Avanade, a business technology services provider, has released the results of its global survey, The Business Impact of Big Data, which examines executive attitudes about how enterprises are managing the exponential growth of data.
The survey, conducted by Kelton Research, reveals that companies are suffering so strongly from an overload of data it is creating very real business challenges. Nearly two thirds (62%) of Australian C-level executives, IT decision-makers and business unit leaders report they are overwhelmed by the amount of data their company manages.
Dubbing the data overload 'big data', the research shows many executives report they are often delayed in making important decisions as a result of too much information. 58% of Australian respondents report they have made an inaccurate business decision as a result of bad or outdated data, with 46% of those surveyed stating that most data received has been inaccurate.
“A company’s data represents its relationship with its customers - their likes, dislikes, how they like to be connected to the organisation,” said Jeyan Jeevaratnam, Managing Director, Avanade Australia. “It is counterintuitive that too much data is affecting business productivity and effectiveness, but that is what our survey has shown.
“Companies must develop a new data usage culture where executives, employees and strategic partners are active participants in managing a meaningful data life cycle,” continued Jeevaratnam. “This will enable businesses to turn information from data into actionable, accurate business insights.”
Data addiction
Despite the challenges created by the proliferation of data, executives report they want more data and they want it faster. One in three executives believe access to even more sources of data would enable them to do their job better, while nearly two thirds (67%) of Australian executives say they still want faster access to data. According to the survey, this desire for more data and need for speed is driven by the ability to keep up with customer service expectations. This is in line with companies taking on a more customer-centric business model.
“Our research confirms that while speed of access to data is important, understanding the full scope and context of the data is equally important, particularly when trying to make the right business decisions at the right time,” said Jeevaratnam.
Executives do recognise there is value in data, from improved business forecasts to reduced uncertainty in decision-making and improved competitive positioning. 58% of Australian companies surveyed believe the flood of data entering the enterprise fundamentally changes the way their businesses operate.
Security and CRM
With growing data, there is a growing requirement for data security, with 84% of Australian executives reporting that they are investing in security solutions or will do so in the next 12 months.
When it comes to the most important kinds of data, Australian companies also report that customer relationship and sales information are critical to their strategic decision-making process. They recognise the opportunity to grow their top-line revenue by harnessing customer information, and this focus is driving additional technology investments in customer relationship management (CRM) systems. 76% of Australian executives have invested or are seriously considering investing in CRM in the next 12 months, higher than the global average (67%).
Struggle to derive business value
The survey also reveals a big data disconnect. Despite the increasing volume of data, pressure to keep up with customer expectations and focus on technology investments, today’s companies are still struggling to see big data as a driver of real business value. On the one hand, executives surveyed say there is value in the data. On the other hand, less than half of respondents of Australian executives - 42% - view the available sources of data as a strategic differentiator for their organisation. Rather, the majority - 58% - consider data as a consequence of doing business.
“It’s clear that Australian companies see real potential in learning to leverage big data effectively, but they lack the basic measures to manage it,” said Jeevaratnam. “Avanade’s advice to the organisation of tomorrow is to take a creative, holistic approach to data management that integrates people, processes and technology to manage the big data phenomenon.”