BI IndustryScorecard
BI IndustryScorecard
Page 2
Introduction
• Organizations are experiencing unprecedented
growth in data volume, variety, and velocity; they
are increasingly relying on focused IT solutions to
generate value by:
• Addressing their most pressing business challenges
• Managing and extracting business insight
• Improving customer service
• Capitalizing on new business opportunities
• The need for better data management is all too
acute, but how are organizations doing?
• Oracle’s “From Overload to Impact: An Industry
Scorecard on Big Data Business Challenges”
report surveyed 333 North American C-level
executives to understand their organizations’
preparedness to manage the data deluge and,
importantly, their ability to extract intelligence to
improve operations, capitalize on new
opportunities and drive new revenue
Page 3
Methodology
• Oracle conducted telephone and online interviews with 333 North American
C-level industry executives in March and April of 2012*
Sample Demographics:
*The sample size results in a margin of error of ±5.33% at a 95% confidence level **These titles do not include public sector titles. Qualifying public sector titles Page 4
include Administrator, Director, or other agency leadership ***All respondents are employed at organizations with at least 200 employees
Big Data: Businesses Are Not Prepared
• The data explosion is real:
• Data volume has increased by an average of 86% in the last 2
years
• Most companies are unprepared:
• 60% of executives rate their companies unprepared to leverage
the data and cite significant gaps in people, process, and tools
• 97% say they need to make changes to improve
• Big data is key to revenue growth:
• 93% of the executives believe they are losing revenue at an
average rate of 14% annually
• Big data is misunderstood:
• Big data requires an industry-specific business strategy to
improve the effectiveness of operational processes and the
overall customer experience
Page 5
The Data Deluge
• Organizations are experiencing unprecedented data growth
32% 31%
60% give their
25%
organization a
“C” or below*
8%
4%
A B C D F
Communications executives are most confident: 20% give their organization an “A.”
Healthcare executives are least confident: 0% give their organization an “A.”
Public
Healthcare Utilities Manufacturing Airlines Retail
Sector
Page 8
Data Management Scorecard
• Breaking down data management, executives give their organizations the highest
marks in securing data and the lowest marks in distributing timely information
and translating data into actionable intelligence*
Healthcare executives are most likely to list “don’t have the right systems in place” as a top gripe (53%); life
sciences executives are least likely (23%). Retail executives are most likely to list “can’t give business managers
access to the information they need” as a top gripe (53%); financial services executives are least likely (28%).
Take Away: Systems Needed to Gather Data, Put it in the Right Hands
*Respondents asked to select top three choices Page 11
Industry-Specific Applications Essential
• 77% of organizations use industry-specific applications/software to help leverage
information to make strategic decisions ‒ and they’re becoming more important
7% 50% Yes; more today “Smart grid, AMI automated metering infrastructure,
Unsure 77% than two years ago meter database management system, outage
Yes management systems.” – General Manager/Managing
17% Yes; the same
Director, Utilities
as two years ago
16% No
10% Yes; less today “Information systems to track oil reserves and
than two years ago distribution. Meeting demand is very important.” –
General Manager/Managing Director, Oil & Gas
Take Away: Growing Dependence on Apps that Meet Unique Industry Needs
Page 12
Industry Opportunities
% Revenue
Opportunities
lost*
360-degree View of Passenger Data
Airlines 17% Integrating passenger data from internal and external sources is
key to improving loyalty, pricing, and offers.
Real-time, Context-sensitive Advertising
By collecting input from subscription platforms, value-added
Communications 10% services systems, and other sources, comms providers can
tailor and deliver ads, offers, and promotions to the customer in
real-time.
Trade Data Optimization
Converting mountains of retail sales, market measurement, and
Consumer Goods 19%
competitor data into insights is key to addressing out of stocks
and optimizing promotions.
Sentiment Analysis and Brand Reputation
As brand reputation is one of the key drivers of customer
Financial Services 12%
acquisition and retention, opportunities abound to capture social
data and actively manage public sentiment.
Connected Healthcare
Integrating all sources of the medical record is not only critical to
Healthcare 15%
delivering care, but also to creating the analytics to drive
disease management and prevention.
*Estimate according to those that believe they are losing revenue as a result of not being able to fully leverage the information they collect Page 13
Industry Opportunities
% Revenue lost* Opportunities
Translational Research
Clinical and “omics” data must be put in the hands of
Life Sciences 20%
people who can turn it into useful insights to realize the
potential of personalized medicine.
Early Warning & Quality
Early insight and proactive resolution of product quality
Manufacturing 10%
issues are key to capitalizing on top- and bottom-line
opportunity.
Integrated Field Operations
Oil & Gas 22% Continuously monitoring drilling and field data is key to
improving safety and drilling performance.
Revenue Integrity
Correlating data from multiple, unrelated sources is the key
Public Sector 11%**
to identifying potential fraudulent activities that cost
government agencies billions each year.
Omni-channel Retail Marketing
Retail 10% Delivering personalized, tailored offerings to individual
customers can drive improved revenue conversion.
Demand Response
Continuous analytics on data identify anomalies, patterns,
Utilities 12%
and trends to take actionable decisions to improve supply
and demand positions.
*Estimate according to those that believe they are losing revenue as a result of not being able to fully leverage the information they collect **Public sector Page 14
respondents asked to consider their annual budget
The Path Forward
• Nearly all executives surveyed (97%) say their organization needs to make a
change to improve information optimization over the next two years
Take Away: Improved Tools, Processes, and Access Needed for Success
*Respondents asked to select all that apply Page 15
The Path Forward
• Executives from organizations ready to manage the data deluge offer
recommendations for successful preparation
“We have streamlined information “We identified the weaknesses in our data
systems so the information can get to the gathering system and are now designing a
required party faster. We also outsource a new software and analytical platform to
portion of our information management.” address these needs.”
– President/CEO/COO, Life Sciences – President/CEO/COO, Utilities
*Of those that are collecting and managing more information **Respondents asked to rank their organization’s preparedness if the amount of information they collect suddenly doubled, on a Page 17
scale of 1-10 where 1 is not at all prepared and 10 is completely prepared. “A” rankings reflect 9-10; “C” rankings reflect 5-6; “D” rankings reflect 3-4; “F” rankings reflect 1-2
Survey Quick Reference Facts
• However, executives do see a path forward:
• Nearly all surveyed (97%) say their
organization must make a change to improve
information optimization over the next two
years
• Top priorities include:*
• Improving their ability to translate information
into actionable insight (43%)
• Upgrading tools to collect more accurate
information (38%)
• Enhancing training to help stakeholders make
sense of information (38%)
• Industry-specific applications are an important
part of the mix – 77% of organizations
surveyed use them today to run their
enterprises…and many are looking for more
tailored options
Page 19
Industry Snapshots
• Airlines 21
• Communications 23
• Consumer Goods 25
• Financial Services 27
• Healthcare 29
• Life Sciences 31
• Manufacturing 33
• Oil & Gas 35
• Public Sector 37
• Retail 39
• Utilities 41
Page 20
Airline Industry Key Findings
are collecting and managing more business
93% information today than two years ago
use industry-specific
58% Average increase in business info collected/
managed in last two years*
73% applications/software to help
leverage information to make
strategic decisions
Preparedness for a Data Deluge:
However, they see room for enhancement in
31% Give their organization a “D” or “F” the following applications available to meet
their industry-specific needs:****
73% Give their organization a “C” or lower
3% Give their organization an “A” #1 Project management (33%)
*Based on the 93% of respondents who are collecting and managing more data now than two years ago Page 21
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Airline Industry-Specific Data
In which areas are you making the best use of Where does your organization face the
information to drive the business forward?* biggest challenges with regard to your ability
#1 Flight operations (67%)
to effectively acquire, store, analyze, and
#2 Sales, marketing, and reservations (40%) drive decisions based on your customer
#2 Pricing and revenue management (40%) information?*
#3 Capacity planning (37%) 37% Consolidating customer information spread across
#4 Cargo (27%) multiple data repositories
#5 Maintenance and engineering (23%)
#6 Airport operations (20%) 37% Leveraging customer information to create tailored
new offers across channels and customer touch points
#7 Loyalty management (13%)
33% Drawing insights from passenger data residing in
How would you rate your ability to glean
legacy reservation systems
intelligence from customer information?
30% Drawing insights from customer interactions using
3% We have a single 360-degree view of each customer
mobile applications
53% We have multiple views of each customer and can
piece them together effectively 30% Personalizing the customer experience across
20% We have multiple, but conflicting, views of each channels
customer
10% We have only a partial view of each customer and 17% Interpreting information collected from customer
lack insight into many of their interactions with us interactions on social media platforms
7% We have a very narrow or non-existent view of the
7% We are not experiencing challenges
individual customer
7% Unsure
*Based on the 93% of respondents who are collecting and managing more data now than two years ago Page 23
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Communications-Specific Data
How would you rate your ability to glean Where does your organization face the
intelligence from customer information? biggest challenges in regard to your ability
to optimize and understand information to
17% We have a single 360-degree view of each improve agility and capitalize on new
customer opportunities?*
We have a single 360-degree view of each
17% 37% Improving the cross-channel customer
customer but it does not take into
experience
consideration social media engagements
33% Designing and bringing new services to market
37% We have multiple views of each customer
and can piece them together effectively
27% Accelerating service order delivery
We have multiple, but conflicting, views of 20% Connecting with partners and third-party content
13% each customer developers
We have only a partial view of each 20% Creating new offers and campaigns
10% customer relationship and lack insight into
many of their interactions with us 17% Leveraging customer information to upsell new
offers
3% We have a very narrow or non-existent view
of the individual customer 17% Enabling flexible rating/billing (real-time, pre-paid,
and post-paid)
3% Unsure
Executives’ Biggest Data Management Gripes:** #2 Workforce and asset management (33%)
*Based on the 90% of respondents who are collecting and managing more data now than two years ago Page 25
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Consumer Goods Specific Data
Percentage of consumer goods executives In which of the following areas does big
who agree with the following statements:* data have the opportunity to create the
most value for your organization?**
Our ability to capture and analyze large
80% #1 Collaborating with retailers to shape demand
data sets (i.e. “big data”) has improved
our efforts to attract and retain customers at the item/store level to deliver a better customer
experience (60%)
73% We are very effective at leveraging #2 Driving the innovation and development of
customer data and insights to improve new products with outside input from
interactions with customers consumers/external experts (53%)
#3 Improving demand forecasting and supply
60% We collaborate with key retail partners to
planning across the extended value chain (40%)
leverage their consumer understanding
and insights #4 Enhancing interactions with the brand from
social media data (30%)
40% We collect plenty of consumer data but #5 Integrating consumer, demand, and market
don’t have the tools to analyze it data to more accurately predict consumer
effectively behavior (27%)
#6 Integrating retailer data with other datasets
37% We share consumer data with our retail
(13%)
partners to improve our merchandising and
marketing programs #7 Providing input into our Demand Signal
Repository (3%)
*Respondents who selected they strongly or somewhat agree **Respondents asked to select the top three Page 26
Financial Services Key Findings
are collecting and managing more business
94% information today than two years ago
use industry-specific
Average increase in business info
75% collected/managed in last two years*
91% applications/software to help
leverage information to make
strategic decisions
Preparedness for a Data Deluge:
However, they see room for enhancement in
25% Give their organization a “D” or “F” the following applications available to meet
their industry-specific needs:****
56% Give their organization a “C” or lower
3% Give their organization an “A” #1 Financial management (34%)
*Based on the 94% of respondents who are collecting and managing more data now than two years ago Page 27
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Financial Services Specific Data
In which of the following areas do you feel How prepared is your organization
your organization does the best job of to deal with the analytical needs
leveraging your data to move the business
associated with financial reform
forward?*
and new regulatory requirements?
#1 Regulatory compliance (38%)
#2 Customer service (34%)
#3 Sales/marketing (31%) Very
prepared Somewhat
prepared
In which areas could your organization 28%
benefit most from better business intelligence
or analytical capabilities?*
63%
3%
Unsure
#1 Risk management (44%)
#2 Alignment of risk and finance (41%) 6% Not
very prepared
#2 Regulatory compliance (41%)
*Based on the 100% of respondents who are collecting and managing more data now than two years ago Page 29
** Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Healthcare-Specific Data
From which functional business areas are you Does your organization have the
actively gathering and analyzing information in order information systems in place to support
to drive efficiency?* care beyond the walls of your facility?
#1 Patient relationship management (73%)
14% Yes, we are already doing it
#2 Quality of care (70%)
#3 Financial management (63%)
#4 Risk management (57%) 63% Yes, we are in the process of
#5 Staffing/human resources (50%) implementing these systems
#5 Capacity management (operating room utilization, occupancy
rates, etc.) (50%)
17% No, but it is in our plans for the
next two years
Is your organization able to capture critical patient
information in an Electronic Health Record (EHR)?
34% Yes, we are using an EHR extensively and are capturing 3% No, this is not in our plans
significant information that is enabling us to improve care delivery
43% We have an EHR system in place, but we are still not
capturing enough or the right information 3% Unsure
20% We have started to implement an EHR, but we do not have
it in place yet
0% We have plans to implement an EHR, but have not started yet
3% We do not plan to implement an EHR at this time
*Based on the 93% of respondents who are collecting and managing more data now than two years ago Page 31
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Life Sciences-Specific Data
In which of the following areas do you feel
your organization does the best job of Is your organization involved in the
leveraging your data to move the business development of personalized
forward?* therapeutics/treatments?
#1 Research and development (33%)
27% Yes
#2 Regulatory submissions/compliance (27%)
#3 Sales/marketing (23%)
#3 Customer service (23%) 4% No, but we are planning to be
In which areas could your organization 33% No, and we do not plan to be
benefit most from better business intelligence
or analytical capabilities?*
23% Not applicable to our organization
#1 Supply chain management (37%)
#1 Regulatory submissions/compliance (37%)
13% Unsure
#2 Clinical trial management (33%)
#3 Research and development (30%)
Can’t make sense of the information we have 47% Greater ability to translate information into
#3 and translate it into actionable insight (27%) actionable insight
43% Improved training to help us make sense of
information
of average annual revenue lost as a
10% result of not being able to fully leverage 43% Improved tools to collect more accurate
information
the information they collect, or $40.8M***
43% Direct access for business managers to business
critical information
*Based on the 90% of respondents who are collecting and managing more data now than two years ago Page 33
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Manufacturing-Specific Data
In which areas are you making the best use of Where are you struggling most to capture
information to drive business growth?* information and make high-impact
business decisions from it?*
#1 Sales and marketing (47%) #1 Sales and marketing (27%)
#2 Engineering and design (43%) #2 Supply chain (23%)
#3 Supply chain (40%) #3 Production (13%)
#3 Production (40%) #3 Service (13%)
27% said “we are
#4 Distribution (20%) #3 Finance (13%) not struggling in
#5 Finance (17%) any area”
How would having access to the information you require enable you to make better decisions?
What types of decisions would you like to be able to make with this data?
“More information would keep the machines running better and increase reliability.”
“The more information received, the better the product.”
“[Data would enable us to] forecast trends in customer buying behavior to better plan new products and
anticipate industry changes.”
*Based on the 74% of respondents who are collecting and managing more data now than two years ago Page 35
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Oil & Gas-Specific Data
In which areas are you making the best use of In which areas are you struggling most to
your data to drive the business forward?* make sense of your data and put it to good
use?*
#1 Financial (42%)
#1 Market intelligence (26%)
#2 Production (36%) 13% said
#1 Safety (26%)
#3 Distribution (26%) “We are
#2 Project management (23%) not
#4 Safety (23%)
#3 Maintenance/asset struggling
#5 Maintenance/asset management (19%) management (16%) in any
#5 Project management (19%) #3 Exploration – geological/seismic area”
(16%)
*Based on the 93% of respondents who are collecting and managing more data now than two years ago Page 37
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Public Sector-Specific Data
Do your organization leaders have timely access
Are you able to achieve a single to the information they need to successfully track
constituent view – meaning one program performance and set measurable goals?
consolidated view of all interactions 17% Yes – 100% of the time
with each constituent – across 47% Most of the time – 75% of the time
multiple departments and programs? 33% Sometimes – 50% of the time
3% Rarely – 25% of the time or less
0% No
6%
Unsure
What is the biggest challenge your organization
37% faces in regard to leveraging information to
Yes improve government efficiency and constituent
service?
#1 Siloed agencies/departments that do not share information
57% (37%)
No
#2 Accuracy and relevance of information (27%)
#3 Security requirements or restrictions that inhibit ability to
distribute information (13%)
#3 Inability to engage and track citizens/constituents across
channels, or in their preferred channel (13%)
Page 38
Retail Key Findings
are collecting and managing more business
90% information today than two years ago
use industry-specific
98% Average increase in business info
collected/managed in last two years*
83% applications/software to help
leverage information to make
strategic decisions
Preparedness for a Data Deluge:
However, they see room for enhancement in
30% Give their organization a “D” or “F” the following applications available to meet
their industry-specific needs:****
57% Give their organization a “C” or lower
3% Give their organization an “A” #1 Customer Relationship Management (43%)
Executives’ Biggest Data Management Gripes:** #2 Workforce and asset management (33%)
*Based on the 90% of respondents who are collecting and managing more data now than two years ago Page 39
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Retail-Specific Data
How would you rate your ability to gain insight from Where does your organization face the biggest
customer data you gather across multiple channels? challenges in regard to your ability to optimize
17% We have a single 360-degree view of each customer and understand your information to improve
10% We have a single 360-degree view of each customer but agility and capitalize on new opportunities?*
it does not take into consideration social media engagements
40% Improving the cross-channel customer experience
47% We have multiple views of each customer and can piece
them together effectively
30% Optimizing the supply chain
13% We have multiple, but conflicting, views of each customer
10% We have only a partial view of each customer relationship 27% Leveraging customer information to create
and lack insight into many of their interactions with us personalized offers/campaigns
3% We have a very narrow or non-existent view of the 27% Tracking and optimizing inventory
individual customer
27% Streamlining merchandising and pricing
Which of the following are most critical to meeting the
needs of key business groups throughout your 27% Managing in-store operations
organization?*
23% Creating new offers and campaigns
#1 Better store systems, including POS and store (43%)
consistently/commonly across channels
#1 More consistent and complete view of merchandise and
inventory, throughout the supply chain and in stores (43% ) 3% Optimizing the product assortment across online
#2 Mobile access to customer, product, inventory, and other and store shelves
information for store associates (40%)
3% We are not experiencing challenges
#2 More consistent and complete view of the customer,
throughout the retail enterprise (40%)
*Based on the 83% of respondents who are collecting and managing more data now than two years ago Page 41
**Respondents asked to select the top three ***Figure based on the average revenue of organizations surveyed ****Respondents asked to select all that apply
Utilities-Specific Data
Have you implemented a smart grid/smart Which of the following are the biggest
meter program? obstacles you face in optimizing the
business value of data generated by
14% Yes – we have completed a full deployment smart grids/meters?**
23% We are in the process of rolling out a full-scale
deployment Lack of systems to support managing
24%
skyrocketing data volume***
33% We have completed one or more pilot programs
13% We are in the planning stages Lack of business intelligence/analytics
20%
tools to make sense of the data***
13% No, we have not implemented a smart grid/smart
meter program and are not currently planning to do so
Challenges in identifying which
4% Unsure 20% departments “own” or are responsible
for information management and
How would you rate your preparedness to analytics***
manage, analyze, and distribute the data that
20% Challenges in getting useful reports into
smart grids/smart meters are delivering to the right hands in the organization to
your utility?* effect real change***
56%
28%
12% 0% 4%
Completely Somewhat Not prepared, Not prepared, Unsure
prepared prepared taking steps not taking
steps
*Respondents who said they have or are planning to implement a smart grid program, n=25 **Respondents asked to rate on a scale of 1 to 10, where 1 is “not an Page 42
obstacle” and 10 is “one of our biggest obstacles”; of those that have or are planning to implement a smart grid program, n-25 ***Of those that rank 8-10