89% of Industrial Firms Say Digital Thread Key to Success
As artificial intelligence (AI) and automation continue to reshape the landscape of product development and manufacturing, a growing number of companies are emphasizing the need for standardized, traceable data across the product lifecycle. According to findings from Aras’ recent survey, “The Future of Product Lifecycle Management and Digital Engineering,” 89% of industrial firms believe a robust digital thread is essential for success with next-generation technologies.
“Today’s transformative technologies, like AI, are fueling a seismic shift in how products are designed, built, and maintained,” said Roque Martin, CEO of Aras. “Meeting the demands of this new era requires visibility, security, and compliance – all of which rely on accurate, connected data. That starts with a strong digital thread.”
AI Is Only as Powerful as the Data Behind It
Survey respondents cited enabling advanced analytics and AI (41%) as the top driver for improving digital thread capabilities, followed by improving product quality (38%) and enhancing service and support (36%). These priorities highlight a key reality: AI's effectiveness is only as good as the data it is built upon.
As AI is increasingly integrated into decision-making across operations — from manufacturing floors to logistics and customer touchpoints — the challenge of validating and governing AI-driven actions intensifies. Ensuring secure, role-based access to accurate information becomes mission-critical, especially when intellectual property protection, compliance, and security are at stake.
The digital thread serves as the backbone for this connected data infrastructure. When supported by a modern product lifecycle management (PLM) system, it enables consistent, traceable, and secure data sharing across all stages of the product lifecycle. Aras’ InnovatorEdge platform furthers this by offering a low-code API management framework, allowing intelligent, scalable integration across the digital ecosystem.
Building for the Future with a Digital Thread
To fully harness the potential of AI and automation, industrial firms must invest in a resilient and interconnected data strategy. A strong digital thread enables smarter decisions, accelerates innovation, and improves competitiveness in an increasingly complex market environment.
Significant Implementation Challenges Remain
Despite the widespread agreement on its importance, implementing a digital thread strategy remains a significant challenge for many companies. The report identifies key barriers, including:
- Product complexity (46%)
- Difficulty tracking changes over time (36%)
- Extensive product configurations (35%)
- Disconnected supply chains (33%)
Addressing these issues requires not only the right technology but also organizational commitment and cross-functional collaboration. As the digital thread becomes a foundational element of modern product development, its successful implementation will determine who leads—and who lags—in the age of intelligent manufacturing.