In the era of big data, any business worth its salt will have amassed huge stores of information. And yet it seems that even though many companies recognise its potential value, few are clear on how to put it to work and use it to create revenue. Research from Rosslyn Analytics, the cloud-based data technologies provider, has revealed that while 71% of corporate leaders recognise the importance of data to their businesses, only 11% have used it to generate any financial value.
The survey of 500 chief executives also showed there is a real gap between the way data is viewed by IT and business leaders. Whilst 56% of chief information officers (CIOs) and IT leaders feel that data is inaccessible for a company’s decision makers, only 36% of business leaders believe this to be the case. Additionally, 46% of CIOs and IT leaders believe the data supplied to the business is of poor quality, compared to just 29% of business leaders.
When asked what was preventing their company from properly utilising data, IT teams cited data being in an unusable format whereas senior executives put it down to an inability to understand what data tells you and what it doesn’t. In terms of their company’s data strategies for the next two years, those in IT said they would like to prioritise the developing of centres of analytics whilst those at the head of the business would rather focus on creating data stores to allow decision-makers to access and use information on-demand.
“The wide chasm between the perceived importance of data and inability of business leaders to actually generate commercial value from data reveals the big opportunities facing companies,” said Charles Clark, CEO of Rosslyn Analytics. “Rosslyn Analytics’ survey reveals that the root cause of poor data monetisation is the lack of business and IT alignment and, specifically, the need for business leaders to develop a data strategy that defines technology purchases – not the other way around, which is common in most companies.”
While no end of attention has been paid to the value of big data in recent times, it does seem that businesses will struggle to tap the value of their data without a clear and coherent strategy.