Smart Data Transformation
Surfing the Big Data WaveIntroduction
Enterprises can benefit significantly from the inherent wealth of internal and external data available in today’s digital era. Intelligent use of the insights derived from the analysis of these data can deliver significant competitive advantages. Those insights can revolutionize the interaction with existing and potential customers, and allow them to design innovative business models.
There is no doubt that enterprises recognize the increasing importance of processing and analyzing large amounts of data and extending their analytics footprint within their organization. Are the companies prepared to address these new data demands? Are they successful in realizing the benefits of effective data analytics? How do companies prioritize their organization’s smart data transformation? Infosys Consulting and the Project Group Business and Information Systems Engineering of Fraunhofer FIT carried out a global study among enterprises in different geographical regions and across different industries and business functions in order to get a better understanding of the current state of smart data transformation. We use this term to describe the systematic process of gathering, aggregating, and carrying out targeted analysis, as well as transforming any amounts of data into business insights. The goal of this study was to gain an understanding of the perceived business benefits, challenges and success factors and to identify current needs to facilitate the effective implementation of smart data transformation.
The core part of the study is a survey which collected data from 60 decision makers across different industries in 17 countries. The survey results were also compared to research done in this area. They provide a rich picture of the current and future importance of smart data transformation, drivers and inhibitors of a successful implementation and the activities that companies carry out to address the challenges lying ahead.
Key findings
1
Currently respondents are realizing moderate business benefits from smart data transformation. But they see a high business benefit potential within the next two years.
2
Most believe that prerequisites for success are not adequately present. The largest gap is around knowledge and skills. Respondents expect major progress over five years.
3
Respondents understand need for Business and IT to join hands to create business value from smart data transformation initiatives.
4
Smart data transformation can create significant business value in the sales & marketing, production & supply chain, and finance areas.
5
Respondents perceive data availability as success-critical and recognize the significant gap compared to the current state. The ability to merge data from different sources as well as data analysis expertise are critical for success, but the survey participants recognize that these factors are not receiving required attention yet.
6
“Data privacy violation” is not considered as one of the top three risks in data-driven transformations. However, the study recommends to attach appropriate attention to data security, protection and privacy in smart data transformation initiatives.
7
“Data privacy violation” is not considered as one of the top three risks in data-driven transformations. However, the study recommends to attach appropriate attention to data security, protection and privacy in smart data transformation initiatives.
8
Companies expect rapid benefits from smart data transformation. Given the significant gap between current state and desired state, companies need to prioritize based on value. In addition, the implementation approach should be different, as traditional implementation approaches can take too long to create value.
About the study
To sharpen our understanding of smart data transformation, we carried out a survey based study supplemented by research. We approached both B2C and B2B organizations in various industries including automotive, manufacturing, banking, chemical and resources, energy and environment, financial services, commerce, consumer goods, and life science. Overall, we collected over 60 responses from different organizations. The majority of the participants are employed in the area of IT and belong to the middle management or higher. The surveyed participants mainly serve in businesses with 1,000 to 50,000 employees. The headquarters of the surveyed organizations were mainly located in the United States of America, the United Kingdom, Brazil, Australia, and Canada, but also in Switzerland, Italy, Germany, the Netherlands, Sweden, and Serbia.
About the authors
Erik van Haaren
Partner and Global Enterprise Insights lead Infosys Consulting. 29 years of consulting experience in Europe, Americas and Asia. Supported more than 40 clients on complex international Information Management solutions.
Mark Danahar
Partner and regional leader for Enterprise Insights with Infosys Consulting. 25 years of global consulting experience advising and delivering strategic solutions to more than 35 clients operating across all industry sectors with specific focus of Retail, Manufacturing, Transport and Logistics.
Timo Schulte
Partner, Global Head of the Business Intelligence community and member of the Global Leadership Team for Enterprise Insights Practice with Infosys Consulting. Delivered complex international Information Management solutions to more than 20 clients.
Prasad Vuyyuru
Partner and Consulting Head for North America Enterprise Insights Practice . 25 + years of experience in Management Consulting and Industry. Helped 20+ clients create Business Value from Data and Insights