Today’s advancements in technology and data and analytics techniques have changed the decision making game for private companies across the globe. Companies who lag behind are put at risk of being surpassed by their more data-driven competitors. With the game set to change over the next few years, we shifted gears to uncover what strategic or operational decisions are top of mind for corporate leaders. By 2020, these are the decisions executives expect to be facing:
- Develop a new product or service 31%
- Enter new markets with existing products or services 15%
- Make strategic investments in IT 14%
- Develop partnerships 11%
- Change business operations 10%
- Enter a new industry 7%
The motivations behind these decisions align with those uncovered in our 2014 Family Business Survey. With growth over the next 5 years being top of mind for 85% of the family businesses surveyed, it’s no surprise that the main motivation across the board for these decisions was said to be to maintain or gain leadership in the market. Others cited a need to survive or to disrupt their own or another industry as their main motivation.
But in a world of disruption, where the time to make decisions has shortened and the amount of data available has grown, how can companies lead and survive if they don’t equip themselves with the right decision making tools? The riskier of the big decisions, developing new products/services and entering new industries, require the use of data analytics more so than the others. With these being the top 2 decisions and only a third of companies surveyed being highly data driven – it will be interesting to see how this unfolds.
Will companies adapt to a more data-driven approach in time to address these decisions? Or will they be surpassed in the marketplace by those that have.
Learn more about our findings in our Global Data and Analytics Survey 2016, Big Decisions.
WPO would like to thank PricewaterhouseCoopers for providing this week’s sponsor blog content.