In order to compete in the 21st century economy, companies need to act smarter. Successful companies are drawing insights from customer data to deepen relationships with their customers. They’re also drawing upon the intellectual capital and collective wisdom of their employees.
Research reveals that data-driven companies are generating greater value and higher operating profits than other companies. According to a February 2016 study conducted by McKinsey & Company that analyzed the Big Data investments and returns for 714 companies across industries and company sizes around the world, Big Data investments amounted to 0.6 percent of corporate revenues for the companies that were examined and returned a multiple of 1.4 times that level of investment, increasing to 2.0 times over five years.
The CIO is ideally positioned to help the business become more intelligent and help the company forge tighter relationships with its customers through the use of data and analytics.
Customer data can help marketers and other decision-makers to learn more about individual customers along with the factors that are driving their behaviors and decisions. For instance, the behavior that a customer exhibits on the website for a financial services company, including the product pages he or she has recently looked at, can reveal a great deal about a customer’s interest in wealth management products such as equity or bond funds.
A closer look at the customer’s data may reveal that he or she has recently moved up in income level, representing an opportunity for an investment manager to extend an offer for an introductory call to discuss interests and the investment vehicles the bank provides.
Making use of behavioral and other types of customer data can enable customer-facing employees and managers to provide customers with more personalized services and experiences that can help differentiate the company and increase customer wallet share.
Meanwhile, equipping organizational leaders and other knowledge workers with the right data and tools can help strengthen their decision-making capabilities. With more data pouring into the enterprise than ever from a variety of sources, the CIO and IT organization must ensure that the data being provided to business leaders and other decision-makers is accurate, timely, and relevant.
Executives and other knowledge workers also need tools that can help them to make sense out of data. For example, data visualization can help business leaders to interact with data and make correlations between data that they wouldn’t otherwise be able to detect. Heat maps, bubble maps, animated markers, and other graphical representations of data can help make insights pop for executives and other decision makers.
CIOs and IT teams can collaborate with senior executives and other potential end users of such tools to demonstrate how different types of analytics tools can be used and to better understand how different teams plan to use them to wrest the most value from their functionality.
“The CIO has access to one really important resource which is really all the data that’s in the company and how can you bring that data to the table in such a way so that the business can make decisions on it,” said Jeanette Horan, a Member of the Supervisory Board at Wolters Kluwer in an HMG Strategy video. “Increasingly it’s become predictive – how can we use the data to anticipate what’s going to happen in the future? To me, that’s the biggest thing that the CIO uniquely brings to the table.”
- In order to compete in the information economy, companies need to act smarter and make better use of customer intelligence and intellectual capital to outmaneuver rivals.
- The CIO is uniquely positioned to help the business to become more intelligent and help the company forge tighter relationships with its customers through the use of data and analytics.
- The CIO and IT organization can equip company leaders and other knowledge workers with the right data and tools can help strengthen their decision-making capabilities.