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Manufacturers need a sound strategy to compete successfully in today's rapidly evolving market. This strategy must be built on a solid foundation of truth, which requires a comprehensive understanding of what is happening across the entire operation. Unfortunately, many manufacturers lack this source of truth, relying instead on a quasi-truthful stream of information to make critical decisions. This reliance on poor or incomplete data leads to ineffective decision-making and missed opportunities.

Pitfalls of Traditional Data Management

Despite the documented drawbacks, many companies continue to rely on traditional methods of data management. Paper, clipboards, whiteboards, and Excel spreadsheets are still prevalent in manufacturing operations. While these tools may have served their purpose in the past, they are ill-equipped to handle the complexities of modern manufacturing. Valuable time is wasted, and opportunities for improvement are overlooked when companies fail to adopt more efficient data management strategies.

Relying on Old ERP Systems

For many manufacturers, the reliance on Enterprise Resource Planning (ERP) systems is a common practice. While ERP systems offer valuable insights into operational performance, they often fall short in providing real-time data and fail to bridge the information gaps across departments. Furthermore, costly updates and modifications are required to keep pace with the ever-changing needs of the manufacturing environment. This lack of flexibility and reliance on outdated systems hampers decision-making and inhibits continuous improvement.

Siloed State of Data

Another significant challenge faced by manufacturers is the siloed state of data between Information Technology (IT) systems and Operational Technology (OT) systems. IT systems, responsible for higher-level functions, often lack direct access to the shop floor data, leading to a disjointed view of operations. This data gap inhibits the ability to make data-driven decisions and hinders the alignment of IT and OT.

Embracing a Data Strategy

To overcome these challenges, manufacturers must develop and implement a comprehensive data strategy. This strategy should focus on breaking down data silos, integrating systems, and facilitating real-time data exchange. By embracing modern data analytics tools, manufacturers can unlock the power of their data and gain actionable insights into their operations. Various departments collect and analyze data independently, leading to fragmented insights and inefficient processes. An overarching strategy is essential for achieving operational efficiency, reducing costs, improving quality, and increasing customer satisfaction.

Gaining Operational Visibility

With a data analytics strategy, manufacturers can gain accurate operational visibility that yields opportunities for immediate and long-term improvement. By collecting and analyzing data from different areas of the organization, they can identify bottlenecks, inefficiencies, and areas of improvement. This visibility enables them to take proactive measures to optimize their operations and enhance productivity.

Leveraging Advanced Analytics Tools and Techniques

A comprehensive data analytics strategy allows manufacturers to leverage advanced analytics tools and techniques. By using machine learning algorithms, predictive modeling, and data mining techniques, they can uncover valuable insights from their data. These insights can help in identifying patterns and anomalies, making data-driven decisions, and optimizing processes.

Unifying Data Collection, Integration, Analysis, and Visualization

A well-defined data analytics strategy encompasses data collection, integration, analysis, and visualization. It ensures that all relevant data is collected, integrated, and made available for analysis. By unifying these aspects under one umbrella, manufacturers can streamline their data management processes and avoid duplication of efforts.

Cross-Functional Collaboration

Developing and implementing a data analytics strategy requires cross-functional collaboration across departments. Involving stakeholders from various teams ensures that all perspectives are taken into account, and the strategy aligns with the overall organizational goals. This collaboration fosters a culture of data-driven decision-making throughout the organization.

Real-Time Insights and Actionable Intelligence

With a clearly defined strategy, manufacturers can deploy software tools that best utilize the real-time insights generated by data analytics. These tools enable them to obtain actionable intelligence, providing valuable information to each functional area. Whether it's supply chain management, production planning, or customer relationship management, the right data analytics tools can drive efficiency and effectiveness.

Benefits of a Comprehensive Data Strategy

Implementing a comprehensive data analytics strategy brings numerous benefits to manufacturers. Some of the key advantages include:

  • Operational Efficiency: By identifying and addressing inefficiencies, manufacturers can streamline their processes, reduce waste, and improve overall efficiency.
  • Cost Reduction: With data analytics, organizations can identify cost-saving opportunities, optimize resource allocation, and minimize unnecessary expenses.
  • Quality Improvement: Analyzing data allows manufacturers to identify quality issues, implement corrective actions, and enhance product quality, leading to higher customer satisfaction.
  • Competitive Advantage: A data analytics strategy enables manufacturers to gain insights into market trends, customer preferences, and competitors' activities, allowing them to stay ahead in a competitive landscape.
  • Innovation and Growth: Leveraging data analytics helps manufacturers identify market gaps, new product opportunities, and areas for innovation, driving growth and expansion.


What Does a Comprehensive Strategy Look Like?

One of the best approaches is to focus on machine connectivity. By ensuring that data can be seamlessly transferred, analyzed, and consumed based on a common data model, you can create a cohesive system where shop floor data and enterprise data are part of the same ecosystem. This allows for real-time analysis, which generates actionable insights. But what does this comprehensive strategy look like in practice? Let's explore the key features that make it effective:

Dynamic Dashboards for Customizable Views

A comprehensive strategy relies on dynamic dashboards that offer customizable views depending on who is accessing the information and what key performance indicators (KPIs) they need. Executives can consume trends and predictive analyses to develop improvement or long-term plans. Operators, on the other hand, can use the same data to intervene at the machine or spindle level to reduce downtime.

Real-Time Data Analytics for Fact-Based Decision Making

By rooting the strategy entirely in real-time data analytics from fully connected equipment, your enterprise can move from hope to facts based on actual performance. This shift in mindset empowers you to make data-driven decisions rather than relying on guesswork or assumptions. Real-time data analytics allow you to quickly identify issues or areas for improvement, leading to more efficient and effective outcomes.

Picking the Right Strategy for Your Company

Developing a comprehensive strategy requires choosing a provider that understands and addresses the issues mentioned above. You need a system that uses advanced analytics to deliver insights that lead to action, driving better decision-making at the machine, plant, and enterprise level.


A comprehensive strategy for data analytics in traditional manufacturing requires adopting technology that eliminates hierarchies and department-centric systems. By focusing on machine connectivity, you can create a system where shop floor data and enterprise data are part of the same ecosystem, available for real-time analysis. With dynamic dashboards, customizable views, and real-time data analytics, you can make fact-based

NERP platform offers the depth and breadth of connectivity to ensure data capture from all equipment. It also facilitates standardization and contextualization of the data. Additionally, the platform connects quickly to machine assets, providing immediate production visibility. This immediacy empowers continuous improvement by enabling users to leverage their data for more advanced use cases as they identify and solve issues.

Integrate People, Process and Technology