In the modern business environment, the arguments against big data and advanced analytics are becoming few and far between. In a survey of 850 C-level executives conducted by McKinsey & Company, respondents agreed on the rising importance of big data and advanced analytics to organisational performance. Despite that consensus, however, just 52 per cent believed their own companies were adequately investing in the tools, techniques and expertise required to achieve their strategic ambitions.
It seems we all know how important big data and analytics is – but most are failing to make the commitment needed to foster digital innovation in a market bogged down by a sea of data.
People on the move
New data is being created in overwhelming quantities, from more sources than ever before. Your customers are using the internet to communicate and socialise, shop and conduct their business, often on several devices simultaneously. Consider international e-commerce giant Amazon as an example – as of the fourth quarter of 2015, the e-retailer reported more than 304 million active customer accounts, with over 14 million mobile-only visitors aged 25-34 in the US alone.
That’s a mind-boggling number of people generating a titanic amount of digital information that simply didn’t exist even ten years ago. The volume of data being created is growing exponentially, as smartphones and tablets achieve greater penetration and more aspects of our customers’ lives are moving online. The next evolution of digital devices is also just on the horizon, as Internet of Things (IoT) development accelerates and uncountable new data sources emerge.
#IoT allows firms to create and deepen their relationship with customers. https://t.co/7lCXstkuwt #ForresterData pic.twitter.com/2ESq4n6XZt
— Forrester (@forrester) August 19, 2016
The sooner a business can grasp the demands of its customers, the faster it can adjust processes to meet those expectations.
Managing your business intelligence systems
The PricewaterhouseCoopers (PwC) 2016 CEO Survey found the two biggest operational challenges for enterprises were understanding what their customers value, and being able to adapt to changing conditions. Today’s market requires flexibility – the sooner a business can grasp the demands of its customers, the faster it can adjust processes to meet those expectations. Finding and understanding those demands is the first step any company needs to take.
Companies that have adopted data-driven decision making show productivity and output on average 5-6 per cent higher, according to research at the MIT Center for Digital Business. The experience and skill of people in the organisation is still a vital element, however big data analysis can back up digital strategy with more accurate insights, shortening the gap between market demand and product delivery.
Gartner lists 3 steps to a data-driven business: https://t.co/p8w31FlHlE #GartnerBI pic.twitter.com/WtNNRg37zZ
— Gartner (@Gartner_inc) September 8, 2016
These solutions are increasingly being transitioned away from internal architecture and into the cloud to deliver vastly improved agility and flexibility in meeting evolving customer demands and behaviours – with Gartner estimating that over US$1 trillion in IT spending will be affected by the shift to cloud over the next five years. Being able to access reports, customer records and more from any device in any location offers vastly improved agility and flexibility.
“Cloud-first strategies are the foundation for staying relevant in a fast-paced world,” says Ed Anderson, research vice president at Gartner.
To fully exploit your organisation’s big data opportunities – whether it be navigating the sea of available data or determining the BI systems needed to create strategic advantage – you need to reach out to the best BI expertise in the market. Speak to Stellar today, and let us give you the advantage you need in today’s digital economy.
Sources:
http://www.mckinsey.com/business-functions/business-technology/our-insights/the-digital-tipping-point-mckinsey-global-survey-results
http://operationssurvey.pwc.com/key-findings/#the-business-environment
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1819486
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