Big data might sound like a buzzword, but it’s far more down-to-earth than you’d think. Today, data has become one of the most valuable assets for any organization. And yet, paradoxically, most manufacturing companies fail to tap into its full potential. Studies show that companies utilize only 20% of the data available to them. That means 80% of valuable information that could transform the way a business operates goes to waste.
So, how can you turn digital noise into a real competitive edge? The answer lies in conscious big data management – a key to efficiency, innovation, and security in modern production plants.
Why does manufacturing need big data?
Whether your organization has 50 or 5,000 employees, decision-making based on intuition alone is no longer enough. Executives, managers, and operational leaders need hard data: financial, operational, production, sales, or quality. Effective data management enables predictable, scalable growth.
Data comes from many sources: internally (machines, ERP, MES systems), from the business environment (suppliers, customers, market), and even directly from consumers (e.g. social media). Its volume is growing exponentially while storage and processing costs are dropping. But having access to data is not enough – understanding and using it in the right context is what really matters.
Big data – what does it really mean in manufacturing?
The simplest definition of big data is: „a lot of data”. But that’s just the start. Big data also means:
- variety – structured, unstructured, semi-structured data,
- velocity – continuous flow of new information,
- value – insights hidden within the analysis,
- veracity – data quality and consistency.
In manufacturing, big data includes machine and sensor data, management and logistics systems, market and environmental info. Big data is not just about tools – it’s an entire philosophy of data management, from collection to storage to decision-making.
Why analyzing data without context is a waste
Raw data from ERP systems, sensors, or machines has no value on its own. Only context and interpretation turn it into a useful business tool.
Think of it this way: if someone asks you whether 50°C is „hot”, what’s your answer? Everyone at explitia would say: „It depends”. That perfectly illustrates the importance of context. If we’re talking about body temperature – it’s dangerously high. If it’s milk pasteurization – not nearly enough. It’s the same with production data.
Big data as the foundation of Industry 4.0 – 4 key technologies
Big data in industry is a complex ecosystem of technologies that must work together harmoniously to enable effective data management.
1. Internet of Things (IoT) and Sensors
Modern sensors collect data with unprecedented precision and frequency. They allow you to monitor everything – from temperature and humidity to energy consumption and machine vibrations. These are the foundations upon which all analytics are built.
2. Central Systems
Data from various sources must be structured and contextualized. Energy management systems, MES, or ERP provide business meaning to data and enable cross-analytics.
3. Cloud Technologies
The cloud drastically reduces the cost of storing and processing data. It also allows for resource scaling depending on needs.
4. Artificial Intelligence
AI analyzes patterns, predicts trends, and provides actionable insights. However – as experts emphasize – AI is only 10% of the success. The other 90% lies in properly prepared data and infrastructure.
Key benefits of data analysis and big data in manufacturing
Process optimization and efficiency
Production data analysis helps identify bottlenecks, minimize downtime, and improve scheduling. This allows companies to increase efficiency without costly investments in new lines or machines.
Predictive maintenance
Data from sensors and systems allows predicting failures and planning maintenance before downtime occurs. This not only saves money but also enhances safety and extends equipment lifespan.
Quality management and standardization
Big data enables real-time quality monitoring, rapid detection of deviations, and immediate responses to potential problems. Trend and root cause analysis help eliminate recurring errors and improve production standards.
Supply chain and logistics optimization
By analyzing data across the supply chain, companies can better forecast demand, manage inventory, minimize the risk of shortages or overproduction, and improve delivery timeliness.
Cost reduction and sustainability
Monitoring energy and material consumption allows for more efficient resource use, reduced waste, and the implementation of eco-friendly solutions. Global leaders show that big data implementation can yield millions in annual savings.
Innovation and competitive advantage
Big data fuels the development of new products, offer personalization, and the implementation of modern business models (e.g., predictive analytics, digital twin). Companies that can quickly analyze and apply insights from data outpace competitors and better meet market needs.
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Pitfalls to Avoid
Implementing big data isn’t just about technology – it requires a cultural shift. That’s why the process should be approached holistically with an optimal strategy. Learn from others’ mistakes and avoid the traps below!
Mistake 1: Planning everything upfront
One of the biggest traps is trying to plan every detail of a big data project from the start and rigidly sticking to that plan. IT projects are unpredictable—new challenges and variables always arise. We recommend an agile (phased) approach where you have a vision of the whole, but execute it piece by piece, learning from each stage.
Mistake 2: Delaying data collection
Many companies postpone data collection until they know how to use it. This is a major mistake. The cheapest option is to collect data continuously, not to recreate it years later when the system is no longer available, and employees don’t remember implementation details.
Mistake 3: Ignoring end users
The best technologies in the world are worthless if people don’t use them. It’s crucial to engage teams early in the design phase and show them tangible benefits.
Mistake 4: One dashboard for everyone
A key mistake is creating a universal dashboard “for everyone.” Different organizational levels need different information:
- Executives care about strategic KPIs, long-term trends, and ROI.
- Middle management needs data on departmental performance and process optimization.
- Operational team leaders focus on real-time metrics, machine statuses, and alarms.
- Operators need simple, clear info about what’s happening now.
How to start your big data journey?
Step 1: Identify a specific business problem
Don’t start with the technology – start with the problem. Examples:
- high energy costs,
- frequent machine breakdowns,
- low production efficiency,
- quality issues.
Step 2: Audit your available data
Check what data you already have or can easily obtain. Often, companies already possess 70% of the needed information.
Step 3: Develop a holistic strategy
Think long-term – how can big data help across different areas of your business? Even if you start with one issue, it’s worth having a comprehensive vision.
Step 4: Implement in phases
Plan the project in stages and allow for adjustments after each phase. This enables you to respond to new challenges and opportunities.
Step 5: Start collecting data today
Even if you’re not yet sure how you’ll use it – start collecting. It’s the cheapest investment in your company’s future.
How to implement big data in manufacturing?
In practice, implementing big data in production involves:
- installing sensors and data collection systems (IoT, IIoT),
- choosing platforms for storing and analyzing data (cloud, bi systems, MES/ERP),
- building dashboards and reports tailored to different audiences (executives, operational leaders, sales),
- training teams and fostering a data-driven culture.
Regularly reviewing and updating the strategy based on feedback from implementation
Big data – the future of manufacturing
In the era of AI and automation, companies that can effectively use data will have a huge competitive edge. Big data is not the future—it’s the present. The real question is: is your company ready to harness this potential or will it continue wasting 80% of its available information?
Remember: every day you delay is another batch of unused data that could already be improving your production efficiency. Time to act!