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The importance of data standardization

4 important reasons for the steel industry

Published on Tuesday August 22, 2023 by Anna Andreatti

In the realm of business, data standardization holds significant value due to several compelling reasons. This is especially true for the steel industry for oil and gas. In this blog post we highlight 4 most important reasons why the implementation of a standardized format can help you.

1. Facilitates seamless inter-company data exchange

The exchange of data, particularly within the steel supply chain, presents considerable challenges. Various companies have developed individualized software solutions and proprietary data structures for internal use, resulting in incompatibility issues. By implementing an open data exchange format accessible to all, the communication between these diverse databases becomes streamlined and efficient.

2. Advancement of digital twins with the elimination of paper documentation

The evolution of digital twin technology faces certain constraints, one of which involves reliance on data provided in PDF documents. The adoption of an open exchange format mitigates this challenge, propelling the industry towards a more immersive digital twin experience. While digital twins often incorporate extensive operational data, their linkage to manufacturing or construction data frequently relies solely on documents. Standardization opens doors to a more comprehensive digital representation.

3. Enhanced accessibility for smaller enterprises to ensure compliance with industry leaders

An open data exchange format, unaffiliated with any particular entity, serves as a catalyst for smaller businesses to participate in the data exchange ecosystem. This inclusive approach minimizes the financial burden associated with compliance, enabling specialized small companies – integral players in the production of steel products for the Oil and Gas sector – to seamlessly integrate into the network.

4. Automation of data verification process enabled

A substantial portion of manufacturing data serves quality assurance purposes and must align with customer specifications. The implementation of an open exchange format paves the way for the creation of automated tools that streamline the data review process. This advancement simplifies the verification of data, contributing to efficient manufacturing operations.

In conclusion, the significance of standardization in the business landscape is underscored by these four pivotal factors. Embracing a unified approach to data exchange not only enhances efficiency and accessibility but also propels technological advancements and automation within industries such as steel production.

If you would like to know how SteelTrace achieves standardization, please contact us!