Less Than 10% Businesses Use Big Data Effectively
Big Data is already underway with companies generating loads and loads of data every day. But is it helping businesses to turn the data into valuable and actionable insights? Not really! A new KPMG study reveals that less than 10% of businesses believe they are in a position to make use of the information they have in their hand - on customer demands, preferences and behaviour.
In the report, ‘Going beyond the data,’ some 85% CFOs and CIOs say that they don’t know how to analyze the data they have already collected. Meanwhile, 54% state their greatest barrier to success was inability to identify the data worth collecting.
Many businesses do not yet fully grasp the enormous value of data and analytics, pointed out Eddie Short, EMA leader for Data & analytics, KPMG. He believes that unless businesses tackle the problem of data collection and analysis one step at a time, they will always be under confusion.
The report suggests that very few businesses are ignoring the value of Big Data as a potential business development tool. The evidence is that more than half of the respondents in the KPMG survey claimed that they have changed their business strategy to meet the challenges of Big Data.
Despite the progress, the report suggests that a few businesses are in a position to adapt to Big Data demands. Less than one third said they had trained their analysts to cope up with the new approach to business leaders and believed integration of data analytics into existing systems had become their greatest challenge.
“One of the biggest challenges, in our experience, is that most business executives have a far-too-limited view of data and what they can ask analytics to do,” notes Mark Toon, CEO of KPMG Capital. “It’s no longer just about data management business or technology; it’s about being able to easily tap the data at your disposal to learn new things and gain greater insight about your business. And by doing so, driving improved business performance.”
This has led to significant shifts in the core competencies being demanded in the boardroom. “We’re starting to see a new breed of business leader emerge, who understands the business and how data and analytics can be pulled together to solve very complex business problems,” adds Brad Fisher, D&A leader for KPMG in the US.
The report also recommends that organizations with a strong D&A strategy will find that – while they have clearly stated goals and a strategic vision – there is no longer a ‘one-size-fits-all’ approach to strategy execution. Instead, the business would always have a number of scenarios and hypotheses on hand that would allow them to effectively respond to sudden changes of direction.
Usage of predictive analysis will help organizations leverage those insights to ensure that it is selling the right products and services to the right customers. The KPMG report suggests in doing so, businesses and employees should first look at the data to guide their actions and base their decisions on deeper insight and keener analysis, so as to fully exploit the data and turn it into valuable insights.
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