Among the sponsors: Predictive Analytics in the Manufacturing Industry
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- Cory Osborne
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1 Among the sponsors: Niche topic or mainstream?
2 Introduction Predictive analytics is an area in data analysis which is gradually gaining in importance. Other than with classic reporting, no longer the past or the status quo are in the focus but the recognition of statistical relations and forecasts. This way it is possible to not only optimize production processes but also to better support strategic decisions. Yet, is predictive analytics rather mainstream or a niche topic in German manufacturing companies with more than 500 employees? In view of this question this study deals with the following topics: What are the challenges for the shop floor staff in German companies? How are predictive analytics solutions already used today, and what are the investment plans for its future usage? Who are the initiators of predictive analytics projects and who makes the budgets available? Which requirements do predictive analytics solutions have to fulfill and which obstacles constrain their usage? Which hot topics drive their usage? 2
3 Core statements I The production managers in German companies are faced with multiple central challenges: adherence to delivery dates, (process) quality and requirements planning are among the most difficult tasks in every third company. The management of warranty cases and product recalls is comparatively rather less important. Predictive analytics addresses the most important challenges: More than 65% of the respondents believe that this kind of analysis method for instance contributes to improving adherence to delivery dates. Approximately every sixth company is fully convinced that this technology can improve the requirements planning process as well as the quality of production. Already today, in approx. every third company predictive analytics solutions are a key technology, i.e. of strategic importance. For the majority of manufacturing companies in Germany predictive analytics is no longer a niche topic neither today nor in the future. 3
4 Core statements II Approx. 70% of respondents affirm that predictive analytics solutions help the German industry to become more efficient and innovative, and every second respondent agrees with the statement that such solutions yield significant business advantages. For almost three quarters of all production managers surveyed, this particularly applies to large enterprises. Predictive analytics solutions are used in approx. 40% of all companies and support various processes, starting with quality assurance of internal production up to supply chain control. While the setup/extension is planned in every tenth company, there is much higher demand for action (approx. 25%) in almost all areas. Although predictive analytics solutions are already used quite often, almost 30% of companies are planning to invest within the next two years above all in software and hardware. Main driver and investor is/would be the top management besides this, in 30% of the cases the shop floor takes the decisions and initiates investments. 4
5 Core statements III More than 60% of production managers regard the high cost of implementation for predictive analytics solutions as a big obstacle. From a user s perspective, easy operation is one of the most important requirements particularly for non-experts. More than 60% of production managers agree with the statement that Industry 4.0 is an essential driver for predictive analytics. 70% of production managers confirm the statement that with a growing data flood and complexity (big data) predictive analytics solutions are gaining in relevance. 5
6 Company profile of Blue Yonder GmbH About Blue Yonder ( yonder.com) Blue Yonder is the leading SaaS provider for Predictive Analytics in the European market. The company s technology automates mass decisions in real time, resulting in accurate and precise forecasts. Founded in 2008 and based in Karlsruhe, Germany, Blue Yonder provides industry-specific forecasting software that provides specialized business units within the enterprise with simple and quick access to big data, enabling organizations all over the world to become predictive enterprises. Using scientifically-based and innovative technologies such as predictive modeling and machine-learning approaches, Blue Yonder can automate the decision-making processes and create accurate forecasts. With customers including OTTO, dm, vodafone, and Crate&Barrel, Blue Yonder has numerous application examples for big data from the most diverse sectors. In January 2014, Blue Yonder launched the Data Science Academy to provide relevant expertise to businesses and specifically train decision-makers from management, data scientists, analysts and IT staff to use big data and predictive analytics more strategically in their enterprises. Blue Yonder's work has been recognized by many industry awards, including the Data Mining Cup, which Blue Yonder has won three times, the 2013 FOCUS Digital Star Award and most recently, the Deutscher Innovationspreis Blue Yonder GmbH Karlsruher Strasse 88, Karlsruhe, Germany Contact: Dunja Riehemann, Director Marketing Phone: +49 (0) dunja.riehemann@blue-yonder.com Fax: +49 (0) Web: 6
7 About us! From strategy to execution, PAC delivers focused and objective responses to the growth challenges of Information and Communication Technology (ICT) players. Founded in 1976, PAC is a privately held research & consulting firm for the software and ICT services market. PAC helps ICT vendors to optimize their strategies by providing quantitative and qualitative market analysis as well as operational and strategic consulting. We advise CIOs and financial investors in evaluating ICT vendors and solutions and support their investment decisions. Public institutions and organizations also rely on our key analyses to develop and shape their ICT policies. For more information, please visit: Philipp Schalla Senior Consultant Software Markets Tel.: p.schalla@pac-online.com Frank Niemann Vice President Software & SaaS Markets Tel.: f.niemann@pac-online.com Melanie Flug Researcher & Analyst Tel.: m.flug@pac-online.com PAC s latest news: "
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