A recent study by the Aberdeen Group found that Best-in-Class manufacturers substantially out-perform laggards.

Duh… Of course Best-in-Class have higher yields, throughput, and profits, and are more likely to deliver product on time. Here are the stats:

  Mean Class Performance
Key Metric Best-in-Class Laggard
On Time Delivery 97% 78%
Yield 98% 76%
Overall Equipment Effectiveness 91% 70%
Profitability 25% 18%

What we wanted to know is why. Why do Best-in-Class performers enjoy profits that are 25% higher than Laggards? What do they do that is different? How do they get those kinds of significant differences?

The Aberdeen Report, available here, gives a good start to answering these questions.

As a Data Head, I wasn’t entirely satisfied until I had sliced and diced the data myself. Specifically I needed to see the relative importance of the various components of good performance. What I found surprised me and opened new layers of meaning to the Aberdeen Research.

Based on this add-on research, I wrote a companion White Paper that I hope you’ll download and read: “The Role of Real-Time Data in Improving Profits and Customer Satisfaction”.

Take a look at both of these reports. Then share your comments: how do these findings fit with your experience?

One Comment

  1. The Data Heads » Blog Archive » Business intelligence not what it can be… April 9, 2009 at 2:33 pm

    […] That conclusion doesn’t surprise me. I’ve been arguing for sometime that most businesses under-utilize their data assets. Here are a couple of blog posts, looking at topics like BI as an oxymoron, technology and culture, and the key drivers of Best-in-Class manufacturing. […]

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