While organizations are all words about having data driven decision making to drive their businesses, but maximum of business leaders seem to lack confidence in the information generated from data analytics. But in the rest of the world, demand for analytics training institute is on the rise with every passing day…
Data analysis is increasingly becoming central to decision-making in companies, especially in departments where people work towards increasing customer growth, improving productivity, and risk management. But although companies push to make their decision making process more data dependent, it seems business leaders are still more accustomed to taking serious business based on gut instincts and experiences. They still seem to have trouble trusting the insights shared from meticulous data analysis processes.
Commissioned by the Data and Analytics Global Team, Forrester Consulting a part of the firm KPMG recently conducted a survey of 2,165 data and analytics decision makers within a range of industries in countries like Brazil, Australia, China, France, Canada, Germany, India, and the US and UK.
There is still widespread distrust in Data Analytics:
The Forrester study discovered that about half the businesses use data analytics to analyze their existing consumers, which is 50 percent while on the other hand only 48 percent of them use the same to seek out new customers. 47 percent use them to create new products and services.
But despite that the study also showcased that executives do exhibit a distinct lack of confidence when it comes to data analytics information and 60 percent of respondents were not very trusting in their Data Analytics departments.
Only a meagre 10 percent of the respondents believed that their organizations excel in managing the quality of their data analytics. 13 percent believed that they are managing to keep up the aspects of privacy and ethical use of their data and analytics while only 16 percent said to have believed they perform well in making sure the accuracy levels of the models they produce.
The global head of D&A, Christian Rast who is also a partner of KPMG stated that “as analytics increasingly push forward the decisions of the companies which also affects us as individual entities and as businesses and in terms of societies, so there must be an increased focus on making sure the highest level of trust resides in data and its analytics and controls that generate the desirable outcomes. Such were the views expressed by him in a recent statement.
He further added by saying, “many organizations are still going on investing in their data and analytics departments, without properly determining the effectiveness and can likely make decisions based on inaccurate models which would eventually perpetuate a vicious cycle of distrust on the insights”.
He believes that failing to muster analytics will only allow the enterprises to be hard to compete but may in-turn expose their brands to newer increased risk factors. A general belief among 70 percent of executives is that by using data analytics they may counter-intuitively expose their companies to reputational risks.
But he did match traditional systems of subjective decision-making driven by gut feeling is only being augmented by the insights obtained from data analytics. This in turn allow the companies to better serve their customers, drive efficacy, and better risk management.
After the conclusion of the survey, the managing director Bill Nowacki of Decision Science, KPMG of US stated recently about the outcome of the survey saying –“The survey exposed however, that the level of executive’s level of confidence in their insights from data analytics is not in the right place, given the fact that these companies plan to increase investment into and expect better outcomes from their data and analytics”.
C-suites need to wear the armour of data driven insights:
KPMG made the following recommendations to organizations for addressing 7 key areas to close the trust holes in analytics:
- Run an assessment on the trust gaps
- Create a sense of purpose by clarifying set goals
- Increase awareness to better the internal engagement
- Develop an intrinsic data and analysis culture
- Open up the ‘black box’ to support better transparency
- Give an all round view of 360 degrees by building ecosystems
- Enhance innovation and analytics research and development to properly incubate new ideas, and maintain a competitive stance.
Thus, it is evident that despite being one of the chart-toppers in the job search portals, data analytics still needs to work towards building trust on the insights offered by them.
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