- Melbourne Business School and consulting firm A.T. Kearney say Australian companies are lagging behind the rest of the world in data analytics.
- Data analytics can boost profits by as much as 60%.
- Oil and gas, industrial and technology companies are the most advanced users of analytics.
Australian companies are risk adverse and reluctant to experiment with data analytics to improve the bottom line, according to analysis by Melbourne Business School and consulting firm A.T. Kearney.
The 50 Australian businesses analysed scored lower across the board when compared to their global counterparts.
The Analytics Impact Index, which looks at how billion-dollar companies are using data analytics, and what impact it has on their profit is based on surveys of more than 400 companies across 34 countries conducted over six months.
In Australia, companies were found lagging both in terms of maturity (how developed their analytics capabilities are) and impact (how much value their analytics operations give to the bottom line) compared to the rest of the world.
The local businesses were found to have a risk-averse culture and a reluctance to experiment with using data in the business, and a lack of recruitment and training of data specialists.
The study found that Australian companies extract 12% less value from analytics compared to the rest of the world.
They are also 14% less mature in their approach.
Chinese companies are leading the world in both maturity and impact.
Here’s how Australia compares:
“Firms around the world are investing heavily in analytics, but there is very little research into what value they are extracting from that investment,” says Professor Ujwal Kayande of Melbourne Business School
“That’s the question we sought to answer with the Analytics Impact Index. There are many studies out there that benchmark firms on their capabilities, but our study is unique in that we assess the impact of those investments on the bottom line.
“Merely investing in technology doesn’t bring the benefit that top performing firms obtain. To have a good chance of obtaining that benefit, the firm requires leadership teams who advocate for analytics use across the organisation and an analytics strategy that is driven by the firm’s business strategy.”
This latest research found that companies could boost profits by as much as 60% if they improve their data strategies and culture.
Oil and gas, industrial and technology companies are currently the most advanced users of analytics, ahead of government, energy and utilities, mining and others.
The report, Analytics Impact Index, is being launched at the Melbourne Business Analytics Conference today.
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