of 1,500 global C-level executives found that once an analytics strategy is
rolled out at the enterprise level, there is a greater probability of double-digit growth.
study, Data & Advanced Analytics: High Stakes, High Rewards, prepared by Forbes Insights in conjunction
with EY, New York, found that 70% of leading organizations use advanced analytics
to overhaul their businesses. It also found that advanced analytics drives double-digit
growth of more than 15% in revenues and operating margins, as well as improved risk
profiles. In addition, half of the global executives surveyed plan to allocate
at least $10 million over the next two years toward analytics strategies. The
report fielded responses from more than 1,500 global executives from companies with
at least $500 million in annual revenues.
Specifically, the report found that organizations with a well-established
and integrated analytics strategy considered their competitive ability in data and
analytics “market leading.” Of these organizations, 66% achieved revenue growth
greater than 15%, while 63% reported that operating margins increased more than
15% in 2016. In addition, 60% of these companies said they also improved their risk
profiles. Given this success, companies said they were going to spend in excess
of $10 million on data and analytics over the next two years, the report found.
The top users of analytics also showed major gains in revenue
growth, operating margins and reducing their risk profiles. Specifically, 66%
of the leaders in analytics improved their revenue growth more than 15%, while
63% grew their operating margins by more than 15%. And 60% said they reduced
their risk exposures.
In terms of competitive differentiation among the companies using advanced
analytics, the study found that the most proficient were mature companies that
used their data analysis and collection efforts company-wide. One of the
biggest detriments to achieving data success was a lack of cooperation from the
Other results of the study found that 70% of the top performers of
analytics used the data to overhaul strategy and improve their competitiveness.
Of the top performers, 75% used a full array of analytics within a specific framework.
Of these, many used artificial intelligence and other predictive methods for
there are demonstrated benefits to advanced analytics, the greatest stumbling
block to implementing an advanced analytics program was “around the human element,
not the technology,” the study said.
culture and skills were cited as key hurdles throughout the business lifecycle,
creating a wider divergence between organizations that are focusing on the people
aspects – and separating winners from losers,” according to Bruce Rogers, Forbes’
chief insights officer. One reason was that data and analytics did not flow
smoothly around the company, from department to department.
Benefits of Advanced Analytics
on predictive financial analysis can help CFOs rely less on transaction data
and more on using sophisticated analytics to gauge the impact of different strategic directions.
This improves risk management and thus the chances of financial success, according
to the company.
The company also said on its website that “sophisticated predictive
analytics will allow the CFO to generate value from data insights and change outcomes
based on that insight” and that improved analytics “will be the bastion of the successful
CFO and their highly-skilled finance team.”
To become an analytics-driven
CFO, the firm recommends that the CFO team be able to predict various financial
and risk scenarios, and then develop test scenarios to minimize risk or
capitalize on opportunities. They also suggest that “micro-insights” be
encouraged from all levels of the company, since these can deliver the greatest