85% of enterprise decision makers feel they have a timeframe of just two years to make significant inroads on their digital transformation before suffering financially and/or falling behind their competitors, according to the Are Businesses Really Digitally Transforming or Living in Digital Denial report.
By 2021, Forrester predicts that insights-driven businesses will claim success to the tune of $1.8 trillion annually as they systematically harness insights across their organization and implement them to create a customer-obsessed competitive advantage (click to tweet).
As organizations move to more quickly turn their data into business value, what’s holding them back from moving farther even faster? According to the 2018 Global State of Enterprise Analytics Report, these are eight of the most common challenges:
- Data privacy and security concerns (49%)
- Limited democratization of data within the organization (33%)
- Lack of training on how to make the most of an increasing influx of data (29%)
- The current solution is not user-friendly for many employees (28%)
- Our organization lacks the proper technology (26%)
- Our organization lacks an analytics strategy (24%)
- There is no centralized tool or solution for capturing and analyzing data (21%)
- Analytics is not a key focus for company executives (20%)
An Analytics Champion Emerges
To lead the charge (and change) in becoming insights-driven businesses, organizations are putting Chief Data Officers in place. These executives stand at the crossroads of IT and business, defining and delivering a data and analytics strategy and incorporating it into the company culture—no small task.
According to Gartner, 90% of enterprise organizations will have a Chief Data Officer by the end of 2019 (click to tweet). But, Gartner also predicts that by the end of 2019, only half of those CDOs will be successful as they focus on value creation and revenue generation, while also tackling tough issues such as cost savings and efficiency, risk mitigation, poor data literacy across the organization, and—most common among most executive roles—a resistance to change.
Accelerating Transformational Change
Organizations moving farther and faster with their analytics initiatives are already seeing business value from their data. According to the 2018 Global State of Enterprise Analytics Report, which surveyed 500 analytics and business intelligence decision makers from around the world, respondents are realizing these seven key benefits:
- Improved efficiency and productivity: 63%
- Faster, more effective decision making: 57%
- Better financial performance: 51%
- Competitive advantage: 48%
- Improved customer experience: 48%
- Improved customer acquisition and retention: 46%
- Identification and creation of new revenue streams: 43%
A Race without a Finish Line
According to Innosight research, the average company tenure on the S&P 500 Index was 37 years in 1977. By 2027, it is forecast to be just twelve years. At the current churn rate, about half of the companies now on the S&P 500 will be replaced over the next ten years.
Digital transformation has no finish line, but make no mistake: there is a race going on to turn data into insights and deliver on new or evolved customer experiences and business models.
Is your organization leading, catching up, or falling behind?
To benchmark your organization, download the 2018 Global State of Enterprise Analytics Report, which details the analytics use, benefits, challenges, hiring trends, and investment priorities from organizations around the world.