Our research produced in partnership with IDC, Data as the new water: The importance of investing in data and analytics pipelines identifies those results, allowing business leaders to pinpoint their areas to improve.
For example, the research shows Australian organisations with the highest demonstrable data-to-insights capabilities see an operational efficiency improvement of 23 per cent—and that’s just scratching the surface. This is underpinned by the massive growth in the big data and analytics market, fuelling many organisations’ ambition to become data-driven.
The mistake many businesses make is focusing their efforts on just advanced analytics and machine learning tools, leaving other parts of their data pipelines weaker, which ultimately sees critical business insights seep away through what Qlik calls, data leaks.
To be truly data-driven and optimise success, it’s critical that businesses build strong data pipelines. Our research shows organisations with the highest demonstrable data-to-insights capabilities see a significant impact to the bottom line. Data-to-insights Leaders (companies with the highest demonstrable data-to-insights capabilities) reported higher rates of enhanced operational efficiency (88% vs 76% average), improved revenue (86% vs 75% average) and increased profit (90% vs 76% average).
The data-to-insights assessment tool
Understanding organisational data pipelines has never been so critical to success; it proves to be the only way for organisations to ensure a strong return on analytics solutions, delivering tangible business outcomes. Businesses can assess the strength of their data pipelines and understand where the cracks lie using the IDC data-to-insights assessment tool. The tool not only provides organisations with an assessment score but gives recommendations on how they can improve moving forward.
Australia’s global comparison
On the global stage, Australia isn’t doing bad, but there’s room for improvement—Australian organisations have an average data-to-insights score of 42.4, compared to the global average of 41.6. To put that in perspective, Australia is well ahead of France (34.9) which has the lowest score, yet there’s ground to be made on attaining the highest score which is currently held by Brazil (52.5). From a regional perspective, APAC is also somewhere in the middle with an average of 41.8, behind The Americas (45), yet ahead of EMEA (37.8).
To back up the need for a strong data-to-insights score, our research shows organisations that score highly also report higher levels of increased revenue. In line with the above geographic scores, Brazil reported the highest average improvement in revenue with 21 per cent, compared to just 15 per cent in France—Australia was again somewhere in the middle with an average of 18 per cent improvement.
The data-to-insights assessment tool provides organisations with recommendations on how to improve their data-to-insights capabilities and is useful to determine where businesses are at. With this in mind, business leaders should critically analyse their data pipelines in order to gain a true understanding of how they can improve, taking into account the differing changes and challenges across various organisations, regions and industries.
In the same way leaks in water pipes are discovered once the damage is done, it’s imperative businesses identify and fix the cracks in their data pipelines, before too many insights are lost and improved business outcomes are missed out on. Once these pipelines are fixed, businesses stand to gain improvements in every area of the business including profit, customer satisfaction, customer acquisition and employee productivity.