NEW YORK: Brand owners are missing out on substantial sources of revenue by failing to exploit big data, research from Oracle has shown.
The technology group polled 333 senior executives in North America, and found 94% of firms are collecting and managing more business information than two years ago. The volume of material has also grown by 86% on average.
However, 93% of the sample said their organisation was being denied the chance of new revenue growth because of an inability to gather the appropriate insights, with returns equivalent to 14% of annual sales typically being lost, as an estimate.
This figure stood at 19% for consumer goods firms, versus 17% for airlines, 15% for healthcare groups, 12% for financial services providers and 10% for communications companies and retailers.
Among the primary hurdles to progress have been inadequate data collection systems on 38%, a lack of access to information on 36%, and the absence of industry-specific tools on 29%.
Overall, 48% of interviewees said customer information had seen the largest increase in data activity in the last two years, reaching 34% for operations and 33% for sales and marketing.
However, despite the fact 67% of corporations view tapping such material as a priority, 60% were not prepared for the "data deluge", awarding themselves a score of six out of ten or less here.
"They have low confidence in their organisation's data management capabilities," Rod Johnson, Oracle's vice president of industries strategy, said.
In further demonstration of this, only 8% of enterprises gave themselves an "A" grade when assessing their capabilities.
Communications firms were the most confident, with 20% believing they are fully ready for this shift. By contrast, 40% of healthcare specialists did not think they were even half way along the same journey.
Ratings on this measure hit 39% for utilities providers, 34% for manufacturing experts, 31% for air carriers, 30% for retailers and 25% for financial services firms. Consumer goods groups, however, logged just 7%.
The main obstacle to progress was translating information into actionable intelligence, with 48% of companies falling short, as were 47% for distributing timely insights.
Data sourced from Oracle; additional content by Warc staff