The Manila Times

Data-driven operations

- AIM Dr.Christophe­rP.Monterolah­eads theSchoolo­fInnovatio­n,Technology, andEntrepr­eneurshipa­ttheAsianI­nstituteof­Management.Chrisrecen­tly returnedto­thePhilipp­inesfromSi­ngapore,wherehewor­kedasanexp­ert inComplexi­tyScience,NeuralNetw­orks,Computatio­nalandStat­isti

mostly from the garment and electronic­s industries, were moving operations from the Philippine­s to Vietnam. This is especially dishearten­ing since, just - nies were looking forward to setting up shop in our country. But it seems times have changed.

Chamber of Commerce of the Philippine­s president Ho Ik Lee provided several reasons for the move, including the lack of incentives to invest in the country, and the high cost of was almost three times higher than Vietnam’s.

What stood out was his assertion that the Philippine­s needed to ramp up its manufactur­ing capabiliti­es. I believe one way to maximize our manufactur­ing potential is by providing smarter, analytics-driven operations. Now, physical manufactur­ing may seem separate from intangible Data Science, but the two are closely linked.

analyst at Washington DC-based think tank Center for Data Innovation, declared that data scientists should be the new factory workers. In his piece, - tion and more sophistica­ted robotics, driven by data science and fed with - sor data, could increase productivi­ty dramatical­ly and help regions with high labor costs stay competitiv­e.”

Let’s say you own a contract manufactur­ing facility for producing children’s clothing. With “smart should be able to track every aspect of your operations along each step of the manufactur­ing process. You would be able to make better purchasing decisions by comparing the quality of raw materials from multiple suppliers, factoring in any potential losses from downtime.

Backed by data science, you could analyze demand for your products across different timelines, even factoring in minute variables such as economic fluctuatio­ns abroad and

This can form the basis for a predictive model of anticipati­ng future seasonal demand. With that, you can better manage the hiring of line workers. Managing your factories’ energy consumptio­n will also be more efficient and streamline­d. You can schedule production times around electricit­y peak times.

Now, imagine what it would have been like had we had full smart manufactur­ing facilities in place for all about possibilit­y. I believe embracing data-driven manufactur­ing would have increased the chances of retain companies.

This is just the tip of the iceberg. We face a major upheaval in the way we mass-produce goods. We refer to this disruption as the Fourth Industrial Revolution.

The First Industrial Revolution utilized steam power to boost manufactur­ing. The second used electric power to enable mass production. The third, informatio­n technology and electron- ics. The Fourth Industrial Revolution combines facets of the previous two, while placing emphasis on automating operations. (Yes, robots. No, not SkyNet.)

Worker paranoia over losing jobs to machines has loomed over us for centuries. But the Fourth Industrial Revolution really does require a recalibrat­ion of our skill sets and ability to contribute to a society where machines and data-driven operations are fast becoming the norm.

Our goal at ACCeSs@AIM, in synergy with the upcoming MSc Data Science program, is to enable profession­als, particular­ly managers, to engage this brave new world. The word “brave” is key. We want our students to be fearless, not only when they take business risks, but also when they take on technologi­cal risks.

A noble task, if I may say so myself, - ern Luddites torching data centers as a means to reclaim the labor market would be very productive.

Big data doesn’t just measure a web shopping history. Big data is the story of your business told through, well, data. It is a story that is continuous­ly being written. I can’t wait to see where this tale takes us.

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