Introduction
As industries embrace digital transformation, several foundational concepts have emerged to guide the shift toward smarter, more efficient, and more integrated systems. Among these are digitization, digitalization, the digital thread, Model-Based Design (MBD), and the Model-Based Enterprise (MBE). This blog provides a definition for each concept and explores how they interrelate within modern engineering and manufacturing environments.
1. Digitization
Digitization is the process of converting analog information into digital format. For example, transforming a hand-drawn schematic into a CAD model or scanning paper documents into digital files are forms of digitization. It is the first step toward enabling more advanced digital processes by making information machine-readable and accessible.
2. Digitalization
Digitalization goes beyond simple conversion. It refers to the use of digital technologies to change how work is done, enabling new workflows, efficiencies, and capabilities. For example, using cloud-based CAD collaboration tools or automating design approvals via digital platforms exemplifies digitalization. It builds on digitization by applying digital tools to improve or transform processes.
3. Digital Thread
The digital thread is a communication framework that integrates data and processes throughout the product lifecycle—from concept and design to manufacturing and maintenance. It links all digital assets and activities, ensuring data continuity and traceability. The digital thread relies on digitized and digitalized data and enables real-time insights, faster decisions, and a more connected enterprise.
Relationship:
- Digitization makes data available.
- Digitalization structures and automates workflows using that data.
- The digital thread connects all the data and workflows across systems, functions, and lifecycle stages.
4. Model-Based Design (MBD)
Model-Based Design is a methodology that uses detailed digital models as the central artifact of product development. Instead of relying solely on documents or 2D drawings, engineers use 3D models enriched with behavior simulations, parameters, and requirements to drive design decisions, validation, and testing.
5. Model-Based Enterprise (MBE)
A Model-Based Enterprise expands the principles of MBD across the organization. In an MBE, 3D models become the authoritative source for all product-related activities—not just in engineering, but also in manufacturing, inspection, procurement, and support. MBE reduces reliance on traditional documents by promoting a unified digital model throughout the value chain.
Interrelationships
- MBD supports digitalization by enabling intelligent, reusable, and automated design models.
- MBE leverages MBD as the foundation for a company-wide shift to digital workflows.
- Both MBD and MBE feed into the digital thread, providing consistent and structured model data across departments and lifecycle stages.
- Digitization is a prerequisite for these advanced practices, and digitalization accelerates their integration and execution.
Conclusion
Digitization, digitalization, digital thread, Model-Based Design, and Model-Based Enterprise are deeply interconnected concepts that form the backbone of modern digital transformation strategies. Understanding their roles and relationships is essential for organizations seeking to stay competitive, reduce errors, improve collaboration, and increase innovation across the product lifecycle.