The manufacturing industry is in the midst of a revolution because of exclusive technological breakthroughs in this sector. Big data in manufacturing is enabling informed strategies and creating the roadmap for future. For that, most of the companies prefer the Big Data for new innovation so that they can provide the higher innovation intensity.
A primary requirement for almost all manufacturing companies is to be able to forecast the quantity of units to be produced. Previously, this forecasting was done based on estimations. These estimations led to errors and losses as they were often incorrect, which led organizations into producing units either in excess or less than required quantities. Nowadays most of the manufacturing companies use Big Data for both idea inspiration and idea testing which promises greater market success. The availability of big data has led to lasting changes in how companies make decisions with regard to their customers and customer information as well as their final products.
Using big data in manufacturing industry has empowered companies to overcome these obstacles and be able to develop products as per the requirement of the market. Using big data analytics, organizations can determine the demand for products. This information can be collected through customer feedbacks and can be further analyzed to determine which product has the highest demand.
This investigation of the relationship between the use of big data at the firm level and company innovation activity is based on data from a large-scale survey of 2,706 companies in the manufacturing and service sectors in Germany. It is the first study of its kind to look at the impact of big data in Germany on such a large scale. Companies who systematically analyze and strategically use big data are more likely to engage in innovation activity and generate higher revenues as a result of these new products and services.