The biggest barriers limiting digital methods in product development

Corporate structures are often highly outdated and leave considerable space for internal politics and inefficiency.

 

The main pillars of product development within manufacturing companies are the development of technologies, the appropriate setup and optimization of production and capacity capabilities, proper brand and product communication, and product design. These key elements of almost any manufacturing company all contribute significantly to overall success. All of these areas, including others not listed here, have their own central raison d'être and, depending on perspective, differentiated levels of importance. Looking at the structure of large companies externally and with some distance, all areas must be perfectly coordinated with each other to deliver the required results. Production, for example, cannot manufacture products if development has not taken place. Thus, a mutual dependency can always be depicted, which, however, is often perceived and understood differently due to subjectively-biased views. Thus, this circumstance leads to considerable internal politics and intense power disputes, which tend to hinder overall efficiency. There are disputes about higher budgets, more attentiveness and growth potential and importance, sometimes only to satisfy subjective values and perceptions of individuals. But the nature of humans must obviously be taken into account. To create structural conditions, nevertheless, large companies and corporations are governed and managed by boards of directors, mostly within organizational guardrails. Managing directors distribute tasks, budgets and strategies over many levels in order to drive holistic goals forward and to grow and win stronger as a result. So, enough about corporate structures and power relations. Nevertheless, this underlying insight is critical to this story. 

For many decades, we have been experiencing strong technological progress that has changed the entire world. Until now, we have been able to cushion the speed with our legacy structures and processes absorbing it quite well. That being said, the speed of technological progress is accelerating and taking on more and more disruptive features. Faster and faster, more and more extreme, and crazier and crazier. Digital is penetrating all areas of enterprises. Many world-renowned economists attribute an extremely high value to data. Some say that "data" is the new "oil". In short: "Whoever owns the data has the power." 

In recent years, the economists' prophecy has come true and the ecosystem around data has transformed into a veritable treasure trove. Artificial intelligence, let's refer to basic algorithms, is using Deep Learning and other tools to process our Big Data requirements. This information then travels to all divisions and enhances all processes to an extreme degree. This is true to a large extent for 2D information, but for 3D information, we are still years behind. If data is generated in R&D, internal contradictions quickly arise in relation to the data format, internal billing and administration.

 

The ability to use and process digital data is one of the greatest opportunities for corporations. The convergence of AI and Big Data creates a power that will fundamentally revolutionize most processes.

Especially in the sphere of digital realities, networking and performance around data quickly reaches its limits.

 

To make this problem more tangible, the following example might be helpful. When a vehicle is developed, manufactured and marketed in the automotive industry, images and video footage are extremely important. In the past, physical prototypes were photographed, elaborately staged and retouched. Today, a digital model is created based on 3D data, and image and video material are generated on this premise. To achieve this, an extremely high volume of data is required, both in terms of quantity and quality, in order to ensure that the overall logic within the required content is accurate. Which material is used by which component or which component is still up to date at present? In the domain of R&D, there are many different data versions for an object, since form, function or material can change frequently during the development process. It is therefore extraordinarily complex to ensure the correct handling of data. If you try to create market-relevant images or media content, you may have images from marketing that are not used in the PR division as they are too promotional for press purposes. This often leads to parallel content productions with different results for the same product. As a result, costs are high, efficiency is low, there is considerable margin for error, and content is often not in line with market requirements. This problem not only exists in the automotive industry, but causes chaos and inefficiency in almost all industries and sectors. The problem is not data per se, but the basic data logic and the related internal and external integration.

The solution to this challenge requires a holistic approach and new structures that can, and above all may, challenge the status quo. But this is where the various interests of divisions and the different budgets available in each case come into play. We are not really talking about a problem that cannot be solved from a technical point of view, but about a problem that underlies old organizational structures. In principle, this entire concept can be incorporated into almost any organization and any structure. 

In order to solve the problem in the long-term and to do justice to technological progress, the only necessary step is to answer the matching questions. Who deals with the matter? Who points the way and communicates the necessary strategy? Who takes responsibility? Who unites the corporate interests and bundles them? Who can perform this communication and mediation? 

One of the reasons why MAGING was founded was to build a platform to solve this dilemma. MAGING can provide a holistic analysis of the necessary processes from an external perspective with a wealth of talent and unparalleled experience, and act as an external entity to bring together processes across the enterprise. We want to collaboratively understand, weigh, build and implement sustainable strategies alongside our partners.

 

Successfully building an enterprise-wide process requires some mastery of the art, which necessitates collaboration at all levels. This is the only way to achieve maximum sustainable efficiency and highest quality.

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