Advanced analytics is reaching an inflection point in adoption by both mid-market organisations and large enterprises in an effort to gain a competitive advantage.
According to research commissioned by Dell Services and executed by the International Institute of Analytics (IIA), advanced analytics is becoming core to the business rather than a separate stand-alone programme.
More than 70% of firms indicated their company is actively using or has near-term plans to use analytics in everyday decision-making. However, only 5% of early adopters believe that they have already achieved the highest level of analytical maturity, implying that we have just scratched the surface of how advanced analytics can be used.
Firms across all industries see the value of data and analytics, are investing in capabilities, but still have work ahead to manage an analytics programme in house and see the true potential of the data.
The research also found that advanced analytics plays a critical role in many respondents’ operations, and that they expect to gain a competitive advantage in the future due to successful data mining. Nearly two-thirds strongly disagree that analytics is just a fad. Respondents indicate using advanced analytics for a variety of tasks, with nearly half indicating they use advanced analytics to predict their firm’s financial performance, and about four in 10 mentioning differing tasks that involve customer recruitment, retention, loyalty programmes and product usage habits.
“This study indicates that customers believe advanced analytics offers significant business benefits and continued investments can help advance business maturity levels. Companies and leaders across industries are at a tipping point. We’re seeing our customers place a higher priority on using advanced analytics to execute on their digital business models,” says Raman Sapra, executive director & global head of Dell Digital Business Services. “Ultimately, business leaders want to develop digital business models that enable them to attract, serve, and retain customers in the digital era. Advanced analytics provides that actionable insight that enables their transformation.”
The study also found that customers are focused on proof of concept for advanced analytics. Half of survey respondents either have implemented or are in the process of implementing advanced analytics technology driven solutions today. The remainder either do not have the need or they recognize a need but have not yet made an investment.
The findings of the survey highlight an opportunity for businesses in all industries to determine how they will use advanced analytics to improve business results and ultimately create a better product or environment for their customer.
We strongly agree. Analytics is the core on which businesses can build a stronger understanding of their own business, their competitors and their customers.
We’ve found that the information that a business needs is often already present, but misunderstood or neglected. This could interfere with the speed of execution and decision making process in a business. Accessible Data/information through automated systems creates agile people.
We’ve also seen a major increase in information availability in the last few years and in the presence of social media, customers and companies around you are freely sharing information about themselves. This helps you adapt your offerings and services to cater more specifically to individuals and businesses.