Leading global organizations' advanced analytics can lead to 15% growth in revenue
TORONTO, March 9, 2017 /CNW/ - Only 17% of Canadian companies have a data and advanced analytics strategy that is integrated across their business and used to inform core business decisions – and that could be hampering revenue growth, EY says in a new report.
A recent study conducted by EY and Forbes Insights, Advanced Analytics: High Stakes, High Rewards—Best Practices for Succeeding with Advanced Analytics Projects, showed leading 2.0 organizations – those that have taken the next step in data and advanced analytics – see growth in operating margins and revenues of 15% or more and improvements in their risk profile.
"Majority of Canadian companies have adopted some sort of data and advanced analytics strategy into functions of their business," says Alex Mohelsky, EY's Canadian Data and Analytics Leader. "Now, companies need to connect the dots and integrate those strategies enterprise-wide. This will help them leverage insights in core decision-making processes early on."
Initially used as a process-improvement tool, data and analytics are now being used to inform business initiatives. Companies are using insights pulled from data and advanced analytics to identify fraud, develop new products, gain customer behaviour patterns and provide tailored promotions.
However, there are two roadblocks preventing Canadian companies from maturing their analytics strategy:
- Application: Canadian businesses aren't able to apply analytics at the earliest stages of the business-development process.
- Measurement: Canadian businesses struggle to measure the results of their analytics programs.
"We'll see Artificial Intelligence and automation being used more frequently. But let's not forget that human judgment is one of the most important elements in strategic and operations decisions," says Mohelsky. "Companies should continue investing in the right people and resources to embed advanced analytics more deeply into core business decision-making."
EY recently announced its alliance with SAS to help Canadian organizations realize these benefits. SAS' advanced analytics platform and innovative lifecycle management approach, combined with EY's consulting and market experience, will give EY's clients better insights into their data.
Read EY and Forbes Insights, Advanced analytics, report for more insights.
About this research
This report is based on a survey of 1,518 executives conducted by Forbes Insights in August and September of 2016. Thirty-four percent of the executives are based in the Asia-Pacific Rim region, 34% in the Americas, and 32% in EMEA. Respondents are C-level executives, of whom 25% are chief executives or presidents of their organizations. Industries represented include technology, energy, pharmaceuticals, healthcare, financial services, manufacturing, consumer products and government. Executives' companies had at least $500 million in annual revenues, and 21% had revenues of more than $50 billion.
To differentiate best-in-class organizations from less advanced peers, the report slices and dices the survey's findings to reveal important distinctions across industry sectors, geographical regions and functional departments. It also provides a four-stage maturity ranking, showing trends among respondents that are Leading, Challenging, Developing and Lagging organizations.
About Forbes Insights
Forbes Insights is the strategic research and thought leadership practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 75 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights conducts research on a host of topics of interest to C-level executives, senior marketing professionals, small business owners and those who aspire to positions of leadership, as well as providing deep insights into issues and trends surrounding wealth creation and wealth management.
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
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SOURCE EY (Ernst & Young)