DEMOCRATIZING DATA IN MANUFACTURING · The money lies in your data, so getting to it quickly and...

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DEMOCRATIZING DATA IN MANUFACTURING Harness your most strategic assets — data and experienced operators — to optimize with analytics. MANUFACTURING ANALYTICS WHITEPAPER C-SUITE AND BUSINESS LEADERS

Transcript of DEMOCRATIZING DATA IN MANUFACTURING · The money lies in your data, so getting to it quickly and...

Page 1: DEMOCRATIZING DATA IN MANUFACTURING · The money lies in your data, so getting to it quickly and efficiently to start analyzing is fundamental to realizing immediate ROI. Focus your

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D E M O C R AT I Z I N G D ATA I N M A N U FA C T U R I N GHarness your most strategic assets — data and experienced operators — to optimize with analytics.

M A N U FA C T U R I N G A N A LY T I C S W H I T E PA P E R

C- S U I T E A N D B U S I N E S S L E A D E R S

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A CC E L E R AT I N G T H E A D O PT I O N O F I N D U S T R Y 4 . 0 : WR A N G L I N G D ATA A N D D E M O C R AT I Z I N G A N A LYT I C S

T H R E E M U S T- H AVE S F O R M O D E R N M A N U FA C T U R I N G A N A LYT I C S

T H E P OWE R O F S E L F - S E R VI C E A N A LYT I C S I S I N YO U R H A N D S

E XP E R I E N C E T H E T H R I L L O F O PT I M I Z I N G

T H E O F F I C E O F T H E C H I E F D ATA O F F I C E R : L E T ’ S G E T R E A L A B O U T T H E E L I T E S C I E N C E S Q UA D

S I X Q U E S T I O N S T O CO N S I D E R WH E N E M B R A C I N G I N D U S T R Y 4 . 0

VA L U E YO U R VE T E R A N E M P L OY E E S A N D E N H A N C E T H E I R D ATA S K I L L S

CO N T E N T S

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Industrial revolution is touted as the answer to the evolution of manufacturing into the next century. But the harsh reality is that the adoption of digitalizing physical workflows in order to gain critical actionable insights to drive efficiencies has been slow — in fact, very slow.

At the forefront of promoting these changes are ERP vendors with the promise of further automation, cloud-based processes, seamless, real-time analytics, and automation. The reality is, after significant financial investment for these enhancements, manufacturers discover there is some basic blocking and tackling left to do before that ERP vendor can even begin to integrate, analyze, or automate. Why? Two key issues are major contributors:

A CC E L E R AT I N G T H E A D O PT I O N O F I N D U S T R Y 4 . 0 : WR A N G L I N G D ATA A N D D E M O C R AT I Z I N G A N A LYT I C S

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Critical advancements in manufacturing processes have initiated the adoption of Industry 4.0, bringing a traditional physical environment into a modern digital environment and joining multiple workflows that can be adopted and scaled at the speed of business.

“ At the same time we look at the reality of ERP as it exists in manufacturing today. It shows that there is quite some work to do before that intelligent ERP will run your smart factory and supply chain management business processes.” —“From ERP to intelligent ERP in the smart factory and supply chain,” i-Scoop

1 2D ATA I S H O U S E D I N S I L O S

E M P L OY E E S D O N ’ T H AVE N E E D E D D I G I TA L S K I L L S E T S

I N D U S T R Y 4 . 0

/ˈindəstrē 4.0/ (noun)

Digital transformation that combines a traditional physical environment with a modern digital environment, joining multiple workflows that adapt and scale at the speed of business.

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T H E O F F I C E O F T H E C H I E F D ATA O F F I C E R : L E T ’ S G E T R E A L A B O U T T H E E L I T E S C I E N C E S Q UA DMany manufacturers see the money in their data. In fact, according to a study by PwC, 56% of CDOs were hired by manufacturers in the past two years to build out an elite data science squad.1 Still, one of the major challenges remaining to monetizing the data is the data itself. Many CDOs in their first two years are simply trying to locate the data (in the case of one automaker, in more than 4,600 locations!), then unify various forms of data into a data lake, including unformatted machine data, analog data, relational or object-oriented ERP data, and even spreadsheets. Finally, data needs to be cleaned and formatted before that elite data science squad can start extracting insights from it.

Data wrangling is part of the blocking and tackling necessary to take the next important step to an accelerated digital transformation. Hiring a consulting agency to migrate data to a single database is costly. You may decide to draw a line in the sand and standardize on a single database moving forward, but what happens to the years of historical data? During most ERP integration or migration projects, historical data is not part of the scope. It’s simply too time-consuming. In many cases, migrating historical data requires that the line of business first evaluate the value of the data, establish data governance, clean the data, and cross reference the data for standardization. This takes too many internal resources for a business moving fast toward the future. In fact, an IDC study shows that 80% of any analytics project is consumed by the data prepping and cleaning alone!

The money lies in your data, so getting to it quickly and efficiently to start analyzing is fundamental to realizing immediate ROI. Focus your data science squad on your big bets and let them be part of the corporate strategy, while they enable and quarterback the line of business to look for utility plays to gain operational efficiencies and bolster revenues.

1. “Chief Digital Officer Study,” PwC

— “Big Companies Are Embracing Analytics, But Most Still Don’t Have a Data-Driven Culture,” Harvard Business Review

69%27%

OF EXECUTIVES IN LARGE CORPORATIONS ARE USING ADVANCED ANALYTICS TO DRIVE BETTER DECISIONS.

ARE USING ANALYTICS FOR INNOVATION AND DISRUPTION.

O N E O F T H E M A J O R C H A L L E N G E S T O M O N E T I Z I N G D ATA I S T H E D ATA I T S E L F .

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VA L U E YO U R VE T E R A N E M P L OY E E S A N D E N H A N C E T H E I R D ATA S K I L L SMost transformations usher the beginning of a change in perception. In the case of manufacturing, the first industrial revolution was highly dependent on physical machines and people. Both machines and people — poor tenant farmers looking for a better wage — could be bought. Prospective workers flooded the congested sulfuric cities of the Victorian age. Many had to be retrained from running a hand furrow to running new technologies such as a sharp and dangerous lathe or a spinning milling machine. Working conditions changed and workman’s rights now began to take the forefront, affecting both the human conditions and how humans interact with new technologies. This new reality ushered in transformative progress both in technology and safety.

The same can be said of Industry 4.0, which is ushering in a new age of technology and human interaction. Not only are manufacturers using smart technologies such as AI, but the advance of cloud-based technologies has created a ubiquitous environment for manufacturers to reap the benefits from anywhere, at any time. In addition, the adoption of artificial intelligence and the automation of robotics has accelerated the production environment and increased efficiencies, which in turn has changed skills requirements for the production operator.

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Consider that veteran manufacturing operators were formally trained to use the machine functions along with observations and judgement to make critical production decisions. How does the operator role function in the intelligent, “always on” setting of Industry 4.0 and the convergence of technology and machinery? In other words, how can you enable this “farmer” to work the lathe? These highly-valued employees are often the most intimate and savvy about the production process. They are the closest to any problem and therefore are best suited to find innovative ideas to problem solving.

The answer to enabling veteran manufacturing employees to interact with and deploy smart technologies is simple: Take the complexity out of the technology. Operators solve problems every day, and you can leverage their problem-solving skills and enable them with data by making the technology part of the already-existing process that the operator is currently performing. By using a code-free, drag-and-drop, guided interface, anyone with no formal analytics skills can solve problems, using artificial intelligence as a concierge between the technology and the problem. Now your skilled operator working at the heart of the process is empowered to ask questions, seek insights, and make recommendations to take action.

By transforming your problem-solving employee to a data-enabled problem-solving employee, you can accelerate your digital adoption from the shop floor to the top floor without relying on the ERP integration or upgrade. Simply by making analytics and data available in near-real time to the operator, you can transform your shop floor to gain insights, drive innovation, and pursue continuous improvement based on substantiated fact and recommendations made by your veteran employees.

T H E A N S WE R T O E N A B L I N G VE T E R A N M A N U FA C T U R I N G E M P L OY E E S T O I N T E R A C T WI T H A N D D E P L OY S M A R T T E C H N O L O G I E S I S S I M P L E : TA K E T H E CO M P L E XI TY O U T O F T H E T E C H N O L O G Y.

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T E C H N O L O G Y + D ATA What is the role of smart technologies? How can I capture “key indicators,” which will allow me to get vital insights? Is all of the data necessary? How can I use and wrangle unstructured data?

D ATA M I G R AT I O N How will I bring together structured and unstructured data from the many locations and platforms that have been in use at one time? Do I really need to do a major data migration project? Is it possible to use my analytics platform’s data-wrangling capabilities to avoid a migration project?

U T I L I Z AT I O N + D ATA D E M O C R AT I Z AT I O N How can my data science team tackle 1,000 projects? How can I enable the team to act as a quarterback to enable employees in each LOB to take on some of the utility problems?

A N A LYT I C S C U LT U R E How can I build a data culture from shop floor to top floor that accelerates our adoption of Industry 4.0? Are there incentive and gamification tools that would help me start innovation ideation projects throughout the company?

O P E R AT O R E N A B L E M E N T Can I keep and incentivize my veteran employees to enhance their skill sets? How can I bring them closer to the data if they don’t have any analytics skills? How do I use my CDO office to help democratize analytics?

AU T O M AT I O N + I N T E G R AT I O N Once employees find insights and run analytics to solve problems, how can these processes be automated? How do I share the outcomes with other departments? How do I share these outcomes with suppliers and partners? How can I integrate suppliers and partners into my process?

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As you battle to bolster revenues through the acceleration of Industry 4.0, data is your ammunition. Today, you collect more than just basic machine, supply chain, transactional, inventory, and shipment data. Many of you also invest in collaborative shipping, location data, smart technologies, and more. However, just like other growing companies, you probably invested in technology as the need arose, which means that all this structured (e.g. customer transactions) and unstructured (e.g. social posts) data you have painstakingly collected is sitting in multiple, incompatible systems. The result? Data chaos.

To get started with analytics, simply capturing data is not enough. You need the ability to:

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A CC E S S A N D A S S I M I L AT E A L L YO U R D ATA A C R O S S VA R I O U S SYS T E M S . Siloed systems mean different departments working off different and often incomplete views of data — and stakeholders coming to the table with different answers to the same problem. Consolidating data from inside and outside your organization for a single view of your customers, your supply chain, your sales and operations, and company performance helps you derive richer and more consistent insights that can improve decision-making.

ENSURE THE QUALITY OF YOUR DATA . Poor-quality data and duplicate records not only annoy your vendors and partners, but also waste money. By standardizing data in different systems, eliminating record duplication, and expunging common data errors, you can reduce purchasing, inventory, and distribution errors. In addition, by simply streamlining the data, you can create better and more realistic demand forecasts, supplying vital fact-based information to your supply chain.

ENRICH YOUR ORGANIZATIONAL DATA WITH THIRD-PARTY INSIGHTS. Your own customer and transactional data can only give you limited insight about your customers, suppliers, or partners. By augmenting organizational data with third-party information such as trade area demographics, location-based data, distance to drive data, as well as partner and supplier data, you can gain valuable insights beyond your four walls and get a global, 360-degree view of your business.

D E M O C R AT I Z I N G D ATA I N M A N U FA C T U R I N G | 8

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T H E P OWE R O F S E L F - S E R VI C E A N A LYT I C S I S I N YO U R H A N D S

Alteryx enables analysts and non-analysts alike to derive deeper insights about customers, transactions, and operations across all channels, without any coding or IT intervention. Use the platform to create a single, integrated workflow for data blending and advanced analytics that can address the increasing data volume and complex analyses requirements to compete, plus much more.

Alteryx gets you started with analytics now, helping you glean deeper insights in hours rather than days or weeks. Free from expensive implementation, integration, and maintenance costs of a multi-tool architecture, you can reap the benefits of sophisticated analytics immediately, without needing an army of expensive statistical experts or IT staff to get started — or keep it going.

Are resource constraints, whether related to operations budgets or the availability of IT and analytical experts, forcing you to be creative in your analytic pursuit? Without the budget of the “big guns,” you can’t purchase expensive, task-specific tools that specialize only in data integration or in data quality or in forecasting, nor can you hire an army of specialized programmers and statistical experts to custom-code analytic models or integrate disparate systems.

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By combining everything you need to gain deeper insights into your data — data blending, predictive analytics, location intelligence, and reporting — in a single workflow, Alteryx enables you to:

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A CC E S S CO M P L E T E , H I G H - Q UA L I TY D ATA . Now you can easily access, prepare, cleanse, and blend all types and volumes of structured, unstructured, and semi-structured data, no matter where it is located. You can also eliminate data chaos and pull together all the data you collect across various systems into a single, consolidated view. What’s more, you can improve the quality of your data by eliminating duplicate records and fixing data errors. This modern solution comes with pre-packaged third-party demographic, firmographic, spatial, and census data to give you deeper insights into your customers and market, which translates into improved and optimized decisions. Furthermore, you can share that data with ease across the globe.

ACCESS THE RIGHT TYPES OF ANALYTICS . Match the analytical sophistication you require and go beyond simple query and reporting or OLAP (online analytical processing) drill-down capabilities. Perform sophisticated diagnostic analyses, generate reliable forecasts, model future scenarios, and incorporate location intelligence into all your analytic models with just a few clicks. Again, no specialized programming skills are required because Alteryx includes pre-built R-based macros to support diagnostic, predictive, and spatial analytic modeling. The intuitive interface lets you drag and drop the analytic operations you need into the workflow and allows you to create analytic models quickly while experiencing faster time to insight.

SHARE ANALYTIC RESULTS AND INSIGHTS IN HOURS, ACROSS LINE OF BUSINESS. Streamline the sharing of data results and insights throughout your organization by integrating powerful reporting and file output capabilities into the same intuitive workflow used for data blending and advanced analytics, so you can present analytic results to each stakeholder in the way he or she understands it best. Whether your decision-makers want static graphs and charts or rich, interactive data visualizations in Tableau or Qlik, Alteryx gives you the flexibility you need to ensure the adoption of analytics in your organization. And by sharing analytic applications with frontline decision-makers and making them self-sufficient, you ensure that they always have access to consistent, up-to-date information, so you won’t miss out on that huge business opportunity or competitive lapse.

D ATA- D R I VE N E M P L OY E E S

Cargill brings data closer to its line of business by adopting analytics and automating processes, enabling employees to make data-driven decisions.

R E A D M O R E

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By pulling your data out of silos and enabling on-the-ground employees to use drag-and-drop analytics to find insights on the shop floor, you’re well on the road to Industry 4.0. Self-service analytics allows anyone in the organization to access the analytic power they need to deliver the results your manufacturing organization requires. By harnessing the power of your two most valued assets, your data and your veteran employees, you will discover hidden gems, drive employee self-worth and find synergies where you least expected.

Alteryx enables you to overcome the technological, financial, and cultural objections to becoming a data-driven organization and harness the power of your data to gain the deep customer and market insight you need to compete in today’s digital manufacturing environment. You simply can’t afford to tread water if you want to drive your business forward.

U N L E A S H YO U R A N A LYT I C P OWE R

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E XP E R I E N C E T H E T H R I L L OF OPTIMIZINGOpen up the possibilities for manufacturing insights from the shop floor to the top floor with modern analytics.

D I S COVE R T H E S I M P L I C I TY O F VE N D O R F U Z Z Y M AT C H I N G , P R E D I C T I VE I N VE N T O R Y A N A LYS I S , A N D D E M A N D F O R E C A S T I N G I N A LT E R YX .

A B O U T A LT E R YXRevolutionizing business through data science and analytics, Alteryx offers an end-to-end analytics platform that empowers data analysts and data scientists alike to break data barriers, deliver insights, and experience the thrill of getting to the answer faster. Organizations all over the world rely on Alteryx daily to deliver actionable insights.

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VI S I T A LT E R YX M A N U FA C T U R I N G

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