Data is vitally important to a lot of organisations but according to a report from KPMG we’re not 100 per cent certain what to do with it when we’ve got it.
The report, published with Forrester and called “Building Trust in Analytics: Breaking the Cycle of Mistrust in D&A“, suggests that business leaders understand the importance of data and collect it; they just aren’t confident in their ability to analyse it when they’ve done so.
What are we doing with our data?
The survey on which the report is based questioned 2,165 respondents from 10 countries, including 250 respondents from the UK. They overwhelmingly said they were using data collection to analyse the behaviour of their existing clients (50% confirmed this), while 45% were using the information to contact new customers.
The positive news also extended to the use of data to develop new products. However, the report then concluded that the managers involved weren’t sure that the outcomes were worthwhile, nor that they’d know how to measure the efficacy to prove this one way or the other.
“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,” said Paul Tombleson, UK Head of Data & Analytics at KPMG, in a statement.
“Failing to master analytics will not only make it increasingly hard for organisations to compete, but will expose their brands to new and growing risks. Seventy percent of UK executives believe that by using data and analytics they expose their organisations to reputational risk.”
Respondents’ concerns centered around security, customer insights and insights around business insights. Respondents also noted the reputational risks around poor use and management of data – but as the report is informational only, it didn’t offer any remedy to the dilemma.