These days, data and business analytics are the catalysts allowing many companies to push the envelope.
Download the full report.
A new MITSloan Management Review Research Report, sponsored by SAS, explores analytics as a source of business innovation, as well as how the increased ability to innovate is benefitting a spectrum of industries.
Business analytics-driven innovation is pushing competition into overdrive — and allowing top-performing companies to gain a competitive edge. According to the new report, from 2013 to 2015, surveys showed a steady ebb in the percent of companies reporting a competitive advantage from their use of data and analytics. But times are changing.
For the first time in four years, MIT Sloan Management Review found an increasing ability to strategically innovate with analytics based on interviews with more than 2,600 practitioners and scholars globally.
But to be competitive today, and use analytics to your advantage, companies first have to figure out how to “channel the data deluge,” the report states.
That said, it seems like many are catching on. According to the report, data access continues to spike, and 55 percent of companies surveyed said they were effective at using data to guide future strategy, up from 49 percent last year.
And it seems this increased effectiveness is pushing many forward in the field of analytics. The report calls these “Analytical Innovators” — or those that use data and analytics to innovate and obtain a competitive advantage — and the number out there is growing dramatically. On the other hand, “Analytically challenged” companies fell to 33 percent in 2016, down from 49 percent in 2015.
Obviously, the tides are turning as more companies realize the potential of business analytics to propel them forward. But it remains to be seen, for many, just how they will navigate this data-driven innovation. The new report covers this topic in detail, — or in other words, how are these companies utilizing their headway in business analytics. Some are using data and analytics to innovate existing products and services, while others are creating entirely new products or processes.
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But it’s not all competition in this market. When it comes to business analytics and big data, sharing accelerates innovation. Although this can be difficult to do in heavily regulated industries, for most, “the ability to innovate with data is clearly tied to having effective data-sharing practices.” According to the report, organizations with a high ability to innovate share data both internally and beyond company borders at a much higher level than other organizations.
Data sharing — and data governance — is key to success in analytics. The report describes in detail how successful data governance can liberate opportunity. And these days, you can’t talk about data analytics without bringing up machine learning or smart machines. And as smart machines take on tasks that traditionally have required a human, it the power of analytics is only going to grow further.
Download the full report, “Analytics as a Source of Business Innovation,” courtesy of SAS, to learn more about how big data is producing a surge of benefits across industries.
Thanks for sharing this. Worth sharing with other platforms and friends as well!