Data-Driven Factory: Responding Quickly and Effectively to Changes
January 30, 2025
Data-Driven Factory: Responding Quickly and Effectively to Changes
3 Questions to Hendrik Nieweg, Device Insight: By Alexandra Luchtai
1. Data-Driven Factory – Is It Just a Buzzword, a Technological Concept, or a Vision for the Future?
Hendrik Nieweg: The Data-Driven Factory is much more than just a buzzword. It represents a practical approach that brings together the latest technologies and methodologies to help companies adapt swiftly to changing market conditions and requirements, ensuring they stay competitive. The aim is to fully leverage the immense potential of data within organizations. In an environment where planning certainty is declining, a new level of agility has become essential for manufacturing businesses.
Today, companies face a wide array of challenges. What’s different now is that these challenges need to be tackled simultaneously and without delay: global and geopolitical uncertainties, fluctuating energy security and costs—particularly in Europe—new regulations such as the Supply Chain Act, and more. This increasing complexity demands an unprecedented level of agility and adaptability. In such a volatile landscape, manual, ad hoc adjustments are no longer sufficient.
In this context, the Data-Driven Factory builds on seamless data integration that spans market demand, production processes, supply chains, and energy procurement. This holistic data connection enables companies to respond to changes quickly and effectively. Therefore, the Data-Driven Factory is not just a vision for the future; it’s an essential part of a new, data-driven approach to planning, managing, operating, and evolving business processes.
2. Can You Be More Specific on How Businesses Benefit From the Holistic Approach of Data-Driven Factory?
Hendrik Nieweg: Companies gain substantial advantages from the comprehensive perspective offered by the Data-Driven Factory, which differs significantly from traditional production models. Unlike conventional approaches, the Data-Driven Factory emphasizes the integration of all data sources and systems. With a centralized data platform that continuously processes data from across the production landscape, operations can be monitored in real-time, issues can be identified early, and efficiency can be improved through data-driven strategies. Key benefits include:
- OEE (Overall Equipment Effectiveness) optimization with targeted actions to enhance availability, performance, and quality.
- Improved production planning through data-based demand forecasting and capacity assessment.
- Increased productivity and workflow optimization informed by real-time data.
- Real-time quality monitoring and early detection of errors or defects to boost quality.
- Unveiling cost-saving opportunities and enabling more efficient energy management.
One major advantage of the Data-Driven Factory is that optimizations can be tested and implemented while operations are running, which is particularly valuable for existing (“Brownfield”) facilities. Additionally, a unified data platform breaks down data silos, enabling cross-departmental collaboration. This allows teams from manufacturing and procurement to sales and marketing to work together on relevant scenarios, adding value and fostering 360-degree transparency.
In my opinion, the Data-Driven Factory marks a fundamental shift in production philosophy. It harnesses the power of digitalization and data analytics to create an agile, customer-focused, and highly efficient production process. It also aims to automate process improvements and strengthen a company’s ability to pivot strategies rapidly based on data insights.
3. Can You Give Me a Very Practicable Example That Highlights the Benefits of the Data-Driven Factory?
A good example is Gerolsteiner, the mineral water producer. Device Insight, in collaboration with NTT Data Solutions, developed a Data Intelligence platform for Gerolsteiner. The goal was to enable seamless data exchange between different systems, machines, and facilities, making production more digital, efficient, and flexible. With this initiative, Gerolsteiner aims to achieve real-time transparency across its entire production line, emphasizing increased flexibility and proactive planning.
To bring the new Data Intelligence solution to life, Gerolsteiner utilizes a suite of technologies, including Microsoft Azure, SAP Datasphere & SAP Analytics Cloud, Databricks, and Device Insight’s CENTERSIGHT scale IoT framework. These tools are strategically implemented to capitalize on their strengths while ensuring cost-efficiency. For the first time, this platform enables Gerolsteiner to have a comprehensive 360-degree data view of the entire company—truly embodying the concept of the Data-Driven Factory.
