Published on November 8, 2023, 11:06 pm

Business leaders in the Asia Pacific and Japan region are displaying a disconnect between their recognition of the value of data and their actual utilization of it in decision-making processes. This finding comes from a global survey conducted by Salesforce in collaboration with YouGov. The survey reveals that 73% of senior business executives in APJ agree that data helps reduce uncertainty and facilitates more accurate decision-making. However, the study also found that nearly 7 out of 10 (69%) business leaders do not utilize data to make pricing decisions based on economic conditions like inflation. Additionally, only 30% incorporate data into their strategy when entering new markets.

JY Pook, Senior Vice President and General Manager at Tableau, commented on these findings by emphasizing the need for business leaders to go beyond recognizing the value of data and take action to foster a data-driven culture within their organizations. Pook stated, “The onus is on leaders to operationalize company-wide data skills training across every role and rank to build a knowledgeable workforce that can uncover new opportunities while ensuring the business’s competitive advantage.”

The survey, named “Untapped Data Research,” was carried out in September 2022 and involved 4,295 respondents from various APJ countries such as Australia, India, Japan, and Singapore.

The study also highlights missed opportunities for businesses to leverage their data effectively:

– More than three-quarters (77%) of business leaders do not use data to inform their diversity and inclusion policies.
– Only 18% of business leaders incorporate data into guiding their climate targets.

Another key insight from the survey is that many APJ business leaders feel overwhelmed by the abundance of available data; they lack a comprehensive understanding of how to operationalize it effectively or generate meaningful insights from it. Approximately 41% cited complexity or limited accessibility as reasons for this lack of understanding, while over a third (36%) admitted they struggle with extracting insights from data. Furthermore, almost one-third (29%) of respondents expressed being overwhelmed by the continuously growing volume of data, which is projected to double in size by 2026.

To address these challenges, 74% of companies in the APJ region are planning to increase or maintain their investments in data skills development and training for employees. Pook suggests that data literacy training could establish a data culture that supports business objectives and enhances resilience during economically challenging times.

Pook further emphasizes the significance of data-driven decision-making, especially amidst uncertain market conditions. He states, “Good decisions start with data. As inflation and growing challenges in the external environment cast a dark shadow over markets, our research has shown how data-driven organizations are in a better position to drive smarter, faster decisions to solve today’s most pressing challenges.”

When used correctly and integrated strategically, the survey reveals that data has tremendous potential for building efficiency and trust among customers and employees:

– 71% of business leaders believe that data keeps individuals focused on relevant aspects of the business.
– Three-quarters (75%) agree that data accelerates decision-making processes.
– 72% recognize that data builds trust during business conversations.
– 67% believe that data helps minimize personal opinions or egos’ influence during discussions.

Sompo Holdings (Asia), an insurance company that leverages Tableau within its organization, shared its experience using data to enhance decision-making. Aditya Tibrewala, Chief Consumer Officer at Sompo Holdings (Asia), explained how Tableau has democratized access to data across their organization and fostered a culture of curiosity and collaboration. By having clear visibility into vital datasets, they can make informed pricing decisions, improve customer experiences, and drive growth. For example, by analyzing past claims data, their motor claims team identified opportunities for efficiency improvement resulting in a 20% reduction in turnaround time for some claim settlements.

The survey findings serve as a reminder for APJ businesses to bridge the gap between recognizing the value of data and effectively utilizing it in decision-making processes. By investing in data skills development, fostering a data-driven culture, and leveraging data to drive efficiency and trust, organizations can position themselves for success in an increasingly data-rich environment.

Original Source: https://futurecio.tech/apj-firms-struggle-to-use-data-in-decision-making/

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