Why the modern business requires a data strategy?
Updated: Sep 3
A lot of transformation has happened in the way businesses operate for the past 100 years or so. The first industrial revolution used water and steam power to mechanize production. The second industrial revolution used electric power to create mass production. The third industrial revolution used electronics and information technology to automate production. Now a fourth revolution is building on the third according to an article published by world economic forum, the digital revolutions which is characterized by fusion of technologies which is basically transformation of core technologies. It blends incremental improvements from several (often previously separate) fields to create a product. Part of this revolution is data driven processes and products. From vehicles, farming, homes, transport and many other services, data in many cases is powering all these products and services.
However, to understand the data landscape, let’s review the state of enterprise analytics report by Micro-Strategy for the year 2018. According to this report, which sought response from 500 analytics and business intelligence professionals globally has label the digital revolution as ‘era of digital Darwinism’. Where enterprises which will use technology to transform their customer experience and be the first to discover and deliver on new business models will be the disruptors. It’s the same period data and analytics will be playing a crucial role in digital transformation by driving business effectiveness and efficiency as well as defining new business models.
According to this report, globally, a whopping 60% of enterprise organizations are using data and analytics to drive process and cost efficiency among other uses. With big data analytics platform topping as the intelligence application of choice for 59% of enterprises organizations. 27% of enterprise organizations consider security first when sourcing for analytics solutions. Maturity of analytics tools used by many of these enterprise organization appears to be way down for most of segments. 78% of respondents feel that their organizations are using data and analytics as effectively as it could be, with 64% naming their organizations as leaders in usage of data and analytics.
The survey found that, 57% of data driven enterprises experienced faster and more effective decision making through use of data and analytics. 63% of these enterprises recorded improved efficiency and productivity due to analytics. With 40% of enterprises saying creating an analytics strategy positively influenced their analytics success.
The survey also found that data privacy and security concerns prevents 49% of these organization from using data more effectively. And only 21% of enterprises cited that more than 75% of organizational data is governed.
Analytics hiring also featured in the survey with 64% of enterprise organizations planning to invest more in hiring data and analytics talent. 57% of these organizations already have Chief Data Officer (CDO) role with 24% considering creating a CDO position. While 59% of the enterprise organizations have a system administrator and 46% of enterprise organization have an intelligence director.
In striving for a data driven culture, only 16% of the enterprise organizations can currently say that more than 75% of their employees have access to company data and analytics. The report also found that, 84% of organizations data is accessed by management teams. Embedding of analytics in popular business apps and visual display of analytics in offices helped much in driving analytics adoption for 44% and 39% of enterprises respectively according to this report.
While looking at the future, about 24% of enterprise organizations said cloud computing will impact their analytics initiatives significantly. 64% of enterprises plan to invest more in analytics initiatives in the coming year and 71% of enterprises are planning to invest in analytics initiatives in the next five years. 60% of the enterprise organizations termed data and analytics to be very important in their digital transformation efforts. Mobile analytics strategy ranked somewhat important for 43% enterprise organizations success. 46% of enterprises organizations have both cloud and on-premise deployments of analytics platform. And 41% of the enterprise organizations are considering moving their analytics platform to the cloud in the next year. In the next five years cloud computing technology is thought to have the most significant impact on analytics initiative for 24% of the enterprises according to this survey.
For more details about the survey you can read the report here.
In summary according to the report, 57% of enterprise organizations are using data and analytics to drive strategy and change in this era of digital disruption. And 63% of enterprise organizations using analytics recorded improved efficiency and productivity. That’s why you should not be left behind, by planning your organizations data strategy.