With the advent of conventional financial reporting information changing rapidly to real-time production and electronic data, the manufacturing industry stands in position to benefit as few other industries can. While the challenge remains to convert the vast quantities of bits and bytes into usable knowledge, as manufacturing adopts analytics and reaps the rewards, other segments will follow and implement this technology as a crucial plank in their overall business strategy.
The foundation of business intelligence (BI) and the widespread availability of functional dashboards and relevant tools opened the age of data-driven decision making across the global economy.
However, early analytics relied heavily on historical data, which by nature was static, thereby improving decision making while creating limits based upon a lack of predictive qualities. Thus, the big data tools provided insight, although they did not represent the ultimate fit within the dynamic environment of manufacturing. However, the predictive nature of insight has burgeoned through the adoption of real-time data in analytics, and the result has proven advantageous to this critical segment of the economy. With the accelerated flow of information, the array of descriptive data to augment new analyses and the availability of user-friendly systems, the manufacturing industry is positioned well to exploit the potential of predictive analytics.
Thus, the manufacturing segment has embraced real-time, data-driven analytics as a crucial foundation to competitiveness rather than treat it as a bonus. Consider these facts concerning predictive analytics and manufacturing:
- Manufacturers are now three times more likely to utilize sensor/machine generated data than any other segment
- Over 70 percent of leading manufacturers have implemented an open exchange of operational information across every division
- The leading manufacturers worldwide are four times less likely to have crucial data delivered late
- At least 63 percent of the top manufacturers globally are satisfied with their increased speed and quality of decision making with predictive analytics
Indeed, as a foundation to nearly every other economic segment, manufacturing must continue to implement big data into its processes. Yet, with the increase in data volume and potential disparities comes the greater requirement to optimize the quality and usability of the information. Some manufacturing companies have leveraged the technology of master data management (MDM) as well as data enrichment/cleansing. While these technologies represent significant undertakings, the results empower the analytic process and produce greater efficiencies and game-changing competitive insights.
Moreover, the adoption of real-time data analytics has created a more efficient decision window by delivering small bits of actionable data about an event prior to that event and with time to respond. This competitive edge beats out any information delivered after the critical event occurs. Receiving actionable data before an event has eclipsed even the usefulness of on-time data, and it has certainly outperformed data delivered late, thereby improving processes, reducing waste and producing cost savings.
Source: Aberdeen Research