According to Innosight, the average company tenure on the S&P 500 Index was 37 years in 1977. By 2027, it is forecast to be just 12. At the current churn rate, about half of the companies now on the S&P 500 will be replaced over the next ten years.
The reasons for this accelerating turnover include “a complex combination of technology shifts and economic shocks, some of which are beyond the control of corporate leaders,” notes the research—but very often, companies are simply missing opportunities to adapt or change. For example, many enterprise organizations continue to apply existing business models to new markets and begin to fall behind their data- and insights-driven competition.
“Increasingly, leading and thriving organizations in every segment are wielding data and analytics as a competitive weapon, operational accelerant, and innovation catalyst,” note analysts in Gartner Predicts 2019: Data and Analytics Strategy. “But many still struggle under the weight of traditional business models and analog business processes that discount the potential of data and analytics.
“Still others recognize their potential, but cannot make the cultural shift or commit to the information management and advanced analytics skills and technology investments necessary to realize that potential,” note the report authors.
This goes along with a recent Harvard Business Review Analytic Services survey that shows while 86% of the 700+ enterprise respondents say the ability to extract new value and insights from existing analytics applications is very important, just 30% are very effective at doing this currently:
In Gartner Predicts 2019: Data and Analytics Strategy, Gartner analysts deliver four strategic assumptions that should shake any enterprise out of its current lull of inaction or stalled investment:
- By 2022, 90% of corporate strategies will explicitly mention information as a critical enterprise asset and analytics as an essential competency.
- By 2023, data literacy will become an explicit and necessary driver of business value, demonstrated by its formal inclusion in over 80% of data and analytics strategies and change management programs.
- By 2022, 30% of CDOs will partner with their CFO to formally value the organization’s information assets for improved information management and benefits.
- By 2023, 60% of organizations with more than 20 data scientists will require a professional code of conduct incorporating ethical use of data and AI.
Need to hone your organization’s data and analytics strategy to align with these assumptions? Read Gartner’s recommendations for how to do it. Download the full research report, Predicts 2019: Data and Analytics Strategy, today.