Winning markets by mastering complex products

Why the future of mechatronics lies in a unified view of the product

Machines, vehicles, medical devices, or industrial plants are steadily evolving into complex mechatronic systems that combine elements of mechanics, electronics, and software in a single unit. Additional challenges are the use of intelligent sensor technology, interconnections, digital services, and ever shorter innovation cycles. A product is no longer a collection of individual components, but represents a highly interconnected system.

The consequence: Product complexity today grows faster than many companies can manage. Experts have been observing for years that the software content of industrial products is continuously increasing and that entire industries are evolving towards software-defined products. At the same time, the number of variants, change requests, and dependencies between development, manufacturing, and service is increasing.

This is precisely one of the key challenges of modern product development.

When no one understands the entire product anymore

In most companies, the individual disciplines excel in their respective field. Mechanical design is done in the CAD system, electronic design in the ECAD system, and software engineering in dedicated development environments. Each department optimizes its processes, uses specialized tools, and achieves impressive results.

But as product complexity grows, a weakness of this model becomes apparent: The knowledge about the entire product is spread across an increasing number of systems, documents, and teams.

A change to the device housing may also affect electronics. A new software function changes the requirements for hardware, testing procedures, or service processes. Meanwhile, purchasing, production, and quality management need the same information to make well-informed decisions.

The real challenge therefore no longer lies in developing individual components. Understanding their interconnections is the real challenge.

Companies rarely lose control of their mechanical engineering, electronics, or software as individual disciplines. Companies lose control over how these disciplines interact.

Why product knowledge becomes a competitive factor

This recent development has direct economic implications for both executive and engineering management.

Failure to recognize the impact of changes early on leads to extended development times. Failure to provide consistent product information causes friction between engineering, purchasing, and manufacturing. And having to make decisions based on incomplete information results in a higher risk of rising costs, quality issues, and delayed product launches.

Especially in a market environment characterized by skilled labor shortage, global competition, and increasing innovation speed, few companies can afford such inefficiencies.

Transparency is therefore the key success factor

Companies must be able to understand at any time how mechanics, electronics, and software interact and how changes affect the entire product.

SAP creates a shared product reality

It is precisely at this point where SAP’s role fundamentally changes. For a long time, SAP was primarily perceived as an ERP system – as a platform for processes related to purchasing, manufacturing, or controlling. For modern mechatronics companies, however, the real strategic value lies in establishing SAP as the central source of truth for the entire product.

Instead of managing information in isolated engineering silos, companies create a shared product reality. Data from mechanical engineering, electronics, and software is linked together and embedded into a unified product context.

This makes it possible for companies to answer a question that is becoming increasingly difficult to address: What impact does a change have on the entire product and on the company?

Only when these connections become visible can quick and well-founded decisions be made.

The formula for success: Connecting engineering with business

This is exactly where the true value of a modern mechatronics approach comes into play.

The primary goal is not to introduce additional engineering tools. It is all about connecting engineering with business.

With a solution like SAP Engineering Control Center | SAP ECTR, data from MCAD, ECAD, and software environments can be directly integrated into the SAP context. This creates a holistic view of the product across all disciplines. Product information is no longer only available to individual experts, but can be used throughout the entire value chain.

The benefit becomes apparent on three levels:

• Transparency increases. All parties involved work on the basis of the same product information and the same context.
• Speed increases. Changes can be evaluated across departments, coordination efforts are reduced, and processes run seamlessly without integration gaps.
• Control is established. Companies can identify technical and economic impacts early and manage risks proactively before they become problems.

The digital product thread is becoming a management responsibility

The industry is moving toward a future in which products are increasingly defined by software, data, and connectivity. This makes product development a company-wide task. Product transparency is not only a concern for engineering managers. Executive management, production, purchasing, and service also depend on it.

Therefore, the ability to make complex dependencies transparent becomes a strategic core competency.

The winners of the coming years will not necessarily be the companies with the most features, the largest engineering departments, or the most advanced tools.

The winners will be those companies that understand their product holistically.

Because understanding product dependencies enables faster decision-making, reduces risks, and drives innovation more effectively. In other words:

Mastering complex products means mastering market success.