Horizon
A protective digital control layer for new technology development that unblocked early-phase revenue by redesigning the bridge between four enterprise systems
Value of early-phase revenue
$500,000+ USD
Cycle time reduction
> 65%
New digital governance capacity
Unlimited
The
Problem
Four different enterprise systems of the client — MES, PLM, ERP and CRM — were bound together by a single universal serial number locked one-to-one to a commercial part number. Governance held the PLM-to-ERP handoff closed until product maturation. But without any mechanism to enable system-based manufacturing including capacity planning or material procurement, the client was forced to forfeit revenue in the simple interests of delivering proof-of-concept to their customers. It was also impossible to scale-up efficiently to meet mass production needs, given the digital disconnect between pilot and mass production machinery.
The list goes on.
The Analogy
Imagine a country where a driver's license is issued exactly once, to exactly one person, and only after they pass the full road test. Both of them being sensible rules.
Now imagine there's no learner's permit. You can't practice, because practicing requires a license. You can't get the license, because getting it requires practice. Everyone knows you're a real person who will eventually drive - the system just has no way to say so.
The Challenges
Missed sample revenue
No transactable part numbers during early-phase builds, disabling revenue generation
Off-system procurement
Manual material purchases, outside of ERP and outside of the audit trail
Blind forecasting at ramp
Early volume data could not be uploaded, degrading accuracy at the worst moment
...and the numbers
$100,000+ annual spend
In addition to the client's own development spending, their slow cycle time mismatched their customers' timelines. As a result, the client estimates that it spent $100,000+ per year on premium freight shipments
$450,000 in lost sales
The closed-system design between the client's PLM and ERP prevented payments for prototype and sample deliveries, highlighting a substantial annual revenue loss for the client
20+ weeks cycle time
Grueling deployment timeline dramatically hampered the client from delivering prototypes and samples to customers, creating business development friction and eroding customer relations
The Solution
System Redesign
Without compromising the installed due diligence across the enterprise systems, it was critical to expand the data synapses and increase the available node network.
A critical juncture was found: the universal serial number.
System process map
BCP
Gates product maturity
Broken State
PLM
Owns universal serial number
1:1
Exclusive relationship
CRM
Owns commercial part number
Blocked
Until product maturity
The system bridges were built during a time when business cycles were considerably longer (over two years) and design cycles were linear.
ERP
Capacity and materials
MES
Manufacturing execution
In an industry where safety and quality are vitally important, preventing unreleased materials, processes, or products from accidental shipment is paramount. The governance between the PLM and MES-ERP stages was a critical gatekeeper to these industry requirements.
Free samples
No means to invoice
Manual purchases
Off-system material buys
Manual planning
Booked by hand
The inability to collect early and significant revenues on early-phase samples translated into capital-heavy expenditures without effective return to the client for 12-18 months. The combination of missing revenue streams and operational inefficiencies (linked to manual purchasing and production planning), created severe strains onto the client during any new product development.
From 1:1 to 1:n
With the process map mapped, the most flexible and influential node was the universal serial number (USN) and its existing relationship with the commercial part number.
If the commercial part number could remain unchanged while enabling multiple, independently traceable USNs, immediate relief to the downstream systems could be achieved.
Phase 1
Discovery
Identifying the data trace and failure points across the enterprise systems, while also collecting testimony among users and SMEs
Phase 2
Design
Defining the ideal end-state of the process, and reconstructing the data process management with the available tools. Innovations were deployed to address the gaps to the target end-state.
Phase 3
Pilot
Process and user testing to measure and iterate against the ideal end-state, while generating corner case studies to study "edge" gains for future ideation.
Phase 4
Deployment
Globalized roll out package inclusive of trainings, thought leadership, and multi-modal initiatives.
Excellence, delivered
System process map
BCP
Gates product maturity
Fixed State
PLM
Owns universal serial number
1:n
Unlimited states
CRM
Owns commercial part number
Optimized
Multiple maturities
By restructuring the enterprise system relationship and expanding the nodal capabilities, the problem set shifts vocabulary from "or" to "and". Multiple lifecycle maturities can be initiated and tracked independently, allowing true freedom for new product development.
ERP
Capacity and materials
MES
Manufacturing execution
There is no change or compromise to the high standards required in the client's industry, and the independent USNs enforce the safeguards that prevent unreleased materials, processes, or products from accidental shipment to the customer.
Sample revenue
Actionable returns
On-system buys
Fully traceable
On-system planning
Ramp-up visibility
The possibilities and opportunities afforded by the restructured USN model are near-endless; while originally designed for new product development, it is flexible for proliferations, controlled second sourcing, improved quality control, and beyond. Fully traceable material procurement and on-system production planning unlock significant efficiencies for the client and strengthen trust with their customer base.
Results
Value of early-phase revenue
$600,000+ USD
Additional annual earnings recovered from prototype revenue and dramatically reduced premium shipments
Cycle time reduction
> 65%
Reduction in cycle times released client friction with their customers while boosting new business development
New digital governance capacity
Unlimited
Complete freedom to scale and reconfigure the client's go-to-market strategy and product roadmap.