Against a backdrop of evidence* suggesting that business performance will suffer because organisations are failing to manage their customers’ data, Eddie Short, partner and head of business intelligence, argues that companies are spending too long looking at the past, in the hope it gives an insight into their future.
He says: “For far too long organisations have been focusing on past performance in the mistaken belief it is the only way to help plan for the future. The problem is that executives have been caught up in a cycle of allowing processes they employ to drive conflicting and overlapping data. Whilst they can aggregate that data to report bottom line performance, it doesn’t help identify future threats or opportunities for growth.
“The fact is that if organisations are to succeed they should spend less time focusing on reports and business intelligence and more on creating an intelligent business - that has its finger on the pulse of future demand. Businesses that can anticipate what their customers want, what their stakeholders need and what the marketplace expects will be in a far better place to take action – these businesses ensure their data drives their processes. Good business is, after all, about responding to market needs, not reacting to a trend.
“As the economy continues to stutter, how a business plans for the future will be critical to its long term survival and success. The fact is that business intelligence can no longer be about keeping score. It has to add value by adding a predictive dimension.”
Eddie Short is available to comment on the future of the predictive analytics industry and the steps organisations need to take to survive.
* KPMG’s 2012 Business Leaders Survey reveals that 73 percent of CEOs accept their customer relationship systems need significant investment and a study by Ventana Research (March 2012) reveals that just 13 percent of organisations invest in predictive analytics, even though 80 percent view it as essential.
Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or email@example.com
Notes to Editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.