For years now, digitalization has been the driving force behind the technological innovation and transformation process in industrial value creation. Today’s rigid and predefined value chains are increasingly being replaced through the use of cyber-physical systems (CPS), which can combine their resources and functionalities within a higher-level networked system, the so-called System of Systems. Driven by the increased pressure to increase profitability and accelerate time-to-value while simultaneously complying with numerous approval requirements and verification obligations, the ongoing intelligent and dynamic interlinking of technologies and products to form advanced systems entails a high degree of complexity for companies and represents a far-reaching paradigm shift in product development and product portfolio management.

Many companies have recognized that this complexity cannot be managed without well-structured concepts for the design and harmonization of these increasingly interdisciplinary development processes and organizations. In Product Strategy & Lifecycle Management, we therefore use a 360-degree approach to transformation projects with respect to integrated, systems-based product development and product data management across the product lifecycle. 

Systems Engineering

The progressive transition to sophisticated cyber-physical products with their respective event chains and the need to manage the attendant complexity of interdisciplinary development processes calls for the cross-industry implementation of the technological as well as organizational aspects of systems engineering processes and methodology. For companies, this integrative approach requires a new way of thinking and action due to the need for interdisciplinary collaboration along the value chain and across multiple levels of organizational boundaries. Systems engineering allows for the definition of heterogeneous customer requirements and necessary functionalities for the entire system at an early stage of the development process through stringent processes in areas such as requirements and architecture management. Working in coordination with the respective domain-specific stakeholders, the draft plan can then be updated throughout the system as a whole at the subsystem and component level. It is also essential to plan the development of the system by working backwards from the endpoint. In concrete terms, this entails asking how system integration, validation and verification in the product development process can be designed efficiently for the intended SOP.

Transformation of development processes

We support engineering departments during the end-to-end transformation of development processes, methods and tools against a backdrop of increasingly complex product development. Our primary goal is to establish systems engineering transformation strategies for interdisciplinary, digital, and agile development processes. 

Strategic reshaping of product engineering departments

In specific terms, we answer the question of how a cross-disciplinary functional and systems orientation can be achieved. By applying our real-world experience, we work with our customers to strategically reorganize product development departments with the aim of creating a matrix organization based around functional and systems responsibilities. During this process, we remain abreast of new trends in agile software and systems development. By collaborating with our customers in this manner, we lay the foundation for the future sustainability as well as profitability of their operations.

Management of product complexity

 Many companies want to know how they will need to structure their systems in the future. Together with our customers, we develop new benchmarks for functional and system structures based upon our experience from their industry while also incorporating lessons learned from other industries. To help manage ever-increasing product complexity, we advise our customers on the strategic use of Model Based Systems Engineering (MBSE) practices. Of key interest here is the creation of completely digitalized development processes with traceable interrelationships between product development artifacts.

Product Lifecycle Management (PLM)

All products have a lifecycle that extends from the initial product idea or innovation to development, production, service operations and then recycling. The underlying IT systems form the System of Records, which is used to manage the product data in the product lifecycle and to link it with other IT systems in a company's value chain. This is the focus of PLM (Product Lifecycle Management). Within the context of digitalization, it is important to consolidate this company data pool and allow greater openness with respect to data accessibility, or the processing of data in a system of engagement, so as to increase the speed of company processes. This can be accomplished through solutions such as user-friendly apps, or the use of techniques such as big data and analytics. It is furthermore beneficial to optimize the flow of data across the value chain, for instance when shared with MRP, ERP or aftermarket operations. The aforementioned practices are essential in the successful development of use cases for the digital twin, which becomes more accurate when a use case can be constructed broadly across several business processes. Using our in-depth process knowledge and technical expertise, we transform the results of our strategy consulting into operational organizations and systems. We serve as the link between business operations, architecture consulting, IT/PLM and solutions providers. We optimize value streams in product innovation, product development, manufacturing and project management to meet the challenges of digitalization and product transformation.We support our customers in the selection, conception, specification and especially the implementation of ALM/PLM systems within the company and across the extended development environment. To do this, we work in close coordination with leading system providers. Our consultants possess many years of experience and are aware of what matters most when integrating these types of systems within a company.

Maturity assessment, potential evaluation, and supplier selection

We identify added value potential and incorporate this into specific implementation proposals. We identify the optimal PMT (Processes-Methods-Tools) mix which enables our customers to achieve their PLM objectives. For this, we provide a vendor-agnostic overview of the market for potential solutions / providers while applying our proven benchmarking methodology. With our experience and expertise, we support our customers in merging corporate strategy and organization into a holistic architecture. We advise our clients on the restructuring of their organizational architecture in order to make them more agile and better positioned for future technologies. We improve enterprise optimization processes, in addition to defining efficient data architectures and data exchange processes across enterprise systems.

Product Lifecycle Management (PLM) solutioning and process consulting / R&D methodology

We plan the implementation or modification of PLM systems, supply the necessary solution architecture, oversee the installation of relevant technology solutions, and manage the subsequent rollout. To this end, we provide expertise with respect to process landscapes, R&D methodology, solutions architectures, implementation planning, deployment of market-leading solutions, data migration, and organizational change management.

Application Lifecycle Management (ALM) solutioning and process consulting / R&D methodology

We offer the same services for ALM as for PLM. Due to the growing importance of product software and agile practices, both of these subject areas are increasingly growing together and must be integrated accordingly. This can be accomplished using our consulting services for development processes, or in the synergistic integration of technology solutions or data between both areas. Examples here include the merging of agile development with the traditional V-cycle, the use of identical technology solutions in the context of requirements management or testing, and also within the context of traceability. We believe that more extensive ALM / PLM integration remains an essential requirement for complex development organization, which we support in a strategically targeted fashion.

Engineering Change Management (ECM)

The ECM process is an essential part of the PLM process that describes the functions and processes for the controlled and documented modification of products. Nearly all PLM processes are activated when changes to the form, fit or function of a product are made. All of these “form-fit-function” changes can affect quality, costs and delivery dates and must therefore be systematically planned, coordinated, and implemented as quickly and cost-effectively as possible. We support you not only in the creation, optimization, and implementation of ECM processes but also in the introduction of ECM tools and the optimal management of your PLM application landscape. An end-to-end ECM process offers many benefits, such as traceability of the master data in use across system boundaries, unequivocal assignment of master data and validities, and allocation of activities and tasks for planning and implementing changes within cross-functional change teams.

Software Development & Embedded Systems

The product portfolio is developing in all sectors towards complex cyber-physical products. This growth is driven by the interlinking of embedded systems, intelligent sensors, machine learning / artificial intelligence and software-defined products. At the same time, the reduced cost of electronics and connectivity means that cyber-physical systems (CPS) are suitable for a wide range of possible applications and are increasingly finding their way into industry and infrastructure. Cyber-physical products are characterized by their high degree of complexity owing to their need to satisfy a multitude of requirements:

• Continuous compliance with regulatory requirements and verification obligations
• Rapid development of new standards to be integrated during the product lifecycle
• Over the air software updates
• Protection of intellectual property and against infringement of third-party copyrights
• Integration of electronics/software into higher-level systems

Mastering the complexity of such systems is a competitive advantage. This is why we offer a variety of services and best practices to manage this complexity while reducing development expenditures

Software Development

Deloitte provides software development best practices for the following: 

• Agile software development with a focus on embedded systems
• Concepts for model and data-centric development
• Software engineering integration into systems development based on standards such as INCOSE/ASPICE
• Concepts and solutions for DevOps pipelines with hardware-in-the-loop/field data testing integration
• Development of solutions in ecosystems (embedded/cloud/apps)

Decoupling allows for the agilization of both hardware and software development. The software can be tested independently of the hardware using virtual simulation environments. At the same time, hardware development can be agileized so that hardware prototypes can be created and tested for functionality in sprints.

In Product Strategy & Lifecycle Management, we offer best practices for the integration and verification of software, hardware and mechanical systems. Compatibility of components can be evaluated automatically and verification ranges can be suggested based on comprehensive rules-based compatibility management processes.

Digital Twin / Thread

The digital thread forms the cornerstone of a successful transformation process within the value chain which ensures transparency and data continuity throughout the entire product lifecycle. A tailor-made digital thread can create consistency and encourage collaboration by aligning multiple functions and workflows with a robust data set. Depending on the needs of our customers, we utilize a variety of approaches which include:

• Model-based enterprise – this uses the digital model as a “single source of truth” for the entire value chain and allows our customers to optimize their processes while also improving design quality.
• Product data X-ray (DPDx) – this combines digital technologies with our industry expertise to help you better understand your data, specify a data strategy, and accelerate the digitalization of unstructured data.
• PCCM (Product Cost and Complexity Management) analyses identify opportunities for cost reduction and quality improvement through benchmark-based cost reductions and product cost breakdowns over the entire life cycle.
• IndustryPrint™ (DPLM) significantly reduces implementation times (think months, not years). We have found that 80% of the processes within an industry are mostly similar. For this reason, we have created out-of-the-box solutions that leverage industry best practices while also maintaining a focus on customer-specific content.

Product & Regulatory Compliance

The efficient development of innovative products and services is essential for sustainable competitiveness. At the same time, regulatory requirements are also increasing along with the rapidly increasing capabilities of components and thus of the entire vehicle, in order to ensure the associated product compliance, an efficient infrastructure in the area of the entire product life cycle management becomes increasingly necessary. Regulatory requirements are on the rise as a result of increased complexity. Currently, product compliance activities in many companies are spread out over several different departments and initiatives, and frequently these only focus on specific sub-areas. Often a lack of process and organizational skills can be observed, along with limited resources. What is called for in such cases is the establishment of a management system for product integrity, which entails embedding sustainable organizational and procedural practices within the company. Our experience shows that many companies can no longer adequately and efficiently manage the flood of binding obligations in their various markets. This includes legal and government regulations, in addition to their associated changes and implementation dates which apply to entire economic regions, countries, and individual states/provinces. This is exacerbated by the increasing intensity of regulation stemming from the increasing complexity of products. These products are systems and subsystems (systems of systems), which in turn have interfaces shared with other systems (systems of interest). For this reason, product compliance is a multidisciplinary theme in Deloitte’s catalog of offerings which extends from the process portfolio to requirements-based development, approval, and the entire life cycle until the end of the product’s life.