C-Level Execs Value Data, Have No Idea What to Do With It
Almost all C-suite executives at large enterprises believe data and analytics are important to their business, but most are struggling to become data-driven businesses -- and more than half say they don't even know what data to collect.
Fri, January 17, 2014
CIO — C-suite executives today are striving to drive data-centric transformations of their businesses, but most are struggling to connect the dots. That's according to a new report by KPMG Capital, a global investment fund created by KPMG International in November to invest in innovation in data and analytics (D&A).
"Long before the term 'big' was first applied to data, organizations were struggling to make sense of all the information they had," says Mark Toon, CEO of KPMG Capital and global leader, D&A. "Over the past five years that focus on data has started to shift. Today, the issue is no longer about owning the most data but rather about how to gain the most insight from it. In short, how to turn data into insights, and insights into real business advantage."
"Data is everywhere, telling us everything," he adds. "But do companies really know where to look? The reality is that turning mountains of data into valuable, practical and actionable business analytics is not nearly as straightforward as people believe."
In August, FT Remark, a research service from the Financial Times Group, surveyed 144 CFOs and CIOs at global organizations on KPMG Capital's behalf. The organizations all had more than $1 billion in annual turnover.
The survey found that more than 99 percent of organizations believe data and analytics is at least somewhat important to their business, with 69 percent believing that it is crucially important or very important. Fifty-six percent of respondents say they have changed their business strategy to meet the challenges of data and analytics—generally to increase their capacity to analyze big data.
But while these executives recognize the value, 96 percent say that untapped benefits remain on the table. In fact, 85 percent say they face challenges implementing the correct solutions to accurately analyze and interpret their existing data and 75 percent say they find it difficult to make decisions around data and analytics. Many (40 percent) say they are wrestling with integrating data technology into their existing systems and business models.
Execs Unsure How to Become Data-DrivenThe root of all of these challenges, according to KPMG, is that while organizations know data and analytics can transform their business, they don't fully understand how, or even how to create the right environment for a data-driven transformation. More than half say they're unsure what data to collect in the first place.
"One of the biggest challenges, in our experience, is that most business executives have a far-too-limited view of data and what they can ask analytics to do," says Toon. "It's no longer just about data managem