Retailers Upping Big Data Efforts: Accenture

Retailers are taking advantage of big data like never before, and it's paying dividends, so finds new research from Accenture.

Some 92 percent of executives from companies that are applying big data said they are satisfied with the results, according to a survey, and 89 percent identified big data as either "very important" or "extremely important" to their businesses' digital transformation. Further, 82 percent agreed big data provides a significant source of value.
 
“Businesses are at a transition point­­ where instead of just talking about the potential results that can be achieved from big data, they are realizing actual benefits including increasing revenues, a growing base of loyal customers, and more efficient operations,” said Narendra Mulani, senior managing director, Accenture Analytics. “They’re recognizing that big data is one of the cornerstones of digital transformation.”

Additionally, executives said their companies use big data moderately or extensively to identify new sources of revenue (94 percent), retain and acquire customers (90 percent), and develop new products and services (89 percent).

Big data benefits

In terms of the tangible benefits yielded by big data, participants noted new sources of revenue (56 percent), new product and service development (50 percent), winning and keeping customers (47 percent), and enhancing the customer experience (51 percent).
 
And when asked where they expect big data to have the biggest impact on their organization in the next five years, 63 percent said “customer relationships,” 58 percent said “product development,” and 56 percent said “operations.”

Big data challenges

Survey participants also noted some obstacles to successfully using big data. Of the top challenges, executives noted security (51 percent) followed by budget (47 percent), lack of talent to implement big data (41 percent) as well as to run big data and analytics on an ongoing basis (37 percent), and integration with existing systems (35 percent).

Tips for big data success

Based on the research, Accenture outlined key recommendations for organizations looking to maximize the use of big data and overcome its challenges.

• Explore the entire big data ecosystem and be nimble – Data sources and big data technologies are in a constant state of flux. Companies need to learn to stay alert and be nimble to seize opportunities arising from evolving technologies.
• Start small then grow – Rather than attempting to do everything at once, companies should focus resources around proving value from big data in one business area first via a pilot program or proof of concept.
• Focus on building skills – With talent listed as one of the biggest big data challenges, organizations need to build the big data skills of existing employees through training and development. Fifty-four percent of executives said their companies have already developed internal technical training opportunities for their employees. Most organizations also tap outside expertise; only 5 percent of respondents said their company used only internal resources for their big data implementations.

“Today, even the most basic items like water pipes can generate and provide data," added Mulani. "While the Internet of Things is giving rise to massive sources and quantities of data, new big data technologies are emerging that help uncover crucial business insights from the data. Companies not implementing big data solutions are missing an opportunity to turn their data into an asset that drives business and a competitive advantage."

Accenture's study is based on a survey of chief executives and other senior technology, data and analytics leaders from companies in 19 countries across seven industries.