Industrial intelligence is a core technology in the upgrading of the production processes and management modes of traditional industries. Motivated by the major development strategies and needs of industrial intellectualization in China, this study presents an innovative fusion structure that encompasses the theoretical foundation and technological innovation of data analytics and optimization, as well as their application to smart industrial engineering. First, this study describes a general methodology for the fusion of data analytics and optimization. Then, it identifies some data analytics and system optimization technologies to handle key issues in smart manufacturing. Finally, it provides a four-level framework for smart industry based on the theoretical and technological research on the fusion of data analytics and optimization. The framework uses data analytics to perceive and analyze industrial production and logistics processes. It also demonstrates the intelligent capability of planning, scheduling, operation optimization, and optimal control. Data analytics and system optimization tech-nologies are employed in the four-level framework to overcome some critical issues commonly faced by manufacturing, resources and materials, energy, and logistics systems, such as high energy consumption, high costs, low energy efficiency, low resource utilization, and serious environmental pollution. The fusion of data analytics and optimization allows enterprises to enhance the prediction and control of unknown areas and discover hidden knowledge to improve decision-making efficiency. Therefore, industrial intelligence has great importance in China’s industrial upgrading and transformation into a true industrial power.