The Future of Value: Monetizing and Maximising the Flood of Data
We hear it for years: big data, insight systems and artificial intelligence are the cornerstone of digital transformation. Everyone recognizes their disruptive power. But many observers estimate it may take a few decades to revolutionize the industry. Is it true? Our recent survey with Forrester "The Future Belongs To Those Who Monetize And Maximize Their Data", just revealed that the pace of change is dramatically accelerating.
To explore how fast analytics are changing business today, we recently commissioned independent research conducted with Forrester Consulting, and spoke with nearly 600 business and IT leaders from enterprises across North America, Europe, and Asia-Pacific. Studying 11 different sectors – including Manufacturing, Retail, Financial Services, Energy and Public Authorities – we discussed the use cases, benefits, challenges and key drivers for investment in data analytics. The results were hugely illuminating and this series of blog posts will seek to share some of the most intriguing findings.
What really shone through was the importance that businesses are already placing on data analytics. Over two-thirds of businesses (69%) consider data analytics to be a top strategic priority. 40% of organizations are already using analytics in key business functions across the enterprise. And more importantly: this rate will double in the next three years to exceed 90% by 2020! Next generation analytics are definitively crossing the chasm, with 65% of organizations fearing that failure to invest would see them being left in the dust!
Are these investments successful? For the most part, yes. 90% of respondents state they get positive results from their analytics deployments, and 50% already significantly improved revenue and their bottom line from these deployments. But this is the second major lesson from the survey: 67% of organizations recognize that they are still failing to take full advantage of the depth and breadth of their data. More worryingly, it is rare that analytics are effectively shared across business ecosystems – meaning that firms are making strategic decisions without access to all the facts.
In a nutshell, the analytics methods of the past do not work anymore. New approaches are needed to survive and thrive in the data-driven digital era. To address this situation, Forrester has outlined with us multiple takeaways from the research that will help organizations deploy the best data analytics approaches to monetize and maximise the value from their data. These include:
Prioritize and invest in data analytics now or perish.
Businesses will double the use of data analytics investments over the next 12 months; it’s vital for your organization to do that too if you do not want to be left behind.
Break silos and close the gap between IT and business: think business insights first.
A focus on techno-centric enthusiasm or silo-thinking are key causes of analytics project failures. The value isn’t just coming from technology or data. It's coming from providing actionable insights that will improve contextual business performance at the point of decision. The road to real business success is to think business outcome first, embedding cross-silos insight into all systems and processes.
Get ready now for the data deluge and security challenges of tomorrow.
Start now, start small, get quick, but make sure your data foundation is solid at the same time. As the progressive convergence between insight systems, deep learning, and High Performance Computing technologies shows, we're on the verge of the Exascale era. Be prepared for explosive growth, and for the resulting requirements in analysis power and risks management!
We experience the importance of these points each day with our clients in digital transformation through our Atos Codex offering to transform data into actionable insight. Business-centric thinking, agility, security and scalability must be the cornerstone of any big data, insight system and artificial intelligence project.
Whatever your business, this is the time to accelerate investment in analytics if you don’t want to be left behind. Your competitors plan to double their use of analytics by 2020 – now is the time to ensure your business is leading the pack.
In the next series of posts, I’ll be looking at the challenges presented by data analytics, as well as providing a comparative look at how different sectors are responding to the current analytics trends…If you would like to read the report, please download it here.