How can enterprises fully capitalize on the potential of analytics? It starts with a comprehensive data analytics strategy that includes the steps necessary to cultivate a data-driven culture.
New study by Forbes and EY sheds light on data analytics usage
According to a new study by Forbes Insights and EY, business leaders under use data—just 45% of senior executives overall include data analytics in the process of making decisions around business strategy.
Interestingly, of the survey participants who reported the highest growth rates in revenues and profits, three-fourths said they do rely on data for most of their decisions. The poorest performers, on the other hand, are relying on data only one-third or even less of the time.
Going with your gut just isn’t enough
This undervaluation of data and analytics is a serious problem. IBM General Manager for Business Analytics Marc Altshuller, a regular contributor to this blog on topics such as analytics for education and mobile insights, is frustrated by it. He just doesn’t see how so many people in business fail to use data to guide their business decisions, choosing to go with their gut or recent anecdotes. “Analytics provides a more complete answer than prevailing assumptions and business truisms,” he says.
It’s not how much you win or lose: It’s how you play the data
To make his point, Altshuller uses the example of sales vice presidents who are asked the difference between winning or losing accounts. Most will answer that the key to winning is experienced sales reps. It’s not that this assumption is necessarily wrong, says Altshuller. He admits that there is probably data that shows a correlation. However, there may be other factors that come in to play. Those could be anything from language to competitor activity.
“There are patterns uncovering why companies win or lose, and executives must be open to using tools that can pattern data for a complete answer to their business question.” he says.
So, how can businesses address the undervaluation of data?
Marc Altshuller has answers to this question and more in an informative brief from Forbes Insights and EY, and IBM. In an interview in this brief, he describes a new analytics paradigm that reduces friction between IT and business users and how solutions like Watson Analytics play a role. He also offers valuable comments and insights on the findings in the Forbes Study.
Experience data analytics as a differentiator firsthand
If the idea of under using data leaves you cold, you can get a taste of the new paradigm in data analytics. Sign up for Watson Analytics today. It’s free.