New Oracle Report Shows that Consumer Goods Companies are Collecting Data at Unprecedented Rates, but are Falling Short on Turning Big Data into Revenue
Consumer Goods Executives Indicate They May Be Losing On Average An Incremental 19 Percent of Revenue per Year by Not Fully Leveraging Collected Information
Redwood Shores, Calif. – July 17, 2012
Today Oracle announced the results of its “From Overload to Impact: An Industry Scorecard on Big Data Business Challenges” report, which surveyed 333 U.S. and Canadian C-level executives from the consumer goods industry and 10 other industries to determine the pain points they face regarding managing the deluge of data coming into their organizations and how well they are transforming that information into actionable insights to drive profit and growth.
Overall Key Findings
data deluge is here.
Ninety percent of C-level consumer goods executives surveyed say their organization is collecting and managing more business information today than two years ago, by an average of 71 percent more.
For all industries collectively, 94 percent of C-level executives say their organization is collecting and managing more business information today than two years ago, by an average of 86 percent more. Executives note they see the biggest data growth areas coming from customer information (48 percent), operations (34 percent) and sales and marketing (33 percent).
for improvement. Consumer goods company executives say they are not prepared to handle the increasing amount of data they face.
Forty-two percent of consumer goods executives give their organization a “C” or below in preparedness to manage the data. Only 10 percent of executives give their organization an “A” in preparedness.
Consumer goods respondents say they are unable to realize, on average, 19 percent of additional revenue per year by not being able to fully leverage the information they collect.
For all industries collectively, 60 percent of executives surveyed give their organization a “C” or lower in preparedness to manage the data deluge and 93 percent believe their organization is losing revenue opportunities – representing on average, 14 percent of revenue per year. On average, private-sector organizations with revenues of $1 billion or more say they are losing approximately 13 percent of their annual revenue as a result of not being able to fully leverage their information. That translates to $130 million each year for a $1 billion organization. Only 8 percent of executives give their organization an “A” in preparedness.
do not have or cannot get to the timely information they need. Consumer goods company executives are frustrated with their organization’s data gathering and distribution capabilities.
Specifically, 43 percent cannot provide their business managers with access to pertinent information without the help of their IT team, 37 percent feel they are using systems that are not designed to meet the unique needs of their industry and 33 percent note they do not have the right systems in place.
Seventy-seven percent of consumer goods industry organizations use industry-specific applications or software to help leverage information to make strategic decisions.
Consumer goods executives, however, still see room for improvement in their industry-specific applications, with 37 percent looking for better customer relationship management systems, 33 percent seeking improved workforce and asset management solutions and 30 percent looking for enhanced project management tools specific to their industry needs.
is hard at work in some areas.
When asked about their use of data, 80 percent of consumer goods executives agreed that the ability to capture and analyze large data sets has improved their efforts to attract and retain customers; 73 percent feel they are very effective at leveraging customer data and insights to improve interactions with customers; and 60 percent say they are collaborating with key retail partners to leverage their consumer understanding and insights.
see great potential for big data and analytics.
With regard to the opportunity to create the most value for their organization, 60 percent of consumer goods industry respondents note that big data will enable them to collaborate with retailers to deliver a better customer experience, 53 percent believe big data will drive innovation and development of new products with outside input from consumers and external experts and 40 percent say it will improve demand forecasting and supply planning across the extended value chain.
a path forward. Consumer goods industry respondents note their organizations must improve information optimization.
Top priorities include enhancing training to help make better sense of information (53 percent), providing direct access for business managers to business critical information (50 percent) and improving the ability to translate information into actionable insight (47 percent).
access the full report – which delves extensively into how prepared organizations within each industry are for the data deluge and the resources they need to enhance their ability to leverage incoming data – visit here.
“In the consumer goods industry, the ability to capture, translate and leverage increasing amounts of information – from consumer and shopper data, customer or retailer data, social media and the real-time visibility into the demand and supply chains ‒ is critical. Investing in the necessary tools and analyzing business-critical information can help develop a deeper level of understanding of customers and products, enhance brand loyalty, increase sales and drive competitive advantage. As such, organizations must equip themselves with the ability to store and quickly process these massive volumes of data with the appropriate technology to develop actionable insights and deliver an unprecedented amount of decision-making power to executives,” said Cassie Moren, senior director, Consumer Goods Industry Marketing, Oracle.
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