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UK business leaders lack confidence in their organisation’s ability to effectively wield data analytics tools, and mistrust the insight used to help drive decision making, according to a new survey from KPMG.
The report, Building Trust in Analytics, polled 2,165 respondents from 10 countries, including 250 respondents from the UK, and found that most UK businesses are already using data and analytics (D&A) tools to analyse existing customers (50%), find new customers (45%) and to develop new products and services (48%).
Yet, executives do not trust that they are managing their D&A processes effectively to generate desired outcomes.
“As analytics increasingly drive the decisions that affect us as individuals, as businesses and as societies, there must be a heightened focus on ensuring the highest level of trust in the data, the analytics and the controls that generate desired outcomes,” said Paul Tombleson, UK head of data & analytics at KPMG.
“Failing to master analytics will not only make it increasingly hard for organisations to compete, but will expose their brands to new and growing risks. Seventy% of UK executives believe that by using data and analytics they expose their organisations to reputational risk.”
The report also found that respondents are not entirely confident with the insights they are deriving from D&A. Only 45% were ‘very confident’ with their insights in the areas of risk and security. Just 40% felt good about the information extracted on customer insight and only 37% were very confident about their insights around business operations.
KPMG said that this lack of confidence may be a trickle-down problem, with nearly half of respondents saying that their C-level executives dis not fully support their organisation’s data and analytics strategy.
The findings suggest that there is a significant opportunity for cloud service providers to make to introduce simplified SaaS analytics solutions.
“Transparency about the use and impact of an organisation’s data and analytics is one way of overcoming mistrust, but it is not always easy,” Tombleson said. “We need to take D&A out of the ‘black box’ to encourage greater understanding about its use and purpose to help organisations trust the new insights it can bring.”