According to the IDC Spending Guide 2019, digital transformation investments account for about 40% of the total technology-related spending. In the last year, enterprises have invested over $1.2 trillion in digital innovations, but have they achieved the desired performance gains? What challenges do companies face while undergoing the digitalization journey and how to deal with them?
Rocky path to digitalization
Modern methodologies and rapid development of data science technologies enabled the wide implementation of digital approaches to value chain management across industries. As digitalization became an essential business transformation for gaining competitive advantage, businesses have built data science labs, launched digital spin-offs and adopted advanced analytics systems on cross-company levels.
However, oftentimes companies struggle to sustainably integrate data and analytics within the organization in a way that would rather profit business, than focus on selected silos. Successful end-to-end integration of enterprise processes requires a complex approach to handle the transition on multiple fronts. That includes reshaping IT architecture and compliance issues related to meeting privacy and data security standards within a constantly changing local and international legal framework. Most importantly, businesses struggle with developing an adequate and efficient strategic vision for the transformation process.
These manifold obstacles demand a comprehensive approach to data and analytics that will unlock the potential of digital investments and generate anticipated efficiencies as well as the value added.
Building an effective D&A strategy
We have experienced that organizations often fall short of necessary data literacy skills to generate greater value out of their digital investments and fail to define an explicit strategic route in this direction. The importance of data and analytics strategy is often neglected; yet when laid out correctly and led by creativity along with critical thinking, such strategy can improve performance across the entire value chain.
A correctly identified D&A strategy also has a potential of unlocking new use cases. The combination of previously unutilized data types from various sources, relevant information and powerful algorithms opens prospects for additional data insights. New conclusions drawn from data might shed light on problems that seemed to be unsolvable in the past. More importantly, this process is continuous – businesses generate new data every single day, and a big part of it can be used to draw new conclusions. Thus, a data and analytics strategy is vital for the empowerment of the steady process efficiency improvement across the whole value chain.
Data insights enable better resources allocation, which not only helps to cut costs, but also facilitates further revenue streams. On a bigger scale, a strategic approach to handling data can open the door into a world of proactive management as an alternative to reactive governance. Besides optimization potential, data insights can bring extended value in the areas of planning, maintenance, spending and even negotiations, where the importance of predictive analytics plays a big role. In addition, newly discovered use cases can result in uncovering innovative ways of customer and supplier engagement.
How can CAMELOT help you define your unique D&A strategy?
Our team of business and IT experts support clients in developing their D&A strategy by holistically examining strategic, tactical and operational dimensions of each business. By combining technology and exclusive industry expertise, we not just keep up with the modern developments but enable value creation and ensure efficient risk management along the digitalisation journey for our customers. We will support you through each step of the enterprise integration to ensure the superior quality of the D&A strategy. Get in touch with us to learn more about leveraging your digital investments.