Analytics are a huge part of business processes in todays manufacturing landscape, and IoT (Internet of Things) is starting to be found in almost all industries. However, some organizations are still unsure or have no idea how these futuristic tools and practices can improve their business processes. Here’s an explanation.
Analytics and IoT:
a Manufacturing Marriage
If you don’t already know, IoT refers to the Internet of Things, wherein physical devices, machinery, buildings, and other items contain electronics that provide network connectivity either privately or publicly on the web. Analytics are, in the business sense, the discovery and interpretation of actionable data that can be used to improve procedures and processes and even predict the near future.
When it comes to manufacturing, analytics and IoT can mean being presented with real-time data on everything going on from the shop floor to the C-level offices. Understanding what machines get used the most, when breakdowns occur, how much inventory is in stock at any given time, which customers go for what products; all of these data sets and interconnected devices can lead to re-imagined and improved processes and procedures within your organization. Tiny sensors in your machines interconnect with big data storage centers and feed into your existing or newly implemented enterprise business software, all to provide your organization with intricate data points about how everything is performing. Combining analytics and IoT with your existing ERP or CRM or other business software provides complete visibility with real-time information on how your entire company is operating.
How Analytics and IoT
For manufacturers, these two connected tools can lead to many efficiency gains in your business processes. As an industry, manufacturing has a history of dealing with slim margins; any practice or machine or software that can improve productivity and/or lower costs is welcomed with open arms. By utilizing analytics and IoT, modern manufacturers can find previously unknown areas for efficiency and productivity improvement, which in turn can become cost savings. Even a small improvement discovered through analytics and IoT can mean millions of dollars added to your profit margin for some large manufacturers, so every little helps.
Manufacturers who do not currently have analytics and IoT implemented or are still on the fence about this modern business methodology should think about this; your competitors are already utilizing this technology. As we already said, anything that can increase the margins in manufacturing are going to be adopted quickly – so you can guarantee that your competition is at least considering analytics and IoT just as much as you are, if not more. Also take into account that the modern business landscape is focused heavily on customer demand and satisfaction, even in the manufacturing realm. Which means that your customers want to see more analytics as well, providing them with peace of mind that their needs are being met with visibility and detailed information.
While IoT is still in the early stage of widespread adoption when compared to analytics, it’s safe to say that this technology duo is going to be the norm in the near future. Don’t wait until your competitors are already ahead of the game; start looking into analytics and IoT for your manufacturing organization as soon as possible.