Adam Gartenberg's Blog

Business Analytics and Optimization, IBM and Social Marketing

Study: Half of organizations can’t connect the dots

Along with the launch of the Business Analytics and Optimization service line today, IBM Global Business Services and the IBM Institute for Business Value have released the results of a study that highlight why it is so important that companies focus on making better use of their information and on aligning it with their business objectives (in other words, on taking advantage of New Intelligence).

The report, titled Business Analytics and Optimization for the Intelligent Enterprise (pdf), highlights the result of a survey of 225 business leaders from around the world.  What they found is not necessarily surprising (especially for those of you living and working in a Dilbert world), but seeing it in black and white is alarming, nonetheless.  

One in three executives admitted that they make major decisions based incomplete information or information that they don't trust, while one in two organizations neither connect the dots internally nor shares much with external partners and suppliers (as highlighted below).

But there is opportunity in these numbers, too.  In looking at which responses came from companies that outperformed their peers, the study found that companies that outperformed their peers were twice as likely to be able to extract and prioritize relevant information, and while early adopters of new analytic solutions were three times as likely to be able to apply information to understand risk as peers that had not thought about these solutions.

As summed up in the report:

For the intelligent enterprise, the new reality is this: personal experience and insight are no longer sufficient. New analytics capabilities are needed to make better decisions, and, over time, these experiences will even inform and hone our gut, or instinctive, responses. Making analytics core to our thinking is the only way we can really get smarter, so doing so is an imperative not an option. The information explosion has permanently changed the way we experience the world: everyone – and everything – is leaving real-time data tracks. Intelligence is now increasingly embedded in objects, and individuals have become market segments of one.