You have probably already heard that “data is the next oil” and leading organizations like Apple, Facebook, Amazon and many other big market players started to collect the data years ago and use it to predict the trends, stimulate sales through personalized marketing.
COVID-19 pandemic increased the competition in the digital world and today businesses have to personalize customers’ experience in order to win their loyalty. The worldwide lockdown accelerated the growth of data, so the next question is : How do we capitalize it?
According to the report made by Sisense, 50% of companies are using data more than before and analytics helps to navigate during uncertain times. However, 47% of companies still haven’t built a business use case for quantified analytics. 65% of companies reported that they are increasing budget or maintaining spend on data analytics.
WHAT IS ANALYTICS IMPACT INDEX?
The Analytics Impact Index measures the impact analytics has on an organization’s journey and profit. It provides with deep and accurate insights about where organizations should focus on, what is the optimal data strategy, considering investment vs profit.
AIM is calculated based on the following metrics:
– geographical location;
– company size;
– company profitability for the previous year;
– data maturity level;
Based on Analytics maturity level, Companies can be categorized into:
- Laggards – using basic analytics. They usually lack the analytics strategy.
- Followers – analytics are used by employees and/or Senior management, but not used by TOP management. Typically, analytics are used to identify business problems and manage costs.
- Explorers – analytics are used to improve the performance of defined key metrics and predicting outcomes. They have some analytics strategy, but yet no data-driven decision-making culture.
- Leaders – have a clear data and analytics strategy, define clear metrics and use 360 degrees real-time and predictive analytics to make data-driven decisions.
According to report by Kearney, the financial impact of analytics on Laggards shows that they could increase their overall profit by an average of 81% if they were to increase their maturity to the level of Leaders.
The same report shows, that the potential overall profit increase for Followers has increased to 55% compared with 46% in 2020, 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 report made by Sisence, Retail, Media, Government, Logistics, Marketings, Professional Services, Healthcare and tech use crisis in order to invest and rethink their business model and or resource planning.
While large enterprises struggle to remain agile using BI and analytics solutions and data sources, many SMB’s use a single, centralized BI solution.
We see that companies ranging from 10 – 200 employees reported the largest usage of analytics.
Companies with 51 – 200 employees show use of analytics across every department while 68% of SMB’s use analytics only in Operations, 56% in Finance, 50% in Sales and 45% in Product.
The biggest increase of data analytics usage is shown in Marketing, Finance, and Customer Support — the departments impacted by the COVID-19 the most.