Accenture and HfS Research research from its latest global survey and it can serve as A CIO’s Guide to Data Analytics Investments.
Here are some highlights of how to get the most out of your data analytics investment.
CIO’s Guide to Data Analytics Investments – Statistical Data Analysis
- 80% of respondents state that they are concerned with disruption and competitive threats, especially from new digitally savvy entrants
- Approximately 80% of respondents communicated that 50% – 90% of their data is unstructured and largely inaccessible
- Most organizations struggle to make data-driven decisions due to limited skills and technology to process data
- About 50% of organizations surveyed point to a weak back office – it’s not keeping pace with front office requirements to support digital capabilities
- Almost 4 out of 5 of Chief Information Officers (CIOs) surveyed stated that they would be prioritizing spending on data analytics in 2018 and 2019
CIO’s Guide to Data Analytics Investments – Key Findings
The forces driving organizations to transform how they do business by embracing Intelligent Operations:
Digital Disruption, Data Explosion, and Customer Experience
- Approximately 80% of respondents are concerned with disruption and competitive threats, especially from new digital-savvy entrants.
- Data is rapidly shifting from a nice to have to a need to have to gain or maintain a competitive advantage.
- Almost 80% of respondents estimate that 50%-90% of their data is unstructured, the data comes from a wide range of sources, including owned first-party data, second-party cooperatives, and subscribed third-party data.
- An optimized customer experience strategy is the most significant driver of operational agility.
- Nearly 50% of respondents state that their back office is not keeping pace with front-office requirements
CIO’s Guide to Data Analytics Investments – Intelligent Operations
The future may belong to organizations with Intelligent Operations -those organizations that use diverse data driven by applied intelligence and human ingenuity to empower next-generation, real-time decision making, exceptional customer experiences and breakthrough business outcomes.
- The value proposition of Intelligent Operations is that the heart of the enterprise can become more flexible, agile, and responsive; generate value more quickly; and achieve sustainable competitive advantage.
- Accenture believes that Intelligent Operations have 5 essential ingredients that come together in a dial-up or dial-down as-a-Service approach to lasting business process transformation.
- Intelligent Operations are expected to provide organizations with the agility, flexibility and responsiveness that businesses need to act swiftly to change and steer a new course with confidence.
CIO’s Guide to Data Analytics Investments – 5 Essentials of Intelligent Operations
1. Innovative Talent
The top 3 areas of talent focus for successful organizations is: entrepreneurial drive, creativity and partnering ability. It is expected that the talent of the future will need to bring creative problem solving skills and abilities to the enterprise in addition to strong digital, operational and domain expertise. To meet these new talent demands, organizations will need a much more agile HR function and a more flexible approach to recruiting that heavily leverages an open talent marketplace to find, contact, engage, acquire, onboard, develop and retain talent.
2. Data-Driven Backbone
Over 90% of respondents continue to believe that data-driven decisions will help them generate breakthrough customer insights. BI, analytics and big data have drilled the point home that organizations need to capitalize on the explosion of structured and unstructured data from diverse internal and external sources to gain new insights their innovative talent can use to achieve better business outcomes. Over 85% of respondents are developing a data strategy around data aggregation, data lakes, or data curation, as well as mechanisms to turn data into insights and then actions.
3. Applied Intelligence
Nearly 90% of respondents believe that automation, analytics, and artificial intelligence (AI) will become the holy grail of business and process transformation. To effectively use these powerful tools for better business outcomes, companies need innovative talent who can understand the business problem they are trying to solve and then orchestrate the right people, connectivity, technology, systems and processes to produce desired outcomes.
4. Leveraging the Power of the Cloud
Over 90% of respondents expect plug-and-play digital services with enterprise-grade holistic security – this is possible today through the power of cloud infrastructure. Moving to a private or public cloud, however, will require significant efforts to replace or modernize legacy systems. 25% of respondents indicated that they have completed legacy replacement or modernization and another 42% have plans to do so in the near future.
5. Smart Partnership Ecosystem
Over 90% of respondents feel they need to partner closely across the ecosystem to further penetrate and expand in existing and new market opportunities. For instance, the most successful organizations of the future are expected to develop symbiotic relationships with startups, academia, technology providers and platform players to achieve their business goals in a holistic approach versus do it yourself. Similarly, traditional business service providers are increasingly collaborating with enterprises in a true partnership model that maximizes co-innovation.
CIO’s Guide to Data Analytics Investments – Tips
Intelligent Operations is not a project but a systemic change in the way businesses run day to bay and at all levels in the organization and that requires a change in behavior. Changes in behavior across the company are most successful when there is a C-level directive and sponsorship. An organizational initiative to drive drive growth is a great trigger for an Intelligent Operations transformation. Enterprises expect an average of over 20% revenue growth in 3 years, but they also want to reduce operations costs by just over 20% in the same period. This will require organizations to balance the priorities to enhance the customer experience, managing disruptors while improving productivity. Achieving multiple and sometimes conflicting or competing objectives requires a fundamental shift in how business operations support an organization’s growth agenda,i..e., Intelligent Operations.
CIO’s Guide to Data Analytics Investments – About the Research
HfS researched 460 global enterprises to analyze what senior operations executives think and how organizations are preparing themselves for future success, to develop the CIO’s Guide to Data Analytics Investment. The research supports a direct correlation between organizations with Intelligent Operations that enable them to have a 360-degree view of their operations and the ability to make quicker, insight-led business decisions. The key is for organizations to harness talent, data, and intelligence to transform their systems and processes. The most successful organizations are expected to be agile and responsive to maintain or develop a competitive advantage. And, a 360-degree view is a precursor to stay at least one step ahead of customers’ ever-evolving expectations.