Big Data. Lessons from the Leaders

[Partner info] Many companies struggle with basic aspects of data management and with their attempts to exploit their data effectively. It would seem that the next step in the big data journey is for companies to discover how they can extract value from the data they gather. During the first half of 2012, the Economist Intelligence Unit sought insight on this issue and more. In a survey sponsored by SAS, 752 senior executives from a broad range of sectors and countries shared their thoughts on the world of data. Highlights of the research are:

There is a strong link between financial performance and effective use of big data

Many companies are aware of the power of big data, but are not yet fully exploiting the data they collect. The survey findings suggest that they should not delay. Top-performing companies—dubbed “strategic data managers” in a previous report—process data more rapidly and see the rewards of doing so across
functional areas. They also place a higher premium on data than do their peers, collect more of the data available outside of their organization and use them more broadly across the business.

Companies become successful at exploiting data by focusing on business priorities.

It is tempting to think that technology can transform a business. It can, but companies need first to recognize the problem they want to solve. Big data can only work its magic if a business puts a well-defined data strategy in place before it starts collecting and processing information. And that strategy should be based on key business priorities; the data component is developed afterwards, with the aim of serving those priorities.

The importance of strategy is also a theme of the survey results. Forty-six per cent of executives from companies that significantly outperform their peers financially say they have a well-defined data strategy, more than four times the figure for those on par with their peers.

Talent matters as much as technology.

Executives need to ensure that analytic thinking is not confined to the IT department. Managers across all parts of an organization should be thinking about how data can improve performance and, with the help of data experts, transforming those thoughts into actions. This requires more than knowledge of computer programming and statistics.

Data professionals are now required to understand a company’s priorities and competitive environment, so that they can exploit data to answer the right questions. Finding such people is not easy: 41% of survey respondents say that a lack of skilled staff hampers their attempts to process data more rapidly.
 

Social media analytics and web-tracking technologies can transform the way businesses collect data about customers.

The impact of big data is felt across almost all functional areas. But according to interviewees, some of the biggest gains are being seen in customer-facing areas. Loyalty cards—which businesses use to collect fine-grained data on customer preferences—have already led to significant changes in retail and entertainment.

Data from web-tracking technologies and the analysis of user-generated content on social networks are becoming similarly important.
Nearly two-thirds of companies surveyed (66%) are already collecting web data. When used effectively, customer data can lead to dramatic improvements in loyalty, as well as more effective methods for enticing customers away from rivals.
 

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