11 January, 2017
Executives Report Measurable Results From Big Data, But Challenges Remain
After a half decade of investment, and periods of trial and error, a near majority of business executives now report successful results from their Big Data investments. According to NewVantage Partners 5th annual Big Data Executive Survey, 48.4% of corporate executives that were surveyed indicated that their firm has achieved “measurable results” from their Big Data investments. Further, a remarkable 80.7% of executives now characterize their Big Data efforts to have been successful. This marks a sharp contrast with previous years, where investment levels had grown, but results had yet to be realized for most corporations.
NewVantage Partners survey, which was released on January 9th, reflects the viewpoints of corporate business leaders (CEO/President), data leaders (Chief Data Officer), technology leaders (Chief Information Officer), Analytics leaders (Chief Analytics Officer), and marketing leaders (Chief Marketing Officer). 50 major corporations were represented, including American Express, Bank of America, Bloomberg, Capital One, Charles Schwab, Disney, Ford Motors, General Electric (GE), MetLife, United Parcel Service (UPS), and USAA, among other leaders in financial services, the life sciences, media, and selected industry groups.
The survey highlights the challenges that major corporations still face as they seek to become more data-driven organizations:
• 85.5% of executives report that their organization has taken steps to create a data-driven culture, but only 37.7% report that these efforts have been successful to date. Among the obstacles;
• A majority of executives – 52.5% — report that organizational impediments, including lack or organizational alignment, business and/or technology resistance, and lack of middle management adoption are factors limiting the success of Big Data efforts;
• While 60.7% of executives report that their firm has developed an enterprise Big Data strategy, 18% report that their firm lacks “a coherent data strategy”.
Organizations are moving forward however in spite of these challenges, with 95% of executives reporting that their organization has undertaken a Big Data initiative within the past five years. Investment is significant as well. 37.2% of executives report that their organization has invested more than $100MM on Big Data initiatives during the past 5 years, with a small but significant group of firms – 6.5% — committing over $1B to Big Data investments during this period.