TdSE Keynote by Nico Michels: It doesn't work without systems engineering!

The keynote speech at this year's Systems Engineering Day (TdSE) was given by Nico Michels. He is responsible for the Digital Enterprise & Academics division at Siemens Digital Industries Software. The topic: Sustainability for companies and the role of systems engineering. He provided important impulses to help decision-makers understand the importance of systems engineering for sustainability.
Almost in passing, he mentioned that IBM and Siemens are now working closely together and that Siemens has added the modeling tool Rhapsody to its tool portfolio as a reseller.
"Siemens Teamcenter Rhapsody"
The collaboration with IBM in the area of modeling tools was of course a sensation for the users in the audience and only known to a few participants at TdSE. However, the collaboration is not really new, the Press release on this was published in April 2023. The collaboration should also result in a solution for SysML v2 (including a migration path). I am curious to see what will result from this.
Manufacturing companies [are] struggling to bring new products to market on time because the current tools, processes and information to manage these components are siloed and disconnected. To close this gap, IBM and Siemens are working together on a digital thread environment that integrates sustainability practices across the entire lifecycle of a product
Nico Michels is Head of Digital Enterprise & Academics at Siemens Industry Software GmbH
Sustainable management through valuable systems
The keynote entitled "Sustainable Business by valuable Systems" was aimed at decision-makers and board members who often struggle with digital transformation and the concept of sustainability. Nico Michels explicitly pointed out that sustainability is not just about environmental issues. He is guided by the UN's 17 Sustainable Development Goals:
In his role at Siemens Digital Industries Software, which has a turnover of 20 billion euros, he leads a team of 72,000 employees to help companies meet these challenges.
Pentagon instead of triangle
Nico Michels addresses entrepreneurs and clearly states that entrepreneurs have to earn money. After all, sustainability has to be financed. He believes that the project management triangle (time-cost-quality) is still valid. However, in his opinion, there are two additional components: sustainability and regulatory compliance. As a result, we are now dealing with a pentagon.

The end result is a "system of systems"
Many modern products will not be able to do without systems engineering. Nico Michels explains that sooner or later we will end up with a "system of systems". Again, a photographed slide. Even if modern products start out small and independent, sooner or later they will become "smart": because customers demand it, or because the market for the product can be expanded in this way. The next steps are connectivity, then a product ecosystem and finally embedding in a larger overall system.

Target group: Industry
As consumers, we are exposed to this trend. But the trend in the industry is much greater. Nico Michels cited agriculture as an example, which is leading the way here. Through networking and intelligent products, the industry has been able to achieve double-digit percentage savings in fertilizers, water and other resources.
To realize such results, we need systems engineering. But how do we communicate this to decision-makers and financiers who want to see a business model?
"Systems engineering can't be wrong". But: Owners ask for a business model. How do I explain that to the financier? At this point, Michels refers to the INCOSE Vision 2035which is aimed at decision-makers and answers this question well. Concepts such as the current megatrends from the vision and buzzwords such as Society 5.0 or Industry 4.0 can help to create an understanding here (even if there is a risk, Buzzword Bingo to play). Decision-makers also need to understand the role of IT and its danger of slowing down the organization.
IT must not be a hindrance!
Nico Michels
Tackling the right complexity
The topic Complexity can easily be misunderstood at decision-maker level. Organizational complexity explodes and decision makers often have the reflex to fight complexity. It is important to understand that every organization has an essential, inherent complexity that is necessary for it to function. We must fight unnecessary, wasteful complexity that is based on incompetence, Technical debt or be based on political decisions.
Conclusion
Nico Michels addresses an important topic, namely communicating the strategic importance of systems engineering to decision-makers. The fact that they recognize the need and commission companies such as Siemens Digital Industries to implement it shows that the message is getting through.
In recent years, Siemens Digital Industries has invested billions in acquisitions and the cooperation with IBM (Rhapsody) and the focus on SysML (v1 and v2) show a clear commitment to the company.
Siemens Digital Industries is not the only company working in this market. For systems engineering to successfully enable sustainability, we need not just one company, but a movement.






