Today’s leaders have faced unique challenges, from marketplace chaos to the constant change in consumer behavior dynamics. However, one of the heaviest demands to date seems to be how to transform a business into a truly data-driven organization. The keys to success are addressing and balancing internal with external data and emerging technology.
According to NewVantage Partners’ 2019 Big Data and AI Executive Survey, a majority (69%) of executives from major global corporations readily admit that they have yet to create a data-driven organization. Further, executives that identify their firms as being data-driven has dropped from 37% in 2017 to 31% in 2019. So, why is the evolving role of data and analytics posing problems for executive teams? A recent Prevedere survey set out to examine this trend.
C-Suite, External Data, and Emerging Technology are Key to Success
The recent “Why Creating a Data-Driven Organization is Challenging the C-Suite” report* analyzes findings conducted amongst C-Level and senior executives, primarily from retail and consumer goods industries. The main objective was to gauge opinions on the challenges faced regarding data and analytics specifically.
Compiled findings are compelling and provide an inside view on popular reservations leadership hold when deliberating on data and emerging technology. What’s clear, is that executive leadership believe their organizations are lacking in having the right combination of data and software to accurately and efficiently convert data into insights.
One of the more common themes or rather quandary, from leadership, often involves explaining how external factors, such as global economic volatility or changing consumer behavior, can potentially impact their business performance. Essentially data outside a company’s four walls continue to poses a major unknown threat. We now understand that external factors can influence up to 85% of a company’s performance. We also know that companies miss their projected forecast by 13% on average, and according to the Institute of business forecasting, companies lose up to $300M per year in profit for every 1% error in forecasting. In order to close the gap and create a data-driven culture, leadership’s high-level planning should be to bring together the right data and the right software.
The transition to a data-centric culture, leadership is tasked to unite both relevant external data with internal data with the right emerging technology. Companies should be leveraging technology solutions that not only automatically collect, clean, and organize known data, but also identify external factors that may impact demand for their products and services into the future. Read the full report >>
*The survey was conducted by Quest Mindshare, an independent survey company, from March 25, 2019, to March 31, 2019. Two hundred nine executives participated in the anonymous online survey.