Three Reasons Why Data-driven Leadership Should be Embraced

Editor's note: Mark Dohnalek is President & CEO of Pivot International, the Kansas-based global product development, engineering & manufacturing firm.

Change isn't coming—it is already here and manufacturers and supply chain executives need to realize that the Internet of Things (IoT), digital analytics and AI are not future ideas but today's processes.

For organizations to stay relevant and move forward, they must accept that the status quo has changed and embrace a data-driven approach. By doing so, manufacturers, product development teams, and supply chain leaders will be able to achieve agility, productivity, innovation and ROI—which are all necessary to stay ahead of competitors and grow. Similar to when 3-D additive manufacturing began, now as we approach the next decade, any manufacturing executive who does not recognize the rapid rate of data-driven technological innovation and is still relying on traditional analog approaches will fail.

Below are the three reasons every company needs to adopt and adapt if they are going to outperform the competition:

Enhanced agility to adapt and faster course-correction. IoT, digital analytics and AI all make real-time feedback possible giving manufacturers and supply chain partners the speed needed to adapt, pivot and course-correct. With this data, a rapid response can be implemented. And, when product development teams, assembly line managers, and supply chain leaders can move quickly to deploy a flexible, synchronized swarm approach to challenges and threats, they will minimize risk and maximize ROI.

Increased insights and improved productivity. Data-driven insights are critical for viewing all conditions and variables faced while revealing valuable opportunities invisible to analog companies. Not only will IoT, digital analytics and AI help you foresee and engineer trends and patterns crucial to successfully scaling but they also help to detect inefficiencies. When that happens, manufacturers can then move swiftly to recalibrate variables to impact productivity.

Better collaboration leading to enhanced innovation. Utilizing all that big data has to offer positions manufacturers and supply chain partners for more collaboration with the potential of more innovation. By adopting data-driven approaches, organizations can move away from silos and shift into cross-functional, purposeful, highly collaborative teams. Big data will be the guide for improving operations, overcoming challenges, and realizing the benefits of real-time flexibility and adaptive cooperation.

All in all, manufacturers, product development firms and supply chain partners must accept, embrace and utilize IoT, digital analytics, and AI to stay relevant and grow. By bringing in digital analytics that are monitored, measured, quantified and mobilized, management teams will be more efficient, innovative, and ultimately more competitive.

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