The decision-making paradox: Companies understand the value of technology but lag in adoption so let’s discuss what is lagging behind about decision making
According to the latest study from Alteryx, a global cloud analytics specialist, Companies have shown keen interest in technology to automate processes and increase efficiency. They are also very aware of the advantages of these methods.
However, they still have a long way to go when adopting these processes across the business…
Exploitation Of Data: The Paradox…
To study how businesses make decisions today and how they plan to do so in the future, Alteryx surveyed 2,800 global business leaders who work with data to explore the end of decision-making.
According to 69% of decision-makers, accuracy is the most essential element for making a decision. Still, only 20% believe that good-quality data is among the three most critical factors for decision-making. Optimal.
Trust is ranked as the most critical element (29%), and data analysis is ranked third by 12% of respondents.
The study results reveal several things that could be more consistent in how data is shared and used within the company.
While many see the clear benefits of using data across the business, and 57% say they are engaged in data-driven decision-making, almost half (45%) say their business.
While reducing the time to access knowledge has become essential for decision-making, automating efficiency gains has undeniable advantages.
Most (70%) of decision-makers think that the frequency of updates of their analyses could be further increased thanks to automation. Still, it is interesting to note that this only interests 54% of them and that only 21% of decisions are automated.
We can then ask ourselves what is the cause of this paradox.
When discussing the state of organizational data culture, only 22% of respondents say they have a high level of confidence in data quality, and only 22% have a high level of data literacy and commitment to continuing training and accreditation.
A substantial gap between theory and practice
However, the paradox does not end there.
The study also reveals a significant gap between what they think will benefit the business and what they implement in terms of data-driven intelligence and decision-making.
The study highlights the compartmentalization of data in companies.
More than three-quarters of respondents (78%) confirm that the ability to access and analyze data to make decisions has a positive impact – with the main benefits being better collaboration (55%), increased productivity (48%) %) and faster decision-making (42%).
However, according to 40% of respondents, only employees who make decisions currently have access to data in their organization – while 72% of respondents do not think employees who make decisions should have access to data.
Surprisingly, 32% of respondents said only senior executives can access data to make decisions.
There is a striking disconnect between theoretical understanding of the benefits of data-driven decision-making and the desire to enable decision-makers to use data to make those decisions.
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What is the reason for this discrepancy?
While many people cited the large number of decisions to be made as the most significant challenge when making a decision (32%), difficulty identifying the initial problem or opportunity (24%) and low accuracy decisions (22%) are also among the three main challenges to be met.
When it comes to automating the decision-making process, the most prohibitive factors are complexity (59%), cost (54%), and regulatory barriers (47%).
“The volatility, uncertainty and challenges of today’s economic environment require organizations to make decisions quickly and confidently.
To overcome practices that prevent employees from making data-driven decisions at scale, we must recognize the need to empower all employees to use data and analytics regardless of their level.
Only by fostering a data-driven culture can organizations deliver the real-time, data-driven business intelligence they need to thrive. »
says Raphaël Savvy, vice-president France and Southern Europe at Alteryx
Optimism remains in order
However, all is not lost: Alteryx’s study shows companies are optimistic about a future where automation and predictive analytics will be increasingly used to support the decision-making and growth of the company.
1 in 3 (32%) respondents believe that, by 2030, their organization will be able to use predictive analytics to anticipate future outcomes and make data-driven decisions to optimize strategies.
By this same deadline, 32% of operational decisions will be supported by automation.
98% of respondents can imagine a future where all decisions in their organization will be automated – but not for at least ten years for 61%.
Companies have expressed strong interest in automation and analytics tools but still need to become familiar with how best to implement them.
Faced with risk and uncertainty at every corner, 32% of businesses will be left behind if it takes another seven years for them to be able to use predictive analytics to anticipate challenges…
Methodology
Alteryx surveyed 2,800 business and IT decision-makers, data analysts and business leaders from North America, Latin America, Europe, Asia and Japan. Four business sectors were equally represented: financial services and banking, retail, manufacturing (including supply chain) and technology. 82% of the organizations surveyed had over 1,000 employees, and their average turnover was €3.7 billion.
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