Transforming data into business insights
At our customers’ meetings, we are often asked the one-billion-dollar question: "How can I make the most of my data, and be among the winners of the upcoming data economy?" These are not questions you can wave with vague 'it depends' answers. As we enter a data-driven world, with hyper connected customers and dozens of billions of objects constantly delivering a flow of contextual information, analytics are no more just a competitive differentiator. They may be probably THE key competitive differentiator. It's no surprise that industry analysts estimate that info-centric corporations are now twice as valued and 20% more profitable than their peers.
For years, we have gathered experience from the field on what really matters to transform data into business insights, on the best use cases in each vertical, and on their maturity. Data by itself means nothing. Its only value is in the insights it provides, deeply embedded into business process, to predict and optimize outcomes. Year after year, we have built recipes for success, best practices and errors to avoid. What's interesting in the recent survey conducted by Forrester Consulting and commissioned by Atos in the study, ‘The Future Belongs to Those Who Monetize and Maximize their Data’, is that we think it confirms what we see in the field with detailed statistics. For a summary of the report you can read my first post here.
So where does analytics provide the most value today? Where it is expected to give value tomorrow? The nearly 600 enterprise and public institutions Forrester studied made various conclusions in each sector, but there are remarkable similar patterns, across B2C, B2E (business-to-employee) and B2B organizations.
One such example is in the financial sector. Under increasing competitive pressure from fintech firms, most finance companies have predominantly focused their analytic efforts on 360° customer behavior and loyalty analytics, as the Forrester survey demonstrates. Fraud and compliance, are also at the top of new analytics projects (54%). But effort is now moving to real time predictive intelligence across process and transactions (49% have it in project). These findings are a strong indication that we enter a real-time finance era, what we call at Atos ‘NowBanking’ and ‘NowInsurance’. What's next? Business reinvention! Slowly but surely, analytics to drive new business models such as insurance as a service, cash back, data monetization and resell, are taking shape among top priorities for tomorrow, with 40% of finance institutions planning to deploy such use cases it in the next 12 months.
We find similar trends in other industries. There is much more in the study, with detailed findings across six verticals which I’ll cover in more depth in my third post. But what's the general pattern? Moving from customer experience to business reinvention, through operational excellence, seems to be the most frequent development path in analytics, with security all along the way. This will be familiar to those digital players who pioneered their approach to analytics, wanting first to better measure customer behavior, and then extending this to business transformation with the rise of the cyber-physical world.
But there is a strong takeaway from the report: we're just at the start of the movement. We have just scratched the surface. Most organizations are still at the very beginning of their journey from customer analytics and operational analytics to true business reinvention analytics. Remember that 90% of today's data was created in the last two years and since we live in an exponential data world, much more is to come.
To succeed, a new approach will be increasingly needed to correctly acquire, analyze and act on these massive flows of data, as highlighted in my previous post. By considering its few golden rules enterprises will be well placed on their analytics journey.
For more information on the importance of data analytics, check out the commissioned study conducted by Forrester Consulting on behalf of Atos, ‘The Future Belongs to Those Who Monetize and Maximize their Data’ as well as my previous blog post here. Next time, I’ll be looking at how different sectors are responding to the current analytics trends