Managing product complexity has become increasingly critical as customers demand greater customisation. Manufacturers face the challenge of connecting disparate data systems effectively. In this episode of Tech Transformed, host Christina Stathopoulos and Laura Beckwith, Director of Product Management at Configit, discuss the complexities of managing product data in manufacturing, focusing on the concept of the digital thread. They explore the challenges manufacturers face in connecting disparate data systems, the importance of customisation, and how a Configuration Lifecycle Management (CLM) approach can provide a reliable foundation for digital threads. 

Understanding the Digital Thread

The digital thread represents the traceability of all decisions and information regarding a product from its inception and throughout its lifecycle. According to Laura Beckwith, the digital thread allows manufacturers to trace decisions made during the requirements stage through to engineering and ultimately to manufacturing and service. This traceability is not just about having data; it’s also about ensuring that various teams and systems can access the right information to facilitate informed decision-making.

Challenges in Implementing the Digital Thread

Despite the promise that digital threads hold, manufacturers face significant challenges in connecting data from multiple systems. Beckwith highlights the example of a smartphone, which undergoes various phases from design to manufacturing. Each phase involves distinct software systems—like CAD for design and ERP for manufacturing—many of which do not communicate well with one another. This lack of integration often leads to inefficiencies, such as manual data entry and miscommunication between teams.

The Impact of Customisation on Complexity

As customisation becomes the norm, the complexity of managing product data increases exponentially. Beckwith notes that while smartphones may have limited customisations, products like cars offer vast configurability. For instance, when configuring a car, consumers can choose from an extensive array of options. Behind the scenes, however, manufacturers must manage numerous engineering constraints and compliance regulations. This is where the digital thread becomes essential, enabling manufacturers to track and manage these complex configurations effectively.

The Role of Configuration Lifecycle Management (CLM)

The upcoming CLM Summit 2026 will focus on mastering customisation complexity and building a reliable data foundation for configurable products. Beckwith explains that a scalable CLM approach is crucial for establishing a reliable digital thread. It ensures that all product configurations, such as the combination of seat heating and memory seats in a car, are tracked accurately. This not only aids in the manufacturing process but also enhances customer service by allowing manufacturers to address issues based on specific configurations.

More broadly, the digital thread provides manufacturers with a framework for managing the growing complexity of modern product development. By enabling seamless communication between data systems and implementing effective CLM practices, organisations can better align engineering, manufacturing, and service functions. 

For more information visit: https://configit.com/

Takeaways

  • The digital thread provides traceability of product decisions.
  • Manufacturers face challenges due to siloed data systems.
  • Customisation complexity is increasing in manufacturing.
  • Digital threads are crucial for configurable products like cars.
  • CLM helps bridge the gap between engineering and marketing.
  • Starting small can lead to the successful implementation of digital threads.
  • Data alignment is essential for effective communication.
  • Real-world examples illustrate the benefits of digital threads.
  • A strong digital thread enhances customer experience.
  • AI can leverage data from digital threads for predictive maintenance.

Chapters

00:00 Introduction to Digital Threads in Manufacturing

02:14 Understanding the Digital Thread

06:47 Challenges in Connecting Data Systems

11:12 Customisation, Complexity, and Digital Threads

15:43 The Role of Configuration Lifecycle Management (CLM)

20:23 Real-World Use Case: Implementing Digital Threads

23:42 Guidance for Early Adopters of Digital Threads