Data analytics system “Should we buy or make?”.
In today’s world, data is the new “gold”. You have probably heard this before.
Smart data usage has become essential as a key factor to be able to achieve process control and optimization.
Brands and OEMs strive to control all their manufacturing processes globally to improve efficiency and quality.
Is it worth developing “in-house” data analytics capability? Or is this something we should do using an external solution?
What are the pros and cons in taking the right decision here?
The following are 10 important points to keep in mind about data analytics (graded from 1 to 10):
|Point to consider||“in-house” solution||Analytics providers||Comments|
|Cost of setting up and maintenance over time||5||8||Using internal resources to set up an analytics system is much more costly in the long run, since the ongoing support, maintenance, and changes require enormous effort.|
|Independency||10||6||An in-house solution relies on internal teams, whereas Analytics providers rely on an external entity. There are some external solutions that allow some degree of dependency on internal teams.|
|Implementation time||3||9||Analytics providers have a much faster implementation process since it is their primary focus.|
|Expertise in setting up an effective analytics program||6||10||Analytics providers are expert in setting up an effective analytics|
|Flexibility to make changes||4||9||Due to internal teams’ constant workload, Analytics providers are much more flexible when it comes to implementing changes|
|Knowledge of the company’s products and processes||9||5||The company’s internal teams know its products much better. Analytics providers can, however, use the analyzed data to gain a good understanding of the company’s products.|
|Data coverage||4||9||Compared to Analytics providers, internal teams usually struggle to unify their entire data from every process step because it requires a high level of expertise in data integration and unification.|
|Provide ongoing support and training||4||9||Due to internal teams’ constant workload, analytics providers are much faster at providing ongoing training and support|
|Building long-term expertise and keep up-to-date with new analytics capabilities||7||6||Internal teams may develop long-term know-how on analytics. Often, however, employees leave for other employers, and knowledge is lost.
Since their primary focus is setting up analytics solutions, Analysis Providers are much more up to date with capabilities and technologies.
|Experience gained from other companies||5||10||Analysis providers serve many companies and therefore have a high level of cross-knowledge and experience that benefit their customers|
Many of the companies we work with have already set up an analysis tool (excel, business intelligence, etc).
For most companies, analytics or data coverage is inadequate to effectively monitor their processes.
It takes expertise to build a long-term and effective analytics platform.
The ability to extract the maximum value from the collected and analyzed data requires continuous research and development.