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How to validate the business benefits of data analytics

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Author: Jake, Marketing  
  
Last updated: August 3, 2017

The difference between deploying an ‘on-trend’ technological approach to achieving quantified business benefits can sometimes be quite a stretch. And data analytics isn’t too different.

We often see companies that chase 'the new', however that they forget to answer the most important question:

‘How will this help me achieve my objectives?’

Now, without stating the obvious, objectives differ considerably. As such, we have ensured that this guide provides a comprehensive outlook on the business benefits of data analytics.

We aim to answer really important questions like:

‘Which industry has best capitalised on digital transformation through analytics?’

‘Which data analytics statistics can "convince my boss"?

The following 5 infographics will answer those questions through 3 sections:

  • Purpose
  • Key takeaway
  • Notable stat

We hope that these will make it easy for you to withdraw the information you need.

5 infographics that prove the benefits of data analytics

It is important to note that these infographics are in no order, however we’d be grateful if you noted your favourite as a comment below.

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1. The 2016 Enterprise Analytics Study

Purpose:

Firstly, we have this enterprise-focused graphic from DNB.

Their research surveyed over 100 business leaders to understand the state of analytics maturity across today’s leading organizations.[/text_output][text_output]In addition, they aimed to uncover some of the common challenges teams are facing in their quest to use data and analytics to deliver a competitive advantage.

We’re big fans of this belief that to actually understand the real challenges surrounding business leaders, you need to speak to them

Key takeaway:

The topic of data analytics covers various different areas. Benefits include:

  • Strategy
  • Managing financial risk
  • Compliance etc.

This part of the graphic compares the different level of maturity and shows the benefits of data analytics in the form of a leaderboard.

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In addition, they provide a great data analytics definition -

‘Data driven intelligence to drive business decisions and develop strategies for penetrating markets and growing profits’

Notable stat:

While many organisations will admit they have a long journey forward from a data perspective ‘73% of companies consider themselves to be analytically driven’.

2. Building trust in analytics

Purpose:

Secondly we have the importance of trusting analytics.

Therefore, we’ll come to see that the making of decisions or targeting consumers based on inaccurate predictions will quickly erode, if not extinguish, consumer trust and shake the confidence of those executives who rely on these predictions to make informed decisions.

Key takeaway:

While the 'lack of trust' in data analytics may seem quite vague and open ended, this graphic greatly demonstrates the different confidence in different sectors.

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Notable stat:

‘Only 51% of respondents believe their C-suite executives fully support their organization’s D&A strategy’.

3. Big Data: From Buzz Word to Business Benefits

Purpose:

Following on from the introduction, this transition from mere buzzwords is really important to understand in context to objectives.

While 40% of companies worldwide use big data analytics their results can vary. According to a study by the Business Application Research Center (BARC), companies who quantify their gains from data analytics reported an 8% increase in revenues and a 10% reduction in costs.

As a result, more than vague terms like ‘productivity’ and ‘intelligence’ - ROI and measurable benefits of data analytics can be seen.

Key takeaway:

One of the great sections by ValueWalk is where they compare the identified main benefits of big data analytics.

They break them into the following categories:

In contrast to No. 1, this doesn’t discuss the level of maturity, merely the benefits.

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Notable stat:

In 61% of companies where big data is an important initiative, the main driver is senior management.

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4. Data analytics is key to successful transformation

Purpose:

Fourth of this list makes the point that the true advantages of data analytics aren’t being fully utilised – even by companies who are currently using this technology.

However, the markers for companies who are willing to invest resources in these are still demonstrating huge levels of transformative growth.

Most importantly, once they start to understand the business values, they can more quickly disseminate it across different departments.

Key takeaway:

Data analytics favours the innovators.

As a side note, while dashboards have become quite associated with the topic of big data analytics, in reality, it is more of an accessory than a pull.

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Notable stat:

By 2020 global corporate data will exceed 35,000 Exabytes -

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5. Cloud Analytics Hitting Its Stride

Purpose:

‘With big data analytics in the cloud, organisations gain the agility and flexibility they need to get insights faster as business executives are empowered to take control of their own analytic destiny.’

Key takeaway:

The cloud is naturally geared towards data analytics, and the move to the cloud is becoming more than evident, especially across industries.

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Notable stat:

52% of cloud analytics adopters said "Yes" when asked if they are funding their projects from outside their formal IT budgets.

Summary: the benefits of data analytics come in all sizes

In conclusion, there are many different positives and approaches to data analytics. They each depend on your journey, and the objectives you need to meet.

These 5 graphics covered the following topics:

  1. The 2016 Enterprise Analytics Study
  2. Building trust in analytics
  3. Big Data: From Buzz Word to Business Benefits
  4. Data analytics is key to successful transformation
  5. Cloud Analytics Hitting Its Stride

Let us know your favourite benefit of data analytics below. Should you wish to learn more, download this guide on discovering the capabilities of excel ⇓

Topics: Data Analytics, Data Science, Big Data, Business

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