The Economic Side of PLM
As prices for just about everything continue to rise, sustainability is earning it’s place in the spotlight over efficiency. PLM may indicate whether a product is created more efficiency, but is it a product that should be created in the first place? Products that don’t incorporate sustainability have been facing greater scrutiny in recent years, and today’s guest would argue that there is a better way to think about PLM. On this episode of The Digital Enterprise Society podcast, Thom Singer and Craig Brown welcome back Patrick Hillberg for a conversation about the economic side of product development. On today’s podcast, you will learn: What drives economies? What would happen if the demand for oil diminished greatly? $100 per gallon oil would drastically change the demand for oil. Externalities are the costs associated with a transaction that are not borne by the producer or the consumer. As our understanding of our impact increases, externalities also increase in their effect. Increasing sustainability in PLM Most leaders agree that sustainability needs to be addressed. Redefining PLM is a critical step to incorporating sustainability as PLM doesn’t tell you if you’re making the wrong product. PLM only helps with improving the efficiency of whatever product you’re making. Digital disruptions caused by the pandemic- and Zoom specifically- have improved efficiency. How do disruptions change PLM? MPL- managing product lifecycle- might be a superior approach than PLM. This approach focuses more on creating products that bring the greatest value to society. PLM has become a very technical topic that often misses the business aspect. Fossil fuels and batteries are an example of PLM disruptions. Engineering toward sustainability The skills of digital engineering are transferable, and can be redirected toward more sustainable efforts. The electronic and mechanical worlds are intersecting as both are working toward greater sustainability. Patrick’s new paper, “What if gasoline were $100?” argues that high density power might not be available and that we should start thinking about correcting for it now. Efficiency often misses out on innovation and resilience, a problem that digital factory twins can help resolve. Continue the conversation with us within the Digital Enterprise Society Community at DigitalEnterpriseSociety.org. Digital Download: Virtual Round-Table Series