The Biggest Challenges of Data-Driven Manufacturing

Willy C. Shih and Helmuth Ludwig for Harvard Business Review:  The widespread deployment of low-cost sensors and their connection to the internet has generated a great deal of excitement (and hype) about the future of manufacturing. The internet of things (IoT) and industrial internet in the United States, Industrie 4.0 in Germany, and 物联网 (wù lián wăng) in China are all centered on the application of big data and analytics to creating the next generation of manufacturing: using data to reduce costs through next generation sales and operations planning, dramatically improved productivity, supply chain and distribution optimization, and new types of after-sales services. In fact, IoT is at the peak of Gartner’s 2015 hype cycle, which suggests the next phase will be disillusionment, and it will be years before we see real productivity gains.

We believe data-driven manufacturing is indeed the next wave that will drive efficient and responsive production systems. But to get beyond the hype, managers need to understand some underlying challenges and paradigm shifts. While there are a multitude of challenges on the road to successful implementation, we think there are four especially important ones.  Cont'd...

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

TURCK - Safer and More Efficient Industrial Networking

TURCK - Safer and More Efficient Industrial Networking

The new IP67 Managed Ethernet Switch from Turck provides standard and Gigabit ports in the same device. Configure, manage, and monitor connected machines and devices remotely, outside of a control cabinet. Find out more about this rugged solution for decentralized control. Part number TBEN-Lx-SE-M2. • Gigabit high-speed backbone for fast link-up times • Standard and Gigabit ports on the same device • Web-based diagnostic tools for preventive maintenance • Built-in security with the use of VLAN, NAT routing and firewall