Organizations are progressing in the adoption of analytics for decision making, according to new research from Accenture (NYSE: ACN). However, there is still a prevalent disconnect between analytics capabilities organizations have built and how successfully they put them to use for business decision-making.
The survey of 600 executives in the United Kingdom and the United States revealed that 66 percent of responding companies have appointed senior figures (e.g. chief data officers) in the last 18 months to lead data-management strategies and policies, as well as to support business growth.
The use of analytics as a primarily predictive tool almost tripled to 33 percent from 12 percent in 2009 when Accenture research revealed that weak analytics capabilities hindered organizations’ decision-making abilities. Today, twice as many organizations feel that they are generating new ideas and opportunities from company data “to a great extent” (25 percent versus 12 percent in 2009).
On the other hand, just over one fifth of respondents (22 percent) said they are “very satisfied” with business outcomes driven by their analytics investments to date. Furthermore, only 39 percent of organizations state that the data they generate is relevant to their business strategies, and only 50 percent say that their data is consistent, accurate, formatted and complete.“Analytics remains the new kid on the block, but is clearly moving on the C-suite agenda,” said Narendra Mulani, senior managing director, Accenture Analytics. “However, although companies are investing in senior resources and advanced technologies, analytics is not yet deeply ingrained into the fabric of most companies as an integrated, enterprise-wide approach. For many organizations the journey to achieving true return on investment still lies ahead.” A combined 45 percent of respondents described their analytical capabilities as either in need of improvement, limited, lacking senior management support or piecemeal. Another 20 percent of organizations stated they have the required technical and human resources to apply analytics regularly with some success, but that the focus tends to be tactical rather than strategic. Only 21 percent of respondents said they routinely use analytics very successfully as part of an integrated enterprise wide approach. According to the research, getting the full returns on investments in analytics is a journey that leads from issues, to insight, to decisions, to action and ultimately to outcome. But the Accenture Analytics experts also state that incremental value is to be gained at every step of this journey, and that organizations should set clear goals for each step they climb, for example focusing on near-term value so their analytics efforts are self-funded within the first twelve months.