Data analytics has prompted great changes in business decision-making, but there’s a hitch.
Many companies limit analytics to ad hoc initiatives or one-off actions, according to the latest McKinsey Global Survey.
“Companies still dragging their feet do so at their own risk, because the gap between leaders and laggards just keeps growing,” the report states. Companies with the greatest overall growth in revenue and earnings receive a significant proportion of that boost from data and analytics, it adds.
Respondents from these high-performing organizations are three times more likely than others to say their data and analytics initiatives have contributed at least 20% to earnings before interest and taxes (EBIT) over the past three years.