When browsing Twitter and LinkedIn lately, as well as newsletters in my inbox, it’s becoming increasingly difficult to ignore articles evangelising the advantages of big data, analytics and digital transformation.
Despite this, I came across an informative article by Nicolaus Henke, Jacques Bughin and Michael Chui, for the Harvard Business Review, discussing how most industries are nowhere near realizing the full potential of data and analytics.
What was compelling is their description of the challenges organisations face when confronted with transforming their businesses for this advanced digital age.
Using research developed by the Mckinsey Global Institute, the authors dived into the industries, such as retail and manufacturing, that were excelling at maximising big data and analytics to achieve efficiency gains and increased revenues.
Furthermore, they described how in the telecom industry, analytics leaders post three to five times higher returns on their big data investment than the typical telecom company.
Despite the contrary, the results from a Mckinsey survey, which included responses from more than 500 executives in organisations and industries of varying sizes and regions, reported that 86% of organizations were only somewhat effective at meeting the goals they set out for their data and analytics initiatives.
With such a high percentage number, it is clear that there is a significant gap between what is being envisaged for the use of data and analytics and what is actually being implemented by these companies.
To combat this, the authors advocate that:
“an effective transformation strategy starts with clearly articulating how data and analytics will be used to generate value and how the results will be measured”.
By defining a strategic vision first, senior leadership can take ownership to empower and support teams trying to embrace digital change. At the same time, they need to be flexible to challenge and overcome deep-seated resistance and “break down silos between departments”.
As mentioned in a previous Forcecast post, we are in the middle of a renaissance in AI. Companies and leadership teams who are embracing big data, machine-learning and predictive analytics have a major advantage over competitors who are lagging behind in this area.
By implementing digital-first solutions, such as those mentioned above, not only helps organisations increase their revenues but also helps them develop efficiencies around operational and employee performance.
Nonetheless, what is abundantly clear from the HBR article is that companies starting out on their digital transformation journey have a challenging road ahead. As the authors suggest “traditional companies have to do the harder work of overhauling entrenched systems, roles, and mindsets” versus those of a digitally-native company.
However, don’t fret, all is not lost. They continue by saying that in “industries where analytics adoption has been slow, there is still an opportunity for first movers to gain a significant edge over competitors”.
Whether you’re looking for a solution to improve your data analysis or contemplating a full digital transformation, developing a clear and concise vision for your strategy can significantly improve the return on investment.
For those organisations who are not onboard or unconvinced of the growing importance of machine learning, predictive analytics and big data, procrastinate at your peril!
To learn more about how our predictive analytics, machine learning application ‘Forcecast’ can help increase your sales and reduce churn, download our free brochure here!