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Executive Summary:

The tone of corporate conversations about big data continues to shift from initial excitement to expecting long-term business impact.

Over the past four years, executives have not only become better educated about the technology behind big data, but have fully embraced the relevance of data to their corporate strategy and competitive success. It could be said that most companies are experiencing their “data adolescence”, increasingly rising to the challenge of executing and delivering against the promise and potential of big data.

What are the hallmarks of this current stage of evolution, and what does the path to “data adulthood” look like from here?

In February 2015, the Economist Intelligence Unit (EIU) conducted a global survey of 550 senior executives sponsored by SAS, to follow up on our 2011 and 2012 executive surveys. By comparing the results, we were able to examine the evolution of companies’ views, capabilities and practices regarding big data as a corporate asset, and explore the future implications as companies continue to mature as strategic data managers.

Additionally, we conducted six in-depth interviews with leading corporate big data thought leaders and practitioners. Two of these interviews revisited specific big data–related issues these companies faced beginning in 2011.

Key highlights of the research include the following:

· Since 2011, a significantly larger proportion of companies have come to regard and manage data as a strategic corporate asset. The ranks of companies with well-defined data-management strategies that focus on identifying and analyzing the most valuable data (referred to here as “strategic data managers”) have swollen impressively since 2011. No longer indiscriminate data collectors or wasters, companies are entering a period when the initial excitement over the possibilities presented by big data gives way to the need to prioritize and develop on data initiatives with the biggest payoff. More companies have ventured further into this stage of their data evolution, and their executives are more likely to feel that they are better at making good, fact-based business use of their information.

· Strategic data management is correlated with strong financial performance. Our survey points to a clear correlation between managing data strategically and achieving financial success. Companies with a well-defined data strategy are much more likely to report that they financially outperform their competitors. In addition, they are more likely to be successful in executing their data initiatives and effectively applying their data and analytics to resolve real and relevant business problems.

· Data-strategy ownership has been elevated and centralised, while engagement and demand from the business is at an all-time high. Across industries, data strategy has been elevated and centralised to the C-level, most often with the CIO/ CTO or the newly minted chief data officer (CDO) role. At the same time, senior executives across functions and business units are increasingly in the driver’s seat of their data initiatives, and not just relying on IT leadership to design and execute them.

· Data initiatives have moved from theoretical possibilities to focus on solving real and pressing business problems. Companies approach data initiatives today with a clear focus on their purpose—putting business value first. They are much more likely to start by articulating and finding a consensus on the high-priority business problems the organisation will solve by leveraging its data assets. Financial resources available for big data initiatives remain scarce, so there is a pronounced need to prioritize which initiatives to invest in, as well as how to demonstrate the financial return on these investments.

· Technical challenges associated with quality, quantity and security persist. Even top performers continue to struggle with a number of technical aspects of big data. These foundational aspects of data management still drown out the more advanced, higher-value-add aspects of data management, such as governance, compliance and converting data into actionable insights.

· The future of big data is less about volume and velocity, and more about the value that the business can extract from it. Going forward, companies will have to shift their attention away from the “bigness” of big data and focus on its business value. Data and analytics will be increasingly applied to predict future outcomes and automate decisions and actions. Most importantly, many companies will have to continue to evolve their structure and culture to scale up successful data pilots across the entire organisation. This means becoming more comfortable with approximation, agility and experimentation, and reinventing themselves into a new kind of information-driven, data-centric business—closer to data adulthood.

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