HFS Highlight: Accenture augments digital engineering capability with its acquisition of PLM Systems

In May 2020, Accenture acquired Italy-based boutique systems integrator, PLM Systems that specializes in designing and building information systems for product lifecycle management (PLM). The acquisition will be a part of Accenture’s Industry X.0 practice supporting its industrial client portfolio in product design, engineering, and manufacturing. In the past three years, Accenture acquired more than 10 companies for its Industry X.0 practice including Callisto Integration (May 2020), ESR Labs (April 2020), VanBerlo (February 2020), Silveo (December 2019), Happen (October 2019), Nytec (October 2019), Zielpuls (June 2019), and designaffairs (August 2018) among others.

Data is the new oil – End-to-end product lifecycle data will expedite the product innovation journey of the industrial clients

Product design is becoming complex due to more products and variant launches, shorter development cycles, and an increasing number of components and functionalities among others. With the advent of IoT, now the product performance can also be tracked in real-time and the product manufacturing KPIs can be measured in more detail through manufacturing information technology systems like MES (Manufacturing execution systems). So, through an integrated manufacturing platform (PLM-MES-ERP integration), the product data from R&D and design, manufacturing to after-market services can be gathered. Through AI, this product data can be analyzed to do things like improving design aesthetics, enhance design for manufacturability and overall performance, and creation of digital twins for design and validation.

As the business model continues to shift towards services economy (product as a service), service contracts will increasingly include terms related to product efficiency, performance, availability, etc., so product design should be robust enough to meet those operational SLAs. Through digital twin, more design insights, particularly after-market insights across product variants and the context of usage, and concepts like generative design and industrial enterprises can accelerate their product innovation journey. The ability to access and leverage underlying product data is what will enable these innovations – which is ultimately the power and potential of PLM.

 
PLM Systems can target a broad portfolio of clients through Accenture network

PLM Systems’ client portfolio includes Italian and international automotive, industrial equipment, fashion and aerospace, and defense companies. PLM Systems broad experience working with diverse industry clients will complement Accenture’s strong global portfolio of industrial clients across industries.

Accenture already has a strong footprint in PLM services offerings. The acquisition of PLM Systems will strengthen its in-country capabilities in Italy, further refine its solutions portfolio, and can develop joint solutions for some specific industries and use-cases.

Bottom Line: Balancing the technology and domain capabilities is the key for an end-to-end Industry X.0 portfolio

Accenture is focusing on both technology-specific acquisitions (such as Callisto Integration, Silveo, Nytec, and PLM Systems) that have applications across industries as well as vertical-specific acquisitions such as Enterprise System Partners, ESR Labs, etc. A balance between the technology and business capabilities will help Accenture to build a more exhaustive Industry X.0 solutions portfolio.