With digital disruption surprising and sometimes snuffing out even the best-known brands, 94% of enterprise organizations now say that data analytics is important to their organization’s business growth and digital transformation (up 4% from 2019).
Yet, numerous reports show that the difference between what brands say and what they actually do is vast:
- In a recent Deloitte survey of U.S. executives, only 10% of companies say they are competing on their analytical insights, and the most popular tool for analyzing data is still the spreadsheet (with 62% of the professionals saying they use that most)
- In the same survey, 67% of respondents said that they weren't comfortable accessing or using data from their tools and resources, and just 37% felt that employees in their organization were aware of the importance of data analytics
- In a recent Harvard Business Review Analytic Services survey, 86% of the more than 1,500 respondents said the ability to extract new value and insights from existing data/analytics applications was very important for their organization, but only 30% were able to effectively do so
"Most Organizations Are Barely Using the Data They Have"
When it comes to using data effectively, on a scale of 1 to 10, Constellation Research founder and Disrupting Digital Business author Ray Wang says in the Future of Data in Digital Transformation that most organizations are a 3. "Most organizations are barely using the data they have inside their organizations," notes Wang.
"We've been spending a lot of time talking about big data, AI, and machine learning over the past five years. We are finally at a point, because of cloud computing, because of the algorithms that have been discovered over the last 20 years, and improving connectivity such as 5G and other services, that we actually have a chance to make better decisions.
"In order to do that though, organizations have to figure out what their data strategy is, how they're going to build data-driven business models—and more importantly, how much they're going to invest in the talent that's required to help them make better decisions.
"If you're not making the shift—if you're not even moving in that direction—you're probably going to be merged, be acquired, or go bankrupt," warns Wang.
Use It or Lose Out
Research from multiple analyst firms shows the growing competitive advantage insights-driven organizations have:
- Constellation Research reveals that using data-driven business models, digital leaders are now taking up to 69.8% of market share—and in percentage of profits, they lead with 77.1%
- Forrester Research shows that insights-driven businesses are growing at an average of more than 30% annually and are on track to earn $1.8 trillion by 2021
- Deloitte's study reports organizations whose culture is based around data-driven insights and decision-making are twice as likely to have reported exceeding business goals, and in companies where executives report that all employees have been trained on analytics, 88% exceeded business goals
The 2020 Global State of Enterprise Analytics Report reveals that just 26% of enterprise organizations feel they're ahead of their peers in their analytics use. For those feeling that they're coming from behind, Wang notes, "the first thing is, everybody's behind, and the industries that you think are ahead because they talk about being data-driven, are many times actually the industries that are behind."
"Using data effectively in digital transformation is not easy. To make it work, you've got to have your data house in order. Build a foundation now to support strong governance, data prep, streaming, and agility."
Want to read more of Ray Wang’s POV on the Future of Data in Digital Transformation? Download the Q & A interview here.