The Asia Pacific (APAC) region continues to lead the advanced analytics maturity globally, according to the joint report by Forbes Insights and EY titled 'Data & Advanced Analytics: High Stakes, High Rewards'.
The region's maturity in advanced analytics is driven by its strengths in data monetisation and the advanced usage of sophisticated technology.
These insights were drawn from a survey of more than 1,500 global executives, of which 73 are from Singapore.
Despite topping the leaderboard, APAC companies are still concerned with the costs and difficulty of capturing quality data. In addition, the survey indicated the need to increase the focus on people who apply analytics, make decisions and change business processes within organisations.
In fact, 44 percent of Singapore respondents felt there was still a lack of collaboration between their IT, data and analytics team, and the business team. Nearly half (47 percent) considered lack of employees with analytics skillsets as challenge when designing data analytics initiatives.
"Singapore is fast building up its analytics talent by embedding analytics curricula in schools and universities but the local talent pool will likely remain constrained," said Manik Bhandari, EY Asean Analytics Leader, Ernst & Young Advisory. "This digital capability gap may not be a perennial challenge if organisations are able to shift their mindsets to think globally and effectively use talent pools in different locations through leveraging technologies in connectivity and cloud."
He added: "Singapore's limited analytics talent pool may be best utilised by focusing on proprietary product development to create software products and services that can generate recurring revenue streams, as opposed to a services business model, where revenue is predominantly driven by the pool of professionals available."
Advanced analytics as a growth driver
Organisations with an analytics strategy that is well-established and central to the overall business strategy considered their competitive ability in data and analytics as market leading.
Majority of these organisations (66 percent) have also achieved 15 percent or more revenue growth, while the other 63 percent said their operating margins grew to 15 percent or more in 2016. In addition, most companies (60 percent) reported improvements in their risk profiles.
"Traditional process-driven organisations are now being disrupted by the new era of businesses that use data as a strategic asset. Companies have moved from pilot projects that originated in business units or countries to using data and advanced analytics at an enterprise level to rethink and reimagine their entire business to identify new opportunities," said Bhandari.
Meanwhile, only 4 percent of polled organisations in Singapore have achieved a company-wide analytics strategy that is well-established and central to the business strategy.
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