How can product information flow seamlessly from design to production? What if a digital engineering team, manufacturing organizations, contractors, and suppliers could all be on the same page and access a consistent and interconnected flow of data, no matter where they sit in the product lifecycle? As manufacturing processes become more complex, companies are asking these questions in pursuit of faster innovation, better product quality, and smarter cost optimization.
Better, faster, cheaper. Engineering teams and most manufacturing organizations are actively looking for ways to build faster, improve quality, and reduce costs. And to achieve that, delivering a connected digital experience across the entire product lifecycle is no longer a nice-to-have; it’s becoming essential. That’s where the concept of the digital thread comes in.
That’s where the concept of the digital thread comes in. Once a niche term in aerospace and defense, it has emerged as an essential enabler for digital transformation in modern manufacturing and product lifecycle management. A digital thread enables product information to flow in context across the product lifecycle from early design and engineering, through manufacturing execution systems and assembly, and all the way to maintenance, service, and end-of-life. It’s the connective tissue that ties together every phase of product development, operations, and supply chain collaboration.
Let’s explore the digital thread journey and learn what the digital thread really means, why it matters for modern enterprise systems, and how OpenBOM makes this concept real by building the necessary infrastructure centered around a Digital BOM and an intelligent product knowledge graph.
What Is a Digital Thread?
The term ‘digital thread’ was initially described in the Global Horizons 2013 report by the USAF Global Science and Technology Vision Task Force, and was later refined in 2018. At its core, the digital thread is a data-driven communication framework that links information generated throughout a product’s lifecycle. Unlike the traditional approach, where data is stored in fragmented systems, each managing their own version of the truth, the digital thread provides a comprehensive view by creating a single, continuous, seamless flow of data across the entire value chain of disciplines involved in product creation and support.
The business value of the digital thread lies in its ability to establish contextual continuity. Every piece of product data – whether it’s a computer-aided design (CAD), a part number, a supplier quote, or a service record – is connected and traceable.
A design change made in CAD is reflected in the Bill of Materials (BOM), which in turn informs procurement and production. If a component is swapped due to supply chain disruption, that change cascades across systems and is logged for future reference. This connected flow of real-time data ensures that everyone, from engineers to buyers to field service teams, is working from the same up-to-date information.
Four key characteristics define the digital thread:
- It provides lifecycle integration, connecting the dots between design, engineering, manufacturing, service, other internal processes, and beyond.
- It ensures data continuity, so information evolves rather than gets recreated or duplicated at each step.
- It offers real-time accessibility, allowing teams to make informed decisions based on the most current data.
- It promotes a single source of truth, which replaces spreadsheets and emails with reliable, structured, and traceable product data.
Why Digital Thread Matters for Modern Manufacturing
The importance of the digital thread becomes clear when you examine the challenges most manufacturing systems face. Product data is often fragmented across departments and locked within various software tools. Engineers may store CAD files in one place, operations may manage BOMs in another, and procurement might use spreadsheets or disconnected ERP systems. These silos result in duplication of effort, poor communication, and a higher risk of errors that can delay production or lead to costly recalls.
By implementing a digital thread, manufacturers can break down these silos and unify their data landscape. For example, when a design engineer updates a CAD model, that change can automatically propagate to the BOM, which then informs procurement about a new part or configuration. Instead of manually re-entering this information in multiple places, a process prone to error and delay, each system is connected and stays in sync. The result is increased productivity and efficiency, as teams spend less time chasing down information and more time delivering value and optimizing processes.
In addition to operational benefits, the digital thread plays a critical role in improving product quality. When every change, decision, and dependency is recorded and traceable, it becomes much easier to enforce standards, identify root causes of issues, and demonstrate compliance. In industries with tight regulatory compliance requirements such as medical devices, aerospace, or automotive, this traceability isn’t optional; it’s essential.
The digital thread also enables greater agility. Manufacturers can respond faster to changes in market demand, supply chain disruption, or customer requirements that provide a competitive advantage. Because the thread creates a dynamic, living representation of product data, it can be leveraged for predictive analytics and smart manufacturing practices such as closed-loop feedback and simulation. This sets the stage for a more intelligent, resilient, and responsive manufacturing enterprise.
Digital Thread vs. Digital Twin: Understanding the Relationship
While the digital thread and the digital twin are often mentioned together, they represent distinct yet complementary concepts. Both concepts are connected to digital representations or physical objects.
The digital thread is the framework that connects data generated across the product lifecycle. Think of it as the highway on which information travels. In contrast, the digital twin is a specific digital replica of a physical product or process, often used for simulation, monitoring, or predictive maintenance.
In order for a digital twin to be accurate and valuable, it needs data. The digital thread provides that data, connecting everything from initial specifications to sensor feedback from the field. Without a digital thread, the twin becomes stale or disconnected. With it, the digital twin becomes a powerful tool for understanding how a product performs in real-world conditions and for driving continuous improvement.
In short, the digital thread is the infrastructure. The digital twin is an application of that infrastructure. Together, they enable manufacturers to simulate, validate, accelerate innovation, and optimize both the product and the process based on data-driven insights.
Real-World Impacts and Examples
Manufacturers that adopt a digital thread approach see measurable benefits across the board. Consider a company developing a robotic arm. With a digital thread in place, the design team can iterate rapidly, knowing that changes will automatically update downstream BOMs and procurement lists. Procurement teams can instantly see approved suppliers, lead times, and alternates, reducing delays and miscommunications. Quality assurance can trace every part back to its origin, simplifying root-cause analysis in the event of failure.
In another example, a manufacturer facing a component shortage can quickly identify affected products and reconfigure their supply chain using alternate parts, thanks to the traceability built into the digital thread. Field service teams can access real-time service records and design data, improving first-time fix rates and customer satisfaction.
These are not theoretical scenarios. They are everyday opportunities to reduce cost, minimize risk, optimize operations, and move faster – all made possible by adopting a digital thread mindset.
OpenBOM, Digital BOM, and the Product Knowledge Graph
At OpenBOM, we view the digital thread not as an abstract goal but as a practical, actionable framework that starts with the Digital BOM. Unlike traditional BOMs, typically static lists captured in spreadsheets or siloed systems, a Digital BOM is a living, structured representation of your product that evolves as the product evolves.
OpenBOM provides a cloud-native platform where every item, part, subassembly, and relationship is modeled in a graph-based data structure called the product knowledge graph. This model enables OpenBOM to go beyond simple part lists. It captures the relationships between components, design files, suppliers, costs, revisions, and more. Each item can link to CAD data, contain pricing and vendor information, store change history, and reflect real-time collaboration activity.
This structure enables multiple, role-specific views of a product. Engineering teams may view a design-centric BOM, while manufacturing sees a production-ready structure, and service departments can access support-oriented breakdowns. All of these views are powered by the same underlying data, ensuring consistency and traceability throughout.
The knowledge graph is what transforms OpenBOM into more than just a BOM tool. It enables real lifecycle connectivity, a prerequisite for both the digital thread and digital twin. Changes made in CAD can be captured and propagated automatically. Procurement teams see real-time updates to part availability. Product managers can track revisions and who made them, when, and why. Compliance and audit requirements are satisfied by default through the historical data trail maintained in the system.
This is how OpenBOM helps companies connect the dots. By enabling the same information flow across systems and functions, OpenBOM doesn’t just support the digital thread – it becomes the digital thread infrastructure many manufacturers are seeking.
Conclusion: Why Manufacturers Should Care about Digital Thread Technology
The manufacturing landscape is evolving rapidly, and digital transformation is no longer optional. The companies that succeed will be those that create strong, connected data infrastructures that can support agility, resilience, and innovation. The digital thread is the foundation for that transformation, enabling data to move fluidly across the lifecycle and between systems.
OpenBOM makes this vision a reality. By offering a Digital BOM platform powered by a robust product knowledge graph, OpenBOM helps companies unify their design, production, and procurement workflows into a single, traceable, intelligent thread of information, allowing companies to gain a competitive edge.
Whether you’re building drones, medical devices, bicycles, or complex machinery, the ability to connect your product data across tools and teams is what will differentiate the winners in tomorrow’s market.
Q&A: Understanding the Digital Thread and OpenBOM
How is a digital thread different from traditional data management in manufacturing?
Traditional data management often involves disconnected tools and duplicated efforts: CAD files live in one system, BOMs in Excel, and procurement in ERP. A digital thread unifies these fragments into a continuous flow of traceable, contextual data that evolves with the product. This eliminates redundant work, reduces errors, and speeds up decision-making.
Can I build a digital thread without replacing my current systems?
Yes. OpenBOM is designed to work alongside existing CAD, PLM, and ERP systems. It connects these tools and creates a unified view of your product data without requiring a full replacement. You can start small and scale as needed.
What’s the first step toward implementing a digital thread?
Begin by structuring your product data using a Digital BOM. This establishes the foundation for traceability and integration. Then, connect your CAD tools and progressively bring procurement, inventory, maintenance records, and change management into the same flow.
How does OpenBOM manage versioning and changes?
OpenBOM tracks every revision, user action, and change over time. This enables full traceability and makes audits or rollbacks easy. Every stakeholder can see the “who, what, when, and why” of each change.
What types of companies benefit most from a digital thread?
Manufacturers of complex or regulated products, such as aerospace components, electronics, robotics, or medical devices, benefit significantly. However, any company that needs to coordinate design, procurement, and manufacturing will see value.
Can teams outside of engineering use OpenBOM?
Absolutely. OpenBOM supports purchasing, supply chain, quality, and even customer service functions. It offers role-specific views and permissions so that each team sees exactly what they need – no more, no less.
How does digital thread relate to the digital twin?
The digital thread is the information highway, and the digital twin is one of the key destinations. Without the continuous, structured flow of data that the thread provides, a digital twin cannot stay current or accurate. OpenBOM provides the data infrastructure required for reliable digital twins.
Does OpenBOM support complex configurations and multi-level assemblies?
Yes. OpenBOM’s graph-based model is ideal for managing complex hierarchies, including multi-level BOMs, configurable components, and multiple views for different lifecycle stages. This flexibility supports both system engineering and manufacturing breakdowns.
Interested to learn about OpenBOM and Digital Thread?
REGISTER FOR FREE and check out with our sales team.
Best, Oleg
Join our newsletter to receive a weekly portion of news, articles, and tips about OpenBOM and our community.
