What are the Benefits of Data for Businesses? Survey Results

Data analytics can support a wide range of business interests. This is noted in a Deloitte survey report titled *The Analytics Advantage*.

"In today's complex business environment, data analytics plays a vital role as a source of decision-making for executives, especially those managing large companies," said the Deloitte team in their report.

In 2012, Deloitte surveyed representatives from 75 companies across North America, Asia, and the UK. The survey results were supplemented by in-depth interviews with senior executives from 35 companies.

The results showed that almost half of the respondents (49%) stated that data analytics is a key factor in making better business decisions.

Other respondents believed data analytics could support better strategic initiatives (16%), and help strengthen relationships with customers and business partners (10%).

Some also considered data analytics could help companies identify risks and respond to changes in economic conditions (9%), improve financial performance (9%), respond to market trends (5%), and design new products and revenue models for the company (1%).

"Senior executives recognize that good data can lead to good decisions, if captured, analyzed, communicated, and acted upon in a timely and efficient manner," said the Deloitte team.

"The results of data analytics can be applied in many areas. However, the best financial gains typically come from marketing and customer-oriented applications," they continued.

Despite its many benefits, not all companies can utilize data effectively.

The majority of respondents (32%) stated that the main obstacle is the lack of a centralized approach to collecting and analyzing data for the benefit of the company.

Other respondents admitted that their companies lacked the appropriate technology and infrastructure (23%), company leaders did not understand the use of data analytics (12%), and there was a shortage of workers proficient in the field (10%).