Data is a strategic asset and organizations can innovate faster when they learn from it.
Working at speed is a key priority for businesses, and we regard rapidly deploying technology to better meet customer expectations as a core value driver, alongside the need to innovate at scale. But while companies understand the need to be quicker and more agile, many are less certain about how that can be done – and they’re turning to data for answers.
“Data is a strategic asset,” says Beatriz Sanz Saiz, EY’s Global Data and Analytics Leader for Consulting Services. “The largest companies use data to learn by the second, and they get smarter by the second. This has all kinds of implications in terms of efficiency, cost savings and customer experience. It’s the only way to move forward. In the 21st century, you can’t really survive as a business without really using data.”
Consider how insurers use claims data to detect fraud and act earlier, manufacturers use data to detect and predict failure points to minimize costly downtime, and retailers use historical customer purchase and search data to target them more efficiently with relevant products. Almost all businesses can use data to optimize operations. According to EY’s research report, Six habits of digital transformation leaders, almost three-quarters (71%) of corporates surveyed use insights from data and analytics to speed innovation. In fact, it’s their number-one method of doing do so, ahead of re-engineering and automating processes (62%) and streamlining hierarchy (61%). And while companies generally understand the value data brings to their business, leaders really get it: 83% are using data to help them innovate faster, compared with only 70% of laggards.
Figure 1: Leaders more aggressively use data and insights to innovate