Half of Aussie organisations fail big data quest

New Fifth Quadrant report into big data analytics across Australian organisations finds three-quarters are using big data analytics but half are finding their efforts unsuccessful

Big data analytics are being increasingly infiltrating Australian businesses but more than half claim their attempts to leverage such information to improve customer experience have failed, a new report claims.

Research consultant firm, Fifth Quadrant’s new Big data or big hype? research found three quarters of Australian organisations surveyed are using big data analytics to examine large volumes of data for a variety of reasons including better decision making and greater profitability. However just one in eight claimed such activities were ‘extremely successful’, while 53 per cent said their attempts were actually unsuccessful.

According to the research, 31 per cent of organisations actively use big data and analytics when forming strategic decisions or across a wide range of corporate activities, and the majority of respondents recognised how much impact big data can have. Despite this, less than three in 10 consider big data a core business initiative and less than a quarter use it to determine a product or project’s success.

The biggest users of big data analytics in the enterprise are customer service, sales and marketing, while the least prolific is the human resources department. Common objectives include forecasting, improving the customer experience, marketing and real-time decision-making. In a comparison of mature versus immature organisations, mature organisations were more commonly using big data in reducing operational overheads, development of new products, fraud prevention and detection, and contact channel optimisation.

Why creativity wins out over data
Consumers want banks to use big data, just don’t access their social media profile
Google Analytics advocate touts plans to own the Universal customer view

Major challenges were also identified by respondents and range from a lack of skills and appropriate technology solutions to poorly integrated IT systems, and insufficient internal resources. The report was based on surveys of 63 Australian organisations.

The Fifth Quadrant findings echo the views presented in a similar report on the big data challenge for marketers conducted by the Economist Intelligence Unit in the US. According to EIU’s research, 37 per cent of marketing executives see interpreting big data as the biggest challenge to crafting an effective marketing strategy. In addition, 45 per cent of respondents claimed to lack sufficient big data analytics capabilities, and just 24 use data analysis to develop actionable insights for their overall marketing strategy.

The Fifth Quadrant study also highlighted a link between the maturity of an organisation's big data analytics practices and business performance outcomes, with a particular focus on customer experience performance, revenue generation, employee engagement and operational efficiency.

Businesses that score highly in maturity are consistently more advanced in using analytics to determine return on investment (ROI) and to more effectively manage resources, the research stated. In terms of who is leading thought leadership regarding big data analytics, 41 per cent of mature organisations said the CEO, compared with 20 per cent of immature organisations.

The research also found less mature organisations usually have line-of-business or business unit manager leading the big data push.

Fifth Quadrant’s head of customer experience research, Chris Kirby, said Australian businesses are in little doubt about the potential value that big data analytics can deliver, especially when it comes to developing a better understanding of customer needs.

“We know big data analytics are being used by organisations to drive a range of positive performance outcomes but this study also shows work still needs to be done to leverage the analytics for greatest advantage,” he commented.

“The greatest success appears to come when organisations adopt an integrated customer analytics strategy that puts quality data in the hands of decision makers and leadership from executive teams is critical.”

Top 5 challenges experienced
  • Lack of skills – 47%
  • Lack of appropriate technology – 36%
  • Poorly integrated IT – 34%
  • Different needs of stakeholders – 34%
  • Lack of internal resources – 31%

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in