Most Australian organisations have low levels of “data maturity”, leaving millions of dollars on the table, according to Deloitte research commissioned by Amazon. But the consultants say data will drive a new wave of digital transformations and some local organisations are reporting data maturity is already improving their bottom line.
93 per cent of ANZ businesses have invested in data analytics tools or software in the past year, according to an AWS survey of 275 businesses with 100 or more employees. But 60 per cent identified as having only a “basic” or “beginner” level of data maturity.
Just 15 per cent say they have an advanced or master level.
Deloitte, which conducted the research for AWS’s the Demystifying Data report released today, says moving up each of the five rungs of data maturity translates to around 10 per cent in additional revenue each year.
“If organisations do that [increase data maturity] over three or four years, you can see very quickly how being a data driven organisation can really make you grow in a way that businesses won’t have experienced in the past,” said John O’Mahony, Partner at Deloitte Access Economics.
Data for dollars
AWS customers Belong and NIB spoke today about how data had generated outcomes for their businesses.
Belong chief digital officer, Natalie Field said the telco breaks down its P&L into “recipes” to understand how employees and programs contribute to business outcomes. In practice it means Belong uses data to ensure network stability and improve customer experience.
“We are an essential service,” Field told Which-50. “Customers don’t really want to have to ever talk to us, they just want a service that works.”
Field says the telco analyses data on customer satisfaction alongside network stability, linking the information to company revenue.
NIB Group chief information officer Brendan Mills said the insurance provider is using data to improve its digital experiences and has been able to link them to increased revenue. Analysing web data like user behaviour on websites shows NIB’s investments in digital experiences like an AI chatbot and easier signups has improved the bottom line.
“Certainly a lot of our investment that we make in our digital assets now is driven by that data and we’ve seen a very significant increase in revenue and therefore conversion of our web assets … over the last 12 months but probably longer,” Mills told Which-50 today.
“And that’s really been on the back of using that data to really understand user behaviour and drive better decision making.”
Deloitte’s O’Mahony argues even minor advances in data maturity can kickstart digital transformation and, in a time of economic uncertainty, open up revenue streams.
“We really do believe that data is the next big wave of digital transformation in this country. We’ve experienced a very quick acceleration, I think, in digital use during the COVID-19 period.”
O’Mahony says trends like shoppers flocking online during the pandemic means almost all businesses will be collecting much more data than ever before.
“We really do think that after the rapid uptake we’ve seen in cloud in the last few years, that the next waves – use of data insights inside businesses – is the next big thing.”