A key differentiator between digital experts and digital beginners lies in their quick adoption of key foundational technologies, including cloud, integration, and analytics—a fact reinforced by the 2018 TIBCO CXO Innovation Survey. As we’ve examined with the adoption of the Internet of Things (IoT), it’s clear that companies who have seen success with new technologies have built strong technical foundations, focusing on educating and empowering their people and creating efficient processes that adapt to their needs.
Cultivating these foundational technologies within your company can open the floodgates for innovation. Business Intelligence (BI) and analytics, in particular, are essential areas for organizations that want to use their own data to measure progress, find more efficient ways to work, and better serve their customers.
You need to adopt an analytics and BI strategy if you want to innovate effectively. The Innovation Survey’s more than 600 respondents highlighted key technical, financial, and business drivers that demonstrate this and reveal how BI and analytics are fundamental to overall business success.
Read on to see how these drivers could help you launch successful BI and analytics initiatives.
According to the survey, the top technical driver for businesses adopting BI and analytics is to improve data visualization capabilities and to make better data-driven decisions with 37.77% of the responses. The third top technical driver, identified by 32.77 percent of respondents, is to better meet the needs of a growing analytic user community. Taken together, these demonstrate the value of enabling analytics capabilities that can be used by everyone and can enhance the decision making of executives and internal subject matter experts as well as customers.
A key benefit of these efforts can be seen in the second main driver, reducing infrastructure costs, which 33.09 percent of respondents said was a key priority.
The financial drivers identified by survey respondents further reinforce the importance of analytics as a core business practice. 48.38 percent identify increased customer satisfaction as their primary financial driver and 44.40 percent target improving the quality of their products and processes. Improving customer satisfaction, product quality, and internal processes are established means to improve revenue, both on the top and bottom lines. BI and analytics provide the metrics that help organizations consistently track their success and identify opportunities to improve, which also explains why 43.68 percent of respondents said that cutting costs and optimizing the business was a key financial driver.
The top two business drivers for adopting strong BI and analytics practices, each identified by 37.55 percent of respondents, were staying competitive by identifying new opportunities and increasing revenue. A good analytics process is a cornerstone to a successful innovation strategy that will help identify new opportunities and bring in new revenue. After all, how can you tell whether what you’re doing works if you can’t measure the results?
A data-driven approach to decision making, product design, and market analysis, combined with efficient processes and smart, empowered people can turn your organization into a healthy, thriving innovation engine. Using the data you collect and analyze to continuously measure success can point the way to the next opportunity. 31.05 percent of respondents indicated improving business efficiency as the third main business driver and underscores the need to take a data-driven approach to find and implement such efficiencies.
BI and analytics are not one-off technologies to satisfy a just handful of requirements. It’s foundational to the success of any digital transformation strategy and should be implemented across the company and shared with key stakeholders, both within and outside the organization, to ensure everyone understands where the business is on its transformation journey. Innovation without proper regular analysis is no innovation at all. It’s just a wheel spinning with no purpose. Digital experts have realized this and continue to lead the way. Digital beginners should follow their example and spend the time now to cultivate data collection and analysis skills within their organization before adopting hotter, flashier technologies.