Digital Transformation and the New Analytics Economy
The digital era has brought massive change to the world of business. Chief among those changes is data. And as the volume of data has grown – exponentially – analytics has become essential to operations. But that’s not the limit of what it can accomplish. Recent advances in analytics technology have introduced new possibilities for innovation and opportunity.
We’re now in an analytics economy. If businesses want to compete (and even survive), they have to use data, not only to improve decision-making but to drive transformation. What does that mean? Understanding customers more deeply to create better experiences and products. Finding faster, leaner ways to get things done. Uncovering new revenue streams, including monetizing the data itself. And making smarter calculations around risk, so they can turn on a dime when circumstances change.
According to IDC, information has become an important Digital Transformation investment area, totaling $240 billion in 2018. And the results are significant. In May 2017, research by The McKinsey Global Institute came to this conclusion:
“Companies with advanced digital capabilities across assets, operations, and workforces grow revenue and market shares faster than peers. They improve profit margins three times more rapidly than average.”
– McKinsey Global Institute