Senior executives in Asia Pacific increasingly view data and analytics (D&A) as a top priority and crucially important to their growth strategy, according to a recent KPMG survey. The report, entitled A Single View: Putting customers at the heart of the D&A strategy highlights key findings of a survey of more than 210 senior executives in China, Australia, Indonesia, Singapore and the Philippines.
It finds that a vast majority of business decision-makers in Asia Pacific clearly recognize the potential value that D&A can deliver. Almost three-quarters of respondents (74 percent) said that D&A is either very or crucially important to their current growth strategy.
Increased competitive pressures have led organizations to assess how to leverage data in order to drive growth.
Anthony Coops, Head of D&A, KPMG in Australia said: “Asia Pacific businesses are starting to focus their D&A strategies around three main imperatives: The growth agenda, the mitigation of risks and the reduction of costs.”
“For the past five years, the focus has largely been on the risk side of the equation – improving reporting and compliance, for example – but organizations are now starting to recognize the value that D&A can provide to their growth strategy in terms of deeper customer insights and richer experiences,” he adds.
A lack of legacy systems in Asia has provided an advantage in terms of achieving a ‘single view’ of the customer. The region has also benefited from the rapid adoption of mobile technology and growing internet penetration which has enabled organizations to move much closer to their customers and, in doing so, provided broad access to new and valuable customer data.
Interestingly, there are ongoing challenges to D&A adoption in the region. For example, only around a quarter of all respondents were able to confirm that their organizations were executing against a formal strategy for data governance and processes. Respondents were also more likely to say that their D&A strategy was driven by IT rather than by the business.
However, the key drivers motivating organizational D&A strategies seem to reflect the relative maturity of the market. In Australia, where markets are fairly mature and regulation high, respondents suggested their D&A strategies were primarily driven by customer-facing objectives and compliance requirements. Respondents from China meanwhile identified drivers consistent with a market that is rapidly becoming more outward facing: improved business performance and better transparency.
In terms of sector take-up, financial services and insurance reported having the most experience using D&A within their organization. Multinationals likewise were found to have more experience using D&A compared to their local or regional peers.
The landscape is, however, set to change, and larger organizations can no longer rely on their size and scale to dominate their markets. Coops added: “Today, small yet highly-analytical organizations are emerging and quickly stealing away market-share by making better use of their data to drive real and valuable insights. It’s not about size - it’s about how well you know your customer and what they want.”
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Putting customers at the heart of your D&A strategy.
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