BSA, the Software Alliance recently revealed the results of a study that questioned 1,500 senior executives and decision makers in US and EU businesses about how analytics applies to their companies. In that study, 33% of those in the US and 24% in Europe said they believed analytics would generate 10% (or more) of the growth in their business over the past 12 months. This trend of confidence is expected to increase; 58% of the US executives expect to share that belief by 2019.
Of course, that means great things for analytics companies, since there will be plenty of business to go around. But the question is whether your firm can deliver on that 10%. That might be a simple thing to achieve in an SME, but if you're working for a multinational conglomerate with that same double-digit growth thinking, suddenly you could find yourself fighting a losing battle.
That's not something we want to see happen. As it stands, confidence in the technology is high, and companies believe it is important to their business, but if it continues to grow, there could be a crash in the future, with company heads feeling that they had the wool pulled over their eyes. In reality, their expectations of what analytics can achieve may have been simply unreachable in the first place.
Right now, though, things are pretty rosy. As part of the survey, the business movers and shakers were asked the aspects of their firms where they felt analytics was important. In both the US and Europe, around 80% of responders said it can help them serve their customers' needs.
They also see it as something that can drive jobs. Around 60% of respondents said analytics can lead to expansion and new positions opening up at their companies. And 70% said that data analysis can lead to new products and business innovations, which can help them expand into new markets. More data from the study is available in the charts below.
That's a lot to lay at the feet of anyone, let alone a third-party analytics firm that may not yet be entirely familiar with the business they're helping with an analytics strategy. But maybe I'm not giving your company enough credit. As the people on the front lines of the world's analytical industry, do you feel industry executives' expectations are warranted? And, perhaps more importantly, can you fulfill them?