You have probably already heard that “data is the next oil” and leading organizations like Apple, Facebook, Amazon and many other massive corporations started collecting data years ago and have been using data analytics to predict trends and boost sales through targeted marketing campaigns.
COVID-19 pandemic has increased competition in the digital world and businesses now have to personalize a customers’ experience to win their loyalty. The worldwide lockdown accelerated the growth of data, so the next question is, how do we capitalize it?
According to a report by Sisense, 50% of companies are using data more than ever before and analytics help them to navigate their industries during uncertain times. However, 47% of companies still haven’t built a business use case for data analytics. Fortunately, 65% of companies reported that they are either maintaining or increasing their data analytics budget.
WHAT IS THE ANALYTICS IMPACT INDEX?
The Analytics Impact Index (AII) measures the impact that data analytics has on an organization’s journey and profit. It provides them with deep and accurate insights about which areas to most focus on, their optimal data strategy, and considering investment vs profit.
AII is calculated based on the following metrics:
– Geographical location
– Company size
– Company profitability for the previous year
– Data maturity level
Based on their analytics maturity level, companies can be categorized into:
- Laggards: using basic analytics. They usually lack an analytics strategy.
- Followers: analytics are used by employees and/or senior management, but not by top-level management. Typically, analytics are used to identify business issues and manage costs.
- Explorers: analytics are used to improve the performance of defined key metrics and for predicting outcomes. They have some analytical strategy but no data-driven decision-making culture as of yet.
- Leaders: have a clear data and analytics strategy, have defined clear metrics and use 360 degree, real-time, predictive analytics to make data-driven decisions.
According to a report by Kearney, the financial impact of analytics on Laggards shows that they could increase their overall profitability by 81% on average if they were to increase their analytics maturity to the level of Leaders.
The same report shows that the potential profit increase for Followers has increased from 46% in 2020 to 55%, while the profit potential for Explorers has doubled from 12% to 25%.
You can request a free assessment of your Analytics Impact Index through our survey and get a specific report for your organization that shows a maturity score and practical steps of analytics strategy.
According to a report conducted by Sisence, organizations in the Retail, Media, Government, Logistics, Marketing, Professional Services, Healthcare and Tech sectors use a crisis to invest and rethink their business model and or resource planning. Additionally, the biggest increase in data analytics usage is shown in Marketing, Finance, and Customer Support — the departments most impacted by the COVID-19 the most.
While large enterprises struggle to remain agile using business intelligence (BI), analytics solutions, and data sources, many SMBs use a single, centralized BI solution.
We see that companies ranging from 10 – 200 employees reported the largest usage of analytics. Meanwhile, companies with 51 – 200 employees show the use of analytics across every department while 68% of SMBs use analytics only in Operations, 56% in Finance, 50% in Sales and 45% in Product.
You can request a free assessment of your company’s Analytics Impact Index through our survey and get a specific report for your organization that shows a maturity score and practical steps for creating an analytics strategy.
Alternatively, if you an analytics solution in mind for your business – or have already started – and could benefit with some expert guidance and advice, contact us and we’ll help you achieve the best outcome, quickly and cost-effectively.