But the reality is that turning mountains of data into valuable, practical and actionable business insights is not nearly as straightforward as people believe.
To gain a more concrete understanding of the opportunities and challenges that data and analytics (D&A) presents, KPMG International commissioned FT Remark to survey 144 CFOs and CIOs from major corporations around the world (those with more than US$1 billion in annual turnover). All interviews were conducted in August 2013, with the responses aggregated and analyzed for use in this report.
- According to our survey, data and analytics is considered to be crucially or very important by almost seven in ten executives around the world. And business leaders almost unanimously (96 percent) agree that their organizations could be making better use of data and analytics. But only 56 percent say they have made changes to their business strategy to meet the challenge.
- Our survey finds that organizations are still struggling with key components of becoming a data and insight-driven organization. Four in ten executives say they are having problems integrating the right technology; 85 percent are not sure they are even implementing the right solutions.
- More than half (55 percent) of all organizations admit that they are facing difficulties in making decisions around analyzing data. Many say their biggest barrier is in knowing exactly what data to collect.
As this report notes, the benefits of embedding a D&A strategy are immense. Organizations with a strong D&A strategy will, for instance, find that they are better prepared to effectively respond to sudden changes of direction. A data-driven organization would also be highly capable of using data to manage its exposure to risks in marketing, supply chain and finance. And it would be able to leverage those insights to help make sure that it is selling the right products and services to the right customers.
Ultimately, this report finds those organizations able to connect the D&A dots today will be poised to achieve quantum benefits from their D&A in the future, and unprecedented competitive advantage over their peers.
Mark Toon, CEO, KPMG Capital