In today’s dynamic business environment, business intelligence is pivotal for manufacturers. By understanding the past performance and current trends, business intelligence can assist manufacturers in making better-informed decisions about where to allocate resources and how to improve operations.
As per industry insight:
The Business Intelligence (BI) market for the manufacturing industry was valued at USD 2.80 billion in 2020 and is expected to reach USD 4.41 billion by 2026, at a CAGR of 8.0 per cent during the forecast period from 2021 to 2026. The major drivers for the growth of business intelligence in the manufacturing industry are the increased need for big data analytics, improved decision-making, and efficient resource utilisation.
Some of the key benefits of business intelligence in the manufacturing industry include:
1. Improved decision-making: Data-driven decision-making is based on solid data. There is no doubt that decisions with more data inputs will perform better than decisions with fewer data inputs.
2. Increased efficiency: Business intelligence solutions can help manufacturers identify bottlenecks and inefficiencies in their operations. By addressing these issues, manufacturers can improve their overall efficiency and productivity.
3. Better customer service: By understanding customer buying patterns and preferences, manufacturers can tailor their products and services to meet customer needs more effectively. This can lead to improved customer satisfaction and loyalty.
4. Greater competitive advantage: In today’s competitive landscape, businesses need every advantage they can get. Business intelligence can give manufacturers the insights they need to make better decisions and stay ahead of the competition.
5. Improved financial performance: By reducing waste and improving efficiency, business intelligence can help manufacturers improve their bottom line.
The Way Forward
There are numerous reasons the manufacturing industry is primed for business intelligence implementation. The first is that the industry is highly competitive, and companies that can use data to improve their operations will have a significant competitive advantage. Furthermore, the industry is constantly evolving, with new technologies and processes being introduced on a regular basis. As a result, companies are finding it increasingly difficult to keep up with the changes without the assistance of BI tools.
Another reason BI is so crucial in manufacturing is that the industry is highly regulated. In order to ensure compliance, businesses must be able to track their performance against strict standards. Failure to meet these standards may lead to hefty fines or even closure. Businesses can use BI to identify areas where they are not meeting standards and take corrective action.
Finally, the manufacturing industry is heavily reliant on data. Companies must be able to collect and analyse large amounts of data in order to make informed decisions about their operations. This can be difficult for businesses that do not have access to the necessary tools and technologies. Business intelligence can assist companies in overcoming these challenges by improving their ability to collect, store, and analyse data.
While BI adoption in the manufacturing sector is ready and in the initial phase, the future still looks promising. BI platforms will revolutionise decision-making across industries. As a result, in order to propel the industry forward, new-age manufacturers will prefer certainty over uncertainty and action over inaction.