High-Growth Firms Make Better Strategic Use of Data, According to the Economist Intelligence Unit Survey

High-Growth Firms Make Better Strategic Use of Data, According to the 
Economist Intelligence Unit Survey 
Research Also finds CFOs are Cautious About the Strategic Power of Data, But 
See Themselves Leading Data Initiatives 
ORLANDO, FL and BANGALORE, India, April 29, 2013 /CNW/ - A new study by the 
Economist Intelligence Unit finds a relationship between the growth of 
corporate earnings and companies' use of data in strategic planning and 
decision-making. A survey of 318 C-level executives finds that while all 
companies are collecting more data than ever before, those from companies 
where average EBITDA growth over the past three financial years has exceeded 
10% are more likely than their less rapidly growing peers to analyse various 
data sources they collect (eg 58% vs 43%, with reference to third-party data) 
and to consider themselves effective at extracting useful insights from this 
analysis (81% vs 57%). Furthermore, they are also far more likely to have to 
have changed the way they handle strategic decisions as a result of having 
more data (50% vs 36%), and to have seen improved strategic decision-making as 
a result of better data analysis (60% vs 38%). 
(Logo: http://photos.prnewswire.com/prnh/20121129/579804) 
These are among the major findings of The data directive: How data is driving 
corporate strategy-and what still lies ahead, a new report from the Economist 
Intelligence Unit, commissioned by Wipro. The report seeks to examine the 
progress that executives have made in using information to transform their 
businesses. While highlighting some of the striking gains that are being 
achieved so far, it also uncovers how much work remains to be done in terms of 
making use of the transformational potential of data for business strategy. 
"This research is a reflection of how organizations are leveraging data to 
sustain its competitive advantage for its products/services and be relevant in 
future. Leveraging the power of analytics, organizations can from prop up 
their key performance indicators -drive growth, enhance cost management and 
strengthen risk management," said K R Sanjiv, Senior Vice President and Global 
Head, Analytics and Information Management Services, Wipro Ltd. 
Key findings of the main report include: 


    --  Data has proved most valuable so far for marketing leaders.
        >From better ways to segment the customer base, to rethinking
        the ideal product mix in a retail store, marketing leaders are
        finding wide-ranging uses for their data to help improve how
        they market their company's wares. Already, 50% of chief
        marketing officers say they have tried and found a clear,
        positive difference in using data to improve their
        understanding of customers, as just one of a range of
        successful applications. This is a markedly higher proportion
        than their C-suite peers.
    --  The financial services sector, technology companies, and
        professional services firms are most prepared for the data age.
        Three sectors stand out as being most prepared for the data
        age: the financial services sector (where 22% have a
        well-defined data management strategy in place); the technology
        industry (30%); and the professional services sector (40%). By
        contrast, such data management strategies are least often found
        amongst manufacturers (16%) and retailers (13%).
    --  Businesses are stockpiling an ever-growing range of data and
        expect data gathering to continue to expand rapidly. Whether
        social media sentiment, machine-generated data via sensors,
        staff emails, market data or otherwise, firms of all shapes and
        sizes are now collecting more information than ever before. At
        least seven in ten companies collect syndicated third-party
        data, such as weather information (72%), or government data
        (70%), while many gather anything from internal staff data
        (66%) to some kind of location-based information (41%), among
        many other types. Two-thirds of business leaders say the range
        and types of data have expanded in the past two years, while
        about three-quarters expect this data stockpiling to expand yet
        further in the coming two years.
    --  Working out which data matters most is the top challenge for
        firms. For companies seeking to gain more strategic insights
        from their data, many hurdles await. Whether organisational
        silos, a lack of skills, the usual disconnect between IT and
        the business, or worries over data quality, few consider the
        challenges and gaps easy to bridge. But clarity on which data
        matters most, amidst the data stockpiling now under way, is
        what tops the list of barriers, according to 40% of
        respondents. Furthermore, 34% of executives worry that the
        quality of their decisions is actually being impaired by data
        overload.
    --  Many companies are unsure about the extent of data-fuelled
        strategic transformation within their business. While 68% of
        respondents think their strategy has improved in the past two
        years as a result of having more data, only 18% see a
        significant improvement in strategy, and few have found ways to
        use data to make a genuinely transformational shift in the
        business. Some 35% of executives agree that data has been more
        useful with operational choices and actions, rather than
        strategic ones. Just 22% disagree, while 41% are unsure.

A supplement to this report, The data directive: Focus on the CFO, is also 
released today. This paper drills down into the 62 responses to the survey by 
chief financial officers. The key findings of this supplement include:
    --  CFOs identify improved scenario planning and forecasting as the
        key area where having more data has made the biggest positive
        difference to their role, identified by 40%. Furthermore, 34%
        have improved financial close management, and 32% have used
        data to bolster profitability.
    --  CFOs are more cautious than their C-suite peers about the
        strategic insights data has delivered: just 24% believe that
        their company's strategic planning is highly data-driven
        compared to 35% of CEOs and 43% of CMOs. Similarly, whereas
        relatively high proportions of CEOs (48%), CIOs (40%) and CMOs
        (33%) believe that their company has changed the way they
        tackle strategic business decisions as a result of having more
        data, fewer CFOs (24%) believe this is the case.
    --  CFOs are more likely than their C-suite peers to see themselves
        as leaders of data initiatives. When asked who currently takes
        the lead on data-related initiatives within the business, an
        equal proportion of CFOs (27%) flagged both themselves and
        their CIO. Their C-suite peers are more likely to cite the CIO
        as the natural point person on such initiatives, followed by a
        range of other corporate officers.

The data directive: How data is driving corporate strategy-and what still lies 
ahead, and The data directive: Focus on the CFO are available free of charge 
at:

http://www.wipro.com/the-data-directive/index.html

About Wipro Ltd.

Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and 
Outsourcing company that delivers solutions to enable its clients do business 
better. Wipro delivers winning business outcomes through its deep industry 
experience and a 360 degree view of "Business through Technology"; helping 
clients create successful and adaptive businesses. A company recognized 
globally for its comprehensive portfolio of services, a practitioner's 
approach to delivering innovation and an organization wide commitment to 
sustainability; Wipro has over 140,000 employees and clients across 54 
countries. For more information, please visit http://www.wipro.com.

About the Economist Intelligence Unit

The Economist Intelligence Unit (EIU) is the world's leading resource for 
economic and business research, forecasting and analysis. It provides accurate 
and impartial intelligence for companies, government agencies, financial 
institutions and academic organisations around the globe, inspiring business 
leaders to act with confidence since 1946. EIU products include its flagship 
Country Reports service, providing political and economic analysis for 195 
countries, and a portfolio of subscription-based data and forecasting 
services. The company also undertakes bespoke research and analysis projects 
on individual markets and business sectors. More information is available at 
http://www.eiu.com or follow us on http://www.twitter.com/theeiu

The EIU is headquartered in London, UK, with offices in more than 40 cities 
and a network of some 650 country experts and analysts worldwide. It operates 
independently as the business-to-business arm of The Economist Group, the 
leading source of analysis on international business and world affairs.

Forward-looking and Cautionary Statements

Certain statements in this release concerning our future growth prospects are 
forward-looking statements, which involve a number of risks, and uncertainties 
that could cause actual results to differ materially from those in such 
forward-looking statements. The risks and uncertainties relating to these 
statements include, but are not limited to, risks and uncertainties regarding 
fluctuations in our earnings, revenue and profits, our ability to generate and 
manage growth, intense competition in IT services, our ability to maintain our 
cost advantage, wage increases in India, our ability to attract and retain 
highly skilled professionals, time and cost overruns on fixed-price, 
fixed-time frame contracts, client concentration, restrictions on immigration, 
our ability to manage our international operations, reduced demand for 
technology in our key focus areas, disruptions in telecommunication networks, 
our ability to successfully complete and integrate potential acquisitions, 
liability for damages on our service contracts, the success of the companies 
in which we make strategic investments, withdrawal of fiscal governmental 
incentives, political instability, war, legal restrictions on raising capital 
or acquiring companies outside India, unauthorized use of our intellectual 
property, and general economic conditions affecting our business and industry. 
Additional risks that could affect our future operating results are more fully 
described in our filings with the United States Securities and Exchange 
Commission. These filings are available at http://www.sec.gov. We may, from 
time to time, make additional written and oral forward-looking statements, 
including statements contained in the company's filings with the Securities 
and Exchange Commission and our reports to shareholders. We do not undertake 
to update any forward-looking statement that may be made from time to time by 
us or on our behalf.

Media Contacts:

Wipro Ltd. Dirk Lewis Wipro Technologies +91-7760983976 dirk.lewis@wipro.com

US:

Eric Belove Wipro Ltd. +1-732-216-6242 eric.belove@wipro.com

UK:

Rahul Kadavakolu Wipro Ltd. +44-(0)7920-205496 rahul.kadavakolu@wipro.com

The Economist Intelligence Unit David Line Managing Editor +852-2585-3873 
davidline@economist.com

Joanne McKenna Press Liaison +44-(0)20-7576-8188 joannemckenna@eiu.com

SOURCE: Wipro Technologies

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CO: Wipro Technologies
ST: Florida
NI: ECO ECOSURV 

-0- Apr/29/2013 17:14 GMT


 
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