Today, as companies face an increasingly fast pace of market changes and growing competition, the ability to make informed and accurate decisions is a key factor for success. Despite this, many companies still make decisions based on incomplete information, intuition, or personal preferences. Such an approach not only increases the risk of errors but also slows down responses to changes, significantly reducing competitiveness. This is precisely where Business Intelligence (BI) brings a revolution, fundamentally changing the way companies make decisions.
How does decision-making work without BI?
Imagine a company that still relies on manual data collection. Workers in production record the number of pieces produced, downtimes, or defects on paper forms, and at the end of the shift, this information is re-entered into Excel. It can then take several days for someone else to input it into the ERP (Enterprise Resource Planning) system, such as SAP. Even when the data finally makes it into the system, managers still do not have a complete picture of production performance.
Let’s say management finds out from the ERP system that during a work shift, the production line produced 1,000 pieces fewer than planned. Naturally, they want to find out why this happened. However, tracing the cause can take days or even weeks. Information on which part of the line caused the issue, who was operating it, or whether there was enough material or staff is not directly available in the ERP system. Management has to gather this information personally from employees, which further delays the process. Does this sound familiar?
This way of working is not only time-consuming but also prone to errors. Fatigue, inattention, or a misunderstanding of the situation can lead to inaccurate data. Additionally, some employees may be tempted to “embellish” the data to improve their performance or cover up problems that occurred during the shift. As a result, management is forced to make important decisions based on incomplete or skewed information. They often rely more on intuition or personal preferences, which can lead to inefficient processes, increased costs, and a decline in competitiveness.
Why is using a BI tool alone not enough?
It is also common for companies to have already implemented a business Intelligence tool, such as Microsoft Power BI. While it offers excellent capabilities for clear reports and visualizations, the main problem often lies not with the tool itself but with the data being fed into it. If the data is incomplete, inaccurate, or delayed, even the best BI tool cannot ensure high-quality, fast, and targeted decision-making.
How to ensure BI truly fulfills its purpose?
The implementation of modern systems, such as the industrial software platform Ignition, which we also use at IoT Industries, provides a solution that goes beyond simple data visualization. Ignition allows the automation of data collection directly from production equipment, minimizing the issues associated with manual data entry. For specific data that still requires manual input, the system offers electronic forms where workers can easily record this information. Ignition can also integrate data from various enterprise systems (ERP, SAP, MES, HR, quality, production, maintenance, warehouses, etc.) into one place for all relevant data – so-called Single Source of Truth (SSOT). This concept ensures that all data is accurate, available in real time, and serves as a comprehensive source of information for all management levels.
For instance, if a production issue arises, the shift supervisor can see what is happening in real-time and respond immediately. The production director can check the status of orders at any time, and even the CEO can review up-to-date financial indicators on a Friday afternoon without waiting for a report from their team. Everything is accurate, instantly accessible, and visualized in clear reports.
Benefits of BI for Companies
As you can see, the implementation of BI brings numerous benefits, which can be summarized into these five key advantages:
- Faster and More Informed Decision-Making: With access to up-to-date and accurate data, managers can make decisions faster and with greater confidence. They are no longer dependent on inaccurate or delayed reports and can respond to issues in real-time.
- Cost Reduction: Automating data collection and conducting precise analyses allow companies to identify inefficiencies in their processes. Whether it is unnecessary production downtime or incorrect resource planning, BI can detect and help eliminate these issues.
- Increased Productivity: Employees know that management has an accurate overview of everything happening. This simple fact increases productivity by approximately 10% even before any additional measures are taken.
- Prediction and Forecasting: Advanced BI systems can not only analyze past data but also predict future trends and needs. This means companies can better plan their capacities, orders, and optimize their resources.
- Improved Competitiveness: Companies that respond quickly to changes and base their decisions on accurate data gain a significant competitive advantage. Customers of such companies are also more satisfied because they have better insight into the status of their orders. This increases trust and competitiveness in the market.
Business Intelligence is now an integral part of modern companies. Tools like Ignition and Microsoft Power BI enable businesses to make decisions based on accurate, up-to-date, and comprehensive data. Transitioning from manual data collection and analysis to an automated system using BI brings immediate benefits—cost reduction, increased productivity, and enhanced competitiveness. For companies looking to keep pace with the times and respond quickly to market challenges, implementing BI is a key investment.
Why IoT Industries?
Traditional companies typically specialize in OT (operational technologies, such as production lines and equipment) or conventional enterprise IT systems. However, we are able to connect both these worlds. Our unique expertise in bridging OT and IT allows us to deliver innovative digital transformation solutions to clients, enhancing the efficiency, reliability, and competitiveness of manufacturing companies.