In the era of big data and advanced analytics, the manufacturing industry is at a crossroads. While Artificial Intelligence (AI) has been a driving force in harnessing data for improved operational efficiency, the advent of Decision Intelligence (DI) is poised to redefine what it means to be truly data informed. DI represents a paradigm shift from being purely data-centric to a business outcome-centric approach. This transformative perspective is not merely an incremental improvement but a fundamental reimagining of how decisions, powered by data, can directly influence business health and growth. Hint: this ensures that investments in AI actually translate into a better bottom line!
From Data-Centric to Outcome-Centric: The Heart of DI
Traditional AI systems in manufacturing have been data-centric, focused on the acquisition, processing, and interpretation of data. The goal has been to identify patterns and anomalies, predict maintenance needs, and automate repetitive tasks. However, this approach often falls short when it comes to translating these insights into tangible business outcomes, especially for more strategic decisions.
Decision Intelligence changes the game by anchoring every model, data set, and resulting insight to a desired business outcome. It places the emphasis on the strategic objectives of a manufacturing operation – be it cost reduction, efficiency improvement, or product quality enhancement – and then works backward to determine the data and AI tools and methods required to achieve these outcomes.
DI in Context
In a manufacturing context, an outcome-centric approach through DI means decisions are not just reactive responses to data patterns but proactive steps towards predefined goals. This approach is vital for a multitude of reasons:
- Strategic Alignment: By focusing on outcomes, manufacturers can align their operations with broader business objectives, ensuring that every decision contributes to the ultimate vision of the company.
- Resource Optimization: DI helps in resource allocation by identifying which investments and actions will yield the highest return relative to the desired outcome. It also greatly reduces the cost of data migration and management while reducing time-to-value, as only the data pertinent to specific outcomes is processed and utilized.
- Risk Mitigation: Understanding the end goals allows for better anticipation of risks and the design of mitigation strategies by incorporating external factors into data-driven analysis (such as market conditions and competitor behavior).
- Innovation and Adaptation: The DI approach encourages innovation, as it focuses on the end result rather than being bound by the limitations of current data or existing processes.
Making it Happen
1) Identifying Key Outcomes: Manufacturers must identify and agree upon the key outcomes that matter to their business. These outcomes should be specific, measurable, achievable, relevant, and time-bound (SMART).
2) Mapping Decisions to Outcomes: Once the outcomes are established, the next step is to map the decisions that can influence these outcomes. This involves creating a detailed cause-and-effect model that articulates the relationship between decisions and desired business results.
3) Evaluating Decisions through Simulations: DI allows for the simulation of decision pathways and their potential impacts on outcomes. Manufacturers can play out ‘what-if’ scenarios, foresee potential obstacles, and plan contingencies.
4) Leveraging Advanced Analytics: Advanced analytics embedded within DI can process complex data and present actionable insights that are directly tied to business outcomes. This goes beyond traditional data analysis by contextualizing data within the framework of strategic decision-making. For instance, machine learning models like Random Forests can be utilized to predict machine failures before they occur, thereby aligning with the outcome of minimizing downtime. Large language models (LLMs) like GPT-4 can be leveraged to summarize vast troves of documents like industry reports, aligning with the outcome of improving competitive positioning in the marketplace.
Conclusion
As the AI hype cycle reaches fever pitch, it is critical that manufacturing leaders adopt an outcome-centric approach to its implementation to ensure investments translate into better decisions, rapid tool adoption by business users, and a healthier bottom line. As the sheer volume of data to harness and process grows, the ability to separate the signal from the noise and pinpoint specific data for decision support is paramount. This not only reduces the cost of data management and processing, but also expedites speed-to-value and builds positive momentum and trust in AI & analytics tooling across the organization.
Get Started
Contact an Expert today to discuss how decision intelligence can support your AI transformation goals in 2024.
About the Author
Chris Andrassy is an entrepreneur and managing partner at Astral Insights, focused on transforming data into sustainable business value on a global scale. He began his career at PwC in New York City, supporting the digital transformation of mature organizations struggling to innovate in a hyper-competitive world. After experiencing the limitations of traditional analytics practices, he decided to begin a new chapter alongside colleagues and industry veterans. His departure from New York marked the inception of Astral Insights, a Raleigh-based AI & analytics solutions firm helping mid-market and enterprise clients transform data into profit. Chris is also an investor focused on innovative technologies including synthetic biology, sustainable energy, and artificial intelligence. Outside of work, he is an avid musician, skier, traveler, and fitness enthusiast.