In the article, Big Data Analytics Can Benefit Manufacturers, the author uses data from a recent Honeywell study to show how manufacturing companies are responding to and using big data analytics to enhance their processes. The Industrial Internet of things is providing significant amounts of data that many manufacturers are taking advantage of. In particular, manufacturers are using analytics to prevent unscheduled downtime and equipment breakdowns. Surprisingly, 33% of respondents of the 200-executive survey said they do not plan to invest in analytics, mostly due to lack of funds or lack of understanding of how the analytics can benefit their company.
One of the most surprising results of this Honeywell survey was that 42% of respondents admitted to running their equipment harder than they should. Consequently, big data analytics to prevent machine breakdowns is very important, and 70% of respondents said analytics can prevent breakdowns. Without the proper analytics, manufacturers run the risk of falling behind competitors. With so much on the line, it is not surprising that 80% of senior executives surveyed in a different executive recruiting firm poll said that investment in the digital transformation is critical.
With a majority of senior level executives understanding that the investment in the digital transformation is so important, the next question is how will a company manage this transformation. Many companies do not have a Chief Digital Officer, or CDO, so the responsibility moves to the rest of the C-level board to oversee the transformation. This strategy can bring about issues since the transformation is happening so fast that high level managers already tasked with significant decision making will not put adequate time toward the company’s digital needs. An ideal situation would be for a company to have a CDO, and preferably a CDO with experience in IT and/or sales.
Do you believe companies should invest in a CDO?
How bad will the consequences be for companies that don’t invest in big data analytics?
Which college graduates will be most in demand now that this digital transformation is happening?