Data analytics and the bottom line — are you ready to capitalise?

Data and analytics is transforming how businesses operate and how value is created in every sector.

Evidence suggests that organisations understand that analytics is changing the nature of competitive advantage, but few are mature enough in their use of analytics to reap the rewards.

While the advantages of data and analytics are broadly understood, few companies feel they can capitalise on the benefits it provides, namely the ability to customise products and experiences, to operate with much greater intelligence and precision and to manage risk more effectively.

To be successful, it’s important to view analytics as a strategy and operational issue, not a technology issue. Those that do, with leading data and analytics capability, are beginning to see growth in revenue and operating margin.

Insight rather than gut

We often hear feedback such as ‘we don’t know where to start’, ‘our systems are fragmented and data quality is poor’, or ‘we can’t get the right talent’.

Incorporating analytics design early in the business development process delivers better outcomes by shaping initiatives based on actual insight rather than gut instinct.

With the right level of maturity in data analytics you can take advantage of other technologies like Artificial Intelligence and other forms of prescriptive and predictive modelling.

There has been an explosion of multiple different disruptive technologies and sources of data. It’s estimated that 90% of the world’s data has been created in the last two to three years alone.

These changes are impacting organisations and driving a big shift from traditional operating models.

People play a critical role in implementing the technologies and assuring that they have a beneficial impact. The connection between data analytics and the bottom line can only be made when operating models and business processes bring technology and people together.

A key challenge is embedding the technologies in a way that is led and understood by people who are at the point of decision making.

Blended capabilities

You can’t just throw data people at a problem and expect the right outcome, you also need expertise in the relevant disciplines to drive a business-led solution. Imagine trying to use analytics to predict and model the impact of Brexit on an organisation without having expertise in tax and economics, for example. Another example that comes to mind is a client solution where we leverage capabilities across contract management, procurement, finance, enterprise solutions and data engineering to drive end to end supply chain insights for performance improvement.

One of the differentiating factors that EY have is the huge range of services and capabilities that we can blend with our data analytics capabilities. Our ability to source expertise across all sectors and services (e.g. technology, tax, finance, audit, people & change) on a local and global scale ensures we can leverage the required technical competency and market insight for our client solutions.

We bring our people together to work with our clients to co-create the problem statement and solutions, while also supporting our clients’ capability development effort.

National Analytics Maturity Index

Ireland has become a global hub for large organisations over the last number of years. For example, 16 of the top 20 global software companies and the top 10 pharmaceutical companies are all based in Ireland. While this presents plenty of opportunities, there is also recognition that globalisation, advancing technology, talent shortages, regulatory changes, and geopolitical uncertainty will present some future challenges.

The ability to consistently source data, analyse it, interpret the results and recommend actions will continue to be a key enabler in driving improved business understanding and decision making in a more complex working environment for these global organisations. With the launch of the National Analytics Maturity Index on 6 November, it will be interesting to see where Irish organisations are on this journey.

Why EY?

We employ some of the country’s leading minds in AI, automation and analytics. Our expertise in emerging technologies, combined with our trusted business expertise and global innovation network put us in a unique position to cut through the noise and collaborate with our clients to create solutions that address their most pressing issues.

Our innovation offering in Ireland brings together our technological, strategic and sectoral expertise to deliver best-in-class solutions to our clients.

Find out more about innovation at EY.

The article was first published on ey.com

Disclaimer: The views represented in this article our those of the author and not of EY Ireland.