Data science has made huge gains for early adopters and progressive businesses in the last ten years. For organisations in this digital era, spotting new opportunities, improving processes and working with greater insight into the variables that affect business success is vital.
Mango Solutions’ research report Delivering Value Through Data Science, which was conducted by DataIQ, shows the potential revenue gains from data science and some driving factors to build organisational data maturity. The study surveyed data practitioners, ranging from heads of department to chief data officers and global directors.
Companies surveyed with ‘advanced’ data science capabilities reported incremental value equivalent to 18% of business revenues may be generated as a direct result of an advanced data science approach. Those with less mature data science capabilities were more abstemious in their projections but even organisations at the early stages of data maturity claimed a respectable 4.1 percent revenue increase.
So, whether you are still in the planning phase or practicing advanced data science, with data-driven processes embedded in decision-making, data science will boost revenue.
It’s encouraging that data science is picking up in momentum. While the more radical 5.2% of companies kicked off with data science over 10 years ago, the majority, under 40% of businesses surveyed, began developing their data science capabilities in the last 3-5 years, and almost 30% of businesses surveyed started in the last 6 months. Being somewhere on the data-science journey is a must to support wider digital transformation success.
Getting the C-suite to back the data science strategy and incorporate it into the company strategy can unlock serious potential. Among organisations surveyed at an ‘advanced’ level of data maturity, 17 out of 20 (83.3%) data science functions were created on the initiative of the board. Embedding data science in the company vision is key, as those ‘advanced’ level organisations are more than 50% more likely to recognise data science within the company vision (33.3% v 20.7% on average).
It’s key to establish clear metrics to measure success, in order to be able to prove a return on investment and potentially bid for additional funds to grow the function later on. The report shows that 66% of organisations surveyed with ‘advanced’ data maturity can define the relevant impact metrics for each data science initiative.
Continual championing of data science by company chief executives can help build data maturity. ‘Advanced’ level organisations are more than twice as likely than the average to communicate the impact of data science directly through the chief executive (50% v 24.1%).
Investing in data science should be a long-term strategy, aligned to company objectives.
Our research results show an increasing investment in data science, for a variety of motives linked to the bottom line, including building efficiencies, creating competitive advantage and improving decision-making processes. Through keeping data projects as part of a strategic, leadership-backed and data-driven infrastructure, organisations will leverage data science to boost their business revenue.
This research is being discussed by data leaders at DataIQ Transform https://www.dataiq.co.uk/dataiq-transform-2021 on 4th November. A copy of the research can be obtained here