Information Innovation Index 2014 UK Research Results

© Hitachi Data Systems Corporation 2014. All rights reserved.1 © Hitachi Data Systems Corporation 2014. All rights reserved.1

InformationInnovation IndexMay 2014

© Hitachi Data Systems Corporation 2014. All rights reserved.2

Demographics

…size …sector

200 IT decision-makers from UK enterprises were interviewed in April 2014, split in the following ways...

Figure d2: “Within which sector is your organisation?” (200 respondents)

Figure d1: “How many employees work in your organisation?” (200 respondents)

78

122

1001-3000 employeesMore than 3000 employees

50

4532

30

2815

Public sectorFinancial servicesManufacturingIT and telecoms


1. Business-defined IT

2. Information innovation

3. Issues with untapped intelligence/innovation

Three areas of interest


1. Business-defined IT


Can IT support the drive for business growth and innovation?

Figure 1: Analysis for those who agree or disagree that “IT is able to support your organisation's ambition to drive business growth by extracting value from data?” (200 respondents)

Figure 2: “To what extent do you believe that IT is able to support your organisation's ambition to innovate by extracting value from data?” (200 respondents)

Overall 34% of respondents do not agree that IT is able to support their

organisation’s ambition to drive business growth by extracting value from data

44% of respondents do not agree that IT is able to support innovation through extracting valueOnly 14% strongly agree that IT can support this ambition

34%

67%

Do not agree Agree

11%

33%

43%

14%

1 - do not agree at all 2 3 4 5 - strongly agree


Are IT limitations holding organisations back?

Figure 3: “Do you think your organisation's ambition to accelerate growth by leveraging information is being held back by the limitations of IT?” (200 respondents)

Figure 4: “To what extent do you think that IT's approach to storing and managing information is stifling the organisation's ability to leverage data to drive business growth?” (200 responses)

Just over nine in ten (92%) respondents agree to some extent that the limitations of IT are holding back business

growthCould part of the limitation be the way the data is stored

and managed?

Nine in ten respondents agree to some extent that IT’s approach to storing and managing information is a limitationThis response suggests that the way information is stored and managed in the majority of organisations should be reviewed in order to assist with driving business growth

8%

24%

39%

22%

9%


10%

32%

32%

21%

7%



Are outdated IT practices/processes holding organisations back?

Figure 5: “Analysis of those who agree to some extent or do not agree at all that outdated IT practices/processes are restricting the organisation's ability to leverage data to drive business growth?” (200 respondents)

Figure 6: “Is IT perceived to be a strategic asset to your company?” (200 respondents)

94% of respondents agree to some extent that outdated IT practices/processes are holding back

their organisationThis suggests that if the majority of organisations

were to update their IT practices and/or processes, they may be able to better utilise their data for

driving business growth

IT is perceived as a strategic asset in 70% of respondents’ organisations We might infer from this that the majority of organisations consider IT to be a strategic asset, however as Figure 5 shows that IT is potentially failing

70%

30%

Yes No

6%

94%Do not agree at all Agree to some extent


Why is IT unable to support business leaders in extracting value from data?

97% of respondents stated at least one reason why IT is unable to support business leaders in extracting value from data, and on average each respondent selected between three and four of the above reasons

The main reason why IT is unable to support their organisation’s ambition to drive business growth by extracting value from data is that information has traditionally been stored in disparate systems and in

varying formats which is not instantly ready to be leveraged to extract value (63%)

Information traditionally stored in disparate systems and in varying formats not instantly ready to be leveraged to extract value

We do not have the resources and infrastructure to extract value from information assets

Cost

Information cannot be leveraged for business use without a great deal of complexity

Information cannot be quickly leveraged for business use

Business leaders are not currently focused on extracting value from information assets

We do not have the skills to extract value from information assets

Don't comprehend the potential value of the data

Fears over compliance risksInformation has traditionally been stored for IT's needs, not with future business needs in

mindNone of the above

63%40%

39%36%36%36%

31%25%

22%21%

3%

Figure 7:“What are the main reasons why IT is unable to support business leaders in extracting value from data?” asked only to respondents who do not agree that IT is able to support their organisation’s ambition to drive business growth by extracting value from data (67 respondents)


Does IT work with line of business leaders?

Only 15% of respondents strongly agree that their IT function works with line of business leaders in this wayA higher percentage of respondents who are currently mining untapped intelligence agree that their IT function works with line of business leaders to define their strategy (74%) compared to those not yet mining untapped intelligence (54%)The data suggests that IT departments in organisations who are focused on mining untapped intelligence are more likely to be aligned to the needs of the business

Do line of business leaders make themselves available to assist when developing and executing IT strategy?

Figure 8: “Does your IT function work with line of business leaders to define IT strategy by aligning business objectives with today's technology capabilities?” Asked of all respondents (200) broken down by those who are/are not mining untapped intelligence

Six in ten (60%) respondents agree that their IT function works with LOB leaders to define IT strategy, aligning business objectives with today’s technology capabilities

4% 4% 3%11% 6% 13%

26%17%

29%

45%

52%

42%

15% 22%12%



Does the IT department have adequate access to line of business leaders?

Only 11% of respondents strongly agree that they have adequate access to LOB

leaders to develop and execute an effective IT strategy that drives business

growth

Line of business leaders are more likely to be available to their IT colleagues for this

purpose in organisations that are currently mining untapped intelligence

The data suggests that when organisations are mining untapped intelligence there is more

need for IT to have access other LOB managers

Could IT be doing more to support their business leaders?

5% 2% 6%

23%15%

25%

30%

26%

31%

32%

33%

32%

11%24%

6%



Are IT doing enough to support business leaders?

Around one in ten (9%) respondents say that their organisation does not have an objective to leverage data to assist with driving business growthThis suggests that despite few respondents saying that they do not work with LOB managers, most could be doing much more

Given that so few think that the IT department is supporting business leaders enough, does the IT strategy require more input from business leaders?

Figure 10: “Do you agree that IT could be doing more to support business leaders in their goal of leveraging data to drive business growth?” showing respondents who have a goal of leveraging data to drive business growth (182 respondents)

Almost all respondents (99%) who have a goal of leveraging data to drive business growth, agree to some extent that they could be doing more to support their business leaders to achieve this goal

1%

7%

21%

45%

26%



Does the IT strategy require more input from business leaders?

Around half of respondents (51%) agree their business leaders should have a greater say in the

direction of their IT strategy

Of those who wish that their organisation was investing in data analytics, six in ten (61%) agree that business

leaders should have more input in the IT strategyCompared to 32% in organisations who do not want to

be investing in data analyticsThis suggests that IT decision-makers are more open to their business leaders being involved in the IT strategy

direction if they want their organisation to invest in data analytics

5% 4% 10% 4%

16% 11%19% 24%

29%24%

39%32%

38%47%

22%28%

13% 14% 10% 12%

1 - do not agree at all 2 34 5 - strongly agree


2. Information Innovation


Are organisations correlating information with other data sets?

This means that 40% of respondents’ organisations are not currently correlating information with other data sets to extract value, with smaller enterprises less likely to be doing this (46% are not, compared to 36% of larger enterprises who are not doing this)Smaller organisations might not have as many data sets to correlate, or may perceive less of a need to do so

Which data sets hold the most value?

Figure 12: “Is your organisation currently correlating information with other data sets to extract value?” Asked of all respondents (200) broken down by organisation size

Three in five respondents (60%) say that their organisation is currently correlating information with other data sets to extract value

60% 54%64%

40% 46%36%

Yes No


Which data sources and type hold the most value?

According to 73% of respondents, customer data holds the most value to their organisations (Figure 13)

Half of respondents (50%) see the most value in semi-structured or unstructured data, the data sets that are most difficult to analyse (Figure 14)

Figure 13: “What source of data generated by the business do you believe holds the most value for your organisation?” (200 respondents)

Figure 14: “Which type of data generated by the business do you believe holds the most value to drive business growth and innovation?” (200 respondents)

7%

43%50%

Unstructured data Semi-structured dataStructured data

Customer data

Machine generated

data

Employee data

Other

73%

16%9%

3%


Are organisations mining untapped intelligence?

Figure 15: “Is your organisation currently mining untapped intelligence?” (200 respondents)

73% of respondents’ organisations are not currently mining untapped intelligence

Of those not mining untapped intelligence, three in five say that their organisation is not planning on doing so in

the next 18 monthsOver half (56%) of all respondents either plan to be mining

untapped intelligence in the next 18 months, or are already doing it

The data suggests that there is a minority of organisations (27%) who are doing this already who will have an

advantage over their competitors, with 44% possibly unaware of the opportunity

For those who currently mine untapped intelligence, what benefits are they experiencing?

27%

29%

44%

Currently mining

Not currently mining but plan to

Not currently mining with no plan to


What is being captured by mining untapped intelligence?

Figure 16: “Which of the following is your information analysis allowing you to capture?” asked of respondents whose organisation is currently mining untapped intelligence (54 respondents)

All respondents who already mine untapped intelligence say that they have been able to extract valuable insights in doing so (an average of three of the above), suggesting how important mining untapped

intelligence isAround half say that mining allows them to identify areas of inefficiency (52%), identify industry/customer

trends (48%), make cost savings (48%), and/or allows them to provide a better customer service (48%). This indicates that different organisations are benefiting in different ways, implying there are a multitude

of different benefits from carrying out information analysis

Identify areas of inefficiency

Identify industry/customer trends

Make cost savings

Provide a better customer service

Identify new revenue streams

Provide insights into potential areas of innovation

Create more sophisticated business processes

We have not been able to extract any valuable insights

52%

48%

48%

48%

43%

43%

41%

0%


Are organisations missing out if they do not correlate data information with other data sets?

Figure 17: Analysis of those who agree to some extent or do not agree at all that their “organisation is missing out on an opportunity to gain valuable business intelligence?” asked of respondents whose organisation is not currently correlating information with other data sets (80 respondents)

Almost all respondents (96%) whose organisations do not correlate information with other data sets agree to some extent that they

are missing out

The fact that 100% (Figure 16) of those who are doing this are seeing benefits gives strong indication of how likely it is

that these respondents are missing out

What opportunities could untapped intelligence unlock?

4%

96%

Do not agree at all Agree to some extent


What potential does untapped intelligence hold?

65% of respondents believe that untapped intelligence has the potential to drive growthAround half (52%) believe it can create new revenue streams and around half (49%) consider it has the ability to transform businessEven 64% of those who are not currently mining untapped intelligence nonetheless consider it to have potential to drive growth

Are organisations doing enough to drive growth?

Figure 18: “Do you believe that untapped intelligence has the potential to do the following:” Asked of all respondents (200) broken down by whether they currently mine untapped intelligence or not

Nine in ten (90%) respondents say mining untapped intelligence can drive growth, create new revenue streams or transform business

Total

Currently mining untapped intelligence

Not currently mining untapped intelligence

65%

69%

64%

52%

65%

42%

49%

63%

48%

10%

2%

13%

None of the above Transform businessCreate new revenue streams Drive growth


Could organisations be doing more to drive business growth?

Figure 19: “Do you think your organisation is doing enough to drive business growth through innovation thanks to insights gained from information?” Asked of all respondents (200) broken down by whether they currently mine untapped intelligence or not

Only 7% of respondents strongly agree that their organisation is doing enough to drive business growth through innovation thanks to insights gained from information

Fewer than one in five (17%) of those whose organisation is currently mining strongly agree that their organisation is doing enough to drive business growth, suggesting that they are

doing well but they could still be doing more

Total Currently mining untapped intelligence Not currently mining untapped intelligence5% 0% 7%

29%15%

34%

40%

39%

40%

20%30%

16%7% 17%

3%



3. Issues with untapped intelligence/innovation


Are organisations struggling with too much data?

Figure 20: “My organisation is currently drowning in data” Asked of all respondents (200) broken down by whether they currently mine untapped intelligence or not

Figure 21: Analysis of those who agree to some extent or do not agree at all that their “organisation 'hoards' data?” (200 respondents)

96% of respondents agree to some extent that their organisation is currently drowning in data

All respondents whose organisation currently mines untapped intelligence agree they are drowning in data

to some extentThere may not be a problem, possibly just a lot of

data. Are those who are mining doing so simply as a management response to data volumes?

94% of respondents agree that their organisation hoards data to some extent……the results suggest that organisations are drowning in data because they hoard it, however there could be value in the data they are hoarding

4% 0% 5%23% 7%

29%

37%

35%

37%

27%35%

23%10% 22%

5%


6%

94%Do not agree at all Agree to some extent


Are the insights derived from untapped intelligence trusted?

Figure 22: “Do you trust the accuracy of the insights that derive from untapped intelligence?” asked of respondents whose organisation is currently mining untapped intelligence (54 respondents)

Only 13% of respondents who currently mine untapped intelligence do not trust the

accuracy of the insights derived from it

Does this suggest that the solutions they are using to mine untapped intelligence are not as good as they can be?

Despite this, almost nine in ten (87%) do trust the accuracy of the insights derived from their mining of untapped

intelligenceThis suggests that the majority of organisations who are

mining untapped intelligence are confident that their solution can do so accurately, among the other benefits we

have seen this group experience (Figures 8, 9 and 18)

But do employees have the right skills to mine untapped intelligence?

87%

13%

Yes No


Do employees have the right skills and training to mine untapped intelligence?

Just under half (48%) of respondents whose organisation currently mines untapped intelligence do not agree that people in their organisation have the right skills and trainingAlmost three quarters (73%) of respondents whose organisation does not currently mine untapped intelligence consider their colleagues not to have the necessary skills to do soThe responses show that those mining intelligence have evidently invested in skills to make it a success, an organisation cannot start doing it without the necessary skills in placeFigure 23: “Do you believe that people in your organisation have the

necessary skills and training to act on insights garnered from untapped intelligence?” Asked of all respondents (200) broken down by whether they currently mine untapped intelligence or not

66% of respondents are not sure that people in their organisation have the necessary skills and training to act on untapped intelligence insights

4% 2% 4%

32%17%

39%

30%

29%

30%

22%

33%

18%7% 17% 3%5% 2% 6%

1 - do not agree at all 2 3 4 5 - strongly agree Don't know


Compliance, data protection/privacy and discoverable data

88% of respondents are worried to some extent that if untapped intelligence is ignored they may fail to adhere to compliance regulations. This suggests that the majority not yet mining untapped intelligence need to start soon to ensure compliance

(Figure 24)Three quarters of respondents (74%) are concerned whether their existing data protection/data privacy strategies are capable

of handling Big Data analytics (Figure 25)97% say that data when saved in any form is a risk to some degree, including one in eight (12%) considering it to be a very

serious risk (Figure 26)

Figure 24: “Are you worried that ignoring untapped intelligence will lead to your organisation failing to adhere to compliance regulations?” (200 respondents)

Figure 25: “Are you concerned about whether your existing data protection/data privacy strategies are capable of handling Big Data analytics?” (200 respondents)

Figure 26: “How serious do you regard the risk implicit in data that is saved and discoverable?” (200 respondents)

17%

42%16%

26%

Yes, more concerned than 12 months agoYes, the same level of concern as 12 months agoYes, although less concerned than 12 months agoNo

3%13%

38%35%

12%

1 - not at all serious 2 3 4 5 - very serious

13%

30%

28%

22%8%

1 - do not agree at all 2 3 4

5 - strongly agree


In Summary…

• The limitations of IT, the approach to storing and managing information, and restrictions by outdated IT practices/processes are holding back business growth in organisations

95% of respondents agree to some extent that outdated IT practices/processes are holding back their organisation

• IT is considered a strategic asset to organisations, however line of business leaders need to work closer with their IT colleagues to set the IT strategy to help drive business growth

Only 11% of respondents strongly agree that they have adequate access to LOB leaders• Three in five organisations are correlating information with other data sets, however the majority of

organisations are not yet mining untapped intelligence Those who are not yet correlating information with other data sets feel they are missing out on

an opportunity to gain valuable business intelligence Around two in three (65%) respondents believe untapped intelligence has the ability to drive

growth in their organisation• Customer data is considered to be the most valuable data source generated by organisations,

according to 73% of respondents• Respondents’ organisations are drowning in data as well as hoarding it

There is a lack of skill and training to act on insights that could come from interrogating this mass of data, with 66% not believing their colleagues have the skills


InformationInnovation IndexMay 2014

Technology

Information Innovation Index 2014 UK Research Results