How manufacturers can monetize data | ERP Solutions

Data is a critical component of digital transformation in the manufacturing sector. In fact, it lies at the foundation of every digital initiative. However, data in and of itself is not a driver of value. It must be used for organizations to reap its true benefits. With one-click access to massive amounts of information, organizations can extract powerful insights, create transformative customer experiences, and grow business. Many manufacturers do not maximize value from enriching data and miss opportunities for growth, improvement, or risk management.

In general, manufacturing processes collect data (often manually), but the challenge is that many may not have a clear idea of ​​how it is used to influence the supply chain or cannot easily access it because they are locked into legacy systems. It is not enough just to have access to this data – organizations must be able to monetize it. With the right mix of technology and creative thinking, this is a realistic goal.

Here are 3 ways manufacturers can monetize data and increase efficiency:

1. Create new revenue models

Manufacturers can satisfy customers in new and innovative ways. With the rise of the subscription economy, there is an opportunity to expand beyond products but also include a service. Organizations can create subscription-based analytics products and with data collected from IoT devices to monitor and use trends, patterns, and insights about their use. This strategy creates a subscription-based revenue stream, while the physical good itself is often a one-time purchase.

For example, a refrigerator manufacturer can attach an IoT sensor to each device to monitor the operating time and temperature of products. Once there is a change in any of these factors, the device can send an alert message to the ERP system for technicians to process. Predictive maintenance is one of the most useful data applications for manufacturers. This can help improve customer maintenance and service, create opportunities for services and increase sales. Combining and enriching data on pricing, inventory, and customer behavior allows businesses to make smart predictions through predictive analytics.

2. Sharing data for partnership and growth

Forming data partnerships and collaborations has the potential to transform value in the manufacturing industry. With this strategy, monetization is not a direct result, but a way to build partnerships and expand market share. Data can also enable cross-sector collaboration. One example could be a partnership between an electronics manufacturer that produces alarm tracking systems for vehicles and the rental car industry. The car rental company can take advantage of data from the manufacturer to monitor how drivers handle vehicles and monitor speed. The manufacturer can then monetize its devices and data by collaborating across various industry sectors.

3. Join e-commerce

For a long time, manufacturers have moved away from the online selling space. Some common feelings were the feeling that it was “too complicated” and “too dangerous”. But during the pandemic, many organizations have had to rethink their position. With supply chain disruptions and physical store closings, many have found themselves deprived of their key channels. Manufacturers have now recognized the need to integrate sales and inventory management between online and traditional operations.

The beauty of e-commerce is the amount of information that you can get not only from your e-commerce site but also through integration with existing platforms. Manufacturers can take advantage of existing e-commerce platforms such as Amazon to sell products directly to consumers over the Internet using APIs, or software intermediaries that allow application programs to interact with each other and share data. APIs are integrated into the ERP system for manufacturers to get first-hand information about what customers are buying. By analyzing this information, manufacturers can gain a set of important insights.

where do I start

The first step for those seeking to take advantage of data monetization opportunities is to turn raw data into information. Data, whether from a customer’s records system, or internal, external or public sources, is often disparate, comes in different formats, and is often complex and inconsistent. Unfortunately, traditional methods, such as manual processing through Excel spreadsheets, are time-consuming and error-prone. The faster companies can automate the data collection and validation process through an Enterprise Resource Planning (ERP) system, the faster they can generate revenue.

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