NEW YORK, July 2, 2015 /PRNewswire/ -- While 97
percent of organizations around the globe claim to use data and
analytics (D&A) across the enterprise, only 19 percent are
satisfied with the insights their D&A tools provide, according
to Going Beyond the Data – Turning Data from Insights into
Value, a new global report from KPMG International. The
report highlights a growing gap between how businesses currently
use D&A and their ability to apply it to untapped areas of rich
opportunity.
"In the last two years we've seen a tremendous increase in
D&A adoption and maturity across organizations; for example,
more than 80 percent in our survey say they are making faster, more
accurate decisions with D&A, and over 67 percent use D&A to
reduce risk," said Christian Rast,
KPMG Global Head of D&A and a partner with KPMG in Germany. "Yet, we also know that business
leaders face some critical challenges in realizing the full value
of their data insights in the areas of revenue growth, serving
customers and overall competitive advantage."
Broad adoption with gaps of untapped opportunity
According to the survey results, 75 percent of respondents use
D&A mainly in the areas of R&D, Supply Chain, Human
Resources and Finance, with 47 percent of respondents confirming
that improving productivity is the primary driver of their D&A
strategies. Improving productivity was ranked highest for
respondents in China (58 percent),
and in the UK and Germany,
generating growth edged out productivity at 42 and 39 percent,
respectively.
Yet, the results point to some significant areas of opportunity
that remain surprisingly underserved:
- Less than 25 percent say they currently use D&A to identify
new revenue streams
- Only 31 percent have used D&A to drive individualized
marketing
- Only 16 percent use D&A to predict future trends
- 92 percent say they use D&A for sales and marketing
purposes and 81 percent have improved their understanding of
customers, yet 41 percent have created more tailored offers to
prospective customers.
"For organizations to successfully turn their D&A insights
into value, businesses need to understand that insights do not come
from data alone," said Anthony Coops, ASPAC Data & Analytics
Leader and a partner with KPMG in Australia. "The ability to apply advanced
analytics that can map the data to the critical business drivers
and issues calls for stronger alignment between the business and
the analytics process. Those that are able to break down internal
siloes and bring together the best of their data, people and
technologies together from across the enterprise will reap the
greatest benefits from their D&A applications."
The key challenges that continue to prevent businesses from
tapping the value from their D&A solutions center on data
reliability and access to talent:
- 97 percent of business leaders say they already use D&A to
manage risk, yet 58 percent still have difficulties evaluating data
quality and reliability
- Sufficient data skills is also a common challenge, with only 14
percent reporting they have all the talent and capabilities they
need to fully leverage D&A
"While it's evident that businesses are becoming more adept at
evaluating data to gain actionable insights, it's the
transformation from insights to value that proves to be the
greatest challenge," Mr. Rast said. "Generating long-term value
from data requires that organizations continue to move toward a
robust, enterprise-wide D&A strategy that embeds D&A
solutions and tools in every part of the organization. Making
D&A integral across the enterprise is where the real value can
be achieved – when it can be effectively used to address all
priority business issues and drivers that are key to optimally
managing risk, cost and growth."
The importance of having an enterprise-wide D&A strategy not
only tops the boardroom agenda, but is now influencing investment
decisions in the capital markets, according to an upcoming KPMG LLP
(US)/KPMG International report, Data and Analytics – A New
Driver of Performance and Valuation. Specifically, the survey
of 260 institutional investors and sell-side analysts indicate a
rise in the strategic use of D&A in investment valuation and
decision making in the coming years. The report will be available
in mid-July 2015.
About Going Beyond the Data – Turning Data from Insights
into Value
Going Beyond the Data –
Turning Data from Insights into Value is based on survey data
collected from 830 senior business executives across more than 15
countries. The survey was conducted on behalf of KPMG International
by an independent research partner between August 2014 and January
2015, and was augmented by one-on-one interviews with sector
leaders and KPMG subject matter experts conducted in May 2015.
For further information, contact:
Jennifer Samuel
KPMG International
Global Communications
+1 416 777 8491
jsamuel@kpmg.ca
About KPMG International
KPMG is a global network of professional firms providing Audit, Tax
and Advisory services. We operate in 155 countries and have more
than 155,000 people working in member firms around the world. The
independent member firms of the KPMG network are affiliated with
KPMG International Cooperative ("KPMG International"), a Swiss
entity. Each KPMG firm is a legally distinct and separate entity
and describes itself as such.
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SOURCE KPMG International