While 97 per cent of organisations around the globe claim to use data and analytics (D&A) across the enterprise, only 19 per cent are satisfied with the insights their D&A tools provide, according to Going Beyond the Data – Turning Data from Insights into Value, a new global report from KPMG International.
The report highlights a growing gap between how businesses currently use D&A and their ability to apply it to untapped areas of rich opportunity.
“In the last two years we have seen a tremendous increase in D&A adoption and maturity across organisations; for example, more than 80 per cent in our survey say they are making faster, more accurate decisions with D&A, and over 67 per cent use D&A to reduce risk,” said Christian Rast, KPMG Global Head of D&A and a partner with KPMG in Germany in a statement. “Yet, we also know that business leaders face some critical challenges in realising the full value of their data insights in the areas of revenue growth, serving customers and overall competitive advantage.”
According to the survey results, 75 per cent of respondents use D&A mainly in the areas of R&D, Supply Chain, Human Resources and Finance, with 47 per cent of respondents confirming that improving productivity is the primary driver of their D&A strategies. Improving productivity was ranked highest for respondents in China (58 per cent), and in the UK and Germany, generating growth edged out productivity at 42 and 39 per cent, respectively.
Yet, the results point to some significant areas of opportunity that remain surprisingly underserved. For instance, less than a quarter say they currently use D&A to identify new revenue streams. Only 31 per cent have used D&A to drive individualised marketing and just 16 per cent use D&A to predict future trends.
Also, while 92 per cent say they use D&A for sales and marketing purposes and 81 per cent have improved their understanding of customers, only 41 per cent have created more tailored offers to prospective customers.
“For organisations to successfully turn their D&A insights into value, businesses need to understand that insights do not come from data alone,” said Anthony Coops, ASPAC Data & Analytics Leader and a partner with KPMG in Australia. “The ability to apply advanced analytics that can map the data to the critical business drivers and issues calls for stronger alignment between the business and the analytics process. Those that are able to break down internal siloes and bring together the best of their data, people and technologies together from across the enterprise will reap the greatest benefits from their D&A applications.”