DATA & ADVANCED ANALYTICS

HIGH STAKES,
HIGH REWARDS

OPERATING
MODEL

STRATEGY
COMPETITIVE
DIFFERENTIATION INITIATIVES

INITIATIVE
DESIGN

MARKET
A N A LY T I C S L I N K A G E S ANALYTICS
PRODUCTION

INTERVENTION
OUTCOMES
DESIGN

MEASUREMENT
& LEARNING ANALYTICS
CONSUMPTION
TABLE OF
CONTENTS

3 EXECUTIVE SUMMARY

7 COMPETITIVE DIFFERENTIATION

19 OPERATING MODEL

24 INITIATIVE DESIGN

31 INTERVENTION DESIGN

35 MEASUREMENT AND LEARNING

39 THE CASE FOR CHANGE

40 INDUSTRY SCORE CARDS

53 GEOGRAPHIC SCORE CARDS

2 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 EXECUTIVE SUMMARY

The drive to know more about customers, markets, and internal operations
is not new. Large enterprises have been investing in data and advanced
analytics for years to improve understanding and decision-making.

What’s different today? The stakes are higher than ever. In an era of
widespread business disruption, leaders aren’t using advanced analytics to
simply improve existing activities—the strategic use of data is transforming
traditional process driven organizations to help them become more
competitive, increase revenues and profits, reduce risk, and guide them
to new initiatives. What about less mature organizations that aren’t using
advanced analytics to deliver exceptional products and services? Traditional
process-driven organizations are now being disrupted by “2.0 organizations”
of the information age. These organizations use data as a strategic asset and
build entire business models around leveraging insights to deliver exceptional
products and services. This is often in contrast from traditional organizations
that are process-based, and the data generated is frequently seen as a
secondary byproduct.

Global executives that understand the full value of advanced analytics are
making it a core element in their business strategies and using them as a
competitive differentiator. That’s why they’re embedding analytics into all
parts of their enterprises, beyond traditional pockets like marketing and
sales departments. “There’s a growing recognition that analytics can be
applied in all parts of the business, if not to completely reinvent the business”
says Chris Mazzei, chief analytics officer and emerging technology leader
at EY. “And while many companies started analytics initiatives to improve
current processes, they’re now expanding to rethink what they sell, how
they sell it, who they sell it to, and how to differentiate themselves from their
competition.”

HIGH STAKES, HIGH REWARDS: EXECUTIVE SUMMARY | 3

 OPERATING MODEL
Building the underlying models that
govern analytics activities, such as
organizational structures that allow
INITIATIVE DESIGN
collaboration, chain of command, etc.
Defining the specific activities and
STRATEGY projects that will achieve desired
INITIATIVES business outcomes

MARKET
ANALYTICS
ANALYTICS LINKAGES PRODUCTION
COMPETITIVE DIFFERENTIATION
Defining the role that data and
analytics plays in the company
OUTCOMES
strategy and business model.

ANALYTICS
CONSUMPTION

MEASUREMENT AND LEARNING INTERVENTION DESIGN

Quantifying and learning from Translating all the upfront goal-setting,
data-driven business outcomes. modeling, and methodology into
action— making analytics insights an
integral part of business operations.

As a result, senior leaders are opening their outcomes of their data-driven strategies. We
minds—and their checkbooks—to capitalize liken them to synapses in the brain, where
on opportunities created by the explosion communications pass from one cell to another.
of data and sophisticated analytics at a
The difference is that in the brain, these
time of rapidly decreasing compute and
communications pass naturally from cell to
storage costs. But a new survey by EY and
cell, while in large enterprises, the smooth
Forbes Insights shows that this is one area
flow of information isn’t automatic. The EY–
where simply boosting investments doesn’t
Forbes Insights research shows that the way
necessarily lead to better outcomes. In
global enterprises handle these junctures
fact, many large enterprises throughout the
translates into business success and leads
world still struggle to achieve the promise of
to clear stratifications in analytics maturity.
today’s analytics capabilities.
For example, top performers with advanced
The survey of more than 1,500 global analytics strategies—among other maturity
executives found that fundamental problems differentiators—are considerably more likely
arise at the crucial points between the to enjoy growth in revenues and operating
steps organizations take as they move from margins of 15% or more, along with significant
identifying new business opportunities, improvement in their risk profile.
acting on insights and then measuring the

4 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

A closer look at the survey results shows sophisticated users of advanced analytics
experience additional benefits:

70 %
of top performers have used advanced analytics to overhaul business
strategies and update how they compete in their respective markets

75 %
operate a full range of enterprise, departmental, and line-of-business
analytics groups that operate within a well-aligned framework

They can capitalize on artificial intelligence and other forms of predictive and
prescriptive modeling for insights about possible future outcomes and ways to
address them

Because advanced users of analytics incorporate them early in the business

development processes, they can deliver better outcomes by shaping initiatives
based on actual insight rather than gut instinct

Leaders can accurately measure business value to demonstrate the impact—and

validity—of their investments in advanced analytics

What does it take to join the Leader’s Circle? previous report on data and analytics.

• First, leaders must understand the opportu- • Third, apply best practices specific to each

nities as well as the risks associated with each synapse to avoid common stumbling blocks.

of these five synapses and how each threat is To differentiate best-in-class data companies

impacting their own organizations. This requires from less advanced peers, the report slices and

a thorough assessment of the processes used dices the survey’s findings to reveal important

when formulating data-driven strategies, an hon- distinctions across industry sectors, geographi-

est review of key analytics capability maturity, cal regions, and functional departments. It also
and a plan for closing any gaps. creates four-stage maturity rankings showing
trends among respondents that are Leaders,
• Next, pay particular attention to overarch-
Challengers, Developing companies, and Lag-
ing themes that emerged in the survey results.
ging organizations. These rankings highlight
For example, a pain point common to each is a
success factors in each of the five synapse cate-
lack of collaboration among business units and
gories and pinpoint what it takes to become an
analytics specialists when defining desired out-
analytics leader. In addition, we present insights
comes, designing operational models, and mea-
from in-depth interviews with global executives
suring the results. Without this cross-depart-
who explain in detail their strategies for people,
ment cooperation, the goal of turning analytical
processes, and technology that add up to ana-
insights into action can break down at any stage
lytics success.
of the process. In short, don’t forget the human
element, which was the overriding theme of our

HIGH STAKES, HIGH REWARDS: EXECUTIVE SUMMARY | 5

 THE DATA & ADVANCED ANALYTICS
METHODOLOGY
MATURITY RANKINGS

The results of a global survey conducted by EY and Forbes Insights This report is based on a survey of

found clear differences among enterprises at various levels of 1518 executives conducted by Forbes
analytics maturity. Insights in August and September of
2016. 34% of the executives are based
LEADING: 7% in the Asia-Pacific Rim region, 34%
Their analytics strategy is well-established and central to the overall
in the Americas, and 32% in EMEA.
business strategy. Their current state of competitive ability in data
Respondents are C-level executives,
and analytics is market-leading.
of whom 25% are chief executives or

CHALLENGING: 45% presidents of their organizations. Indus-

Their analytics strategy is established and starting to be viewed as a tries represented include telecommu-
key strategy. nications, technology, manufacturing,
financial, pharmaceuticals, healthcare,
DEVELOPING: 38%
media & entertainment, energy, govern-
Analytics strategy is established for specific lines of business, but it’s
ment, automotive, consumer products
not fully aligned across the enterprise.
and retail. Organizations surveyed had

LAGGING: 10% at least $500 million in annual reve-

Lagging organizations lack an analytics vision or strategy at this nues, and 21% had revenues of more
time. They rate themselves well behind competitors in some areas. than $50 billion.

WHY MATURITY MATTERS

Share of respondents achieving
each outcome REVENUE OPERATING RISK
GROWTH MARGIN PROFILE
15% OR MORE 15%+ OR MORE IMPROVEMENT
70% 66%
63%
LEADING 60%
60

CHALLENGING 50

DEVELOPING 40
31% 29% 30%
30
LAGGING 25% 24%
20 18%
13% 13%
8%
10

6 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

COMPETITIVE KEY FINDINGS

DIFFERENTIATION • Enterprise-wide strategies are key

to analytics effectiveness

• Less mature enterprises see only

STRATEGY pockets of analytics proficiency

• Lack of collaboration and alignment

within the management committee
blocks success

none of the Lagging organizations say that advanced

analytics is fully established, enterprise-wide business
MARKET strategy which makes this a critical distinction for the
top performers.
Establishing an enterprise-wide view of analytics
requires senior leaders to understand the transformative
potential of data in their organizations. “In the past,
there’s been a distinction between the use of analytics
to improve the current business processes versus the
The drive—and indeed the need—to capitalize on use of analytics to change the way the company is
advanced analytics is being fueled by fundamental competing,” Mazzei explains. “Many companies started
changes resulting from new digital technology. Among using analytics by focusing on processes, but as they
the most impactful to the global enterprises surveyed saw success in this area, they realized it can help them
are the rise of the Internet of Things, increased concerns in strategic ways, such as determining what to sell, how
and regulation surrounding data privacy and security, to sell it, who to sell to, and how to stay differentiated
and the shift of IT resources to the cloud. Approximately from their competition. This gets to the fundamental
a quarter of the respondents described the importance role that advanced analytics can play in re-imagining the
of these areas as critical and causing a fundamental business. The ultimate role of advanced analytics is to
reevaluation of business strategies. help shape the fundamental business model for the next
two years, five years, and beyond.”
When it comes to advanced analytics success, higher
performing enterprises have something in common— If advanced analytics strategies are still evolving, how
analytics are an enterprise-wide strategy, not an do most enterprises turn the rich reserves of data
ad-hoc endeavor that varies from department to available today into a competitive differentiator? The
department. This area is showing steady progress. In answer reveals a patchwork of narrow approaches. Most
a similar EY-Forbes Insights survey a year ago, only of those outside the top tier acknowledge a limited-
16% of respondents had achieved an analytics strategy to-modest or insignificant impact. By contrast, 70%
that encompassed their entire enterprise, compared of the Leaders are already seeing a seismic shift in
to 23% of this year's respondents. An enterprise-wide their organizations in the form of overhauled business
advanced analytics strategy is something only the strategies and how they compete in their respective
Leading enterprises have been able to achieve. Only markets.
27% of Challengers, 10% of Developing companies, and

HIGH STAKES, HIGH REWARDS: COMPETITIVE DIFFERENTIATION | 7

The year-over-year differences are illuminating. For they fulfill customer needs. In addition, a goal for a fifth
example, a year ago, only 16% of the respondents said of the respondents in 2015 was increasing the quality
analytics was central to the overall business strategy. and targeting of interactions with partners and vendors.
Similarly, the size of the group with no strategy shrank In 2016, nearly a quarter of the executives said advanced
by half since 2015. analytics helped them make wide-scale changes to
What’s more, advanced analytics is having an impact partner networks.
in many key businesses, with some activities – notably However, less mature companies still have work to
fulfilling customer needs and informing financial do. These organizations are likely to see pockets of
decisions – seeing particular progress. advanced analytics proficiency, as they target usage in
In 2015, 30% said a top goal for advanced analytics specific business areas. For example, 68% of Challengers
was to increase sales or revenues. The latest survey already rely on advanced analytics to better target
shows a strong foundation is in place to accomplish customers for specific products and services or are
this – a quarter of the executives now say advanced nearly there. This falls short of where the Leaders are
analytics has completely changed their ability to target (90%), but creates a clear advantage over Developing
customers, while 26% see a complete change in how companies and Lagging organizations.

WHAT BEST DESCRIBES THE ROLE OF DATA AND ADVANCED ANALYTICS IN THE
BUSINESS STRATEGY IN YOUR ORGANIZATION?

Analytics strategy is well

established and central to the
overall business strategy

LEADING 100%

Analytics strategy is established

and starting to be viewed
27% as a key strategic priority

CHALLENGING 63%

10% Analytics strategy is established for

10% 4% the enterprise, but not fully aligned
across the business
49%
DEVELOPING
35%

3%
Some analytics strategy exists
for functions
or lines of business
85%

LAGGING
15% No analytics vision or
strategy exists
at this time

8 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 HOW IS DATA AND ANALYTICS IMPACTING
Has already
YOUR BUSINESS STRATEGY IN THE FOLLOWING AREAS? In the process of completely
changing changed our
Changing some significant business strategy
Limited to aspects of the elements of our and how we
No impact modest impact business strategy strategy compete

CUSTOMER
1% 9% 25% 38% 26%
NEED
REVENUE
MODEL 3% 8% 26% 39% 25%

HOW WE SELL
AND DELIVER 2% 10% 25% 38% 25%

COST
STRUCTURE 2% 9% 27% 39% 23%

HUMAN
CAPITAL 3% 10% 26% 38% 23%

FINANCING 4% 11% 25% 35% 26%

WHAT IS
SOLD 4% 10% 27% 35% 23%

PARTNER
NETWORK 4% 11% 27% 35% 23%

TARGET
CUSTOMERS 5% 11% 26% 33% 25%

IMPACT ACROSS MATURITY LEVELS FOR EACH BUSINESS AREA

Combined percentage "In the process" or "Has already completely changed" business strategy

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1223 93 638 410 82

Customer Need 64% 93% 70% 54% 42%

Revenue Model 63% 91% 68% 53% 49%

How We Sell and Deliver 63% 94% 70% 49% 42%

Cost Structure 62% 91% 64% 53% 52%

Human Capital 61% 94% 65% 52% 49%

HIGH STAKES, HIGH REWARDS: COMPETITIVE DIFFERENTIATION | 9

 IMPACT ACROSS MATURITY LEVELS FOR EACH BUSINESS AREA (CONT.)
Combined percentage "In the process" or "Has already completely changed" business strategy

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1223 93 638 410 82

Financing 61% 87% 64% 52% 46%

What Is Sold 58% 90% 62% 50% 34%

Partner Network 58% 94% 63% 47% 39%

Target Customers 58% 90% 68% 42% 31%

Similarly, advanced analytics give Challengers a the clear either – as they make progress in earlier-stage
competitive advantage over less mature peers in challenges, they must turn their attention to organizational,
understanding changing tastes in products and services. cultural, and process challenges.

Differences like these help explain why only about a In particular, lack of collaboration and alignment within the
third of all respondents consider themselves ahead of management committee blocks success in the competitive
the competition. Developing companies and Lagging differentiation synapse and elsewhere. It rises near the top
organizations exhibit even healthier doses of realism—they in each of the remaining four synapses, as well. Senior-
acknowledge being behind—sometimes well behind— level commitment and support for data-driven cultures is
competitors. another gap that surfaces in competitive differentiation and
in the operating model synapses. Clearly, when devising
To understand why some business areas capitalize on
strategies, stakeholders must give special attention
advanced analytics more than others, focus on people-
to overcoming the lingering effects of intuition-based
related pain points. As companies analyze their pain
cultures where decision-makers trust “gut feel” more than
points and how to address them, it’s important to note
what data reveals. “Treating data as a strategic asset is as
that the problems aren’t static. They’re likely to change at
much a cultural change as putting the right capabilities in
each stage of the maturity cycle. For example, Lagging
place,” says Brenda Niehaus, group CIO of Standard Bank,
organizations and Developing companies frequently
headquartered in Johannesburg, South Africa. “You have
struggle with issues relating to budgets, lack of full
to drive this from the highest levels of the organization and
commitment by senior executives, and inadequate
develop clear use cases so people can see, touch, and feel
leadership. Once achieving Challenger status, companies
the value.”
may have at least partially addressed those early problems,
but others, such as a lack of collaboration among different To better utilize advanced analytics for strategic gain,
stakeholders, become prominent. The Leaders aren’t in enterprises must foster a cultural shift designed to

10 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

promote collaboration and data analytics skills. At some Looking beyond cultural considerations, enterprise leaders
companies, chief analytics officers and other senior data also must understand the financial commitments needed
experts are leading this shift. “We’ve worked throughout to successfully infuse business initiatives with advanced
the entire company—from the corporate headquarters analytics. Over the next two years, more than half of
to the individual hotels—to determine everyone’s survey respondents plan to invest at least $10 million in
information needs and identify what gaps exist,” says data and analytics resources. The Leaders will double-
Carlos Lopez, vice president of business intelligence, down in this area, with 85% expecting to open their
management control, and investor relationships at Melia checkbooks to this degree. This comes on the heels of
Hotels International, a brand based in Spain that operates similar spending levels in the previous two years.
facilities throughout the world. “This did more than just
These investments can do more than help companies
help us understand what actions to take going forward. It
understand how to better fulfill customer needs and other
sent the message that we all have the same goals and that
business concerns noted previously. They also sow seeds
analytics resources are here to make the lives of business
for new revenue streams. Although interviews with global
people better.”
executives show that data monetization strategies are in
Collaboration between advanced analytics specialists and early stages of development, this is clearly an area that
business people also overcomes the practice of relying executives want to cultivate for the future. In particular,
too much on gut-feel decision making. “People want data survey respondents are exploring ways to sell the insights
really badly until they’ve got it—then they argue with from advanced analytics, in addition to collaborating with
it,” says Janice Carey, head of information management partners for a market advantage and to enhance customer
at Monash University in Melbourne, Australia. “So we’re experience.
putting a lot of emphasis on organizational change.”
Further insights emerge when comparing responses to
One outgrowth of those efforts is Carey’s push to have data monetization strategies and results cited earlier about
members of her team work closely with internal clients to the impact of advanced analytics on business activities.
solve their business problems. This is a departure from the For example, executives who said that advanced analytics
data staff’s traditional role, which was often akin to being has completely changed their business strategy and how
order takers asked to generate a new report in response they compete are actively pursuing monetization from
to a business peer’s request. “It’s absolutely vital for us to a variety of angles. Fifty-three percent are looking to
understand what someone’s overarching goal is,” Carey collaborate with partners to leverage market position and
explains. “That way, we can relieve people of the upfront enhance customer experience, while 52% and 50% of that
work of managing data so they can perform the high- group, respectively, see potential for selling the insights
value analyses that will ultimately produce business value.” from advanced analytics to existing and new customers. By
contrast, the numbers of those that have seen only some
Advanced analytics leaders point to one other vital
or a modest impact from advanced analytics are lower in
element for promoting collaboration. “We have
these areas by double-digit percentages in some cases.
sponsorship from top-level and functional executives,”
says Krishnakumar Ramasubramanian, head of business Clearly, leaders in advanced analytics want to build on their
performance management and analytics at Max Life successes by finding new ways to exploit their competitive
Insurance, the largest non-bank promoted private life position A clear-eyed view of competitive challenges, along
insurance carrier based in India. “This has helped us create with a willingness to do what’s culturally and financially
the necessary ecosystem in terms of bringing in expertise, necessary, are essential for improving advanced analytics
people skills, and technical infrastructure, and creating a strategies and taking full advantage of analytics-related
culture that relies on data-based decision making, thereby resources.
making our journey successful and rewarding.”

HIGH STAKES, HIGH REWARDS: COMPETITIVE DIFFERENTIATION | 11

 OVER THE NEXT TWO YEARS, MORE THAN HALF OF SURVEY RESPONDENTS PLAN TO INVEST AT
LEAST $10 MILLION IN DATA AND ADVANCED ANALYTICS RESOURCES.

HOW WOULD YOU DESCRIBE YOUR CURRENT STATE

OF COMPETITIVE ABILITY IN DATA AND ANALYTICS?

1% 10% LEADING

MARKET LEADING 9%

AHEAD IN MOST AREAS

GENERALLY AT PARITY 16%
WITH COMPETITORS
BEHIND IN SOME AREAS ALL 29%

WELL BEHIND

DON’T KNOW, UNSURE

35%

100% LEADING 7% LEADING 2% LEADING 0% LEADING

1%

9% 10% 6%
18%
21%

LEADING 29% CHALLENGING 12% DEVELOPING LAGGING

73%
58%

12 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

WHAT ARE YOUR TOP PAIN POINTS WHEN IT COMES TO DEVELOPING OR
REFINING THE BUSINESS STRATEGY TO ACCOUNT FOR DATA AND ANALYTICS?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Organization, culture and decision-making

49% 45% 49% 51% 45%
based more on intuition than data

Lack of collaboration/alignment among

44% 36% 50% 42% 33%
members of the management committee

Regulatory constraints prevent us from acting 44% 50% 44% 43% 42%

Lack of budget and other forms of

39% 35% 37% 41% 42%
organization commitment

Lack of senior leadership support 34% 28% 30% 35% 48%

No appetite for a major transformation that

would result from data and analytics-driven 33% 27% 31% 34% 40%
strategies

We have not had the right leader to serve

31% 25% 30% 32% 36%
as a catalyst for change

Data and analytics is not changing our

9% 18% 10% 7% 5%
business strategy

RECOMMENDATIONS
1 Ensure advanced analytics initiatives are closely experimentation to drive real innovation. The continued
aligned with the overall business strategy and how the adoption of big data technologies, cloud services and
organization creates competitive differentiation. As machine leaning / AI have provided an opportunity to
more data is unified and created across the enterprise, experiment at scale, cost effectively.
leadership has the opportunity to ask better questions
3 Focus on creating alignment and closer collaboration
and leverage an asset that their competitors do not
among stakeholders from all relevant departments –
possess – insights about their operations and customers.
define what ‘good’ will need to look like and remove
2 Consider what new products, services, and capabilities organizational and policy barriers to effectively execute.
can be created by considering data as an asset in its
own right. The value of data as an enterprise asset,
and the insights derived from advanced analytics,
comes as data is de-siloed and the enterprise embraces

HIGH STAKES, HIGH REWARDS: COMPETITIVE DIFFERENTIATION | 13

WHAT DATA MONETIZATION STRATEGIES IS YOUR
ORGANIZATION USING OR EXPLORING?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

We’re exploring ways to sell data to new

43% 57% 40% 45% 43%
customers
We’re exploring ways to combine our data
and analytics with partners as a mechanism to 43% 58% 51% 36% 26%
leverage market position
We’re exploring ways to sell analytics insights to
42% 52% 42% 41% 37%
new customers
We’re exploring ways to sell analytics insights to
41% 45% 41% 40% 41%
existing customers
We’re exploring ways to sell data to existing
31% 59% 27% 29% 33%
customers
We’re exploring ways to combine our data and
analytics with partners to develop brand new 29% 47% 38% 19% 11%
products and services
We are not exploring data monetization
6% 3% 4% 7% 11%
strategies

Has already
MONETIZATION STRATEGIES VS. ANALYTICS IMPACT In the process of completely
changing changed our
Changing some significant business strategy
Limited to aspects of the elements of our and how we
We’re exploring: No impact modest impact business strategy strategy compete

Ways to sell data to existing

customers 47% 29% 21% 28% 52%

Ways to sell analytics insights

to existing customers 25% 36% 39% 43% 47%

Ways to sell data to new

customers 37% 42% 41% 44% 50%

Ways to sell analytics insights

to new customers 20% 40% 41% 44% 46%

Ways to combine data and

analytics with partners to 14% 33% 37% 52% 53%
leverage market position
Ways to combine data and
analytics with partners to 16% 15% 21% 36% 44%
develop new products
We are not exploring data
monetization strategies 27% 10% 6% 2% 4%

14 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 THE DIFFERENCE A YEAR MAKES

REGIONAL DATA AND ADVANCED ANALYTICS MATURITY RANKING

2 3
EUROPE,
NORTH
AMERICA
MIDDLE EAST,
AFRICA
1 ASIA
PACIFIC

In order to measure advanced analytics maturity, On the surface, the regional rankings appear to show only
we created a composite metric of questions highly modest progress in analytics maturity in the past year,
correlated to competitive differentiation, operating but this is misleading. Delve deeper into the year-over-
model, initiative design, intervention design, and year findings, and important trends emerge. For example,
measurement learning and applied this to our survey while regional ranks didn’t change in 2016, companies
results. Regional progress in maturity remained steady in countries within those regions demonstrated forward
from 2015 to 2016, with enterprises in Asia and the progress in analytics proficiency. For example, U.S.
Pacific maintaining their top ranking. Companies in the enterprises jumped from #5 to #2 in the year-over-year
Americas and those in Europe, the Middle East, and results, while German firms similarly advanced two levels,
Africa also maintained their second and third positions, moving from #7 to #5.
respectively.

ADDITIONAL DATA POINTS UNCOVER 2016 2015

COUNTRY TREND
ADVANCED ANALYTICS POWERHOUSES RANK RANK
New information captured in this year’s more CHINA 1 1 *
comprehensive survey offers additional insights for UNITED STATES 2 5 +3
assessing the advanced-analytics capabilities of more UK 3 3 -
countries than in 2015. Broad improvements are apparent FRANCE 4 2 -2
throughout the world, but Asia and Latin America showed GERMANY 5 7 +2
particular strength. For example, focusing on those CANADA 6 4 -2
markets with more complete survey data this year shows JAPAN 7 6 -1
India and Brazil now rank among the world’s advanced
Note: Table is based on countries included in both 2015 and 2016 studies.
analytics leaders.

YEAR-OVER-YEAR RESULTS SHOW CHINA MAINTAINED ITS TOP RANKING FOR MATURITY,
WHILE THE U.S. AND GERMANY REGISTERED THE MOST PROGRESS.

HIGH STAKES, HIGH REWARDS: THE DIFFERENCE A YEAR MAKES | 15

 AMONG NEW COUNTRIES SURVEYED IN THE EXPANDED EY-FORBES INSIGHTS SURVEY FOR
2016, INDIA AND BRAZIL ESTABLISHED THEMSELVES AMONG GLOBAL LEADERS.

EMERGING POCKETS OF ANALYTICS EXCELLENCE

ICELAND
NORWAY SWEDEN

CANADA U.K. DENMARK

GERMANY
FRANCE
ITALY
U.S. SPAIN JAPAN
CHINA
MEXICO SOUTH KOREA

AUSTRALIA
MATURITY SCORE INDIA
BRAZIL SINGAPORE
NEW
NEW
ABOVE AVERAGE

AVERAGE SOUTH AFRICA

BELOW AVERAGE

INDUSTRY SECTORS GAIN EXPERTISE 2016 2015

SECTOR
Regional trends aren’t the only news in this year’s RANK RANK
survey. The results also show that select industries TELECOMMUNICATIONS 1 * *
and business departments are better understanding TECHNOLOGY 2 3 +1
the importance of using advanced analytics more MANUFACTURING 3 6 +3
effectively—and they’re finding ways to better capitalize FINANCIAL SERVICES 4 7 +3
on their rich data reserves. PHARMACEUTICALS** 5 9 +4
The manufacturing and financial services sectors were HEALTHCARE 6 8 +2
the standouts in 2016. They tied for demonstrating the MEDIA & ENTERTAINMENT 7 * *
most progress in the year-over-year rankings, each ENERGY - OIL & GAS 8 10 +2
moving up three positions in the latest survey. Other GOVERNMENT 9 11 +2
sectors posting solid progress included government, CONSUMER & RETAIL 10 4 -6
healthcare, and technology. AUTOMOTIVE 11 * *
*2015 data sample size was too small for valid
ranking or year-over-year comparisons
** Small sample size for 2016

AGAINST A BACKDROP OF BROAD GAINS IN MATURITY ACROSS MANY INDUSTRIES,

MANUFACTURING AND FINANCIAL SERVICES SHOWED THE MOST PROGRESS SINCE 2015.

16 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

PROFICIENCY IMPROVEMENT, BY DEPARTMENT OR FUNCTION
Percentage of firms rating the data analytics proficiency of each department a 4 or 5
on a scale where 1 is “not proficient” and 5 is “highly proficient.”
+16%
+24% +20%
CUSTOMER INFORMATION
+20% +24% R&D/
SERVICE TECHNOLOGY +23%
OPERATIONS PRODUCT
SALES MARKETING DEVELOPMENT
70%
2016 69% 68%
69% 67% 66% 66%

60

54%
50
49%
2015
45% 46%
43% 43%
40

HIGHEST SCORING INDUSTRIES AMONG TOP DEPARTMENTS

84% 83% 80%

80% 78% 76%

TELECOM TELECOM TELECOM TELECOM TELECOM TELECOM

78% 76% 75%

75% 74% 73%

TECHNOLOGY INSURANCE INSURANCE CONSUMER INDUSTRIAL OIL & GAS

PRODUCTS

75% 75%
72% 72% 72% 71%

BANKING TECHNOLOGY INDUSTRIAL INDUSTRIAL TECHNOLOGY BANKING

72% 72% 71%

HEALTHCARE GOVERNMENT INSURANCE

INDUSTRY AVERAGES SHOWED DOUBLE-DIGIT GAINS IN 2016 VERSUS THE PREVIOUS YEAR’S
SURVEY, EVEN IN THE BUSINESS AREAS THAT STILL LAG BEHIND.

HIGH STAKES, HIGH REWARDS: THE DIFFERENCE A YEAR MAKES | 17

What’s the common thread among these diverse showing especially impressive results.
industries that’re making advanced analytics a business
imperative? While every industry is being disrupted by While all departments contribute to the overall
new digital technology, market insurgents, and shifting success of enterprises, organizations are seeing unique
customer demands, these five (manufacturing, financial incentives to effectively apply advanced analytics in
services, government, healthcare and technology) the four units where proficiency reigned in 2016. For
are facing particularly intense competitive pressures. HR, there’s the intense global competition for highly
The sophisticated use of advanced analytics gives skilled talent. Similarly, a high level of customer outreach
organizations in these areas a way to differentiate is the key to brand loyalty in an age when customers
themselves from competitors and understand how to have the resources to find, evaluate, and transact with
evolve their products and services. companies anywhere in the world. Sales and marketing,
two areas that have been long-time consumers of data,
Two years of survey results also reveal where are under more pressure than ever to find new revenue
advanced analytics is having the biggest impact on opportunities and use targeted campaigns to connect
business functions. For example, in both the 2016 with customers.
and 2015 surveys, we asked the global executives to
rate the advanced analytics proficiency of individual The year-over-year results show important progress is
departments, and then tracked where the most being made by region, sector, and business function. But
progress is being made. It’s notable that proficiency as the rest of the report shows, global enterprises still
is on the rise across all business functions—in fact, face significant challenges as they work to use advanced
each area has registered double-digit gains since analytics more effectively.
2015. Nevertheless, a handful of business functions are

OTHER DEPARTMENTS SHOW SOLID PROFIENCY GAINS

+19%
CORPORATE +15% +18% +12%
MANAGEMENT RISK +26%
FINANCE +14%
/BOARDS COMPLIANCE HUMAN SUPPLY CHAIN 70%
ACCOUNTING LOGISTICS STRATEGY
RESOURCES
INNOVATION
2016 65%
66% 64% 63%
63%
61% 60

50
2015 50% 50%
48% 47%
46%
40

37%

SINCE 2015, THE BIGGEST GAINS IN A DATA AND ADVANCED ANALYTICS PROFICIENCY
OCCURRED IN FOUR BUSINESS UNITS, WITH HUMAN RESOURCES SHOWING THE BIGGEST JUMP

(Note: For more details about rankings and performance trends by industry and region, see Appendices.)

18 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

OPERATING KEY FINDINGS

MODEL • The leaders manage advanced

analytics groups within a well-aligned
framework across the enterprise,
departments and lines of businesses
STRATEGY INITIATIVES

• The ‘right’ operate model is highly

organization and context specific –
there is often an evolution that occurs
as advanced analytics capabilities
mature

• Cross-functional alignment and

collaboration is typically the most
difficult challenge to overcome when
designing and implementing an
effective operating model
As enterprises mature in their use of advanced
analytics for business initiatives, they must intensify
their focus on the underlying operating models manufacturing, and banking and asset management.
that govern these activities. The chances of success Others see themselves at the top of the scale in areas
increase for enterprises that develop models that that matter most to their markets.
support collaboration, so stakeholders from anywhere
Organization and governance have a direct bearing on
in the enterprise can work together for business
the maturity of advanced analytics strategies. A decisive
success. Without that holistic approach, companies
75% of Leaders say they rely on a full range of enterprise,
will continue to see pockets of analytics proficiency
departmental, and line-of-business advanced analytics
in some departments, while others fail to fully benefit.
groups that operate within a well-aligned framework.
For example, a solid segment of respondents say
That’s a stark contrast with the 17% of Challenging
they are highly proficient in areas such as information
companies overall that claim this level of maturity. The
technology, customer service, operations, and sales. But
difference is even greater for Developing and Lagging
high levels of proficiency are lagging in strategy and
firms, which claim only 10% and 1% of maturity in this
innovation, an area where better informed decisions
area. For now, these less mature organizations may aspire
could significantly benefit large organizations.
to a multifaceted organizational and governance model,
A closer look at individual industry sectors shows but most only claim progress within certain departments
further proficiency differences. The upper range of and business lines, rather than having a fully formed
the proficiency scale across the business functions enterprise framework. Other significant data points are
examined in the survey includes a consistent handful the nearly two-thirds of Developing companies and 56%
of industries: telecommunications, technology, of Lagging organizations that say only some informal

HIGH STAKES, HIGH REWARDS: OPERATING MODEL | 19

advanced analytics groups exist in discrete areas of is inward-looking—teams across the remaining maturity
their enterprises. segments spend most of their time selecting and
managing the right technologies rather than focusing
The close alignment of advanced analytics teams is a
on more-strategic activities.
necessary foundation for effective operating models.
Sixty-seven percent of the Leaders use their enterprise While important, promoting an enterprise-wide, data-
advanced analytics teams primarily to set the overall, driven culture doesn’t mean that marketing, operations,
organization-wide strategy for advanced analytics. or any other business unit must accept cookie-cutter
This is important for many reasons, in part because it solutions. After all, each area has unique data needs
demonstrates a commitment by senior executives to and desired business outcomes that advanced analytics
having data-driven approaches that underlie business must address. To balance an enterprise strategy and
initiatives going forward. This is another cornerstone departmental needs, leading organizations disperse
for the cultural changes that surfaced earlier as a advanced analytics expertise everywhere it’s needed
critical competitive differentiator. Related to this is the and let line of business managers use resources to
ability of organizations to implement enterprise-wide address their most pressing issues and opportunities.
data governance standards, something that’s being By centralizing data within an enterprise-wide team,
accomplished by nearly half (46%) of the leaders. This companies can ensure each department is basing
has ongoing ripple effects because it fosters greater analyses and decision-making on trusted information
trust in the accuracy and security of corporate data. that’s timely, screened for duplication and inconsistency,
and as accurate as possible. Mindful of all these
How do less mature enterprises compare in these
requirements, some organizations are employing a hub-
important areas? Even if they’ve launched enterprise-
and-spoke model that combines the best characteristics
level advanced analytics teams in some form, their focus
of centralized and federated strategies.

WHICH BEST DESCRIBES YOUR ORGANIZATION'S CURRENT STATUS REGARDING

THE ORGANIZATION AND GOVERNANCE OF DATA AND ANALYTICS?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

No organization exists for data analytics 3% 0% 1% 4% 13%

Some informal data analytics groups exist in

22% 4% 9% 31% 56%
departments or lines of business

Data and analytics groups are well-established

35% 6% 35% 42% 23%
in departments or lines of business

Enterprise-level data and analytics groups are

24% 15% 37% 13% 8%
emerging

Enterprise, department and lines-of-business

data and analytics groups exist and are well- 17% 75% 17% 10% 1%
aligned

20 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

IF YOUR ORGANIZATION USES SOME FORM OF ENTERPRISE-LEVEL DATA AND ANALYTICS TEAM (IN ADDITION TO
CAPABILITIES THAT EXIST WITHIN BUSINESS UNITS), WHAT IS THE PRIMARY PURPOSE OF THIS TEAM?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Technology
Selecting, implementing, managing common 57% 65% 58% 56% 53%
technology platform and tools

Data
Implementing data governance/standards 44% 46% 42% 43% 51%
used across the organization
Advanced Analytics
working on use cases that require skills not 40% 36% 46% 38% 23%
resident in the businesses

Strategy
Setting the overall firm-level data and 39% 67% 39% 35% 36%
analytics strategy and plan

Development
building models and other assets that can be 38% 39% 40% 38% 28%
leveraged across the business

Portfolio Management
selecting projects, making investment 21% 16% 23% 20% 15%
allocation decisions

Measurement
putting in place standards for value 10% 8% 10% 12% 5%
measurement,

We do not have a central analytics team 4% 2% 2% 5% 10%

But centralizing all data and analytics within a single

One company that’s doing this is QBE Insurance center of excellence couldn’t fully address important
Group, a global property and casualty insurance carrier differences in local regulations, sales, underwriting, and
headquartered in Australia with businesses throughout claims processes. “Because of our global reach, we must
North America, Europe, Latin America, and the Asia- strike a balance between being centralized or entirely
Pacific region. The company is entering the second year federated,” Papush says.
of implementing a global data and analytics framework
In addition, she encourages regional staff to share any
that leverages centralized capabilities that support local
new analytics solutions and tools they find to be useful
business initiatives. “We believe there are many synergies
with peers in other geographical areas. “There is a great
and efficiencies that result from having a centralized
potential for adapting and reusing some solutions, which
shared-service function and from aligning data and
means we don’t have to do everything from scratch in
analytics to a broader global strategy,” says Gina Papush,
every region,” Papush adds.
chief data and analytics officer for QBE.

HIGH STAKES, HIGH REWARDS: OPERATING MODEL | 21

 disruption to existing operating models and the need for
Looking to the future, enterprises across all four levels change-management skills. It’s unlikely other companies
would be wise to improve cross-functional alignment and view the areas as less significant because they’ve already
collaboration when creating or enhancing their analytics overcome these hurdles. More likely, their lower maturity
operating models. But the research shows this remains means they’re still addressing more fundamental issues
a significant pain point for the Leaders and Lagging and haven’t fully realized the ramifications of change.
organizations alike. Also noteworthy is the importance
The findings also show that certain challenges rise to
of change-management, something that surfaces as a
prominence at each stage of the maturity cycle. For
significant pain point for the Leaders, who acknowledge

WHAT ARE YOUR TOP PAIN POINTS WHEN CREATING A DATA

AND ANALYTICS OPERATING MODEL?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Lack of alignment/collaboration across

28% 25% 28% 27% 33%
functions

Lack of change management acumen 27% 34% 29% 25% 18%

Lack of training across functions 27% 33% 27% 28% 21%

Lack of data and analytics proficiency within

26% 16% 26% 26% 28%
many functions

Lack of data and analytics leaders at the

26% 28% 26% 26% 26%
business-unit level

Lack of vision/buy-in from top levels of

25% 23% 25% 23% 28%
management

Lack of adoption/engagement by employees 25% 26% 26% 25% 23%

Data and analytics has not historically been

24% 22% 23% 26% 23%
part of an operating model

A data and analytics operating model would

24% 33% 24% 24% 23%
disrupt existing models too much

Lack of data/knowledge management sharing 24% 24% 25% 25% 23%

Technology is not integrated 22% 20% 22% 23% 23%

We do not have a mature data and analytics

21% 16% 20% 22% 29%
organization/processes/governance

22 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

example, Lagging organizations are more likely to
RECOMMENDATIONS
struggle with alignment and collaboration issues, as
well as process and governance problems. The Leaders
1 Clearly define an operating model that brings
and Challengers aren’t immune from these issues, but
advanced analytics resources close to each line of
they’re more likely to grapple with working to disrupt
business and function. Support the model with an
existing business models and with the resulting change
enterprise-level team charged with focusing on activities,
management challenges. At the same time, some pain
such as analytics strategy, data governance, technology
points cross maturity boundaries, with companies overall
platforms and tools that will yield the highest value
trying to cope with a lack of analytics leaders in the
across business units and functions.
business, effective training, adoption of analytics by
business users, and widespread sharing of data.
2 Put significant focus on recruiting, developing
The survey also revealed a significant gap in how and retaining individuals who can serve as advanced
executives at various levels of an organization view analytics ‘leaders’ in various parts of the business.
challenges differently. For example, while more than a
quarter (28%) of CEOs and presidents see significant 3 Define what it means in your organizational context
problems stemming from a lack of advanced analytics to have more of an advanced analytics mindset and
leaders at the business-unit level, marketing, digital, and culture. No operating model will succeed long-term
operations officers don’t rate this highly as a challenge. without corresponding focus on creating a culture where
They’re more concerned about lack of alignment and practitioners can apply their craft and thrive.
collaboration across functions. Also notable is that senior
vice presidents cite the lack of vision and buy-in from top Note: No single operating model is right for all
levels of management as a top pain point, a concern that organizations, so individual companies must determine –
doesn’t rank as high for CEOs and presidents. Clearly, and then continuously evolve – a model that successfully
alignment and collaboration issues are something that aligns advanced analytics across their enterprises.
must be addressed across all levels of the enterprise,
including the C-Suite.

HIGH STAKES, HIGH REWARDS: OPERATING MODEL | 23

INITIATIVE KEY FINDINGS

DESIGN • Leaders are experimenting with

advanced analytics across many parts
of the business – and then scaling
INITIATIVES rapidly what works

• Lagging organizations apply

inconsistent approaches for initiative
design and collaboration problems
greatly reduce the chances of success

• A sharp focus on what the initiative

is attempting to accomplish and why
needs to be driven into various steps of
ANALYTICS
the design process
PRODUCTION

When executives reach the point of designing the For example, less mature companies, especially the
specifics of business initiatives, they must make a Developing companies and Lagging organizations,
series of critical decisions that will guide their use maintain a primarily tactical view of data’s value. Their
of advanced analytics and ultimately determine the top outcome choices also include desires to accelerate
success of their business imperative. This starts with decision-making, deploy personnel more effectively, and
defining the specific business outcomes leaders hope improve current products or services.
to achieve. “We take a laser-like focus to align any
However, a step higher on the maturity ladder, Challengers
use case with the business strategy, which is very
show a mix of tactical and strategic goals, with a desire to
clearly articulated in terms of education and research
develop new products or services also on their analytics
objectives,” Carey says, echoing a view shared by
wish list. The potential to employ advanced analytics
others. “This gives us a system for scoring proposals—
strategically takes on even greater importance for the
the more a potential use-case aligns with the strategic
Leaders—they certainly see tactical opportunities, but
objectives, the more important it is to the institution.”
they’re even more interested in how they can use data
Not surprisingly, the goals that ranked highest overall to strengthen themselves in the future. They want to
among all respondents were increased sales or transform business models, develop new products, react
revenues and increased customer satisfaction. These more quickly to market changes, and develop closer
are bread-and-butter objectives every top executive relationships with partners and vendors. As less advanced
can love. But looking deeper into the responses reveals companies evolve their advanced analytics strategies, they
important differences in the perspectives of leaders must embrace a similarly forward-looking orientation as
based on the analytics maturity of their organizations. typified by the Leaders.

24 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

WHAT SPECIFIC BUSINESS OUTCOMES IS YOUR ORGANIZATION TRYING
TO ACHIEVE THROUGH THE APPLICATION OF DATA AND ANALYTICS?

MOST IMPACTED SECTORS

Increase sales or revenues
26% Retail Pharma

Increase customer satisfaction/retention

26% Healthcare Automotive

Improve current products/services

Media Technology
25%
Develop new products/services
Pharma Automotive
23%
Improve and streamline internal operations/cut costs
21% Energy Media

Quality targeted interactions with partners and vendors

21% Telecom Manufacturing

Transform business models

20% Technology Retail

Deeper market insights/react quickly to market

19% Manufacturing Telecom

Accelerate decision-making
19% Pharma Energy

Encourage rapid and constant innovation

19% Government Financial Services

More effectively deploy our people

18% Energy Manufacturing

Transform operating models

18% Government Energy

Enable common enterprise view of customers

17% Pharma Telecom

HIGH STAKES, HIGH REWARDS: INITIATIVE DESIGN | 25

HOW OFTEN DO YOU USE CONSISTENT METHODS/APPROACHES FOR DATA AND ANALYTICS
INITIATIVE DESIGN (PROJECTS TARGETING A SPECIFIC USE CASE)?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Never 1% 1% 0% 2% 5%

Sometimes 16% 1% 10% 20% 37%

Fairly Often 33% 3% 32% 41% 33%

Very Often 31% 28% 42% 23% 14%

Always 17% 66% 15% 13% 8%

Not Sure 2% 1% 1% 2% 4%

Differences in strategic versus tactical business goals must also significantly improve their methods for
were also apparent in different industries. For example, developing initiative designs. This important stage not
manufacturers rate advanced analytics as a key strategic only defines the specific strategies enterprises will use
resource for reacting quickly to market changes and to achieve their desired business outcomes. It’s also
improving interactions with partners. Pharmaceuticals, when enterprises create common nomenclatures and
mindful of the extended development processes structured processes to frame their advanced analytics
needed to bring new drugs to market, overwhelmingly efforts, while also determining how to incorporate
tie advanced analytics to the development of new experimentation and agility. This is a particular
products. Consumer products and auto companies share challenge for the 22% of Developing companies and
a similar view of the strategic link between analytics and 42% of Lagging organizations that admit to frequently
product development. Regionally, Asia-Pacific countries using inconsistent design approaches. Even Challengers
demonstrate their sophisticated use of advanced analytics have room for improvement, with 42% saying they’re
by rating the more-strategic outcomes higher than their consistent only sometimes or “fairly often.” By contrast,
global counterparts. But while European, Middle Eastern, 66% of the Leaders say they’re always consistent, while
and African respondents take a more tactical view, they 28% chose “very often.”
standout in one area: in higher numbers than anywhere
To enhance consistency, companies across the
else, executives in these regions want to use advanced
spectrum for advanced analytics maturity must
analytics to transform business models, demonstrating a
intensify their efforts to improve collaboration. An
desire to leap-frog global competitors.
overriding characteristic that impacts collaboration
But it will take more than just an attitudinal change to and other areas is the need for personnel with multiple
move these companies forward. Behind the scenes, they skill sets. Companies overlook this area because they’re

26 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

confident they have experienced high performing about the extent of these problems differ based on
business people and advanced analytics professionals. company roles. For example, while 71% of CIOs/CTOs
Having those groups is important, but it’s not enough. and 67% of CEOs/Presidents/COOs believe there is a
Ultimately, companies must have a core group of high level of effectiveness among business users and
people who understand business issues and have a technical people, department managers aren’t nearly as
deep understanding of how analytics can best support upbeat. Just 43% of chief analytics officers agree with
initiative design. that assessment.

But overall, 41% say the top pain point at this stage is The divergence in rankings below the CEO level
the lack of alignment among the IT department, the illustrates the difference between vision and reality
advanced analytics team, and business people. It’s a – while everyone may share a desire to use data and
breakdown that negatively impacts the Leaders and advanced analytics effectively, people who actually tap
Lagging organizations alike. Similarly, all the respondents the resource to do their jobs develop a keener awareness
acknowledge that collaboration problems run deep of where the gaps lie. These results also suggest that
throughout the initiative-design stage, however, opinions those who are frustrated by the level of effectiveness

WHAT ARE YOUR TOP PAIN POINTS WHEN DESIGNING DATA AND ANALYTICS INITIATIVES?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Lack of collaboration between IT, data and

41% 41% 39% 43% 42%
analytics team and the business team

Lack of people with analytics skill sets

to define an appropriate to approach the 40% 44% 37% 42% 45%
problem  

Lack of consistent methods/processes 38% 32% 38% 40% 40%

Desired business outcomes not well defined at

37% 42% 39% 35% 30%
the start

Unclear responsibilities across functions 37% 35% 40% 35% 35%

Technology needs not considered early

37% 36% 38% 36% 35%
enough

Lack of clear and engaged sponsorship 35% 36% 33% 36% 41%

Not enough focus on who the ‘user’ will be

and how the analytics willchange what they 34% 33% 36% 33% 31%
do

Other 0% 1% 0% 0% 1%

HIGH STAKES, HIGH REWARDS: INITIATIVE DESIGN | 27

 could do a better job of communicating this, and
RESPONDENTS WHO SAID THEIR USERS, proposing solutions, to top leaders.
SUBJECT MATTER EXPERTS AND TECHNICAL
But some say familiarity offers a ray of hope that such
TEAMS ARE EFFECTIVE AT WORKING
problems can be addressed successfully. “This is a
TOGETHER TO DESIGN DATA AND
decades-old challenge, not one that’s new or something
ANALYTICS INITIATIVES, BY ROLE that we’ve never seen before,” says Steve Petitpas,
Microsoft’s general manager of Microsoft.com. “In most

71% CIO/CTO cases, the problems result from either misalignment on

strategies and goals or too much focus on technology, as
opposed to solving a business problem.”

67% CEO/PRESIDENT, COO He adds that effective use of data helps people become
more closely aligned on strategy. “People can say, ‘Here’s
the question we need to figure out, let’s go get the data

56 % CHIEF DATA OFFICER that can help us,’” he explains. “They can then use that
information to drive decisions.”

Also important during initiative design is attention to data

55% VP OR SVP/EVP privacy, an essential consideration given the importance

of closely managing financial and customer information,
as well as adhering to the regulatory requirements of

54 %
individual industrial sectors. To this end, the executives
CMO participating in the survey are at various levels of maturity
for implementing a comprehensive approach to privacy,
with the Leaders incorporating everything from legal and

51% CHIEF HR OFFICER regulatory imperatives to creating incentives for customers

to share information about themselves.

Challenges exist during the initiative design phase, and the

46 % CFO/TREASURER key to addressing them is cultivating advanced analytics
teams with a keen understanding of business needs. When
specialists can also think like business managers, they’re

43 % CHIEF ANALYTICS OFFICER

better able to identify the best strategies and tools for
each new business initiative or problem. That’s especially
important today given the pace of innovation happening
that provides a growing selection of advanced analytics
37% CHIEF RISK/COMPLIANCE OFFICER technology for enterprises. For example, the Leaders and
the Challengers are focusing on predictive and prescriptive
modeling, along with artificial intelligence to gain insights
about possible future outcomes and how to address them.

28 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

HOW DOES YOUR PLANNING PROCESS FACTOR DATA PRIVACY INTO A NEW INITIATIVE’S DESIGN?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Data privacy generally does not apply to us 8% 4% 3% 11% 19%

We consider all legal, regulatory, and

34% 15% 29% 39% 44%
compliance considerations

We rely on corporate policies that often go

25% 2% 25% 30% 25%
above what is required

In addition to the above, we consider what

we have ‘brand permission’ from our 19% 18% 27% 13% 11%
customers to do with their data

In addition to the above, we create incentive

mechanisms that allow us to share value
14% 61% 15% 7% 1%
(pricing, service levels, etc.) with our
customers for use of their data

HIGH STAKES, HIGH REWARDS: INITIATIVE DESIGN | 29

WHAT TYPES OF ADVANCED ANALYTICAL APPROACHES ARE YOU USING?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Cognitive 44% 49% 47% 42% 37%

Predictive Modeling 42% 67% 45% 37% 30%

Prescriptive Modeling 42% 54% 44% 38% 38%

Artificial Intelligence 42% 53% 44% 39% 43%

Natural Language Processing 33% 45% 33% 33% 23%

Robotic Process Automation 25% 43% 31% 19% 13%

Neural Networks 14% 29% 17% 10% 8%

None / NA 4% 2% 2% 5% 8%

Other  0% 0% 0% 0% 0%

RECOMMENDATIONS
1 Develop and apply consistent processes and a common 3 Carefully think through the competencies and roles
nomenclature for designing advanced analytics initiatives. that are needed across the advanced analytics, IT and
This should be balanced with creating an environment for business teams – ensure there is joint responsibility and
cost-effective experimentation and investigation, which accountability for addressing a specific initiative. Assess
allows teams to ultimately choose the best use cases. the current skills across these teams to ensure that
the right mix actually exists to drive initiatives in a way
2 Ensure that stakeholders define strategic objectives and consistent with industry leading practices. The enterprise
desired business outcomes and closely align proposed should also evaluate its partner ecosystem and look for
initiatives to these goals. This does not mean that opportunities for collaboration as no one company outside
emphasis should be on achieving some (usually over- of a select few can hire all the skills they need.
hyped) outcome. Rather, focus on a better definition of a
strategic outcome such as driving better engagement with
customers. That goal should then translate into initiatives
that evaluate, streamline, improve or otherwise reimagine
customer engagement across all channels.

30 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

INTERVENTION KEY FINDINGS

DESIGN • Earlier is better when considering

how insights from a specific advanced
ANALYTICS analytics initiative may lead to different
PRODUCTION
actions

• There’s widespread underuse of

advanced analytics among senior
business leaders, which, in turn, often
makes it difficult to translate into action

• Lack of skills is a significant

roadblock to activating the insights
derived from advanced analytics
ANALYTICS
CONSUMPTION

Intervention design, the next step in the analytics based on available data rather than pure instinct. Leading

process, translates all the upfront goal-setting, companies excel in this area, with 38% of them doing

modeling, and methodology development into this when they are designing the use case at a high level.

action—namely, making the insights derived from Challengers do this much later in the process— after they

advanced analytics insights an integral part of business have started data collection and know what is possible.

operations. At this stage, it’s essential to have a clear Developing companies and Lagging organizations show a

and well-defined hypothesis about how value may be similar, later-in-the-process timing. Note that enterprises

achieved. “So if you launch a new advanced analytics across all the maturity levels are learning this lesson.

initiative, are you expecting to increase the average 11% overall still wait until after they’ve built their models,
revenue per customer? Or gain more new customers? indicating an area that requires further attention.
Reduce the cost to serve a customer? Something What will it take to promote the wider adoption of
else?” Mazzei explains. “Your assumptions on how to advanced analytics among senior leaders and decision-
achieve that objective may not always be right in the makers in general? Overall, the respondents are
early stages of an initiative, but if you have a working focusing in on data visualization tools. To promote wide
hypothesis you’ll quickly see where differences arise so acceptance and adoption of advanced analytics among
you can adjust how you design the initiative.” business people, the resource must be accessible and

Also critical for business success at this stage is easy to use. This means offering tools with interfaces

determining when in the development process that present findings in highly visual formats that are

companies design how to apply advanced analytics well integrated within the primary applications business

to best realize the value of their efforts. Clearly, earlier people use to perform their jobs.

is better, since this gives business leaders the most

opportunities to shape and test the validity of initiatives

HIGH STAKES, HIGH REWARDS: INTERVENTION DESIGN | 31

WHEN IN THE PROCESS DO YOU TYPICALLY DESIGN HOW THE INSIGHTS FROM DATA AND
ANALYTICS WILL BE APPLIED (WHAT ACTIONS WILL BE TAKEN TO REALIZE VALUE)?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

When we are designing the use case at a high

22% 38% 18% 23% 28%
level

After we have started data collection and

38% 10% 34% 46% 46%
know what is possible

After we have determined what type of

28% 17% 33% 26% 16%
analytics will be applied

After we have built models and determined

11% 34% 14% 5% 6%
what insights can be generated

Other 1% 1% 0% 0% 3%

WHAT METHODS/APPROACHES DO YOU USE TO INCREASE THE LIKELIHOOD OF DATA AND

ANALYTICS ADOPTION/CONSUMPTION BY END USERS?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Data/Information Visualization 42% 40% 45% 40% 38%

Training of the End Users 38% 33% 39% 37% 36%

Business Process Redesign  34% 42% 34% 33% 34%

Bonus/Rewards/Incentive Redesign 33% 34% 32% 34% 31%

User-Centric Design  29% 24% 32% 29% 25%

Gaming Approaches  18% 21% 15% 21% 17%

None/NA 4% 2% 2% 5% 8%

Don't Know/Unsure  3% 3% 1% 3% 9%

Other 0% 0% 0% 0% 0%

32 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

WHAT ARE THE BIGGEST CHALLENGES WITH DRIVING ADOPTION/CONSUMPTION OF INSIGHTS DERIVED
FROM DATA AND ANALYTICS?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Skills
People who need to take the action do not 36% 38% 38% 33% 33%
have the required skills

Business Process
The analytics insights are not well integrated 35% 30% 36% 34% 37%
into current processes

Organization Design
Interaction between various people/groups 32% 26% 33% 33% 29%
does not function well

Data
Data used for analytics is not of high quality 31% 25% 30% 33% 35%
or not trusted

User Design
How the individual 'interfaces'with analytics is 29% 27% 27% 31% 27%
not well designed

Incentives
Actions the analytics suggest are not aligned 26% 29% 24% 27% 26%
to current employee incentives

No major issues encountered so far 4% 9% 5% 2% 3%

Don't Know/Unsure 2% 3% 1% 2% 4%

Other 0% 1% 0% 0% 0%

“If you deliver a complicated solution that’s difficult to The survey findings also show that the importance
navigate and presents a lot of technical information that’s of personal interactions and cross-departmental
not clear to a business user, they’ll be less likely to adopt collaboration is a trend that applies to intervention
it,” Papush says. “But if the solution is highly visual and, design. Leading organizations are finding concrete ways
ideally, it’s integrated within the system of record that of cultivating effective collaboration. “A critical success
business people use to perform their jobs, adoption will factor for improving collaboration is colocation—putting
certainly be more successful.” various stakeholders into the same room,” Niehaus says.
“We then encourage people to work together to first
The Leaders are pursuing better interfaces to help
understand the business problem, then try to solve it.
promote adoption, but they’re going further. A large
We’re finding that while individuals may have their own
number—42%—are taking a more fundamental approach
specialty, when they collaborate well, everyone tries to
by redesigning business processes.

HIGH STAKES, HIGH REWARDS: INTERVENTION DESIGN | 33

do a bit of everything. IT people are not afraid to suggest
RECOMMENDATIONS
what the business solution might be, while business
people may offer valid input in terms of what can be
1 Begin to design the analytics intervention approach
done differently from an IT point of view.”
as early as possible—even before advanced analytics
While the growth of predictive analytics and machine intervention approaches collection and modelling begins.
learning may increase reliance on automated decisions, This enables stakeholders to shape and test the validity of
many observers say human intervention will continue the approach and how it will work in practice.
to be important. “It’s not all about technology—there’s
still an art and science when it comes to using analytics 2 Define and refine over time the methods and
effectively,” Papush says. approaches used to design intervention mechanisms.
Ensure things like user-centric design concepts are a part
Unfortunately, given how vital the human element is,
of the approach.
many organizations don’t have the personnel resources
they need for intervention design. When asked to
3 Don’t forget the human element. While the growth of
name the biggest challenges to driving the adoption or
AI and other forms of automation will increase, human
consumption of analytics, companies at all maturity levels
judgment will remain a vital element when making
cited a lack of skills among people responsible for acting
strategic and operational decisions. Continue to consider
on insights. Related to this, nearly a third of respondents
the change management implications of implementing
say they struggle with poor interactions among the
advanced analytics imperatives across the organization.
various people and groups that consume the insights
derived from advanced analytics. Many organizations
try to alleviate these issues with training for end users of
analytics, which is the second most popular method used
to increase the likelihood of analytics adoption (38%).

One other factor is important to consider: Leaders

overall encounter fewer challenges in data quality and
process alignment, no doubt because these challenges
get addressed and resolved as enterprises move up the
maturity curve.

34 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

MEASUREMENT KEY FINDINGS

AND LEARNING • Leaders diligently focus on

measuring the impact of their
advanced analytics initiatives – and
learning how to adapt

• Lagging organizations inconsistently

apply performance measurements
and often cannot overcome perceived
barriers in developing an advanced
analytics approach to measure impact
OUTCOMES
• Poor communication of advanced
ANALYTICS analytics outcomes is a top challenge
CONSUMPTION to value realization

In the end, the value of resource investments devoted outcomes that organizations cannot isolate actions from
to devising and activating advanced analytics strategies the insights derived from advanced analytics. Financial
must be evaluated for how well they are supporting constraints exacerbate the problem—many companies
desired business outcomes and contributing to the feel that capturing required data is too costly and difficult.
long-term success of the organization. Communicating business outcomes to the stakeholders
is also among the top challenges of measuring value
But many companies still struggle to quantify the
realization.
benefits of data-driven business initiatives. For example,
only about a third of companies overall can accurately Adding to the challenge is the fact that all companies,
measure business value to demonstrate the impact except for the Leaders, do a poor job at testing advanced
of their advanced analytics initiatives. The Leading analytics models and taking away lessons for improving
enterprises are ahead in this area, with a majority taking them.
a portfolio approach to managing advanced analytics
Fortunately, these barriers may be overcome with well-
initiatives. By contrast, most Developing companies
designed measurement approaches. For Simon Marland,
and Lagging organizations admit it’s difficult to
executive head of digital and business intelligence at
measure how well their programs have achieved pre-
Nedbank in Johannesburg, South Africa, detailed KPIs are
defined business goals. Challengers say performance
essential. At Nedbank, he created measurements to gauge
measurements are inconsistent across functions and
progress over the next two years, with specific targets for
lines of business.
growth in digital business, gains in revenues, and profit
The underlying reasons for these breakdowns are improvements. “With this as a baseline, we then track our
varied, and cut across technical and cultural issues. progress on a daily basis to see how well we’re moving
Across all maturity levels, companies are overwhelmed toward those targets,” he says.
by complexity—so many factors influence business

HIGH STAKES, HIGH REWARDS: MEASUREMENT AND LEARNING | 35

WHICH BEST DESCRIBES HOW VALUE IS MEASURED WHEN DEMONSTRATING THE IMPACT OF
DATA AND ANALYTICS ON YOUR ORGANIZATION?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

No visibility into the value created from

7% 2% 4% 8% 18%
analytics initiatives

Definition of business outcomes is typically

established up front, but measurement is 24% 6% 14% 35% 42%
often difficult

Performance of analytics is measured and

managed, but inconsistent across functions 30% 7% 30% 35% 30%
and lines of business

Performance of analytics is managed

consistently globally using a well-defined set 25% 27% 39% 12% 5%
of financial and non-financial measures

Analytics initiatives are managed as a

portfolio with risk weighted value assessments 14% 58% 13% 10% 5%
impacting resource allocation decisions

Many organizations pay close attention to strategic Lagging organizations acknowledge being ineffective
goals. “We focus on unlocking insights about market in this area, while many in the Emerging group call it a
opportunities that may not be readily visible without draw, saying they are neither effective nor ineffective.
advanced analytics,” Papush explains. “Success also The Challengers fair better, with a solid 55% calling their
means changing the way we make decisions and enable organizations effective and another 15% claiming to be
ongoing improvements because we’re putting more highly effective.
information in the hands of business decision-makers.”
Leaders who are responsible for guiding their
The Leaders derive a significant benefit from having organizations to more data-driven cultures must make
more-sophisticated measurement capabilities—their addressing measurement and communication challenges
application of advanced analytics gets better over time. a high priority.
An impressive 67% of this group say they’re highly
effective at implementing test and learning processes that
then impact advanced analytic models and suggested
actions. At the other end of the maturity scale, 38% of

36 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

WHAT ARE THE BIGGEST CHALLENGES TO MEASURING VALUE REALIZATION?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Too many factors influence the business

outcome (cannot isolate the actions from 33% 32% 37% 30% 25%
analytics)

Capturing required data is difficult/too costly 30% 28% 31% 30% 27%

Communication of business outcomes to the

29% 34% 29% 29% 28%
stakeholders

Expected performance outcomes are not well

28% 34% 27% 29% 32%
defined

Lack of clear responsibility for business

26% 27% 27% 25% 24%
outcomes

Lack of trust in the measurement process 25% 15% 24% 26% 28%

Lack of trust in the data 23% 17% 21% 27% 24%

Don't know/unsure 3% 6% 2% 2% 6%

Other 0% 1% 0% 0% 1%

HOW EFFECTIVE IS YOUR ORGANIZATION AT IMPLEMENTING TEST AND LEARN PROCESSES

THAT THEN IMPACT DATA AND ANALYTICS MODELS AND SUGGESTED ACTIONS?

MATURITY
TOTAL
LEADING CHALLENGING DEVELOPING LAGGING

TOTAL 1518 100 688 571 159

Highly Ineffective 6% 1% 5% 8% 11%

Ineffective 11% 2% 7% 15% 26%

Neither Ineffective or Effective 25% 4% 19% 34% 30%

Effective 42% 26% 55% 32% 29%

Highly Effective 16% 67% 15% 11% 4%

HIGH STAKES, HIGH REWARDS: MEASUREMENT AND LEARNING | 37

RECOMMENDATIONS
1 Make value measurement a key part of any advanced
analytics initiative. Although certain initiatives can be
exploratory in nature, challenge the prioritization of
initiatives where the business objectives and measurement
approach are unclear.

2 Ensure that actual results and best practices learned

from each initiative are used to make decisions on what
projects to stop, refine, or accelerate. Push for as rapid a
cycle time as practical for each initiative. The enterprise
should experiment but it also needs to understand how to
fail fast and move on.

3 Focus on mechanisms to increase the likelihood that

these experiences and lessons learned become part of
the decision fabric of the enterprise. Organizations need
to think carefully about how knowledge and insights get
woven into business processes and culture.

38 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 THE CASE FOR CHANGE

The pace of business transformation is rapid for most businesses, driven by

market insurgents, new customer demands, technology innovation, and other
factors. To stay competitive, leading enterprises are using advanced analytics
to not only improve current business processes and to answer the fundamental
question, “What’s next?” when it comes to what to sell, how to sell, who to
sell to, and how to outflank the competition. That requires utilizing advanced
analytics at each step of the maturity cycle and ensuring that the process
continuously evolves and improves over time. Those that are not making
progress fast enough are at an increased risk of falling behind both current
competitors and emerging players that were “born” digital with advanced
analytics at the center of their strategy. Winning in the market and even
survival may hinge on an organization’s ability to make progress in the various
areas explored in this report.

ACKNOWLEDGMENTS
Forbes Insights and EY would like to thank the following individuals for their contributions to this report:

R. Krishnakumar, Head of BI and Analytics, Max Life Insurance

Gina Papush, Chief Data and Analytics Officer, QBE

Simon Marland, Executive Head of Digital and Business Intelligence, Nedbank

Chris Mazzei, Chief Analytics Officer and Emerging Technology Leader, EY

Carlos Lopez, Vice President of Business Intelligence, Management Control, and Investor Relationships, Melia Hotels

Steve Petitpas, General Manager of Microsoft.com, Microsoft

Janice Carey, Head of Information Management, Monash University

Brenda Niehaus, Group CIO, Standard Bank

HIGH STAKES, HIGH REWARDS: THE CASE FOR CHANGE | 39

 APPENDIX 1

INDUSTRY SCORE CARDS

OPERATING MODEL
Building the underlying models that
govern analytics activities, such as
organizational structures that allow
INITIATIVE DESIGN
collaboration, chain of command, etc.
Defining the specific activities and
STRATEGY projects that will achieve desired
INITIATIVES business outcomes

MARKET
ANALYTICS
ANALYTICS LINKAGES PRODUCTION
COMPETITIVE DIFFERENTIATION
Defining the role that data and
analytics plays in the company
OUTCOMES
strategy and business model.

ANALYTICS
CONSUMPTION

MEASUREMENT AND LEARNING INTERVENTION DESIGN

Quantifying and learning from Translating all the upfront goal-setting,
data-driven business outcomes. modeling, and methodology into
action— making analytics insights an
integral part of business operations.

In order to gauge advanced analytics maturity, we It needs to be noted that there is substantial variance in
measured how well these synapses operate, based on advanced analytics maturity within industries. Irrespective
reported challenges, the focus on applying data, and the of its overall ranking, each industry has its share of leaders
level of year-over-year progress. Each synapse is worth 20 and laggards. These findings should thus be viewed as
points, with a perfect score being 100. The findings reveal a reflection of industry averages, and not of particular
that all of the industries surveyed have crossed a halfway companies.
point toward data and advanced analytics maturity. The
While there are slight variations, all industries share similar
most mature industry, telecommunications, has advanced
strengths and weaknesses. One synapse stands out as the
more than two-thirds of the way (72.6%), and the least
most challenging: intervention design. No industry scores
mature, automotive, just over half (58.4%). (See chart on
above 12 of a possible 20 for their maturity in this area.
page 41) Thus the leader and the laggard are separated by
Operating model, on the other hand, is the synapse where
only 15 points, a relevant but not insurmountable difference.
all industries score the highest, with no industry scoring
This means that every industry has an almost equal amount
below 12 points. (See chart on page 41)
of work ahead.

40 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

INDUSTRIES BY SCORE INDUSTRIES BY SYNAPSE (MAX 20)

INDUSTRIES SCORE INDUSTRIES SCORE

All industries average 62.7 Competitive Differentiation Synapse 13.1

Telecommunications 72.6 Operating Model Synapse 14.0

Initiative Design Synapse 12.7

Technology 66.5

Intervention Design Synapse 10.7

Manufacturing 66.2

Measurement and Learning Synapse 12.3

Financial 63.2

In the following industry score cards, we dig deeper

Pharma 63.1
into the individual industries’ maturity at each synapse,
and reveal their week spots and challenges within the
Healthcare 60.5 advanced analytics pathway.

The score cards also include year-over-year performance

Media and Entertainment 60.5 trends. In exploring year-over-year trends, we’ve created
a composite score to gauge performance of each
sector and geography. We did that by comparing the
Energy 60.3 2015 rankings (based on the Data and Analytics Impact
Index) with the 2016 rankings (based on a composite of
the results from questions correlated with Competitive
Government 60.1 Differentiation, Operating Model, Initiative Design,
Intervention Design, and Measurement and Learning.)
Because the index components differ between one year
Consumer Products and Retail 58.4
and the next, this year-over-year comparison gives us
relative positioning of each sector and geography and
Automotive 58.4 not specific differences in scores. Thus, it needs to be
viewed as a directional comparison.

HIGH STAKES, HIGH REWARDS, APPENDIX 1: INDUSTRY SCORE CARDS | 41

 The telecommunications sector leads in advanced
analytics maturity, achieving the highest score
overall and for each synapse. A third (33%) of
telecommunications executives say that analytics
has completely changed the way they compete,
compared with 17% for other industries.

THE INDUSTRY HAS MANY BRIGHT SPOTS:

It leads in its use of advanced analytics for strategy

and innovation, with 49% of telecommunications
executives declaring themselves proficient,
SECTOR compared with 29% for other industries.

TELECOMMUNICATIONS The initiative design stage benefits from

the use of consistent methods (32% for the
telecommunications industry, compared with
CURRENT RANKING PERFORMANCE TREND 17% for other industries).

1
The industry leads in its approach to
ST * VS. 2015 intervention design, by focusing on how
advanced analytics will be applied early on
*2015 data sample size was too
small for valid year-over-year (45% for the telecommunications sector
comparisons compared with 22% for other industries).

SYNAPSE MATURITY THE INDUSTRY DERIVES MUCH OF ITS

ALL
SUCCESS FROM ITS FOCUS ON THE
TELECOM
INDUSTRIES HUMAN ELEMENT:
Overall Synapse Maturity 62.7 72.6 Two-thirds (66%) of senior business leaders include
analytics in their decision making about designing
Competitive Differentiation 13.1 15.5
and executing strategies at least half of the time,
Operating Model 14.0 15.8 compared with 45% for other industries. And the
degree of employee latitude to pursue data-driven
Initiative Design 12.7 14.5 opportunities is credited for successful analytics
initiatives more often than in other industries (36%
Intervention Design 10.7 11.7
for telecommunications industry compared with
Measurement and Learning 12.3 15.1 28% for other industries).

WHAT TO WATCH OUT FOR:

A DEFINITE LEADER BASED ON ITS FOCUS Improve leadership engagement, while continuing
ON THE HUMAN ELEMENT to focus on the customer.

42 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 The technology industry holds second place for all
synapses, with the exception of intervention design
and measurement and learning. It has a natural
advantage, being more proficient in information
technology (44% are highly proficient in advanced
analytics, compared with 33% for
other industries).

OTHER BRIGHT SPOTS INCLUDE:

The industry smartly translates its technology

advantage into a strategic advantage, with
37% of technology executives describing their
SECTOR organizations as proficient in applying advanced
analytics for strategy and innovation, compared

TECHNOLOGY with 29% of executives from other industries.

It successfully uses advanced analytics to

CURRENT RANKING PERFORMANCE TREND target and segment customers (35% for the
technology industry as compared with 25% for

2 ND +1 2015 other industries).

VS.
BUT THERE IS A POTENTIAL WEAK SPOT:

The human element is an Achilles heel for

technology companies, especially at the stage
SYNAPSE MATURITY
of intervention design. Organization design,
ALL interaction between various people or groups,
TECH
INDUSTRIES does not function well for 42% of technology
companies, compared with 32% for other
Overall Synapse Maturity 62.7 66.5
industries.
Competitive Differentiation 13.1 13.9

Operating Model 14.0 14.6

Initiative Design 12.7 13.8

Intervention Design 10.7 10.8

Measurement and Learning 12.3 13.4

A LEADER WITH A NATURAL ADVANTAGE

AND AN ACHILLES HEEL

HIGH STAKES, HIGH REWARDS, APPENDIX 1: INDUSTRY SCORE CARDS | 43

 The manufacturing sector comes in third, and
places in the top three for all synapses. The
manufacturing sector is ahead in terms of how
advanced analytics impact business strategy and
key sources of competitive differentiation.

BRIGHT SPOTS INCLUDE:

Fifty-five percent of respondents from the

manufacturing industry say advanced analytics are
changing or have changed their business strategy
SECTOR
compared with 49% for other industries.

MANUFACTURING/ The manufacturing industry pays more attention to

the increase in quality of interactions with partners
INDUSTRIAL PRODUCTS and vendors (28% for manufacturing industry
compared with 21% for other industries).

CURRENT RANKING PERFORMANCE TREND

User-centric design is a more common approach

3
used for designing advanced analytics business

RD +3 VS. 2015 initiatives (used by 51% for manufacturing industry

versus 37% for other industries).

BUT THERE IS SOME ROOM FOR

IMPROVEMENT:
SYNAPSE MATURITY
Lack of budget and organizational commitment
ALL MANUFACTURING/
INDUS. PRODUCTS
is an issue for 44% of manufacturing executives,
INDUSTRIES
compared with 39% for other industries.
Overall Synapse Maturity 62.7 66.2
Operating model suffers from lack of data and
Competitive Differentiation 13.1 14.0
knowledge management sharing (as reported by
29% of the manufacturing industry versus 24%
Operating Model 14.0 14.5
of other industries), and lack of adoption and
Initiative Design 12.7 13.2 engagement by employees (reported by 31%
of manufacturing compared with 25% for other
Intervention Design 10.7 10.9
industries).
Measurement and Learning 12.3 13.6
The quality of data is a bigger challenge with
driving the adoption of analytics insights than it is
for other industries (reported by 37% versus 31%).
MOVING IN THE RIGHT DIRECTION, BUT
MORE FINE-TUNING IN ORDER

44 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 The financial sector ranks a strong fourth overall. Twenty-
three percent of financial executives say that a data and
advanced analytics strategy is well established and central
to their overall business strategy, which is the average
for all industries. The financial sector ends up in slightly
weaker spots in competitive differentiation, intervention
design, and measurement and learning.

NEED FOR DATA GOVERNANCE:

In terms of the organization and governance of

advanced analytics, the financial sector is on par with
all other industries. Seventeen percent of financial
SECTOR
executives say that enterprise, department and line-
of-business advanced analytics groups exist and are
FINANCIAL SERVICES well aligned, which matches the industry average.
However, considering that financial companies handle
so much sensitive financial information, should their
CURRENT RANKING PERFORMANCE TREND
level of data governance be higher than average?

4 TH +3 VS. 2015 A POTENTIAL WEAK SPOT:

When designing its advanced analytics business

initiatives, the financial sector relies less on user-
centric design than other industries (31% for
SYNAPSE MATURITY the financial sector compared with 37% for all
industries).
ALL FINANCIAL
INDUSTRIES SERVICES
A user-centric approach continues to be
Overall Synapse Maturity 62.7 63.2 underutilized at the intervention design stage,
with almost a third (32%) of financial industry
Competitive Differentiation 13.1 13.1 executives reporting it as a challenge when driving
adoption of the insights derived from data and
Operating Model 14.0 14.1
advanced analytics. At the same time, just above a
Initiative Design 12.7 12.8 third (36%) are successful with data visualization,
which could help drive consumption.
Intervention Design 10.7 10.7

Measurement and Learning 12.3 12.5

ON PAR WITH OTHER INDUSTRIES, BUT

SOME MISSED OPPORTUNITIES

HIGH STAKES, HIGH REWARDS, APPENDIX 1: INDUSTRY SCORE CARDS | 45

 The pharmaceuticals sector ranks fifth in advanced
analytics maturity, roughly in the middle of all
industries, and keeps its middle position across most
synapses. The only exception is the intervention
design synapse, where the industry comes in last.

AREAS THAT CALL FOR IMPROVEMENT:

The sector suffers from a lack of advanced

analytics proficiency within many functions, as
reported by 46% of the pharmaceutical industry
SECTOR compared to 26% of all industries.

The pharmaceutical industry is late in the process

PHARMACEUTICALS when designing how the insights derived from
data and advanced analytics will be applied,
with just 11% doing it at the start, when they are
CURRENT RANKING PERFORMANCE TREND
designing the use case, compared with 22% for all

5
other industries.
TH +4 VS. 2015
CONSTRAINT:

The pharmaceutical industry does not believe it

operates on a level playing field, with more than half
(54%) citing regulatory constraints as a challenge
SYNAPSE MATURITY
to the success of advanced analytics. This is the
ALL highest for all industries (the industry average is
PHARMA
INDUSTRIES
44%).
Overall Synapse Maturity 62.7 63.1
BRIGHT SPOTS:
Competitive Differentiation 13.1 13.8
Advanced analytics strategy is well established and
Operating Model 14.0 13.8
central to the overall business strategy, according
to 36% of the pharmaceuticals industry executives,
Initiative Design 12.7 12.6
compared with 23% from other industries.
Intervention Design 10.7 9.7
In terms of the operating model, the industry’s
Measurement and Learning 12.3 13.2
enterprise, department and line-of-business
advanced analytics groups are well-aligned (25% for
the pharmaceutical industry compared with 17% for

POWERING THROUGH REGULATORY other industries).

CONSTRAINTS, BUT ALSO SOME

INTERNAL CHALLENGES

46 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 WHERE THE INDUSTRY LAGS:

The role that advanced analytics play in the business

strategy of health organizations is less mature than
in other industries. (Advanced analytics strategy
is established and a priority in 45% of healthcare
organizations versus 52% for all industries.)

Lack of senior leadership support is a challenge

when it comes to developing the business strategy
SECTOR
to incorporate advanced analytics (47% of the
healthcare sector ranked this as a top pain point
HEALTHCARE versus 34% for other industries).

PERFORMANCE TREND Just 33% of healthcare organizations have

CURRENT RANKING enterprise-level advanced analytics groups that
are well aligned with line-of-business functions,

6 TH +2 VS. 2015 compared with 40% for all industries. Moreover,

where enterprise-level analytics teams exist,
they focus mostly on selecting or implementing
technologies and not strategic approaches.

Less than a third (31%) of healthcare organizations

SYNAPSE MATURITY
consistently manage performance of advanced
ALL
HEALTHCARE
analytics globally or as a portfolio, compared with
INDUSTRIES
38% for all industries.
Overall Synapse Maturity 62.7 60.5
BRIGHT SPOTS:
Competitive Differentiation 13.1 12.6
Customer-centricity is the top focus during the
Operating Model 14.0 13.6
initiative design stage. Forty percent of healthcare
Initiative Design 12.7 12.3 executives, compared with 26% from other industries,
point to increases in customer satisfaction or retention
Intervention Design 10.7 10.4 as specific business outcomes they are trying to
achieve through the application of advanced analytics.
Measurement and Learning 12.3 11.6

The focus on user-centricity carries over through

the intervention design stage. Thirty-four percent of
KEEPING AN EYE ON THE CUSTOMER, healthcare executives point to user-centric design as
a way to increase the likelihood of analytics adoption/
BUT LAGGING OVERALL
consumption by end-users, compared with 29% for all
industries.

The healthcare industry ranks sixth overall, and falls

slightly below average across all synapses.

HIGH STAKES, HIGH REWARDS, APPENDIX 1: INDUSTRY SCORE CARDS | 47

SECTOR analytics strategy figured out and established
(16%) than do executives from other industries

MEDIA AND (23%).

There is a fundamental need for proficiency in

ENTERTAINMENT terms of the operating model, with fewer media and

entertainment companies being highly proficient in
terms of advanced analytics capabilities in several
CURRENT RANKING PERFORMANCE TREND areas, including operations (16% for the media
and entertainment industry and 28% for other

7
industries), and marketing (19% vs 27%).
TH * VS. 2015
*2015 data sample size was too The media industry still needs to solve fundamental
small for valid year-over-year issues regarding the measurement of value
comparisons
realization. Thirty-nine percent of media industry
executives say that the expected performance
SYNAPSE MATURITY
outcomes are not well defined, compared with 28%
ALL MEDIA AND for other industries. There is also much less trust
INDUSTRIES ENTERTAIN.
in the measurement process (reported by 35% for
Overall Synapse Maturity 62.7 60.5 media compared with 25% for other industries).

Competitive Differentiation 13.1 13.0

THE REASON FOR THE STATE OF PLAY:
Operating Model 14.0 13.2
Forty-two percent of media industry respondents
Initiative Design 12.7 11.9 say that they have not had the right leader to serve
as a catalyst for change, compared with 31% of
Intervention Design 10.7 10.5 respondents from other industries.

Measurement and Learning 12.3 11.9

REASONS TO STAY OPTIMISTIC:

There is more appetite for major change: 77% of

STILL IN SEARCH FOR SOLUTIONS AND media executives declare an appetite for a major
LEADERS TO THRIVE IN THE DIGITAL AGE transformation that would result from strategies
driven by data and advanced analytics, compared
with 67% for other industries.

The media and entertainment sector ranks seventh in

There are more resources and commitment: lack
terms of overall advanced analytics maturity. It lags
of budget and other forms of organizational
especially in the operating model synapse, where it
commitment is an issue for 19% in the media
comes second to last.
industry compared with 39% for other industries.

THE INDUSTRY LAGS IN SOME

More collaboration at the top: lack of alignment
CRUCIAL AREAS:
among members of the management committee is
Fewer media and entertainment executives an issue for 39% in the media sector, compared with
believe that they have their fundamental advanced 44% for other industries.

48 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 The energy sector comes in in eighth place in
overall advanced analytics maturity rankings,
and hovers in the bottom half for all synapses.
Fewer energy companies have data and advanced
analytics strategy at the heart of their business
strategy (18% compared to 23% in other industries).

STUMBLING BLOCKS TO OVERCOME:

Energy executives need to aim higher. Just 14%

of energy executives want to apply advanced
analytics to transform business models compared
SECTOR with 20% for other industries.

Consistent methods and approaches for

ENERGY advanced analytics initiative design are always
used at just 8% of energy companies, compared
with 17% for other industries.
CURRENT RANKING PERFORMANCE TREND

8
Unclear responsibilities across functions when
TH +2 VS. 2015 designing advanced analytics initiatives are
a pain point for 50% of the energy sector,
compared with 37% for other industries.

THERE IS WILL TO IMPROVE:

SYNAPSE MATURITY
There is a desire to transform, with just 24%
ALL of energy executives saying that unwillingness
ENERGY
INDUSTRIES
to take on a major transformation is an issue,
Overall Synapse Maturity 62.7 60.3 compared with 33% for other industries.

Competitive Differentiation 13.1 12.9 Less fear of change: 18% of energy executives are
apprehensive that advanced analytics operating
Operating Model 14.0 13.6
model would disrupt existing models, compared
Initiative Design 12.7 11.8 with 24% of other industries.

Intervention Design 10.7 10.2

Measurement and Learning 12.3 11.8

THE WILL TO TRANSFORM, BUT ARE THE

GOALS MATURE ENOUGH?

HIGH STAKES, HIGH REWARDS, APPENDIX 1: INDUSTRY SCORE CARDS | 49

 The government sector comes in ninth overall,
except for the intervention design synapse, where
it places close to the top among all industries.

THE ROLE OF THE HUMAN ELEMENT:

At the intervention design synapse stage, when

insights derived from data and advanced analytics
are being translated into ‘actions,’ the sector relies
on purely human decision making more than any
other sector. The government sector relies on
SECTOR human thinking for 49% percent of intervention
design decisions, while the rest of decisions are

GOVERNMENT being made on the basis of automated systems, or

a mix of systems and humans. Forty percent of all
(FEDERAL, STATE, AND LOCAL) industries rely purely on humans.

Overall organization, culture and decision making

CURRENT RANKING PERFORMANCE TREND is based more on intuition than the insights
derived from data and advanced analytics at 56%

9 TH +2 2015 of government organizations compared with 49%

VS. for other industries.

AREAS IN NEED OF IMPROVEMENT:

Operating model suffers from the lack of advanced

SYNAPSE MATURITY analytics proficiency within many functions (35%
versus 26% for all industries).
ALL
GOVERNMENT
INDUSTRIES
Initiative design would benefit from more advanced
Overall Synapse Maturity 62.7 60.1
analytics capabilities, as the lack of people with
analytics skill sets to define an appropriate
Competitive Differentiation 13.1 12.0
approach to the problem is a bigger issue for the
Operating Model 14.0 13.5 government sector than it is for other industries
(50% versus 40%).
Initiative Design 12.7 12.2

Lack of budget and other forms of organizational

Intervention Design 10.7 11.0
commitment (53% in the government sector
Measurement and Learning 12.3 11.3 compared with 39% for other industries).

Lack of change management acumen is a challenge

for 38% of government organizations compared
with 27% in other industries.
MIXING HUMANS AND MACHINES

50 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

SECTOR analytics not historically being part of an operating
model is a challenge, compared with 24% of

CONSUMER executives from other industries.

PRODUCTS/RETAIL ROOM FOR IMPROVEMENT:

Only 13% of RCP executives believe that their

CURRENT RANKING PERFORMANCE TREND advanced analytics strategy is well established and
central to the overall business strategy, compared

10 TH -7 2015 with 23% for other industries.

VS.
Just 17% of RCP executives believe that advanced
analytics strategies are changing how they target
and segment customers, compared with 25% for
other industries.
SYNAPSE MATURITY

ALL CONSUMER
Advanced analytics are less impactful for strategy
INDUSTRIES PROD/RETAIL and innovation (18% for the RCP industry compared
with 29% for other industries).
Overall Synapse Maturity 62.7 58.4

Competitive Differentiation 13.1 12.2 During the initiative design stage, only 9% of
retail executives always use consistent methods,
Operating Model 14.0 13.4 compared with 17% for other industries.

Initiative Design 12.7 11.6

STRONG FOUNDATIONS:
Intervention Design 10.7 10.5
Organization design and interaction among various
Measurement and Learning 12.3 10.7 people while driving adoption and consumption
of the insights derived from data and advanced
analytics are less of a challenge in the RCP industry
(24% for the RCP industry and 32% for other
OLD HANDS, STRONG FOUNDATIONS,
industries).
ROOM FOR IMPROVEMENT
Fewer RCP executives doubt the accuracy,
trustworthiness or quality of data used for
The retail and consumer products industry (RCP)
advanced analytics (reported by 25% for the retail
comes in tenth among all industries in advanced
and consumer products industry compared with
analytics maturity. The industry is much stronger at
31% for other industries).
the Intervention Design synapse, where it ranks in the
middle of the pack. There are fewer challenges with the interaction
among various people and groups during the
LONGER EXPERIENCE:
initiative design stage (24% for the retail and
Advanced analytics is “nothing new” for RCP consumer products industry compared with 32%
executives. Just 14% of them say that advanced for other industries).

HIGH STAKES, HIGH REWARDS, APPENDIX 1: INDUSTRY SCORE CARDS | 51

SECTOR There is less appetite for a major transformation
that would result from strategies driven by data

AUTOMOTIVE and advanced analytics, as reported by 55% of

automotive companies versus 33% of all industries.

CURRENT RANKING PERFORMANCE TREND Lack of adoption and engagement by employees is

an issue for 38% of automotive companies, compared

11
with 25% for other industries.
TH * VS. 2015
*2015 data sample size was too
PAIN POINTS:
small for valid year-over-year
comparisons
Just 15% of the automotive industry executives
consider their advanced analytics strategy well
SYNAPSE MATURITY
established and central to the overall business
ALL strategy, compared with 23% for all industries.
AUTO
INDUSTRIES

Lack of consistent methods and processes when

Overall Synapse Maturity 62.7 58.4
designing advanced analytics initiatives is an issue
Competitive Differentiation 13.1 12.0 for 55% of automotive executives compared with
38% for other industries.
Operating Model 14.0 13.0

Fewer automotive executives apply data and

Initiative Design 12.7 11.9
advanced analytics at the beginning of designing
Intervention Design 10.7 10.6 their initiatives which affects how they develop
the actions that will be taken to realize value (13%
Measurement and Learning 12.3 10.9
for automotive compared with 22% for other
industries).

The insights derived from data and advanced

NEED TO CHANGE THE CULTURE THAT analytics are not well integrated into current
DRIVES THEM processes for 43% of the automotive industry
compared with 35% for other industries.

The automotive industry comes in last in the eleventh BRIGHT SPOTS ARE SCATTERED AMONG
spot for overall advanced analytics maturity and sits in the DIFFERENT AREAS:
bottom half of the ranking for all synapses.
Automotive executives have more trust in
data (just 15% express lack of trust in the data,
CULTURE IS THE TOP REASON FOR THE
compared with 23% for other industries).
CURRENT STATE-OF-PLAY:

Organization, culture and decision making is based Lack of people with advanced analytics skill sets to
more on intuition than the insights derived from data define an appropriate approach to the problem is
and advanced analytics for 64% of the automotive less of an issue for the automotive industry (30%)
industry, compared with 49% of other industries. than for other industries (40%).

52 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 APPENDIX 2

GEOGRAPHIC SCORE CARDS

The regional hierarchy in advanced analytics maturity has not changed since
last year, with Asia eking out a minuscule lead over the Americas. But all
regions still have far to go, as they are all hovering around the 60% mark on the
way to analytics maturity. Executives from around the world agree, as just 10%
to 11% of them believe they are market leaders in analytics.

The differences in scores for the regions are very narrow, much more so than
for the industries. Just like the industries, every region is challenged by the
same synapse: intervention design. And each region scores the highest for the
operating model.

DATA AND ADVANCED ANALYTICS MATURITY BY REGION

INDUSTRIES ALL REGIONS APAC AMERICAS EMEA

Overall Synapse Maturity 62.7 64.6 63.8 59.5

Competitive Differentiation 13.1 13.5 13.3 12.4

Operating Model 14.0 14.3 14.3 13.2

Initiative Design 12.7 13.2 12.8 11.9

Intervention Design 10.7 10.6 10.9 10.4

Measurement and Learning 12.3 13.0 12.4 11.6

HIGH STAKES, HIGH REWARDS, APPENDIX 2: GEOGRAPHIC SCORE CARDS | 53

 REST OF
APAC
WORLD

Exploring ways to sell data

49% 41%
to new customers
CURRENT RANKING REGION
Exploring ways to sell

1
analytics insights to new 48% 39%

ST APAC customers

Exploring ways to sell

analytics insights to existing 45% 39%
customers

APAC executives are also using more of the

DIGITAL TECHNOCRATS FOCUSED ON PROFIT
technologies of the fourth industrial revolution.
APAC once again comes in first in our advanced
analytics maturity rankings, though it lags behind
REST OF
the Americas slightly in intervention design. A APAC
WORLD
deeper dive into what drives the region shows its
strength in data monetization and use of the most
Artificial Intelligence 53% 37%
sophisticated technologies, but also reveals some
concern about data.
Natural Language
41% 28%
Processing

SYNAPSE MATURITY
Neural Networks 17% 13%
ALL
APAC
REGIONS

Competitive Differentiation 13.1 13.5

AREA OF CONCERN
Operating Model 14.0 14.3
The level of data governance in APAC is on par with
Initiative Design 12.7 13.2 other regions. In terms of data protection, more APAC
companies go beyond what is legally required, including
Intervention Design 10.7 10.6 seeking “brand permission” from their customers (62% in
APAC compared with 56% for other regions). But APAC
Measurement and Learning 12.3 13.0
executives are still more concerned about data than are
their counterparts in other regions.

AREA OF STRENGTH

Achieving revenue or profit growth from advanced REST OF

APAC
WORLD
analytics is a holy grail of digitization, and APAC
is closer to it than other regions. Sixty-six percent Data used for analytics is
not of high quality or not 35% 30%
of APAC executives attribute revenue growth trusted
of 7% or more to advanced analytics, compared
with 56% in other regions. Data monetization is a Capturing required data is
32% 29%
difficult/too costly
bigger focus here than in other regions.

54 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

 REST OF
AMERICAS
WORLD

Data and analytics are

impacting how we target 31% 22%
and segment customers
CURRENT RANKING REGION
Highly proficient in using

2
data and analytics in 37% 29%

ND AMERICAS customer service

Data and analytics are

changing how we fulfill 30% 24%
customer needs

MARKETERS WHO NEED TO EMBRACE AREA OF CONCERN

THE FOURTH INDUSTRIAL REVOLUTION The rest of the world has a slight lead over the
Americas in two very different areas. The first
For the second year, the Americas come in second
is challenges associated with the impact on the
in overall data and advanced analytics maturity. This
operating model and the organization as a whole of
holds true for all synapses except for intervention
transformation that many organizations are undergoing.
design, where the Americas have a tiny lead over
APAC. A deeper dive into the findings reveals that
REST OF
the Americas are strong at using advanced analytics AMERICAS
WORLD
for sales and marketing but weaker at change
Data and analytics would
management and the use of the most sophisticated disrupt our operating model 26% 23%
technologies. too much

SYNAPSE MATURITY Lack of change

28% 26%
management acumen
ALL
AMERICAS
REGIONS

Competitive Differentiation 13.1 13.3 The second, though proficient at IT overall, American
executives seem to be less prompt at fully embracing
Operating Model 14.0 14.3 some of the technologies of the fourth industrial
revolution:
Initiative Design 12.7 12.8

REST OF
Intervention Design 10.7 10.9 AMERICAS
WORLD

Measurement and Learning 12.3 12.4

Use Artificial Intelligence 37% 45%

AREA OF STRENGTH
Natural Language
More American executives say that they have a high 26% 36%
Processing
proficiency in using advanced analytics in marketing
(31% compared with 25% for the rest of the world) Neural Networks 13% 15%
and sales (34% compared with 24% for the rest of the
world).

HIGH STAKES, HIGH REWARDS, APPENDIX 2: GEOGRAPHIC SCORE CARDS | 55

 EMEA is also behind in advanced analytics proficiency
at all functions, as well as ability to use the insights to
better serve customers or to monetize data.

CURRENT RANKING REGION LOWER LEVEL OF DATA AND ANALYTICS

PROFICIENCY

3 RD EMEA REST OF
EMEA
WORLD

Data and analytics

proficiency in strategy and 20% 34%
EMEA comes in third for data and advanced innovation
analytics maturity, behind in the other regions in
Data and analytics
all synapses. But it is just three points behind the 20% 30%
proficiency in marketing
average, and five points behind APAC, the leader.
A deeper dive reveals that EMEA has challenges Data and analytics
20% 31%
with advanced analytics fundamentals that cascade proficiency in sales

down to its sales and marketing functions and data

monetization capabilities.
LESS IMPACT
SYNAPSE MATURITY
REST OF
EMEA
ALL WORLD
EMEA
REGIONS
Data and analytics has
completely changed how
Competitive Differentiation 13.1 12.4 15% 29%
we target and segment
customers
Operating Model 14.0 13.2
Data and analytics affecting
the actual products or 18% 23%
Initiative Design 12.7 11.9 service being offered
Data and analytics is
Intervention Design 10.7 10.4
changing how we think
21% 29%
about satisfying customer
Measurement and Learning 12.3 11.6 needs

ROOM FOR IMPROVEMENT FEWER METHODS OF MONETIZATION

Only 16% of EMEA executives say that advanced REST OF

EMEA
analytics is well established and central to the WORLD

overall business strategy, compared with 26% for

Exploring ways to sell data
other regions. And just 13% see advanced analytics 26% 33%
to existing customers
impacting business strategy and being a source of
Exploring ways to combine
competitive differentiation, compared with 19% for
our data and analytics with
other regions. 24% 31%
partners to develop new
products and services

56 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

ABOUT EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and
quality services we deliver help build trust and confidence in the capital markets and in
economies the world over. We develop outstanding leaders who team to deliver on our
promises to all of our stakeholders. In so doing, we play a critical role in building a better
working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms
of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young
Global Limited, a UK company limited by guarantee, does not provide services to clients.
For more information about our organization, please visit ey.com.

© 2017 EYGM Limited. All Rights Reserved.

EYG no. 01096-163GBL

This material has been prepared for general informational purposes only and is not intended to be
relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific
advice.

The views of third parties set out in this publication are not necessarily the views of the global EY
organization or its member firms. Moreover, they should be viewed in the context of the time they
were made.
ABOUT FORBES INSIGHTS

Forbes Insights is the strategic research and thought leadership practice of Forbes Media, publisher
of Forbes magazine and Forbes.com, whose combined media properties reach nearly 75 million
business decision makers worldwide on a monthly basis. Taking advantage of a proprietary
database of senior-level executives in the Forbes community, Forbes Insights conducts research
on a host of topics of interest to C-level executives, senior marketing professionals, small business
owners and those who aspire to positions of leadership, as well as providing deep insights into
issues and trends surrounding wealth creation and wealth management.

Bruce Rogers RESEARCH

CHIEF INSIGHTS OFFICER
Ross Gagnon DIRECTOR
Erika Maguire
Kimberly Kurata SENIOR RESEARCH ANALYST
PROGRAM DIRECTOR
Sara Chin RESEARCH ANALYST
Andrea Nishi
PROJECT MANAGER SALES

EDITORIAL North America

Brian McLeod EXECUTIVE DIRECTOR
Kasia Wandycz Moreno DIRECTOR
[email protected]
Hugo S. Moreno DIRECTOR
Matthew Muszala MANAGER
Alan Joch and Kasia Wandycz Moreno [email protected]
REPORT AUTHORS
William Thompson MANAGER
DDD Infographic DESIGNER [email protected]

EMEA
Tibor Fuchsel MANAGER
[email protected]

499 Washington Blvd. Jersey City, NJ 07310 | 212.367.2662 | www.forbes.com/forbesinsights