Share with your friends










Submit

Analytics Magazine

Business execs lack confidence in insights from data and analytics

Most business leaders today believe in the value of using data and analytics (D&A) throughout their organizations, but say they lack confidence in their ability to measure the effectiveness and impact of D&A, and mistrust the analytics used to help drive decision-making, according to a new survey from KPMG International.

For the report, “Building Trust in Analytics,” KPMG commissioned Forrester Consulting to survey 2,165 respondents from 10 countries (Australia, Brazil, China, France, Germany, India, South Africa, United Kingdom and the United States) to identify in which areas businesses are using D&A, and to what extent they lack trust in their D&A models and processes to drive decision-making and desired outcomes. The report shares insights and recommendations on suggested processes, practices and governance for building trust in D&A using KPMG’s four anchors of trust, a framework for assessing quality, effectiveness, integrity and resilience.

data and analytics

Most businesses, the survey shows, use D&A tools to analyze existing customers (50 percent), find new customers (48 percent) and to develop new products and services (47 percent). Yet, executives do not trust that they are managing their D&A processes effectively to generate desired outcomes and lack the necessary measures to assess the efficacy of those models.

“As analytics increasingly drive the decisions that affect us as individuals, as businesses and as societies, there must be a heightened focus on ensuring the highest level of trust in the data, the analytics and the controls that generate desired outcomes,” says Christian Rats, global head of D&A, and a partner with KPMG in Germany. “Organizations that continue to invest in D&A without determining its effectiveness could likely make decisions based on inaccurate models, which would perpetuate a cycle of mistrust in the insights.

“Failing to master analytics will not only make it increasingly hard for organizations to compete, but will expose their brands to new and growing risks,” Rats continues. “Seventy percent of executives believe that by using data and analytics they expose their organizations to reputational risk.”

Less than half of respondents are very confident about the insights they’re deriving from D&A in the areas of risk and security (43 percent), for customer insight (38 percent) and insights around business operations (34 percent).

“There is no doubt that subjective, gut-feel decision-making is being augmented by data-driven insights to allow organizations to better serve customers, drive efficiencies and manage risk,” says Bill Nowacki, managing director, Decision Science, KPMG in the U.S. “The survey, however, indicates executives’ level of confidence in their insights is not where it should be, given these organizations’ plans for increasing investment in and returns on D&A.”

To assess where the trust gaps may be within an organization’s analytics model, respondents rated how well their processes aligned and performed against the capabilities outlined under four anchors of D&A: quality, effectiveness, integrity and resilience.

For more, click here.

 

Related Posts

  • 84
    The CUNY School of Professional Studies is offering a new online master of science degree in data analytics. The program prepares its graduates for high-demand and fast-growing careers as data analysts, data specialists, business intelligence analysts, information analysts and data engineers in such fields as business, operations, marketing, social media,…
    Tags: data, analytics, business
  • 81
    In today’s digital world, we have access to more data than we know what to do with. Businesses have come to gather as much information as they can and implement technologies such as business intelligence (BI) tools to analyze it. But are we really doing the best we can when…
    Tags: data, analytics, percent, organizations, business
  • 81
    Benjamin Franklin offered this sage advice in the 18th century, but he left one key question unanswered: How? How do you successfully drive a business? More specifically, how do you develop the business strategy drivers that incite a business to grow and thrive? The 21st-century solution has proven to be…
    Tags: data, analytics, business
  • 80
    July/August 2018 Why optimization models fail AI: Path to an intelligent enterprise How to truly listen to customers Close the deal: marketing & targeting Bridging the data science gap The amazing analytics journey 2018 Forecasting Software Survey May/June 2018 The direction of smart automation Turbocharging AI and ML projects Real-time…
    Tags: analytics, data
  • 80
    “Drive thy business or it will drive thee.” Benjamin Franklin offered this sage advice in the 18th century, but he left one key question unanswered: How? How do you successfully drive a business? More specifically, how do you develop the business strategy drivers that incite a business to grow and…
    Tags: data, business, analytics


Headlines

Fighting terrorists online: Identifying extremists before they post content

New research has found a way to identify extremists, such as those associated with the terrorist group ISIS, by monitoring their social media accounts, and can identify them even before they post threatening content. The research, “Finding Extremists in Online Social Networks,” which was recently published in the INFORMS journal Operations Research, was conducted by Tauhid Zaman of the MIT, Lt. Col. Christopher E. Marks of the U.S. Army and Jytte Klausen of Brandeis University. Read more →

Syrian conflict yields model for attrition dynamics in multilateral war

Based on their study of the Syrian Civil War that’s been raging since 2011, three researchers created a predictive model for multilateral war called the Lanchester multiduel. Unless there is a player so strong it can guarantee a win regardless of what others do, the likely outcome of multilateral war is a gradual stalemate that culminates in the mutual annihilation of all players, according to the model. Read more →

SAS, Samford University team up to generate sports analytics talent

Sports teams try to squeeze out every last bit of talent to gain a competitive advantage on the field. That’s also true in college athletic departments and professional team offices, where entire departments devoted to analyzing data hunt for sports analytics experts that can give them an edge in a game, in the stands and beyond. To create this talent, analytics company SAS will collaborate with the Samford University Center for Sports Analytics to support teaching, learning and research in all areas where analytics affects sports, including fan engagement, sponsorship, player tracking, sports medicine, sports media and operations. Read more →

UPCOMING ANALYTICS EVENTS

INFORMS-SPONSORED EVENTS

INFORMS Annual Meeting
Nov. 4-7, 2018, Phoenix

Winter Simulation Conference
Dec. 9-12, 2018, Gothenburg, Sweden

OTHER EVENTS

Making Data Science Pay
Oct. 29 -30, 12 p.m.-5 p.m.


Applied AI & Machine Learning | Comprehensive
Starts Oct. 29, 2018 (live online)


The Analytics Clinic
Citizen Data Scientists | Why Not DIY AI?
Nov. 8, 2018, 11 a.m. – 12:30 p.m.


Advancing the Analytics-Driven Organization
Jan. 28–31, 2019, 1 p.m.– 5 p.m. (live online)


CAP® EXAM SCHEDULE

CAP® Exam computer-based testing sites are available in 700 locations worldwide. Take the exam close to home and on your schedule:


 
For more information, go to 
https://www.certifiedanalytics.org.