Information Economics Video 5 - Gain the information advantage
Businesses can make huge gains by extracting value from data to achieve a
competitive advantage. These gains can come from IT costs reduction, improved customer service, product innovation and other revenue opportunities.
To measure the awareness and level of priority given to deriving value from information in organisations, PwC and Iron Mountain have created the Information Value Index. The information shows that only 4% of companies are part of the information elite, scoring over 90%.
However, as many as 83% of companies surveyed, see return on information as a priority. But 36% are committed to a company-wide information management strategy, and 43% of businesses have no plans to improve value extraction—mistakenly thinking it’s already happening.
It seems a return on information is being held back by a lack of data analytics and data architecture skills, with only 38% of organisations using analytics to drive increase information revenue through improved products and service delivery.
A further 36% have little or no understanding of the value and advantages their data holds. And there’s still an enormous over-reliance on Microsoft Excel for data manipulation, rather than innovative software tools.
The most successful companies, part of the ‘Information Elite,’ have C-Suite execs with specific responsibility for extracting value from information. And in those organisations, the entire company takes responsibility for information management, making it an intrinsic part of the business culture. Only then can information risk and value be effectively balanced, delivering coherence, confidence and competitive advantage.
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