Manufacturing is one industry in particular that can benefit tremendously from an analytics and data strategy. This video discusses how D&A can quickly add huge enterprise value to these types of firms. The CEO, CFO, COO, and Private Equity teams in the crowd REALLY liked this segment.
Ultimately data and analytics can be a powerful tool to answer the question, ”where should we put our resources to get the biggest bang for our buck?”
The Question: What industries stand to benefit the most from having a data and analytics strategy?
• Clearly there are exceptions, but in general manufacturing is an analytically unsophisticated industry. As such, it is an area ripe to benefit from analytics.
• Manufacturing has an exceptionally strong history using analytics within their 4 walls (Six Sigma), but is sorely lagging other industries on using analytic capabilities outside their 4 walls.
• The real money “outside the 4 walls” is in pipeline development, channel/market understanding and insights, price management, supply chain management, inventory forecasting, sales analytics, market/wallet share, addressable market size, and competitive intelligence. These are all topics manufacturers tend to be underdeveloped in and should be deploying analytic resources against.
• My challenge to manufacturers today is to put more effort looking at data and trends outside the 4 walls of the business. Operational improvements only take you so far.
• A simple playbook for manufacturers: Focus analytical efforts on market and channel understanding/insights. Beef up sales analytics and strategic account plans. Put more resources on supporting revenue drivers.
Let me be clear that D&A is NOT a magical panacea. Instead, we should look at it as an exceptionally potent resource to identify the greatest opportunities (including some hidden prospects) and for developing new insights.
From here you can develop rock solid and informed strategies to drive tangible results on the P&L without multi million dollar investments.
The best part? These new activities will greatly benefit most manufacturers and are not terribly complicated to pursue.
Be sure to check out all the videos from our “Data & Analytics in the Boardroom: Raising Your Digital Quotient” series.