Navigating the Transition to a Model-Based Enterprise

To enhance competitiveness, manufacturers must integrate functional areas of their companies under a common set of digital models.  

Today’s manufacturers face intense pressure to dramatically reduce product cost and development time, all while their products are becoming exponentially more complex. Meanwhile, disruptors are introducing significant innovation in industries that have seen minimal innovation over the past several decades, making it extremely difficult for incumbents to compete.

How can manufacturers respond to this pressure and level the playing field with their competitors? They can start by focusing on breaking down organizational silos and removing the large pockets of waste at the handoffs between their functions. In a model-based enterprise (MBE), organizations integrate their functions under a common set of digital models. Products are developed virtually and concurrently with requirements from all functions, collapsing organizational silos and dramatically improving collaboration, product cost, quality, and time to market.

Disruptors, who can be new entrants, already know the benefits of MBE capabilities. They’re unconstrained by legacy thinking, processes, and systems and have adopted a fully model-based approach. Consider emerging manufacturing segments like Advanced Air Mobility (AAM), where OEMs are bringing disruptive products to market using approaches like MBE. Meanwhile, incumbents are working to quickly transform their enterprises as well; our research indicates that more than 85% of enterprises across industries are undertaking initiatives in one or more of the following core MBE capabilities: model-based systems engineering, model-based definition, model-based (virtual) verification/validation, model-based manufacturing, model-based service (sustainment, aftermarket, etc).

An Approach to Bridge the Gap

Transforming a traditional organization into an MBE takes collaboration; no single function or discrete technology investment can deliver the digital thread and MBE objective. The path forward requires a plan to bridge the gap between today’s outdated processes and technologies and the value of tomorrow’s model-based capabilities. A multi-phased approach can be a pathway toward the fully model-based enterprise. Consider the following four aspects.

1. Start with a relentless focus on value

Define what success looks like and the associated business case value to your organization. Take real examples from real programs (even those that were executed to the best of your current capabilities) to paint the picture of why change is needed. Use objective, value-oriented data to govern the scope and execution of your transformation.

2. Define and prioritize business capabilities to achieve the vision

We’ve defined 42 capabilities (see Figure 2) of MBE that span organizational functions. Manufacturers can assess the maturity of these capabilities across their organization and align on which capabilities are most critical to accelerate and achieve their MBE vision and business case.

Figure 1: Key MBE Capabilities by Function

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3. Outline a plan for development and deployment of capabilities

While defining plans for capability deployment, focus on grouping capabilities to create phased deployment plans to create incremental value and deliver the capabilities needed first. This sets the foundation upon which the most far-reaching and visionary MBE capabilities may be built and allows value to be realized incrementally, self-funding the next stages.

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