With global data expected grow by more than 470% by 2020, a new report by S_HIFT explores both the lack of preparedness and growth opportunities facing businesses in the region.
HONG KONG – S_HIFT, the partnership between Ogilvy & Mather Asia Pacific, IDC Asia Pacific, and DHR International, formed to help clients tackle the complexities of digital disruption, have released their second report on Digital Transformation (DX).
The report, titled “The coming explosive growth of data and information, are you ready?” is based on findings from IDC’s Information DX Maturity Scape Benchmark 2016 Survey. To view the full report, visit: www.ShiftDX.com
According to the report, the advent of the internet of things (IOT), will drive data growth exponentially. Today there are 3.2 billion internet users generating data, but by 2020 global data will grow 470%, fuelled by 30 billion connected sensors, devices and machines each generating their own data.
Information DX is the way in which organisations will extract, develop and realise this information. In an age of data abundance, organisations need to advance how they process and use information, capitalising on information as a competitive advantage.
The report predicts that by 2018, 65% of large enterprises will have committed to becoming information-based companies. Yet according to IDCs survey only 6% of companies are ready for this transformation.
What is holding companies back? Artificial Intelligence (AI) and next generation big data solutions are improving data extraction, however more than 2/3 of data collected is either not analysed or analysed in isolation.
The benefits for companies looking to improve their information capabilities and data management are vast, including fact based decision making, personalised customer experience and cost efficiencies. In addition, it opens the door for information monetisation with information based products and services expected to increasingly drive new avenues of revenue growth in the future. At present 21% of organisations in Asia are considering data monetisation opportunities, however nearly 1/3 of these have little to no capability to execute.
The report defines 5 stages of information DX maturity and concludes that only 6% of APAC organisations are in the 2 most advanced stages. 45% of APAC organisations still sit in the first stage of Information DX maturity, with information siloed and data manually aggregated. This approach drives inward looking decision making and lack of responsiveness to developments in market.
The report also highlights the critical success factors underlying the success of the Information DX journey:
The right technology
The extent and quantity of data available today means that organisations must think of a totally different scale for data processing. Sourcing the right technology supplier to aid this process is essential.
Sponsorship from senior leadership
To elevate information capability as a holistic company-wide initiative to drive competitive advantage, not an “IT issue”.
Starting with a strong foundation
Modernised information architecture is the cornerstone of effective information transformation.
