According to a new study, only one-third of CEOs have a high-level of trust in the accuracy of their Data Analytics. The report, which was conducted by KPMG, a global network of professional firms providing audit, tax, and advisory services, polled 400 chief executives to reveal how CEOs are leading in times of extraordinary change. Overwhelmingly, CEOs are convinced that the next three years will be more critical for their industries than the previous 50 years combined. This sentiment is shared in the enterprise, as new technologies and integrations, coupled with more informed consumers are forcing business sectors to evolve.
Wilds Ross, Principal of Data & Analytics at KPMG explains: “Organizations have always gathered data on their customers, products, and markets, but never before have they had such a breadth and detail of data and the ability to measure and analyze it so exquisitely.” CEOs have made it clear that Data Analytics is a top-three priority for them over the next three years, as they plan to dive deeper into exploding data sources and technologies to develop new products and better server their customer base.
Business Intelligence and Data Analytics software solutions have become mainstays in the enterprise over the last decade, providing organizations with the ability to gain insights from the data they collect. More and more, companies are becoming data-driven, and are embracing analytics for greater capabilities and broader possibilities of data analysis. Brad Fisher, Partner of Data & Analytics adds: “Analytics in the strategic planning process can use a lot more and sophisticated external data points for a more scientific look forward.”
The report also uncovered the ways in which companies are using Data Analytics for their business. Here’s a summary:
- 51 percent use Data Analytics to develop new products and services
- Half of CEOs polled said that analytics were used in their organization to drive process and cost efficiency
- 49 percent use Data Analytics to find new customers, 48 percent to drive strategy and change, and 46 percent to manage risk
- 44 percent of those polled use data and analytics to analyze existing customer needs, value, profitability, and likelihood to defect
Even with the multitude of benefits that Data Analytics has to offer, 77 percent of those polled said that they had concerns about internal data quality. This means that the majority of executives feel as though their data collection is yielding insights that may be incorrect. Since the purpose of analyzing data is to create actionable information, this uncertainty is a major issue. As a result, just 31 percent of respondents feel as though their organizations are leaders in the use of Data Analytics, largely as a result of poor data quality techniques. Piece of mind in knowing that the answers being generated are correct is just as important as analyzing collected data in the first place.