The Data Gap in Manufacturing

David Wagner, Managing Editor | 12/12/2012 | 13 comments

David Wagner
The amount of data the world creates and stores is staggering, and it doubles every two years. Nevertheless, enterprises, especially manufacturers, are ignoring nearly all of it to their detriment.

An IDC study sponsored by EMC shows that only 3 percent of all data created in the world each year is tagged or otherwise categorized for future use. Only 0.5 percent is ever analyzed. It isn't a surprise that the figures are low. The sheer amount of data makes it hard to figure out what is useful to analyze and what business value there is in doing so. Another issue is that the data is scattered across billions of locations and is not necessarily owned by the people who need it.

However, there is hope for making some sense of it. Though consumers create 68 percent of all new data, 80 percent of the world's data is stored by enterprises. This creates an especially interesting opportunity for manufacturers that need access to consumer data to provide the best products to their customers.

A survey of the state of data in 2012 and the near future shows opportunities and challenges for the creative use of data by the people who create, design, and sell consumer products.

Opportunity: IDC cites what it calls the opportunity a "Big Data gap," but honestly, I don't think it is about big-data so much as it is about the smart use of discrete data. Whatever you want to call it, IDC said 23 percent of the data made in 2012 would be useful to enterprises if it were tagged and analyzed. Since only 3 percent of it is tagged and less than 1 percent is analyzed, there is digital gold out there to be mined.

Challenge: Manufacturing is the least likely entity to own the kind of consumer data that would lead to smart product decisions and better designs. That data is held in social networking sites and unstructured corporate resources. One way around the problem is creating crowdsourced brainstorming sites like IdeaStorm from Dell (this site's sponsor), which invites people to share and discuss potential products and solutions. But that is not capturing naturally generated data so much as commissioning new data. Smart manufacturers will need to gain access to the data that customers create outside of formal settings. One way would involve niche social networks sponsored by products with loyal followings. We see this with Facebook pages and online forums, but enterprises are only starting to realize the value of these communities.

Opportunity: From 2005 to 2020, data will grow from 130 exabytes to 40,000 exabytes. By 2020, the world will generate 5,200 gigabytes per person each year. Most of this will be machine-generated, taggable data, and it will be useful if handled correctly.

Challenge: Though the cost of storing a gigbayte of data is dropping, the amount of data we are storing is rising faster. IDC estimates the cost of storing all the data we want to store will rise 40 percent by 2020.

Right now, any manufacturers looking to use crowd-created data for crowdsourcing new products and business opportunities find themselves in a strange situation -- water, water everywhere, but not a drop to drink. There's so much data, and enterprises are paying so much to store it, but right now, no one can make heads or tails of it.

The winners of the data revolution will be those who find a way to access the information they need from multiple sources, visualize it in ways that make sense, and store it without drowning in it or cutting into profits. CIOs, who are often overlooked at manufacturers as the ones who buy the ERP and makes the robots work, will be at the forefront of a data revolution among manufacturers -- at least at those that plan to be in business in 2020.

View Comments: Newest First | Oldest First | Threaded View
Page 1 / 2   >   >>
nimanthad   The Data Gap in Manufacturing   1/31/2013 9:48:39 PM
Re: Anybody doing it right, right now?
Singlemud: very true. I know few companies who does not want the word analysis involved in any part since they feel its a nothing job
singlemud   The Data Gap in Manufacturing   12/28/2012 9:36:37 AM
Re: Anybody doing it right, right now?
I would say both. Data mining is so hot. It is hard to find a senior analysis. Also, most executives do not understand why they need analysis.
stotheco   The Data Gap in Manufacturing   12/16/2012 6:32:07 AM
Re: Anybody doing it right, right now?
It's a challenge, but I'm certain it's possible. The way I see it, there are many firms attempting to do this but not doing such a good job of it as of yet.
nimanthad   The Data Gap in Manufacturing   12/14/2012 4:44:56 AM
Re: Anybody doing it right, right now?
Is it a lack of technical knowledge and skills or is it something else ?
kstaron   The Data Gap in Manufacturing   12/13/2012 7:08:51 PM
Anybody doing it right, right now?
It sounds like if manufacturers want to compete using data they need to not only find the right data to use, which they may not have yet, but also need to sift it fast enough to only store what they really need to keep cost down. Are there any manufacturers doing a good job at this now for others to model?
David Wagner   The Data Gap in Manufacturing   12/13/2012 5:11:31 PM
Re: Un-tagged, unused data is like sea water
@zaius- Companies do have to decide what they want. But more mportantly, they need to get the data they want in their own hands. The data they want is often stored by companies and people they don't have access to. That's why Facebook is so tantalizing to investors-- they own tons of data that people want, but they don't know how to use in a way that doesn't violate terms and privacy. If they ever good, or if that type of data could get in the hands of people who COULD use it, that's the gold mine.
David Wagner   The Data Gap in Manufacturing   12/13/2012 5:08:57 PM
Re: Hobo data
@lufu- I think transient data is data that is never stored. Think about all the phone calls you've made. Unless someone is cheating you, they've never been recorded. They're lost. And frankly, that's a good thing right up untl you have an argument with your wife over what you said 5 years ago on the phone.
LuFu   The Data Gap in Manufacturing   12/13/2012 2:25:36 PM
Hobo data
TransientData - IDC indicates that, "Much of the digital universe is transient - phone calls that are not recorded, digital TV images that are watched (or "consumed") that are not saved..."

Maybe this is a rhetorical question but, if this digital data isn't saved or stored, does it just disappear or keep on floating around in the Internet pipes far into perpetuity? Or is it just a virtual tree falling in the forest?
Technocrat   The Data Gap in Manufacturing   12/13/2012 12:29:44 AM
Re: Un-tagged, unused data is like sea water
@Zaius    Great point, which is another major aspect of all of this, the U.S. supposedly has a shortage of skilled analyst to perform these functions and there is still the question of whether businesses will actually pay for this expertise.  

I doubt it except in the most extreme cases.
Technocrat   The Data Gap in Manufacturing   12/13/2012 12:26:13 AM
Re: Analyzed data - Does wonders for manufacturers
@sohaibmasood   I am not too surprised every manufacturing company I have ever know was challenged in this way, even as the new generation of owners arises, they still do not understand out to effectively mine their own data.  

Just goes to show that some industries are insulated from the effect of truly understanding their market. Well judging from IDC's numbers most companies are functioning this way.
Page 1 / 2   >   >>


The blogs and comments posted on EnterpriseEfficiency.com do not reflect the views of TechWeb, EnterpriseEfficiency.com, or its sponsors. EnterpriseEfficiency.com, TechWeb, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.

More Blogs from David Wagner
David Wagner   4/24/2014   0 comments
You probably heard about the "epic fail" that the NYPD experienced on Twitter, but before we go branding this another case of a government or enterprise not being cool enough to handle ...
David Wagner   4/23/2014   6 comments
Retailers, take a tip from a video game and tell your customers what you know about them.
David Wagner   4/18/2014   37 comments
As you've probably read in countless popular magazines, how you sleep can say a lot about your personality. Now we know it can tell you a lot about your relationship, too. A survey ...
David Wagner   4/17/2014   29 comments
Today, I'd like to revel in all your imperfections. You guys are lazy. You take the shortest way to solving any problem. You are happier if your entire datacenter is held together with ...
David Wagner   4/16/2014   44 comments
If you aren't a teenage girl, chances are you haven't heard of the social network We Heart It, but if you have anything to do with your company's social media strategy, you might want to ...
E2 IT Migration Zones
IT Migration Zone - UK
Why PowerShell Is Important
Reduce the Windows 8 Footprint for VDI
Rethinking Storage Management
IT Migration Zone - FR
SQL Server : 240 To de mémoire flash pour votre data warehouse
Quand Office vient booster les revenus Cloud et Android de Microsoft
Windows Phone : Nokia veut davantage d'applications (et les utilisateurs aussi)
IT Migration Zone - DE
Cloud Computing: Warum Unternehmen trotz NSA auf die „private“ Wolke setzen sollten
Cloud Computing bleibt Wachstumsmarkt – Windows Azure ist Vorreiter
Like Us on Facebook
Twitter Feed
Enterprise Efficiency Twitter Feed
Site Moderators Wanted
Enterprise Efficiency is looking for engaged readers to moderate the message boards on this site. Engage in high-IQ conversations with IT industry leaders; earn kudos and perks. Interested? E-mail:
moderators@enterpriseefficiency.com
SPONSORED BY DELL
A Video Case Study – Translational Genomics Research Institute
e2 OEM Video


On the Case
TGen IT: Where We're Going Next

7|11|12   |   08:12   |   10 comments


Now that TGen has broken new ground in genomic research by using Dell's storage, cloud, and high-performance computing solutions, the company discusses what will come next for it and for personalized medicine.
On the Case
Better Care Through Better Communications

6|6|12   |   02:24   |   12 comments


The achievements of the TGen/Dell project could improve how all people receive healthcare, because they are creating ways to improve end-to-end communication of medical data.
On the Case
TGen IT: Where We Are Now

5|15|12   |   06:58   |   5 comments


TGen is breaking new ground in genomic research by using Dell's storage, cloud, and high-performance computing solutions.
On the Case
TGen IT: Where We Were

4|27|12   |   06:45   |   10 comments


The Translational Genomics Research Institute wanted to save lives, but its efforts were hobbled by immense computing challenges related to collecting, processing, sharing, and storing enormous amounts of data.
On the Case
1,200% Faster

4|18|12   |   02:27   |   12 comments


Through their partnership, Dell and TGen have increased the speed of TGen’s medical research by 1,200 percent.
On the Case
IT May Improve Children's Chances of Survival

4|17|12   |   02:12   |   8 comments


IT is helping medical researchers reach breakthroughs in a way and pace never seen before.
On the Case
Medical Advances in the Cloud

4|10|12   |   1:25   |   5 comments


TGen and Dell are pushing the boundaries of computing, and harnessing the power of the cloud to improve healthcare.
On the Case
TGen: Living the Mission

4|9|12   |   2:25   |   3 comments


TGen's CIO puts the organizational mission at the heart of everything the IT staff does.
On the Case
TGen Speeding Up Biomedical Research to Save More Lives

4|5|12   |   1:59   |   8 comments


The Translational Genomics Research Institute is revamping its computing to improve speed, storage, and collaboration – and, most importantly, to save lives.
On the Case
Computing Power Helping to Save Children's Lives

3|28|12   |   2:13   |   3 comments


The Translational Genomics Institute’s partnership with Dell is enabling them to treat kids with neuroblastoma more quickly and save more lives.
Curtis Franklin Jr.
OEMs Change Roles

1|18|13   |   1:55   |   3 comments


OEMs can change markets – here's why IT should have a say in the decision.
Tom Nolle
The Enterprise Side of Amazon Fire

9|29|11   |   2:04   |   6 comments


Amazon Fire’s split-browser model hosts some of the GUI in the cloud, which could have a major impact on virtual desktop thinking.
Curtis Franklin Jr.
The OEM Relationship

9|13|11   |   02:02   |   1 comment


The growth of OEM relationships means that enterprise IT execs must pay closer attention to who's responsible for support and development.
Pablo Valerio
Can't Land on the Runway Behind You

8|15|11   |   1:36   |   1 comment


One lesson from aviation also applies to big IT projects: Give yourself plenty of leeway and have room to maneuver.
Ivan Schneider
Flecksequence Explained

7|28|11   |   2:46   |   3 comments


How to use the term in a sentence and, more importantly, how flecksequence can help manufacturers.
Sara Peters
E2 Has a New Look!

7|20|11   |   2:53   |   6 comments


E2's gotten a makeover. Take a tour through some of our new features.