How Manufacturers Are Mastering Data
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When it comes to data management, most manufacturers are basically teenagers. They’ve gotten past the early stages but have yet to reach full maturity and mastery in their approach. In fact, it is often unclear what the data strategy is, who is responsible for it or even what the data is worth in the first place.
A new survey from the NAM’s Manufacturing Leadership Council shows us how manufacturers are progressing in their quest to harness the power of data—a capability that could have transformative power for many manufacturers throughout their operations. Below are some highlights.
Data collection: Most manufacturers rate their organizational data skills as just average, saying they struggle to collect the right data and interpret it.
- Fifty-eight percent of respondents said their company had just a moderate ability to collect data that is meaningful for their business needs.
Data analysis: If gathering data is a challenge, gaining insights from that data is an even bigger one.
- Seventy-five percent of respondents ranked their organization as only somewhat capable in their ability to analyze their manufacturing operations data.
- Even more worrisome, 11% of respondents said their organization was not at all capable of this type of analysis.
Applying insights: The practical application of data to create value is also a challenge for many manufacturers.
- Almost one-third said they expend greater than 80% of their efforts on gathering and organizing data—as opposed to analyzing and applying insights from it.
Other stumbling blocks: The survey revealed additional impediments to using data:
- The lack of systems available to capture the data (46%)
- Data inaccessibility (43%)
- The lack of skills to analyze data effectively (39%)
Opportunities: The good news is that even with these imperfect efforts, organizations are largely leveraging the data they do have to make informed decisions.
- Forty-eight percent said their organization makes data-driven decisions frequently, while 18% said they make data-driven decisions constantly.
The bottom line: Seventy-five percent of respondents said data mastery will be essential for future competitiveness. Indeed, data mastery is crucial to the industry’s transition into Manufacturing 4.0—the next big wave of industrial innovation—and the MLC will be tracking the industry’s progress closely.
To see more insights from the latest MLC M4.0 Data Mastery Survey, read “Growing Pains” in the August 2021 issue of the Manufacturing Leadership Journal.