainable and prosperous future.