A new KPMG study reveals that most companies in Switzerland, too, use big data analyses for their business activities. Only very few of them, though, are in a position to tap the full potential offered by data & analytics (D&A). Future use will focus both on marketing and opening up new growth segments.
With digitalization on the rise, the targeted processing of big data as well as the added value this generates will become increasingly vital for enterprises’ future success. Despite the fact that big data is opening up new areas of application at an ever-greater pace, these still seem largely unutilized. The question of how to deal with big data is also posing some enormous challenges for Swiss enterprises. These are some of the insights provided by the international, multi-industry study entitled “Clarity on Data & Analytics” for which KPMG surveyed a total of 830 company representatives in over 15 countries.
Nearly all of the companies that participated in the survey indicated that they make some systematic use of big data. 97% try to minimize their risks by analyzing and interpreting large volumes of data whereby two thirds of the respondents were actually able to reduce their business risks. 92% of the companies pursue marketing-related goals or intend to do so using data analyses and more than 80% indicated that they use D&A to gain a better understanding of their customers and how they behave.
For many enterprises, big data analysis is mainly a tool that helps them make decisions and minimize risks. 86% of the companies indicated that D&A allows them to make decisions more swiftly whereby four out of five respondents felt that these decisions had been correct in retrospect. Two thirds were able to reduce their business risks by analyzing the big data they had available to them. According to 47% of respondents, increased productivity is the biggest driver of D&A in businesses. 37% of the companies seek to boost sales and revenue while 16% analyze big data to increase cost efficiency.
Getting a glimpse into the future to identify and tap new business potential seems to play a minor role. Far less than half of the survey’s respondents (41%) made changes to their business models or services in response to the results of a big data analysis. Just under one third of the enterprises addressed customers’ needs through individualized marketing activities despite the evaluation of large databases that were available. Merely 16% of the survey’s respondents use D&A to predict trends in their areas of business and just 14% have the necessary know-how or required capacities to tap the full potential of big data to promote their company’s success.
|Operational level||Current benefit||Potential future benefit|
|Faster decision making
|Improved dialog with customers||81%||13%|
|More accurate decision making||80%||18%|
|Identification of new revenue streams||24%||73%|
|Prediction of future market trends||16%||80%|
|Strategic level||Current benefit||Potential future benefit|
|Greater employee satisfaction||77%||13%|
|Enterprise-wide actionable insights||72%||23%|
|Reduced business risks||67%||30%|
84% of the enterprises feel that the most actionable area lies in optimizing their evaluation methods while two thirds of the respondents want to extend their use of D&A to additional areas of business. Around half of the companies aspire to improve their expertise in the use of big data and 28% indicated their intent to invest in young talent that knows how to put big data to optimal use.
|Actionable areas from a company perspective
|Improve data analysis
|Increase adoption across the business
|Improve data capture
|Build understanding of how to use D&A
|Hire or invest in young talent to optimize D&A capabilities
Companies aspiring to leverage D&A to boost their success need to invest in the right talents and resources; in order to successfully analyze big data, you first need to have the right skills and analytics techniques in place.
Embedding the targeted big data analytics as an integral component of the corporate strategy is equally important. After all, the right D&A strategy can play a pivotal role in promoting growth, reducing business risks and improving business performance.
KPMG has formulated eight concrete, recommended courses of action for Swiss companies based on the results of the study:
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