Bisnode’s “Management: Step up” survey report produced by Kairos Future reveals that 25 percent of CxOs are basing strategic decisions on gut feeling.
- At the same time, 38 percent are saying that they will have no business in 2030 if they don’t commit to a data-driven future.
- Lack of knowledge, as well as insufficient processes to support the exploitation of internal and external data is keeping CxOs awake at night. Furthermore, half of the leadership lack the basic knowledge necessary to improve the use of data and data analytics.
“There is an upcoming major shift in today’s business world where data-driven will become a basic requirement for all sectors”, says Rikard Candell, Analytics Director at Bisnode. “Creating a data and insight driven organization is about replacing ungrounded gut feelings with decisions based on robust data analytics.”
Piloting a company through digitalization is no easy task. Bisnode’s survey report concludes that investments in data analytics capabilities are unevenly distributed across departments and business functions. Data analytics capabilities in IT departments (34 percent) are heavily overinvested while the marketing departments (13 percent), R&D (12 percent) and sales (14 percent) are falling behind, which is expected to negatively influence European business’ performance.
When it comes to data analytics and AI some industries are more adept than others in the automation of tasks. Financial services, consulting, IT and tech lead with 25 percent reporting that a majority of tasks can be automated by smarter use of data analytics and AI, while sectors such as public services, education and healthcare are lagging behind with 10 percent saying a majority of tasks can be automated. While at the same time, 39 percent of the respondents say that in 2030, data analytics and AI will have transformed their industry completely.
Key to reaching digital maturity is an innovative and open culture that is not overly compassionate – data is not for the weak-hearted. Surprisingly there is a very low staff turnover (below 10 percent) for the leading business’ that have adopted data at their core. However, 55 percent state that issues regarding technology and digitalization are more annoying than colleagues and co-workers. Furthermore, handling and convincing employees with negative attitudes towards data is also a major challenge according to top of mind answers from the European CxO’s.
The knowledge amongst the CxO’s management teams varies. According to the study, there is a certain generational gap where there is a higher degree of digital competence amongst management teams with millennials in charge while teams with baby boomers are falling behind.
Challenges and fears in becoming more data-driven
Survey respondents have several concerns regarding their organizations transitioning to become more data-driven. Lack of knowledge is one of them.
- Surprisingly, 47 percent of respondents say they lack the knowledge needed in order to become more data-driven.
- 1 in 3 say that they have no idea about what the future of data analytics in their industry holds.
- More than 70 percent of the most mature companies identify a lack of available talent as one of their primary challenges.
- More than 4 in 10 of the respondents say that one of the key challenges is to have processes in place that support the exploitation of internal and external data.
- Lack of staff to handle the transition towards becoming more data-driven is another worry for 35% of the CxOs.
Future of data and AI
What do the CxOs predict for the future of data and AI?
- More than 3 in 10 of the respondents say that in 2030, all strategic decisions in my industry will be supported by Artificial Intelligence.
- Interestingly, 34 percent of the CxOs in the report say that by 2030 they will have a non-human member on their leadership team.
- Nearly 3 out of 10 state that in 2030, most managers will be replaced by AI.
About the survey
The survey was commissioned by Bisnode and conducted by Kairos Future. The report is based on survey interviews with 25 or more C-level executives in 10 markets in Europe (300 respondents in total).
Source: Bisnode Press Release