Although 97 per cent of organisations around the globe are using data and analytics (D&A) across the enterprise, only 19 per cent are satisfied with the insights they are generating, according to a report by KPMG International.
According to the report, Going Beyond the Data: Turning Data from Insights into Value, 75 per cent of respondents use D&A mainly in the areas of R&D, supply chain, human resources and finance, with 47 per cent saying that improving productivity is the primary driver of these strategies.
However, there are some clear areas of opportunity – less than 25 per cent use D&A to identify new revenue streams, 31 per cent have used D&A to drive individualised marketing, 41 per cent have created more tailored offers for customers, and only 16 per cent to predict future trends.
“For organisations to successfully turn their D&A insights into value, businesses need to understand that insights do not come from data alone,” said Anthony Coops, ASPAC data and analytics leader and a partner with KPMG in Australia.
“The ability to apply advanced analytics that can map the data to the critical business drivers and issues calls for stronger alignment between the business and the analytics process. Those that are able to break down internal siloes and bring together the best of their data, people and technologies together from across the enterprise will reap the greatest benefits from their D&A applications.”
Some of the key challenges that are stopping businesses from gaining greater insight from D&A are the evaluation of data quality and reliability, with 58 per cent citing this as an issue, and having sufficient data skills in the enterprise. Just 14 per cent said they have all the talent and capabilities they need to fully utilise D&A.
“While it’s evident that businesses are becoming more adept at evaluating data to gain actionable insights, it’s the transformation from insights to value that proves to be the greatest challenge,” said Christian Rast, KPMG global head of D&A and a partner with KPMG in Germany.
“Generating long-term value from data requires that organisations continue to move toward a robust, enterprise-wide D&A strategy that embeds D&A solutions and tools in every part of the organisation. Making D&A integral across the enterprise is where the real value can be achieved when it can be effectively used to address all priority business issues and drivers that are key to optimally managing risk, cost and growth.”