C-level Execs: Big Data Means Big Value
First Published Wednesday, 6th June 2012 02:31 pm from TIBCO Software : Spotfire Blogging Team
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Big data and analytics are
top corporate, top-three corporate or top-10 corporate priorities
in their organizations' strategic agendas, according to 65% of
1,469 C-level executives taking part in a recent href="http://www.mitcio.com/files/mckinsey-minding-digital-business.pdf"
target="_blank">survey by McKinsey &
Forty-four percent of the respondents say
that they're generating more value from big data and analytics
than their competitors, while only 28% say the same for social
tools or technologies.
An even larger share of
executives in healthcare and pharma (56%) and
business-to-consumer companies (50%) say the same about big data
Companies are focusing on using
big data and analytics to improve their overall performances in a
number of functional areas including:
- 49% for customer insights, segmentation or
- 39% for budgeting, forecasting or
- 37% for operations, service
delivery or supply chain management
- 33% for
customer service and support
- 30% for
performance management and transparency in internal
- 28% for new product
- 21% for pricing
The executives say their companies should
focus their efforts on using data and analytics to generate these
insights. Still, the executives report several challenges to
taking advantage of the potential payoff from big data and
analytics including organizational structures and shortcomings in
their infrastructures and systems, which can be too inflexible to
take advantage of the large volume of data flowing into their
For the companies that can overcome
these challenges, the returns could be immense, with href="http://searchcio.techtarget.com/news/2240151045/Seize-big-data-and-analytics-or-fall-behind-MIT-panel-says"
target="_blank">companies gaining or losing market
share based on their capacities to exploit big data, according to
Michael Chui, a senior fellow at the McKinsey Global Institute,
the research arm of McKinsey & Co. McKinsey has projected
that the healthcare sector alone could reap as much as $300
billion in value from the effective use of big data, including
$200 billion in reduced spending.
suggests that companies take these steps to overcome the barriers
to using big data and analytics effectively to drive business
- Study possible
organizational hurdles like silos of marketing, product
development and IT functions before launching new analytics
projects. Consider creating flexible team structures and engaging
outside resources for collaboration;
on building and acquiring the skills necessary to carry out an
analytics agenda. Develop homegrown skills wherever possible and
be creative in finding other talent to fill in those
- Seek to foster active participation
from IT leadership for big data and analytics
Read more href="http://spotfireblog.tibco.com/?p=12582">here.
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