Business Intelligence: An Inevitable Way for the Manufacturing Sector


Tuesday, 30 August 2022 13:31

Business Intelligence: An Inevitable Way for the Manufacturing Sector

In manufacturing, companies can use business intelligence (BI) to bridge the gap between systems and use a data-driven approach to decision-making in the support process.

For decades, the manufacturing sector was driven by outdated processes and was notorious for its complexity. Given the critical and fundamental aspects involved – from supply chain and operations to logistics and delivery to the customer – creating meaningful data connections between each process has become essential for progress and transformation. At this point, business intelligence (BI) bridges the gap between systems and provides a data-driven approach to decision-making in the manufacturing process.

According to research by Markets and Markets, the demand for business intelligence will grow from $23.1 billion in 2020 to $33.3 billion by 2025. The report also states that BI has been significantly boosted by factors such as investment in analytics, increased demand for dashboards, increased focus on digital transformation, and increased use of cloud and IoT.

Business Intelligence and Manufacturing Sector

BI in The Field of Manufacturing

Business Intelligence (BI) refers to various programs, tools, and processes used to analyze data and help organizations make better business decisions. Hence, it is safe to assume that digital transformation and BI are deeply intertwined.

BI enables companies to bridge the gap between systems in the manufacturing space and supports a data-driven approach to decision-making. It is vital that manufacturers still make business and operational decisions using spreadsheets and observational methods. This strategy may lead to "after the fact" decisions based on outdated data. And hence, manufacturers need to adopt the developing technology to stay competitive with the recent events and changing business landscape.

Business Intelligence and Profitability

To understand the manufacturing sector's need for business intelligence, we can explain this well by giving an example:

In the past, many manufacturers in the clothing field used traditional processes and often faced various challenges, which were sometimes caused by numerous errors when collecting customer data. In addition, tracking shipments was a significant concern that, in many cases, led to losses to the producer and created various crises.

As a solution, BI specialists built a data warehouse that provided maximum efficiency in production and distribution. Hence, the manufacturer was able to provide real-time reports of sales and inventory (even while in transit) and was also able to efficiently analyze increases or decreases in demand, making relatively accurate planning and forecasting.

Manufacturers were able to achieve maximum efficiency in production and distribution in this way, which played a significant role in increasing the profit margin of the company.

Business Intelligence and Manufacturing Sector

BI has also proven its worth in helping manufacturers to integrate business functions. Since company managers need to simplify and unify access to information, many of them in the past could not access KPIs and reports necessary for complete business management for various reasons. As a solution to this issue, business intelligence experts provided an actionable data model for structured reporting that incorporated best practices. With this, teams could quickly understand the functionality of the dashboard, multi-dimensional reporting, and case reports and use them well. In addition, they could deepen the trends, correlations, and root causes of sales performance and bring improved efficiency to operations.


The entry of business intelligence in the field of production has recently happened, and it is expected that a bright future awaits it. BI platforms will revolutionize the decision-making process in industries. Hence, today's manufacturers must prepare themselves for what is to come because the level of competition in this industry will reach the highest level, thanks to business intelligence.



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