Digital is the new reality. Digital transformation is disrupting the way we live and work—and crucially, the ability of your business to survive in the digital age. According to International Data Corporation (IDC), by 2020, the proportion of organizations that will have deployed digital-platform strategies will have more than doubled, to over 60%.
But data-driven decision-making is no longer enough. Today’s organizations must adapt or die—and survival requires a new kind of business. Best-in-class organizations are maturing from a data-driven approach to decision-making to an insights-driven one.
According to John Chambers, former executive chairman of Cisco Systems, “At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies.”
“A new kind of company”
Businesses that provide people with insight to make better decisions will disrupt and deliver growth and innovation. SAP commissioned global research consultant Forrester to research and develop thought leadership strategies focused on bridging the gap between data-driven and insights-driven organizations.
According to Forrester, insights-driven businesses:
- Create models derived from insight and application through software, with systematic processes to capture insight.
- Embrace the idea that true insights are actionable, not pieces of information provided by their data. That information becomes insight when it is used to inform business decisions and processes.
On completing the research, Forrester concluded that a “new kind of company has formed”—that of the insights-driven business: “Insights-driven businesses are growing at an average of 30% annually, and are on track to earn $1.8 trillion by 2021.”
More data, more insight?
Your organization, like many today, may feel like it’s drowning in data—but how much of that data provides insight you can use? Data analysis is behind the majority of businesses decisions, but more leverage of data is vital to compete effectively. In my experience, too many enterprises gather huge volumes of data yet fail to capitalize on the information readily available to them. And that’s often due to fragmentation within their technology or organization as a whole.
The good news is that central, agile data warehousing helps to speed up processes and provide trusted, actionable insights.
A three-step process to better decision-making
An ideal data warehousing solution delivers a three-step process to bridging the data insights gap:
- Simplifies the provision of timely business insights. Data is managed efficiently and with agility, while live and immediate insights are deployed at scale, on-premise, or in the cloud.
- Capitalizes on the full value of the data available. Inconsistent data quality and disparate data sources hinder the best efforts to make sense of ever-increasing amounts of data that are generated each day. With 360° insights across line-of-business applications, the digitalization of the business can be driven with a true Big Data warehouse.
- Innovates with one trusted source for all insights. Business adoption is maximized with modern analytics that deliver analytical applications tailored to the unique requirements of your organization. Business strategy is transformed with both integrated and automated machine learning, providing actionable and trusted insights.
Data silos are also disrupted with enterprise data warehousing, ensuring that all data is interpreted within the context of your overall business strategy. Effective business decisions cannot be made in isolation, and the elimination of silos ensures that transactional data is placed into business context. Big Data warehouses are designed to break down those silos and set standard rules for the capture and analysis of your data.
Reimagining your business with enterprise data warehousing
With an enterprise data warehouse and embedded analytics, users can perform real-time process analytics and reporting on live data to enable insights-driven leadership and innovation.
To learn more, download the new SAP-commissioned thought leadership study from Forrester Consulting: “How To Become An Insights-Driven Business.”
Watch this on-demand SAP Webinar, where you’ll hear insights from experts from Forrester Consulting, Valvoline, and SAP.
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This blog was adapted from Why Insights-Driven Businesses Are the Future-And How SAP BW/4HANA Fits In on the SAP Analytics blog.