Increasing volumes of available data, sophisticated analytics software and rapidly decreasing technology costs are radically changing the nature of business. To keep up with the pace of change and be fit for an increasingly digitally-dependent future, organizations are investing heavily in digital transformation. For many, that digital journey starts with the data.
Extracting value from analytics investment
According to a survey that EY conducted with Forbes Insights, the majority (66%) of global companies are investing upwards of US$5 million in analytics software, and 78% of organizations agree that analytics are changing the nature of competitive advantage. Yet only 12% of global companies describe their analytics maturity as “leading.” Those who were not “born” digital have a longer journey ahead than those who are capturing customer data and interactions digitally right from the start.
Organizations are investing heavily in the digital technology to capture data but are often struggling to derive value from the harvest. So what’s the solution?
The human element
Analyzing collected information with a human lens is where true business advantage lies. Without the human element, analytics is an informative tool to create a bank of information. To create value from big data, you need to intelligently analyze, review and act on data findings.
Data, at its best, should have the power to disrupt and transform. Results from rigorous analysis of short- and long-term data sets can confound an organization’s accepted wisdom and assumptions influenced by human bias.
The leading 10% of enterprises surveyed reported a “significant” shift in their ability to use data to help meet competitive challenges. They encourage data analysis to be performed by someone who knows the organization — someone who is fully aware of the business objectives in the context of culture and leadership who will inspire the right line of questioning. Rigorous questioning will lead to better answers and produce solutions that are fit for purpose.
To derive value and advantage from big data, you need big judgement and a strong company culture that truly embraces analytics.