An increasingly connected society generates a lot of data, especially when considering social networks and the Internet of Things. As such, data analytics continues to be one of the fastest growing technology sectors, as businesses try to wean actionable information from these massive amounts of Big Data. Even taking into account its still emerging popularity, some executives simply don’t trust analytics.
Let’s take a closer look at why some technology decision makers are still wary of data analytics. Do they know something the rest of the industry doesn’t?
Some Business Leaders Trust Instincts and Experience Over Analytics
Forrester Consulting recently surveyed over two-thousand decision makers responsible for data analytics. Sixty percent of the survey respondents reported they don’t trust what analytics tells them about their business or customers. Only 10 percent feel their organization properly manages the quality of their data analytics processes, while only 16 percent feel their firm does a good job devising analytical models.
Christian Rast, chief of Data and Analytics with KPMG in Germany, commented on the importance of trusting what the data reveals and developing quality models. “As analytics increasingly drive the decisions that affect us as individuals, as businesses and as societies, there must be a heightened focus on ensuring the highest level of trust in the data, the analytics and the controls that generate desired outcomes. Organizations that continue to invest in D&A without determining its effectiveness could likely make decisions based on inaccurate models, which would perpetuate a cycle of mistrust in the insights,” said Rast.
It is obvious many executives feel their own experience and gut feelings hold more weight than the output of a recent technology innovation. The survey reported higher trust levels earlier in the data analytics process, but not at the most important point – making decisions based on any actionable findings. Building this trust is the key in enterprises gaining a return on their investment in analytics.
How to Build Trust in Data and Analytics
Rast feels organizations must assess where the trust is lacking in data analytics, followed by defining the goals to be achieved by the system. Raising awareness and developing a transparent internal culture around the analytics process helps executives gain confidence. “To be a competitive, D&A-driven organization, business leaders must navigate the complex processes, systems, compliance requirements and governance to confidently and consistently move from insights to measurable action,” said Rast.
When your organization needs additional insights on building a great technology organization, talk to the experts at MindFinders. One of the top IT staffing agencies in the Washington, DC area, we know how to help you become more successful. Connect with us soon!
Written by Tim Booker, President and CEO of MindFinders, with over 20 years of industry experience.