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The hype and the hope: The road to big data adoption in Asia-Pacific
 

The hype and the hope: The road to big data adoption in Asia-Pacific

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This report explores the road to big data adoption in Asia-Pacific. Asia-Pacific firms report limited success so far in implementing big data practices, however there is a strong appetite for an ...

This report explores the road to big data adoption in Asia-Pacific. Asia-Pacific firms report limited success so far in implementing big data practices, however there is a strong appetite for an increased use of data analytics within their companies. Download full report on http://bit.ly/18Gzl0N

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    The hype and the hope: The road to big data adoption in Asia-Pacific The hype and the hope: The road to big data adoption in Asia-Pacific Document Transcript

    • The hype and the hope The road to big data adoption in Asia-Pacific A report from The Economist Intelligence Unit Commissioned by
    • The hype and the hope: The road to big data adoption in Asia-Pacific Contents Introduction 2 1) Survey demographics 6 2) The big data big picture 8 3) Barriers to adoption 12 4) Belief in benefits 15 5) Is bigger better? 20 Conclusion 23 Appendix: Survey responses by country  24 © The Economist Intelligence Unit Limited 2013 1
    • The hype and the hope: The road to big data adoption in Asia-Pacific Introduction “Big data”—the analysis of large quantities of data to gain new insights—has become a ubiquitous phrase in recent years. Businesses now have the ability to collect incredible quantities of information about their customers, and managers recognise the need to analyse it carefully. But across different geographies and industries the adoption of big data technologies and strategies has been far from uniform. How far have businesses in the Asia-Pacific region progressed with this trend? Who is adopting big data, what gains do executives think their firm can make from it and what factors might inhibit its adoption? And, crucially, is there consistency between how executives on the front line and senior management understand its role within their organisation? Is hype about big data justified by its practical usage throughout the business? To find the answers to these questions The Economist Intelligence Unit surveyed over 500 executives across Asia-Pacific, from a range of industries and representing a range of functions. Some 69% of respondents were from companies with over US$500m in annual revenues. Importantly, the survey respondents are a mixture of senior and frontline managers, rather than C-suite executives ultimately responsible for 2 © The Economist Intelligence Unit Limited 2013 decisions about big data strategy and investment who are more likely to have a vested interest in claiming the success of such initiatives. The results show Asia-Pacific firms have had limited success so far in implementing big data practices. While a third say they are well advanced, more than half say they have made only limited progress. There is no single reason for this, but overwhelmingly the issues are internal. All but 9% of respondents cite factors within their own firms as barriers to adoption, including a group of issues involving difficulty in sharing information across organisational boundaries. Significantly, companies slow to adopt big data also tend to be poor in communicating to employees their big data strategies. In fact, over 40% of respondents were either not sure whether their company had a big data strategy or it had been poorly communicated to them. Poor communication appears to be especially problematic for frontline managers, who are potentially among the biggest beneficiaries of the insights that big data can bring. More than twice as many frontline staff as senior executives think their firm’s big data strategy hasn’t been well communicated. Some 80% of frontline employees believe improved access to data is
    • The hype and the hope: The road to big data adoption in Asia-Pacific critical, but only 19% say they can always access the data they need. Despite the lack of progress, respondents believe in the ability of big data to improve their business: almost half think it can improve revenue by 25% or more. This confidence is shared even by those yet to adopt big data, where more than 70% believe it can deliver gains in productivity, profitability and innovation. Big data may not yet be widely deployed in AsiaPacific, but this survey makes clear that it is highly anticipated. All figures within this report are derived from data collected from a survey conducted by The Economist Intelligence Unit. Four things businesses should know about big data in the Asia-Pacific region Adoption is slower than you would expect: More than half of firms have made little or no progress in their big data strategies Frontline employees can’t access the data they need: 81% of employees say that critical data resources are not available to them Internal issues are inhibiting adoption: 91% of companies cite internal issues as barriers to big data adoption Many believe in the benefits of data analytics: Almost half of firms believe big data can improve revenue by 25% or more © The Economist Intelligence Unit Limited 2013 3
    • The road to big data adoption in Asia-Pacific Continued on next page
    • Continued from previous page
    • The hype and the hope: The road to big data adoption in Asia-Pacific 1 Survey demographics Figure 1 Geographical location of survey respondents (% respondents) Rest of Asia-Pacific 6% ANZ 30% 14% 6% 15% 29% Hong Kong ASEAN China India Figure 2 Industry split of survey respondents (% respondents) Other Financial/professional services 27% Manufacturing/automotive IT/media/publishing 6 21% 5% 4% 5% 12% 11% 6% 9% © The Economist Intelligence Unit Limited 2013 Healthcare, pharmaceuticals ad biotechnology Telecommunications Construction and real estate Consumer goods/retailing Government/public sector
    • The hype and the hope: The road to big data adoption in Asia-Pacific Figure 3 Figure 4 Survey respondents by size of company Survey respondents by job title (% respondents) (% respondents) Other 31% 22% $10bn or more Manager 11% $500m to $1bn SVP/VP/Director 8% $500m or less 15% 21% 31% 28% $5bn to $10bn $1bn to $5bn Head of department 14% 19% Head of business unit Figure 5 Survey respondents by job function (% respondents) General management 4% 20% Other Procurement 1% Supply-chain management 1% 2% 2% 2% Legal 3% 3% 4% Finance 7% 14% 8% 14% Strategy and business development 13% R&D Information and research Risk Human resources Customer service IT Operations and production Marketing and sales © The Economist Intelligence Unit Limited 2013 7
    • The hype and the hope: The road to big data adoption in Asia-Pacific 2 The big data big picture l Firms in the Asia-Pacific region have not yet embraced big data, but they feel that they should Across the region, the majority of businesses have barely begun using big data. Just over a third say they have not made much progress while another 21% have no strategy for using big data at all (Figure 6). Some 36% of companies are fairly well advanced in their adoption of big data, but only 6% believe they are “very advanced”. The reasons for slow adoption are diverse. Respondents cite poor internal communication and information sharing as well as a lack of in-house skills and software. Nearly two-fifths say their company’s big data strategy has not been communicated well to them. The limited take-up also flies in the face of the wider belief that effective use of data matters; more than three quarters believe it is critical to success. (Figure 7) Figure 6 Slow advancement in big data adoption (% respondents) 6 Very advanced 36 Fairly well advanced 34 We haven’t made much progress 21 We haven’t started yet 3 Don’t know Figure 7 The effective use of data resources will differentiate successful firms from failing firms (% respondents) 25 Strongly agree 52 Agree 16 Neither agree nor disagree 5 Disagree Strongly disagree Don’t know 8 0 1 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific Figure 8 “Big data” is a confusing phrase and I don’t really understand what impact it has on me or my organisation (% respondents) 7 Strongly agree 25 Agree 30 Neither agree nor disagree 25 Disagree 11 Strongly disagree Don’t know 2 Figure 9 Failure to communicate (% respondents) Yes, my company has a big data strategy; it has been well communicated to me. Yes, my company has a big data strategy but it has been poorly communicated to me. Yes, I think my company has a big data strategy, but it has not been communicated to me. No, my company does not have a big data strategy. I don’t know whether or not my company has a big data strategy. 27 20 18 32 3 l Uncertainty around what “big data” means may also be hindering adoption Only just over a third of respondents (36%) disagree with the phrase “‘Big data’ is a confusing phrase and I don’t really understand what impact it has on me or my organisation” (Figure 8). Despite widespread use of the term, the survey shows that organisations are not sufficiently communicating its meaning or value to their frontline employees. Some 53% of such employees haven’t been sufficiently well informed about big data and are unclear about its role within their organisation (Figure 9). l Leading economies are lagging in their use of data The adoption of data strategies by businesses in the region has been relatively poor, even in some of the more advanced economies. The worst performer is Singapore, where 47% of respondents admit their organisations have no big data strategy, as do 36% in Australia and 42% in China (Figure 10). Hong Kong lies at the other end of the spectrum: only 21% have no big data strategy. More obviously, the survey data suggests that poor adoption stems from poor strategy, with absolute majorities in the worst-performing adopters—75% in Singapore and 58% in China and Australia—admitting they have made little or no progress in their adoption of big data so far. The results are supported by other research that The Economist Intelligence Unit has conducted on big data strategy that shows companies in the © The Economist Intelligence Unit Limited 2013 9
    • The hype and the hope: The road to big data adoption in Asia-Pacific Figure 10 Trailing in big data adoption and strategy (% respondents) Singapore India Hong Kong China Australia Total 74.5 46.3 43.7 Haven’t made much progress/ haven’t started 58.1 58 54.3 46.5 My company has no strategy 26.3 20.9 41.9 35.8 31.4 Asia-Pacific region lagging their peers in the US and Europe. For instance, in a separate survey of 317 C-level executives conducted in early 2013, just 13% of respondents in Asia claimed their businesses had a well-defined data management strategy, compared to 21% in Europe and 23% in the US.1 1 The Data Directive: How data is driving corporate strategy, and what lies ahead, available at http:// www.economistinsights. com/analysis/datadirective 10 l Many industries lag in their adoption of data analytics Aside from the IT and technology sectors, which are traditionally early adopters of new technologies, most industries are relatively slow in their adoption of data analytics, with many sectors having made or little no progress at all (Figure 11). Two exceptions are the telecommunications and retailing sectors, which show significant levels of advancement in their big data adoption. Early adoption may stem © The Economist Intelligence Unit Limited 2013 from both of these industries generating and storing vast amounts of customer data, which is routinely used for marketing purposes through initiatives such as store loyalty cards. The healthcare, pharmaceuticals and biotechnology industries, by contrast, are the slowest adopters of big data, with 72% of respondents stating that they have made little or no progress. The prevalence of large and often poorly connected IT infrastructures which exist in many large state run and private healthcare companies would partly explain the slow adoption. With regulation around the use and sharing of patient data continuing to develop, data-security issues are also an inhibitor to the widespread adoption of big data by healthcare companies.
    • The hype and the hope: The road to big data adoption in Asia-Pacific Figure 11 Many industries trail in big data adoption (% respondents) Haven’t made much progress yet/haven’t started yet 48 Construction and real estate Consumer goods 26 47 Energy and natural resources 45 Financial services 60 72 21 39 Manufacturing Telecommunications 52 49 46 IT and technology Retailing 53 38 Government/public sector Professional services 52 65 Education Healthcare, pharmaceuticals and biotechnology Advanced 40 57 56 65 31 32 68 38 © The Economist Intelligence Unit Limited 2013 62 11
    • The hype and the hope: The road to big data adoption in Asia-Pacific 3 Barriers to adoption l A company’s biggest hindrance to gaining value from big data is often itself Virtually all companies surveyed recognise internal roadblocks that prevent them or slow them from adopting big data. All but 9% of respondents cite hindrances of one kind or another. The biggest obstacles are the lack of suitable software (42%) and a lack of skills (40%) (Figure 12). To some extent these can be remedied by external sources, but other inhibitors stem from issues within the organisation. l An inability to share data is depriving firms of the value that big data can provide Firms in the Asia-Pacific region are experiencing significant problems due to limits on sharing and collaboration. Respondents cite an unwillingness to share data (36%), a lack of communication between departments (36%) and departmental divisions (22%) as the biggest inhibitors to big data adoption (Figure 13). These figures are similar both for those who are advanced in their adoption of big data and those Figure 12 What’s holding back big data? (% respondents) 42 Lack of suitable software 40 Lack of in-house skills Lack of willingness to share data 36 Lack of communication between departments 36 32 Overly complicated reports 31 Lack of analysis yielding usable insights 22 Departmental divisions 18 No buy-in from management 4 Other, please specify Nothing hinders our use of big data 12 9 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific Figure 13 Barriers to adoption (% respondents) Leaders Laggards Lack of communication between departments 38.3% 33.8% 49.5% Lack of in-house skills 29.7% 49.2% Overly complicated reports A lack of in-house skills and suitable software are the most significant factors separating big data leaders and laggards. Encouragingly, these are areas which are not necessarily a result of internal structural issues, and can be addressed through the use of external technology providers and staff training. Lack of willingness to share data 33.8% 35.5% who are slower to adopt (defined in this report as big data “leaders” and big data “laggards”). 37.1% 35.9% 26.8% Lack of suitable software Figure 14 Firms of all sizes have silo problems (% respondents) 66.1 $10bn or more 57.4 $5bn to $10bn $1bn to $5bn 64.6 $500m to $1bn 64.6 $500m or less l Information silos are stopping many firms from innovating Collaboration is essential to innovation: 59% of respondents from the survey agree that information silos are the biggest hindrance to innovation in the ideas economy. That view is held more widely by those from the very big firms (66%), in which silos are more likely to exist, than by those from small firms (47%) (Figure 14). posed by information silos, significantly ahead of the survey average (59%) and above government officials (63%). This may well reflect tighter data security policies in professional services, which provide barriers to data sharing. Comparing different industries, professional services firms show the highest level of agreement (75%) concerning the problems 47.3 This barrier to the effective use of data is well recognised. A separate global survey of 373 senior executives by The Economist Total © The Economist Intelligence Unit Limited 2013 58.7 13
    • The hype and the hope: The road to big data adoption in Asia-Pacific Figure 15 Silo problems exist across Asia-Pacific (% of respondents who agree) Departmental divisions Singapore Lack of willingness to share data 20.9 37.2 28.6 Malaysia 35.7 31.3 India Hong Kong 18.4 25.8 17.3 Australia Total 64.3 41.3 41.3 41.9 38.7 30.2 30.9 22.4 Intelligence Unit in August 2012 found that cross-departmental input is essential for deriving insights from big data, according to some 64% of CEOs and 87% of other managers. But while most CEOs think this is simple to achieve, with 56% believing cross-department collaboration is easy, only just over a quarter of other managers have the same opinion.2 2 In search of insight and foresight: Making the most of big data, available at http:// www.economistinsights. com/analysis/searchinsight-and-foresight 14 62.8 40.5 29.7 China Lack of communication between departments © The Economist Intelligence Unit Limited 2013 36.6 36.4 Breaking down information silos is crucial but not necessarily straightforward. The new survey shows the silo problem is acute in Malaysia and Singapore, where around 63%, or nearly twice the regional average, cite a lack of communication between departments as the major inhibitor to effectively using data in their organisations (Figure 15).
    • The hype and the hope: The road to big data adoption in Asia-Pacific 4 Belief in benefits l Businesses in the Asia-Pacific region may be slow in adopting big data, but there is a wide belief in its benefits In particular, 45% of respondents expect that big data insights could boost revenue by 25% or more by improving both decision-making and understanding of customers (Figure 16). They are similarly positive about the increased agility that big data could bring. Across the board, 42% expect a significant top-line revenue advance from an improved understanding of new markets and higher forecasting accuracy (Figure 17). This complements the view of more senior executives on the benefits of big data. In a separate EIU survey of C-suite executives, for example, 76.3% of those in the Asia-Pacific region claimed greater volumes of data had led to improvements in strategy (compared to 70% in North America and 60% in Europe).3 The new survey shows frontline employees expect such strategic benefits to translate into tangible gains. l Industries overwhelmingly agree that significant gains in customer insight will be derived from the adoption of big data. Telecommunications, consumer goods and financial services firms are the most optimistic industries, with over half of firms in these sectors anticipating over 25% revenue increases as a result of better client insight (Figure 18). The first two of these industries also lead in adoption, showing that it is potentially easier Figure 16 Figure 17 Benefit of big data to your firm’s understanding of customer needs Benefit of big data to your firm’s ability to adapt to market conditions (% respondents) (% respondents) No change n/a 1 to 26% 50% 5% No change n/a Desterioration 0% Greater than 26% 45% 1 to 26% 7% 51% Desterioration 0% Greater than 26% 42% 3 The Data Directive, http:// www.economistinsights. com/analysis/datadirective © The Economist Intelligence Unit Limited 2013 15
    • The hype and the hope: The road to big data adoption in Asia-Pacific Figure 18 Benefit of big data to your firm’s understanding of customer needs (Estimated gain in terms of additional revenue or efficiency gains) More than 25% improvement Construction and real estate 1-25% improvement 44 8 Consumer goods 48 57 39 4 45 Education 53 3 Energy and natural resources 19 77 3 Financial services 52 43 6 46 Government/public sector 3 51 39 Healthcare, pharmaceuticals and biotechnology 54 7 39 IT and technology 59 32 33 Manufacturing 64 4 42 Professional services 11 47 48 Retailing 0 Telecommunications 52 67 33 0 Transportation, travel and tourism 31 8 for industries that generate a lot of data to use it and therefore recognise its value. In order for other industries to catch up in adopting data analytics greater sharing of 16 No change © The Economist Intelligence Unit Limited 2013 62 data will be required across sectors. This is expected to lead to the trading and sale of insights generated on consumer and customer trends. Customer datasets are an increasingly
    • The hype and the hope: The road to big data adoption in Asia-Pacific valuable asset, and industry sectors that are large generators of this data (notably telecoms, consumer goods and financial service companies) will increasingly look to monetise these asset. For companies to do this successfully they will need to navigate through the complex web of data privacy restrictions which presently exist across the region. l Companies are excited about big data but frontline workers may not be aware of its appeal Companies are upbeat about the impact of big data on productivity and profitability, with at least 73% expecting significant improvement in each of these (Figure 19). But this doesn’t appear to be fully communicated down the line. Comparing those on the front line with senior executives (SVPs, directors and heads of departments), nearly half of the former say their company’s big data strategy has not been clearly communicated to them—more than twice the proportion of senior executives who think the same (23.5%). The research suggests companies are failing to communicate their big data strategy sufficiently to their frontline employees. Poor communication may lead to employees being uncertain about the benefits of big data to their company and therefore being slow to adopt its practices. l Big data laggards are still confident about gaining value from it in the future Even those firms who have not fully embraced big data (data laggards) are positive about its potential. That could be a sign of frustration over their access to key data— 46% of the laggards in big data adoption say they can’t always obtain the information resources they need, a rate two and a half times higher than the big data leaders (Figure 20). Even so, 73% of the trailing group are confident the adoption of big data would improve their firm’s innovation, while 74% see a rise in productivity and 71% expect greater profitability (Figure 21). l IT professionals in Asia-Pacific are more positive about big data and its benefits than other job functions IT managers, who might be expected to be more knowledgeable about big data than other job functions, are also much more confident about their companies’ usage of big data than their colleagues. Some 68% believe their Figure 19 Upbeat about the innovation, profitability and productivity improvements big data can bring (% respondents) Improve productivity Improve profitability Improve innovation 73 Agree/strongly agree Disagree 78 2 3 3 Strongly disagree 79 0 1 0 Don’t know 18 18 23 © The Economist Intelligence Unit Limited 2013 17
    • The hype and the hope: The road to big data adoption in Asia-Pacific Figure 20 Leaders and laggards, accessibility to data resources (% respondents) Laggards Leaders Total 9.6 Yes, I can always access the data resources I need. 19.3 32.3 37 Yes, most of the time I can access the data resources I need. 42.5 Yes, but I suspect there are some additional data resources available that would make my job easier. 17 50.2 46.3 33.9 7.1 0.4 4.3 No, I can never access the data resources I need. Figure 21 Leaders and laggards, productivity, innovation and profitability benefits (% respondents) Laggards Leaders 73.6 Productivity 73.1 Innovation Figure 22 IT professionals see benefits My company is advanced/well-advanced in big data adoption (% respondents) 67.5 IT Finance 41.8 General management 41.7 30.4 organisation is advanced or very advanced in big data, far above the average of 43% and ahead 18 81.3 70.5 76.9 Profitability Marketing and sales 86.2 © The Economist Intelligence Unit Limited 2013 of marketing managers (31%) and general management (42%) (Figure 22). They are also more confident that they have access to the data they need to do their job, with 85% of this opinion compared to the regional average of 62%, Meanwhile 92% believe big data will deliver productivity gains and 85% expect greater profitability. The views of the IT department perhaps need to be taken with a pinch of salt: IT executives often have a vested interest in demonstrating the success of the systems they install; they are
    • The hype and the hope: The road to big data adoption in Asia-Pacific also often better trained in getting the most out of them. Poor communication between the IT function and other departments may also hinder the effectiveness of big data solutions, as the above findings suggest. Indeed, it is notable that when it comes to internal communication of big data strategy, the views of the IT function are broadly in line with those of other departments. Just over a third (35%) believe their company’s big data efforts have been poorly communicated or not communicated at all, only marginally below the average of 38%. © The Economist Intelligence Unit Limited 2013 19
    • The hype and the hope: The road to big data adoption in Asia-Pacific 5 Is bigger better? l Big companies are more likely to use big data There is a clear correlation between size of company and progress in adopting big data: larger firms in Asia-Pacific are better at adopting big data strategies than their smaller counterparts. Among the very largest firms in the survey, with global annual revenues above US$5bn, 57% report being well advanced (Figure 23). By contrast, less than a quarter of the smallest firms—those with revenues of less than US$500m—describe themselves as advanced, while fully three quarters have made little or no progress. This suggests that large firms with substantial data resources to manage are more driven to seek the benefits of large-scale analytics than smaller businesses. It could also reflect the understandable resources gap between small and large firms. Indeed, a lack of in-house skills is cited as a hindrance to adopting big data by nearly three-quarters of small companies, far more than any other revenue group and nearly twice the survey average (39%). l Bigger companies expect greater gains in agility from big data Large firms in Asia-Pacific have higher expectations about the value big data will generate compared to smaller firms, suggesting a ratcheting effect the more resources can Figure 23 Small firms trail in big data adoption (% respondents) $10bn or more $5bn-$10bn $500m-$1bn $500m or less 38.3 39.4 Haven’t made much progress/ haven’t started 51.7 50 Very or well-advanced 23.1 20 $1bn-$5bn © The Economist Intelligence Unit Limited 2013 43.9 48.8 56.7 57.3 74.5
    • The hype and the hope: The road to big data adoption in Asia-Pacific be brought to bear in the application of big data. Over half of all companies with revenue of US$5bn or more anticipate a revenue boost of 26% or more from greater business agility – significantly higher than the 38% of small firms (with revenues less than US$500m) (Figure 24). Some 43% expect a similar revenue boost from greater insights into new markets, compared with 32% of small businesses. Very large firms are also the most optimistic about the impact on productivity (87%) and innovation (86%) (Figure 25). However, medium and small-sized businesses also view big data positively. Small businesses poll 70% or above in their expectations for improved productivity, profitability and innovation. l Businesses which are advanced in implementing big data are also the most effective in ensuring employees understand the strategy. The survey suggests early adopters of big data (data leaders) are making the greatest efforts at ensuring that staff understand their big data initiatives. Some 58% of data leaders Figure 24 Large businesses anticipate larger gains in business agility (% respondents) $10bn or more $500m-$1bn $5bn-$10bn $500m or less $1bn-$5bn Total 44.1 37.7 More than 26% improvement 54.1 43.8 37.8 41.8 30.8 27.9 36.8 37.5 26.9 31.5 11-25% improvement 11.5 20.8 21.9 13.8 18.6 16.3 1-10% improvement 4.2 6.6 3.5 5.1 No change n/a 8.3 16.8 Figure 25 Large businesses anticipate larger gains in productivity, innovation and profitability (% respondents) Productivity Innovation Profitability >$10bn 75.7 82 78.7 75.5 $5bn-$10bn 81.6 81.5 78.1 $1bn-$5bn $500m-$1bn <$500m 87.4 85.8 68.8 75 77.6 72 71.5 69.7 © The Economist Intelligence Unit Limited 2013 21
    • The hype and the hope: The road to big data adoption in Asia-Pacific have a clearly communicated strategy, while of those who haven’t implemented big data (data laggards), 90% either have a poorly communicated strategy or no strategy at all (Figure 26). strategy successful; while a quarter say they don’t know. When viewed in terms of company size, a similar result is apparent. Small companies see themselves as the least successful in big data (32%) but also have the highest proportion of employees who are unsure about their firm’s big data plans (23%), above the regional averages of 49% and 15% respectively. Among the leaders, 86% also believe their data strategy is successful, and just 2% are not certain. By comparison, 55% of those who haven’t implemented it do not consider their Figure 26 Getting the message across (% respondents) Leaders We have a strategy that is well-communicated 22 26.8 15 13 Uncertain because of poor communication Don’t know 57.6 4.8 Our strategy is poorly-communicated No strategy Laggards 22 2.2 0.4 5.1 © The Economist Intelligence Unit Limited 2013 53
    • The hype and the hope: The road to big data adoption in Asia-Pacific Conclusion This research has shown that companies in the Asia-Pacific region are not as advanced in the adoption of big data analytics as one might expect, particularly within the developed markets of Singapore and Australia. Communication problems appear to be a root cause of slow adoption, with the presence of information silos and an inability to share data inhibiting firms from benefitting from big data. However, respondents to this survey have shown that there is a strong appetite for an increased use of data analytics within their companies. They recognise the value that increased insight can bring in terms of productivity, profitability and innovation. Big data leaders have shown that an effectively communicated data strategy, better training and improved access to data can significantly improve a firm’s ability to adopt, and gain value from data analytics. Smaller firms face the greatest challenge in taking advantage of big data analytics. With limited technology resources compared to their larger counterparts, smaller firms can help bridge the skills and technology gap by leveraging external technology providers. Encouragingly, small and large firms alike are confident that, given the right tools, they can reap the benefits generated by big data. © The Economist Intelligence Unit Limited 2013 23
    • The hype and the hope: The road to big data adoption in Asia-Pacific Appendix: 1. Survey responses by country Does your company have a big data strategy? If so, how well have its purpose and goals been communicated to you? (% respondents) AUST/NZ ASEAN India Hong Kong China Yes, my company has a big data strategy; it has been well communicated to me. 25 0 23 28 36 23 Yes, my company has a big data strategy but it has been poorly communicated to me. 19 17 20 25 13 Yes, I think my company has a big data strategy, but it has not been communicated to me. 18 21 23 17 13 No, my company does not have a big data strategy. 36 37 26 21 42 I don’t know whether or not my company has a big data strategy. 3 3 4 2 10 24 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific 2. How advanced do you think your company is in its adoption of big data? (% respondents) AUST/NZ ASEAN India Hong Kong China Very advanced 4 3 8 11 0 Fairly well advanced 34 29 43 44 39 We haven’t made much progress 31 38 35 31 32 We haven’t started yet 27 28 11 13 26 Don’t know 4 1 4 1 3 © The Economist Intelligence Unit Limited 2013 25
    • The hype and the hope: The road to big data adoption in Asia-Pacific 3. Which of the following sources of data do you use in your job? Select all that apply. (% respondents) AUST/NZ ASEAN India Hong Kong China Traditional data (eg, databases) 89 92 91 72 90 Social media (eg, Facebook, Twitter, Youtube, blogs, etc) 37 29 38 39 29 Machine generated data (eg, sensors, smart grid, RFID, network logs, telematics, etc) 20 23 33 30 16 Location-based information (eg, GPS, mobile logins, etc) 23 21 16 24 30 Contact centre data (eg, audio conversations, text chats, customer emails, etc) 35 36 39 41 42 Staff data (eg, Emails, calendars, instant messaging, etc) 71 60 64 56 68 Open data (eg, data released by governments) 57 58 41 37 68 Syndicated data from third-party data providers (eg, market data, weather, etc) 53 58 45 37 26 45 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific 4. Is the data you need for your job easily accessible? (% respondents) AUST/NZ ASEAN India Hong Kong China Yes, I can always access the data resources I need. 19 10 22 25 16 Yes, most of the time I can access the data resources I need. 39 42 38 50 42 Yes, but I suspect there are some additional data resources available that would make my job easier. 38 38 35 23 39 No, I can never access the data resources I need. 5 8 5 2 3 © The Economist Intelligence Unit Limited 2013 27
    • The hype and the hope: The road to big data adoption in Asia-Pacific 5. What hinders the effective use of big data in your organisation? Select all that apply. (% respondents) AUST/NZ ASEAN India Hong Kong China Lack of communication between departments 31 55 41 30 39 Lack of willingness to share 30 33 41 41 42 Lack of suitable software 40 49 44 41 39 Overly complicated reports 31 35 33 35 26 Lack of in-house skills 43 45 33 34 48 No buy-in from management 19 23 6 22 13 Departmental divisions 18 23 31 18 26 Lack of analysis yielding usable insights 30 30 26 Other, please specify 8 5 4 1 0 Nothing hinders our use of big data 11 8 6 3 28 8 © The Economist Intelligence Unit Limited 2013 38 45
    • The hype and the hope: The road to big data adoption in Asia-Pacific 6a. For each of the following issues how much would insights from big data affect your department? China (% respondents) Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making More than 50% improvement 0 3 3 7 7 7 7 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 10 10 26-50% improvement 10 29 13 29 48 30 26 36 29 11-25% improvement 36 23 29 29 48 30 32 36 32 1-10% improvement 13 16 19 19 7 13 20 16 16 No change 13 7 10 29 36 16 10 10 10 Would lead to a deterioration 0 0 0 0 0 0 0 0 3 N/A 0 0 0 3 3 3 3 3 7 © The Economist Intelligence Unit Limited 2013 29
    • The hype and the hope: The road to big data adoption in Asia-Pacific 6b. For each of the following issues how much would insights from big data affect your department? Hong Kong (% respondents) Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making More than 50% improvement 8 12 10 6 8 11 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 14 10 12 26-50% improvement 20 20 21 26 26 27 29 31 31 11-25% improvement 27 35 31 28 34 30 36 35 1-10% improvement 20 21 17 19 19 No change 6 8 8 5 1 13 8 8 10 Would lead to a deterioration 0 0 0 0 0 1 1 2 1 N/A 0 0 0 0 30 2 1 29 26 2 1 2 © The Economist Intelligence Unit Limited 2013 27 27 40
    • The hype and the hope: The road to big data adoption in Asia-Pacific 6c. For each of the following issues how much would insights from big data affect your department? India (% respondents) Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making More than 50% improvement 13 15 9 11 24 13 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 25 20 38 26-50% improvement 21 28 33 25 33 29 38 28 20 11-25% improvement 17 26 23 21 34 25 29 33 19 1-10% improvement 30 19 14 16 14 22 15 15 23 No change 4 1 1 5 5 6 9 14 4 Would lead to a deterioration 0 0 1 1 0 0 0 0 0 N/A 3 3 3 6 4 4 4 4 6 © The Economist Intelligence Unit Limited 2013 31
    • The hype and the hope: The road to big data adoption in Asia-Pacific 6d. For each of the following issues how much would insights from big data affect your department? ASEAN (% respondents) Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making More than 50% improvement 12 12 13 15 10 12 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 24 13 17 26-50% improvement 13 19 27 15 27 29 31 32 33 11-25% improvement 21 26 29 36 24 32 31 1-10% improvement 29 21 22 13 12 12 21 17 No change 9 9 5 5 8 3 23 12 9 Would lead to a deterioration 0 0 0 0 0 0 0 0 0 N/A 0 1 3 1 1 32 3 3 3 4 © The Economist Intelligence Unit Limited 2013 31 35 36
    • The hype and the hope: The road to big data adoption in Asia-Pacific 6e. For each of the following issues how much would insights from big data affect your department? Australia/New Zealand (% respondents) Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making More than 50% improvement 8 12 14 15 13 14 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 16 16 17 26-50% improvement 12 20 25 27 25 22 27 24 24 11-25% improvement 22 23 28 26 29 37 29 27 30 1-10% improvement 25 23 23 15 11 19 17 21 24 No change 17 7 12 8 7 28 10 11 8 Would lead to a deterioration 0 0 0 0 0 0 0 0 0 N/A 2 2 3 3 3 3 3 5 5 © The Economist Intelligence Unit Limited 2013 33
    • The hype and the hope: The road to big data adoption in Asia-Pacific 7a. For each of the following issues how much would insights from big data affect your company? China (% respondents) Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making More than 50% improvement 3 7 7 3 7 7 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 10 10 10 26-50% improvement 23 19 29 26 42 29 29 39 32 11-25% improvement 19 32 42 26 29 36 39 42 1-10% improvement 13 16 16 10 19 19 19 10 16 No change 10 3 7 3 36 13 19 10 10 Would lead to a deterioration 0 0 0 0 0 0 3 3 7 N/A 0 0 0 0 0 0 0 0 0 34 © The Economist Intelligence Unit Limited 2013 45
    • The hype and the hope: The road to big data adoption in Asia-Pacific 7b. For each of the following issues how much would insights from big data affect your company? Hong Kong (% respondents) Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making More than 50% improvement 6 7 10 8 9 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 10 13 13 10 26-50% improvement 21 24 25 27 25 22 26 23 27 11-25% improvement 33 31 32 37 32 32 39 37 38 1-10% improvement 21 20 20 25 22 26 21 22 22 No change 6 2 3 12 10 8 9 9 11 Would lead to a deterioration 0 0 0 0 1 1 1 1 1 N/A 1 0 0 1 3 2 2 1 1 © The Economist Intelligence Unit Limited 2013 35
    • The hype and the hope: The road to big data adoption in Asia-Pacific 7c. For each of the following issues how much would insights from big data affect your company? India (% respondents) More than 50% improvement 14 18 9 19 11 20 14 23 30 26-50% improvement 20 23 29 25 34 33 28 35 30 11-25% improvement 25 31 34 21 18 30 33 34 15 1-10% improvement 20 17 19 15 15 24 20 20 18 No change 6 4 4 0 5 6 3 Would lead to a deterioration 0 0 0 0 0 0 0 0 11 9 Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making 1 N/A 3 3 3 3 3 3 36 5 5 5 © The Economist Intelligence Unit Limited 2013 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients
    • The hype and the hope: The road to big data adoption in Asia-Pacific 7d. For each of the following issues how much would insights from big data affect your company? ASEAN (% respondents) Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making More than 50% improvement 10 13 10 21 12 19 13 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 22 19 26-50% improvement 13 17 29 22 28 28 29 40 24 11-25% improvement 26 24 19 26 28 28 33 24 37 1-10% improvement 28 21 15 22 17 17 31 24 19 No change 12 6 3 5 8 8 21 14 8 Would lead to a deterioration 0 0 0 0 0 0 0 0 0 N/A 0 0 0 0 1 1 1 1 1 © The Economist Intelligence Unit Limited 2013 37
    • The hype and the hope: The road to big data adoption in Asia-Pacific 7e. For each of the following issues how much would insights from big data affect your company? Australia/New Zealand (% respondents) More than 50% improvement 10 13 13 Regulatory compliance Risk management Knowledge management and transfer Forecasting accuracy Management/strategic decision making 15 Ability to develop new products/services Understanding of new markets Agility (adapt to rapidly changing market conditions) Understanding of needs of customers/clients 19 17 17 19 18 26-50% improvement 13 16 19 27 19 28 23 20 27 11-25% improvement 23 28 30 27 29 29 1-10% improvement 22 13 13 22 20 21 24 28 23 No change 16 7 5 6 4 12 8 7 Would lead to a deterioration 0 0 0 0 0 0 0 0 1 N/A 2 2 2 2 38 4 3 3 3 4 © The Economist Intelligence Unit Limited 2013 27 31 31 33
    • The hype and the hope: The road to big data adoption in Asia-Pacific 8a. Big data would improve productivity in my department (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 19 17 27 15 23 Agree 58 54 57 62 71 Don’t know 19 28 15 22 3 Disagree 2 1 1 1 0 Strongly disagree 1 0 0 1 3 8b. Big data would improve profitability in my department (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 13 14 28 8 10 Agree 48 53 38 60 42 Don’t know 32 29 29 27 45 Disagree 7 4 4 5 0 Strongly disagree 0 0 1 0 3 © The Economist Intelligence Unit Limited 2013 39
    • The hype and the hope: The road to big data adoption in Asia-Pacific 8c. Big data would improve innovation in my department (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 26 19 27 17 10 Agree 46 59 62 60 68 Don’t know 22 17 10 21 19 Disagree 5 5 1 3 0 Strongly disagree 0 0 0 0 3 8d. Big data would improve productivity in my company (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 22 18 34 16 26 Agree 54 59 51 63 61 Don’t know 21 23 13 18 7 Disagree 3 0 3 3 3 Strongly disagree 1 0 0 0 3 40 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific 8e. Big data would improve profitability in my company (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 15 21 34 16 13 Agree 57 58 39 56 63 Don’t know 24 19 19 25 20 Disagree 4 1 8 4 0 Strongly disagree 0 1 1 0 3 8f. Big data would improve innovation in my company (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 24 19 34 16 13 Agree 53 62 51 61 71 Don’t know 19 14 14 20 13 Disagree 4 5 1 3 0 Strongly disagree 0 0 0 0 3 © The Economist Intelligence Unit Limited 2013 41
    • The hype and the hope: The road to big data adoption in Asia-Pacific 9. Do you think your organisation’s overall big data strategy has been successful? (% respondents) AUST/NZ ASEAN India Hong Kong China Overall very successful 3 4 9 9 7 Somewhat successful 39 32 48 56 33 Not very successful 29 37 24 24 30 Not successful at all 12 9 3 6 7 Don’t know 17 18 18 6 23 42 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific 10a. A lack of data insights hinders quick decision-making and agility (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 21 27 44 12 26 Agree 58 50 46 61 65 Neither agree nor disagree 15 19 6 19 3 Disagree 4 3 1 8 3 Strongly disagree 0 0 0 0 3 Don’t know 2 1 3 1 0 © The Economist Intelligence Unit Limited 2013 43
    • The hype and the hope: The road to big data adoption in Asia-Pacific 10b. The effective use of data resources will differentiate successful firms from failing firms (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 26 36 38 12 26 Agree 53 45 53 56 61 Neither agree nor disagree 15 9 8 27 10 Disagree 4 3 1 8 0 Strongly disagree 0 0 1 0 3 Don’t know 1 1 1 1 0 44 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific 10c. Data driven market insights would allow us to better allocate R&D resources and go to market faster with new products and services (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 19 31 26 14 16 Agree 52 51 56 52 77 Neither agree nor disagree 21 14 11 29 3 Disagree 4 3 4 5 0 Strongly disagree 1 0 0 0 3 Don’t know 2 1 3 1 0 © The Economist Intelligence Unit Limited 2013 45
    • The hype and the hope: The road to big data adoption in Asia-Pacific 10d. Better data access and sharing would improve productivity and efficiencies in our organisation (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 22 31 38 16 23 Agree 57 54 48 60 65 Neither agree nor disagree 17 13 13 20 10 Disagree 3 1 1 3 0 Strongly disagree 0 0 0 1 3 Don’t know 2 1 1 0 0 46 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific 10e. Information silos are the single largest inhibitor for innovation in the ideas economy (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 22 28 22 10 13 Agree 35 44 46 45 32 Neither agree nor disagree 27 18 18 38 39 Disagree 11 8 11 5 7 Strongly disagree 1 0 3 2 3 Don’t know 4 3 1 1 7 © The Economist Intelligence Unit Limited 2013 47
    • The hype and the hope: The road to big data adoption in Asia-Pacific 10f. Senior managers who make investment decisions are more concerned about the quantity of data we gather than the quality of insights we get from it (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 11 18 18 10 7 Agree 30 36 26 36 23 Neither agree nor disagree 28 24 38 37 32 Disagree 22 12 16 16 29 Strongly disagree 7 4 1 2 7 Don’t know 2 6 1 0 3 48 © The Economist Intelligence Unit Limited 2013
    • The hype and the hope: The road to big data adoption in Asia-Pacific 10g. “Big data” is a confusing phrase and I don’t really understand what impact it has on me or my organisation (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 8 6 8 6 10 Agree 24 29 15 33 13 Neither agree nor disagree 28 23 24 33 48 Disagree 25 29 29 22 19 Strongly disagree 12 10 23 5 10 Don’t know 2 1 3 1 0 © The Economist Intelligence Unit Limited 2013 49
    • The hype and the hope: The road to big data adoption in Asia-Pacific 10h. Consumers’/clients’ concerns about data privacy mean the risks of collecting data outweigh the benefits (% respondents) AUST/NZ ASEAN India Hong Kong China Strongly agree 7 4 13 11 0 Agree 23 29 25 37 23 Neither agree nor disagree 20 33 33 29 50 Disagree 38 26 20 19 20 Strongly disagree 9 4 8 4 3 Don’t know 3 4 3 1 3 50 © The Economist Intelligence Unit Limited 2013
    • While every effort has been taken to verify the accuracy of this information, The Economist Intelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this report or any of the information, opinions or conclusions set out in this report. Cover image - Dave Simonds
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