Big data: Forging corporate capabilities for the long-term

Transcription

1 REPORT Big data: Forging corporate capabilities for the long-term A SAS research programme based on a survey conducted by The Economist Intelligence Unit. Title

2 1 Executive survey analysis In this survey analysis, we describe five key findings from this survey looking at the UK findings compared to the rest of the world and global. The data is from a survey conducted by The Economist Intelligence Unit. We have also included some findings showing significant changes from the 2011 executive survey. Who took the survey? The survey reached 632 respondents globally: 26 per cent from North America, 18 per cent from the UK, 22 per cent from Europe, 26 per cent from Asia-Pacific and 8 per cent from the rest of the world. Globally, 16 per cent of respondents came from companies with less than $500m in annual revenue while the same amount had revenue of $500m-1bn. In addition, 22 per cent had revenue of $1-5bn, 13 per cent had revenue of $5-10bn and 25 per cent had revenue of more than $10bn. Respondents held a variety of positions: four per cent were CEOs, 20 per cent were CIOs and three per cent were other C-level executives. A further four per cent of respondents were CFOs or held other boardroom positions, 15 per cent were SVP/VP/Director level, 23 per cent were business unit or department heads and 31 per cent were managers or had other positions.

3 2 1: During the past four years, companies have progressed significantly in their evolution towards becoming strategic data managers Q: Which of the following best describes the impact data has had on your organisation? Data has no impact on our organisation Data has helped us run our basic business operations Data has helped us consolidate and manage operations at a departmental level Data is among many sources of input we use to steer the business Data has become an important tool that drives strategic decisions 6% 6% 7% 7% 15% 14% 28% 26% 43% 44% Data has completely changed the way we do business UK ROW Today more executives see data as completely changing the way their companies do business. The transformational impact data is having on companies is increasingly clear to executives. In total, 15 per cent of UK respondents believe data has completely changed the way they do business. This is slightly ahead of the rest of the world average of 14 per cent, and ahead of the global nine per cent figure from Furthermore, 43 per cent of UK executives surveyed suggested that data has become an important tool that drives strategic decisions within their organisations. This is broadly in line with the rest of the world (44 per cent), but in both cases shows progress over 2011, when 39 per cent of respondents held the same view.

4 3 Q: Which of the following best describes your organisation s approach to data? We do not prioritise data collection We collect data but it is severely under utilised 2% 3% 4% 6% We collect large amounts of data but do not consistently maximise its value 16% 20% We understand the value of data and are marshalling resources to take better advantage of it 38% 52% We have a well-defined data-management strategy that focuses resources on collecting and analysing the most valuable data 26% 34% UK ROW The ranks of strategic data managers have swollen, and those of data collectors and wasters have dwindled. Companies are advancing along the evolutionary curve from indiscriminate data wasters and collectors to strategic data managers. In this survey, an impressive 34 per cent of respondents outside the UK indicated that their company has a well-defined datamanagement strategy that focuses resources on collecting and analysing the most valuable data. However, the UK underperforms the global average, with just over a quarter (26 per cent) saying the same. In both cases, however, there is once again progression over the findings from 2011, when only 19 per cent globally made the same claim. maximise its value. This is an improvement globally on 2011, when 28 per cent reported failing to capitalise on the value of data assets. The UK is faring better, with only 16 per cent of respondents falling to consistently extract value. Similarly, this year, only four per cent of UK-based executives indicated that their company collects data but severely underutilises it, an improvement over both the rest of the world (six per cent average), and the nine per cent who shared the same view in Poor use of data continues to be a global challenge: 20 per cent of respondents outside the UK admitted that their companies collect large amounts of data, yet fail to consistently

5 4 Q: Which of the following statements most accurately describes your organisation s use of data available? We leverage very little of our valuable data 10% 16% We probably leverage about half of our valuable data 57% 53% We put nearly all of the data that is of real value to good use 33% 31% UK ROW Companies have become better at putting data to good use, making it readily available and sharing it across the organisation. The proportion of respondents outside the UK who feel their company puts nearly all of its valuable data to good use rose to 31 per cent in the latest survey. However, the UK is performing above the rest of the world average, with a third (33 per cent) of UK-based respondents claiming to be putting the vast majority of valuable data to work.in both cases it is up from 22 per cent globally in Over the same period, the proportion of executives who think their companies leverage very little of their valuable data has shrunk to 10 per cent in the UK and 16 per cent in the rest of the world, from 24 per cent globally in More than a quarter (28 per cent) of respondents in the rest of the world strongly agree that data is readily available to those in their organisation that need it. In the UK, that number drops to less than a quarter (22 per cent). In 2011, the global number was 11 per cent. Furthermore, 24 per cent of executives outside the UK also strongly believed that data and information is shared across their organisation, compared to 18 per cent in the UK and 11 per cent globally in 2011.

6 5 Q: Who is the person primarily responsible for your organisation s data strategy? Dont know 0% 4% Other, please specify 4% 3% IT managers 11% 12% Line-of-business executives 10% 14% Chief Marketing Officer 4% 6% Chief Data Officer 9% 14% Chief Information Officer 34% 40% Chief Executive Officer 20% 17% UK ROW The strategic role of the CIO as owner of the corporate data strategy is solidifying. C-level ownership of data management strategy has become more centralised and consolidated around the CIO. In this latest survey, 40 per cent of respondents outside the UK point to the CIO as having the primary responsibility for the corporate data strategy, compared to 34 per cent within the UK. In 2011, that number was 23 per cent globally. Ownership at the CEO level remained relatively unchanged; 20 per cent in the UK and 17 per cent across the rest of the world report that the CEO is the primary owner of the data strategy, essentially flat with the 18 per cent globally who said the same in This year, nine per cent cited the chief data officer (CDO) a relatively new position as the executive with primary ownership of data-management strategy in the rest of the world, while a substantial 14 per cent in the UK said the same, highlighting the growing popularity of this dedicated role in UK businesses.

7 6 Q: How has the speed at which your organisation processes big data changed over the last 12 months? Don t know 4% 1% Signifcantly decreased 0% 0% Somewhat decreased 1% 1% Stayed relatively the same 21% 28% Somewhat increased Significantly increased 15% 22% 48% 59% UK ROW Big data processing speeds have increased especially among strong-performing companies. More than two-thirds (69 per cent) of executives outside the UK now say their big data processing speeds have increased over the past 12 months. However, in the UK it is even higher, with nearly three-quarters (74 per cent) saying that big data processing speeds have gone up over the previous year.

8 7 2: Being strategic about data is highly correlated to achieving success and strong financial performance Data is most commonly used to improve business processes (90% of UK executives versus 85% in the rest of the world) Respondents are using data to improve operations and trading capability. Across a wide range of support and operational functions, the UK is outperforming or at least matching the rest of the world on adoption and usage of data. For example, UK respondents revealed that data is most commonly used to improve business processes (90 per cent of UK executives versus 85 per cent in the rest of the world), substantiate business decisions (87 per cent in both cases) and improve customer service and experiences (88 per cent in the UK versus 84 per cent in the rest of the world). However, nearly one in five (19 per cent) of those surveyed in the UK admit they are not competent or don t know if they are competent at using data creatively and innovatively to advance the business. Evidence the skills shortage continues to be an issue. 34 % More than a third of UK organisations believe they have little or no capability for using data to open up new markets. Despite the strong belief in the value and usefulness of data, opportunities for improved use still exist. More than a third of UK organisations (34 per cent) believe they have little or no capability for using data to open up new markets. This is slightly worse than the rest of the world, where 30 per cent said the same. The viewpoint is similar when discussing use of data to speed up market entry (31 per cent in the UK feel their organisations are lacking in this regard) and developing new products or services. A quarter of UK organisations view using data for this as a challenge. This is essentially flat with the rest of the world, with 32 per cent struggling to use data to speed up market entry and 25 per cent finding it difficult to use it to develop new products and services. Ensuring user buy-in to data initiatives is important globally, with 24 per cent of respondents overall stating that encouraging employees to use data in decision-making, problem-solving and idea generation is a priority. However, within the UK, only 16 per cent share this view, which is a potential setback. 35 % 35% of UK respondents whose company has a well-defined data strategy report that their company s financial performance was substantially ahead of peers in the most recent fiscal year. There is a clear connection between having a well-defined data strategy and achieving financial success, but the UK is lagging behind the curve. Throughout our survey data, we see a clear correlation between companies having a well-defined data strategy and financial outperformance. In total, 35 per cent of UK respondents whose company had a well-defined data strategy ( strategic data managers ) also reported that their company s financial performance was substantially ahead of peers in the most recent fiscal year. This is slightly behind the rest of the world, with 38 per cent of global strategic data managers reporting a similar performance. Similarly, only 10 per cent of respondents from UK companies that merely understand the value of data and are marshalling resources to take better advantage of them ( aspiring data managers ) make the same performance claim, in comparison to 16 per cent in the rest of the world.

9 8 Overall success of big data initiatives in the past year: Don t know 5% 5% It s too early to measure the success of our data initiatives 3% 6% Not at all sucsessful, we did not achieve our goals 2% 3% Minimally successful, we achieved a few goals 24% 22% Moderately successful, we acheived most goals 51% 49% Highly successful, we achieved all or nearly all our goals 15% 15% UK ROW Successful companies are much more likely to put nearly all relevant data to use and to always use big data to identify new business opportunities and improve business processes. A solid data strategy and systematic use of data appear to significantly affect the success of corporate big data initiatives, particularly in the UK. Almost half (45 per cent) of strategic data managers in the UK claim their data initiatives were highly successful and that they have achieved all or nearly all their goals, compared to only 35 per cent elsewhere. By comparison, only five per cent of aspiring data managers in the UK and seven per cent in the rest of the world claim the same success. In addition, 38 per cent of those who put nearly all of their relevant data to use in the UK are highly successful in their big data initiatives - this runs behind the rate in the rest of the world (44 per cent). Only five per cent of those in the UK and three per cent of those in the rest of the world who use about half their data claim similar success.

10 9 3: Winners have a centrally sponsored data strategy focused on creative application of data to solve key business problems and generate new business opportunities Other characteristics that set performance leaders apart from laggards include: Focus on hiring and retraining data strategists and scientists, while laggards are focused on training current employees to become data-savvy Strong ability to engage employees in using data and be creative in using data to solve business problems Approaches that start data analytics efforts by stating the business problem, and then mine the data for useful insights Creative use of data to enhance customer experience, regulatory compliance and new market development Top financial performers are more likely to centralise the responsibility for their corporate data strategy with the CEO or the CIO. Companies that outperform their peers financially are more likely to have data strategy ownership that is centralised with their CIO. This is the case for 29 per cent of leaders versus 41 per cent of laggards in the UK and 42 per cent of leaders versus 37 per cent of laggards in the rest of the world. An additional 25 per cent of leaders in the UK have a data strategy that is led by their CEO, versus 11 per cent of laggards (this compares to 19 per cent and 14 per cent in the rest of the world). In the UK, ownership by the chief executive is strongly associated with successful execution of big data initiatives. In total, 41 per cent of UK respondents who report highly successful data initiatives indicate that their CEO provides the primary executive sponsorship, while that number is halved for those who report minimally or not-at-all successful data initiatives (21 per cent). In comparison, UK CEOs lead their overseas counterparts - only 32 per cent of highly successful data initiatives in the rest of the world being led by CEOs. At the same time, seven per cent of those who do not achieve success with data initiatives in the UK have line-of-business executives at the helm of data management strategy. Outside the UK this figure is even higher. In total, 23 per cent of those who do not achieve success with data initiatives have line-ofbusiness executives at the helm of data management.

11 10 4: Significant challenges remain especially related to the quantity and quality of data 16 % Laggards 27 % Leaders Surprisingly, top financial performers are even more likely to admit to struggling with the volume of data available to them. Companies, top performers included, are struggling even more than they were four years ago with managing and making sense of the vast amounts of data available to them. In 2011, eight per cent of global respondents strongly agreed that their company had so much data that they struggled to make sense of it. That percentage has now grown to 17 per cent within the UK and tripled to 24 per cent for the rest of the world. Surprisingly, top financial performers are even more likely to make that admission: 27 per cent of leaders say so versus 16 per cent of laggards. More than half (57 per cent for the UK and 53 per cent for the rest of the world) of respondents also said they probably leverage only half of their valuable data. Managing data quality, quantity and security are the top challenges companies face with regard to their data initiatives. 52% 40% Maintaining data quality and integrity is the top challenge companies face as indicated by 52% of UK executives and 40% of those in the rest of the world. Maintaining data quality and integrity is the top challenge companies face related to their data initiatives, as indicated by more than half (52 per cent) of UK executives and 40 per cent of those in the rest of the world. Dealing with the collection, storage and management of huge amounts of data combine to form the next most significant challenge, cited by 30 per cent of UK respondents and a third (33 per cent) of those from the rest of the world. Meanwhile, 31 per cent of UK executives and 29 per cent of their rest of the world counterparts struggle with ensuring data security and privacy. A fifth (20 per cent) of the rest of the world respondents also struggle with data governance, falling to just 16 per cent in the UK. Acquiring valuable insights and converting them to action are the key challenges companies face when using data to drive innovation. 64% 67% Overall, 64 per cent of UK businesses and 67 per cent of business in the rest of the world believe employees are empowered to use data Overall, 64 per cent of UK businesses and 67 per cent of business in the rest of the world believe employees are empowered to use data for problem-solving and to generate ideas that advance the organisation. However, when it comes to the most significant challenges that companies face in using data for business innovation then 29 per cent in the UK and 28 per cent in the rest of the world believe it s engaging creative employees in using data effectively. A further 28 per cent in the UK and 29 per cent in the rest of the world believe it s providing creative employees with the easy and flexible tools to enable innovation.

12 11 5: Key future opportunities lie in leveraging diverse and unstructured data sources to drive efficiencies and new strategic insights Operational efficiency and strategic direction are seen as the top benefits of increased data availability. Executives believe the most important opportunity resulting from greater availability of data is increasing operational efficiency, as indicated by almost a third (32 per cent) of UK executives and 38 per cent elsewhere. Performance laggards and data collectors are even more likely to focus on this future opportunity. External unstructured data and Internet of Things data sources will command a greater focus in the next 12 months. Internal unstructured text data, such as customer inquiries, reports, technical and business notes, and web click-stream data are a significant focus today and will continue to be important data sources for companies in the future. But external unstructured data, such as social media, patent filings, competitive information as well as data from RFID tags, bar codes, mobile usage and Internet of Things sensors will become an even more important source than they are today. Web data, the most widely collected data source today in the UK, is expected to be less of a focus of future data collection. Hiring and retaining talent for big data is a top priority for UK organisations In particular, data strategists (35 per cent) and data scientists (35 per cent), as well as technology staff to manage data systems (35 per cent). Globally, organisations are also looking at how to improve data skills within the workforce by hiring and training employees who understand data and the business (31 per cent), training current employees so they become data savvy (36 per cent) and instilling the critical-thinking skills needed to harness data to solve business problems and improve the business (20 per cent). However, overall the UK is trailing slightly behind the rest of the world. Only 25 per cent of UK businesses are hiring and training employees who understand data and the business, and 34 per cent in the UK are training current employees so they become data savvy. Data Strategists 35 % Data Scientists 35 % One in five (20 per cent) in the UK claimed they lacked the skills to use data effectively. This is in comparison to 24 per cent in the rest of the world. A further 20 per cent in the UK are not competent or don t know if they are competent at engaging employees across the organisation in using data in day-to-day decision making. This is lower than the global average of 26 per cent. 35 %

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