This report by McKinsey & Company highlights that as data and analytics transform industries at an ever-quicker pace, the strategies and organizational cultures of leading companies offer others a road map for success.
While it may come as no surprise that data and analytics are reshaping industry competition and organizations’ core businesses at an accelerating pace, the persistently lackluster response to this phenomenon by most companies should raise some eyebrows. In this recent McKinsey survey on the topic, respondents say that the changes data and analytics have brought to their industries since 2017 are growing in both magnitude and scope. Yet they also indicate that many of their companies are still responding to these shifts with ad hoc initiatives and one-off actions, rather than through long-term strategic adjustments that are required for sustainable success in an evolving business environment.
The survey results suggest that companies are not doing enough as the gap between leaders and laggards is consistently increasing. It appears that companies with the greatest overall growth in revenue and earnings receive a significant proportion of that boost from data and analytics. Respondents from these high-performing organizations are three times more likely than others to say their data and analytics initiative have contributed a least 20 percent to earnings before interest and taxes over the past three years.