BUSINESS: Research + Stats Global Companies Struggle to Meet Digital Thread Goals By Staff Thursday, September 19, 2024 11:39 AM Global manufacturers are increasingly adopting digital resources or product digital threads to stay ahead of the competition. A new report from Tech-Clarity, an independent research firm, titled Integrating Data and Processes Across the Product Digital Thread gathered and analyzed responses from 138 global companies that manufacture products or provide engineering services. The survey reveals that manufacturers are using digitally-based systems for product design and production. The shift, according to experts, comes from further emphasis on better data integration for programs run internally and across supply chains. According to the survey, 49 percent of respondents believe the digital thread is important or critical to their company’s success and profitability. More businesses are reporting that they are achieving their digital thread goals to improve product information and decisions. The result is established traceability early in the front end of innovation through development, manufacturing, service and field operation. Nearly 70 percent of respondents said digital thread goals help improve product quality, while 55 percent said it assists with better decision-making. "The current challenge is that most manufacturers don't have fully integrated ERP, PLM, or supply chain systems, let alone integration across these and other domains that carry crucial product information," said Jim Brown, founder and president of Tech-Clarity, which published the report. "Yet, why have companies taken up the digital thread? Because achieving quality, efficiency, and better decision-making depend on it," Brown noted. "Over two-thirds of the participants in the study report that integrating data and applications across the product digital thread is important or critical to meeting their business goals." Experts note that better integration capabilities enable more effective integration at lower perceived investment. Eric Doubell, CEO of Razorleaf which commissioned the independent study, said the next frontier in productivity is optimizing the digital enterprise. "Companies have the data already in existing CAD, PDM, ERP and MES systems,” he said. “Now they need to make the data readily available and seamlessly usable across domains, then apply this information in flexible, targeted ways to their specific product and business needs. Systems-agnostic integrators can help automate the interconnection of custom, native, and best-in-class tools, making it easier for departments and suppliers to communicate and make accurate and faster decisions." Of the top performers, 19 percent said that achieving digital thread goals are being slowed by too much custom code, while 19 percent said integration is a significant challenge. Doubell said that overcoming this challenge means investing in better integration capabilities enables them to effectively maintain their digital product thread integration and adapt it as necessary to accommodate change. These combined capabilities, he added, allow companies to better overcome challenges and reach their product digital thread objectives.