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Investors Want Clearer Data Analytics Strategies

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invby Angela Guess

George Leopold recently wrote in Datanami, “Institutional investors and financial market analysts are bullish about the value of data analytics, according to a recent survey by financial advisor KPMG, but are still waiting to see how it can create a competitive advantage for early adopters. Data and analytics ‘will indeed alter the competitive landscape—rewarding some companies and punishing others—especially in the longer term,’ concluded Bradley Fisher, U.S. leader for data and analytics at KPMG and a partner in the firm. ‘Investors and analysts see greatest opportunity for companies to use [data and analytics] to improve operating performance, along with topline growth and product innovation’.”

Leopold goes on, “The survey of 260 investors and ‘sell-side’ market analysts, mostly in the U.S., found that nearly one-quarter had over the past year revised an investment opinion and, with it, a company valuation based on its big data strategy. That sentiment is expected to jump 45 percent over the next two years as investors become more likely to attach greater value to companies with clear big data strategies, KPMG reported. The study also came with a caveat: ‘What seems to be missing, say study participants, is a close integration of data and analytics into companies’ broader business strategies—and also clear and concise explanations of this integration,’ Fisher noted. Only 40 percent of respondents said companies they track offered a clear explanation of their big data strategy. Thirty-seven percent said companies they track do a poor job of explaining their data analytics plans while 23 percent don’t even make an effort, the survey found.”

Read more here.

photo credit: Flickr/ Orkla

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