Microsoft in conjunction with IDC has released a white paper ‘Capturing the $1.6 Trillion Data Dividend.' It began with IDC’s global survey of the benefits of expanding investment into data and analytics. Going beyond previous studies, this survey concentrated on the benefits of investing in data versus not investing. IDC’s more intricate analysis sought to compare more singular investments versus wider data investment models. Interestingly, the research is truly global, with respondents from different geographical areas being equally represented.
The results are surprising and encouraging. Investing in data and analytics pays dividends and interestingly the effect is cumulative; as more employees became part of the data and analytics strategy, revenue grew and costs decreased.
Some of the areas where investment in data and analytics added the most value were surprising. Areas such as human capital management topped the list.
We’re always looking for ways to make things data-driven; within current areas of activity such as advertising and innovative applications such as recruiting. In working with clients we’ve seen a trend that may help explain why increasing your investment in data can pay big dividends.
When companies first invest, we find they concentrate on the collection of data, followed by data storage. The next crucial step is in investing in skill sets in analysis and insights, that’s when our clients start to see the dividends. Additional investments are then made to bring more people and more operational areas into the data-driven model, often with synergistic results.
Making the case for investing sufficiently in data and analytics can be challenging. It’s a classic case of chicken and egg. Microsoft and IDC have done all of us in the digital analytics space a huge favour by publishing this white paper. It validates what our knowledge and our experience.
Investing in data and analytics returns big dividends by increasing innovation, productivity and revenue while reducing costs. However, the white paper ‘Capturing the $1.6 Trillion Data Dividend’ will help more people understand the benefits in investing in data!