Leading with data is a hot topic in many industries, but what do you really need to make your company succeed with the help of data? And why is even the best data out there not enough if humans are not on board a positive data-driven company culture? Many companies are hesitant to take the digital leap because they believe there is no data in their factory to work with or they don’t know what to do with it. What benefits does leading with data bring and what is the most simple way to get started?
In Deloitte’s article (Industry 4.0: Smart operations – an imperative for the future of manufacturing) it is envisaged that organizations are likely to accelerate technology adoption and move away from human-enabled data gathering, tracking, and post-facto analysis to predictive modelling, based on real-time information generated from the connected ecosystem. The so called fourth industrial revolution accelerates improvements by connecting machines, people, data, and value chains.
The main benefits of leading with data include:
When business decisions are based on data and facts, there is less room for personal opinions or assumptions. This may seem like an interesting thought especially for people who believe in the fact that we always make rational decisions at work, but surprisingly often our past experiences, emotions, stressful situations, speculation, and other factors play a big part in what decision we make. When we believe in our choice of decision, we begin to look around us for support – this may lead to ignoring things that would support an opposite way of thinking. With data, it’s easy to base decisions on facts, minimizing the possibility to make errors due to misthinking made by humans.
Many companies are hesitant to take the digital leap to a smart factory because they believe there is no data to work with. The truth is that every company produces or has the possibility to produce data that will help take their operations to the next level. With this said, it’s important to note that data only becomes useful once you know how to use it and make sure it is high enough in quality. Making decisions on poor data or not knowing how to benefit from the information data is giving decision-makers can lead to the wrong direction. That is why you should focus on quality rather than quantity in data by determining what are the most important answers data can bring to help your company’s process in making successful decisions.
Speaking of answers there should always be a question you are looking to answer with the help of data. Whether it be how you can manage your continuous improvement processes or how you can lower risks of possible production stops and site fire outbreaks, data should always be harnessed to answer the key questions that help you make processes more efficient and increase productivity in your factory. Without a question, it is very difficult to find the answer even with a large amount of the best-quality data. And without the right data, it’s hard to lead a company towards success.
As we mentioned, even the best-quality data is not enough to skyrocket your company to success: you need people who understand data and know how to use it. This requires good data-oriented leadership and a positive data-based company culture that looks not only at real-time and future data, but also learns from past data to make processes better. The interesting thing about smart factory solutions designed with modern technologies is the fact that everything can and should be measured. This is what makes smart factory initiatives such a powerful way to increase productivity and efficiency. By helping leaders and workers make smarter decisions faster, they also release resources to focus on other things that can benefit the company even further.
Technology develops at a rapid speed but despite the advances in equipment and software, manufacturing productivity is running behind: labor productivity had an annual growth rate of 0.7 % between the years 2017-2018. This is significantly lower than the rate of 3.6 % that was seen in average annually between 1987 and 2006. The result? Economic output is tied to the number of hours people work, while it could be rising much faster with the help of smart factory solutions.
Many organizations have already discovered the power of leading with data and are on the path to create digital supply networks as an integral part of strategic planning and making decisions. Modern technologies are continuously bringing in information from a wide variety of sources, but this is not enough to make a business or smart factory succeed. While data can help predict possible malfunctions and give suggestions on what could be made more efficient in the manufacturing process, there must be a leader, who can make decisions supporting the company’s success based on data coming in.
As we discussed in our article about the meaning of workforce to smart company success, thriving on your smart factory journey requires open-minded and change-positive leaders, who see the value smart factory solutions can bring to processes. Getting a great leader on board early is key to getting changes through in a positive manner. It’s also important to note that a positive and encouraging attitude towards smart factory initiatives must be present on all hierarchy levels from the CEO to people working on the factory floor and every manager in between.
They say teamwork makes the dream work, which could not be more true when it comes to implementing smart factory solutions. Every person in a company can use data to lead their team or personal work better to benefit the company.
In this blog, we addressed two of the key challenges companies leading or wanting to lead their operations with data face: the belief that there is no data or it’s difficult to get and the situation where data exists, but companies don’t know how to use it. Both are easy to tackle by a simple step: get started with your smart factory journey.
The great thing about data is that it’s like a new pair of leather shoes – gets better the more you use it. The more data is enriched and used, the more you are able to understand it and determine issues that need to be fixed in the process. All companies have some type of data even if it’s hidden. With the help of Lean principles and smart factory solutions you can start small, vision big and scale fast. So, the best way to begin your smart factory journey is to just take the first step and get started.
At Fliq, we know that taking the first step might be the hardest step of them all. That is exactly why we have spent years creating, testing, and packaging ready-made smart factory tools that can be implemented even in just days. Our tools have been created to help you get started on your smart factory journey, allowing you to add modules on the way when you need them. We don’t want to tie you down with long contracts or closed software, because we know that sharing data is important for helping you succeed. This is why our platform allows you to connect third-party applications to create just the ecosystem you need.
We are here to help you with your smart factory journey – when shall we start? Read more about our services here: Fliq Platform
SOURCES:
Deloitte: Industry 4.0 Smart operations – an imperative for the future of manufacturing (June 2020)
Deloitte and MAPI Smart Factory Study – Capturing value through the digital journey (2019)
