TCS and ESSEC Study Shows Strong Linkage Between Data & Analytics Maturity and Business Effectiveness of French Cos
Survey of 105 Business Leaders in France by Tata Consultancy Services and ESSEC Business School Assessed Data & Analytics Maturity Across Organizational, Technological, Human and Financial Dimensions and Identified Key Areas for Prioritization
MUMBAI : Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) published a new report Unlocking the Value of Data, based on a survey of 105 business leaders from French companies, conducted in collaboration with ESSEC Business School. The study explores the data and analytics maturity of French companies, across the four pillars of data strategy: organizational, technological, human and financial.
The study confirms the positive relationship between the data and analytics maturity of organizations and their level of business performance: the higher the level of maturity achieved, the better the company’s performance.
However, more than half of the companies surveyed stand at a low or medium level of maturity. Many business leaders believed their organizations may not be sufficiently sharing data across business functions. Data and analytics maturity comes from not just sharing data within the company, but also the ability to integrate a larger number of data sources.
The survey shows that most French companies analyze several types of data and do not limit themselves to data generated within their own organization. Usage of external verified data and open data rises with maturity levels. Among low maturity organizations, 39% use external verified data and 28% use open data, whereas the corresponding numbers among high maturity organizations are 86% and 43% respectively.
As data becomes ubiquitous, it appears that French companies and organizations are now investing massively in analytics. 23% of the companies in the sample devote more than 10% of their turnover to IT and digital transformation and 15% spend more than 10 million euros annually on data and analytics.
While half the respondents have at least one active data lake or data warehouse, 30% of them continue to only use their legacy information system to extract data for reporting purposes. Furthermore, 60% of companies state that they have a low or very low level of automation (capture, processing, provisioning, etc.). Yet, automation processes play a crucial role in improving business efficiency, reducing errors, ensuring proper data structuring; thus, improving effectiveness.
On the topic of talent management, 43% of respondents say that no skill level has been defined for data and analytics. Less than a third have training programs for the purpose of filling certain data-related roles. Finally, only 12% have company-wide induction programs for all employees.
“Data and analytics maturity is critical to an enterprise’s ability to adapt, to personalize its products and services and embrace new business model. It also enables decision makers to better understand all the risks and take informed decisions faster. The study highlights the key areas that French companies need to focus on to improve their data maturity,” said Rammohan Gourneni, Country Manager, TCS France. “Leveraging its rich portfolio of assessment frameworks and automation toolsets, TCS has been helping leading French companies define their data strategies, modernize their data estates and accelerate their growth and transformation journeys.”
“At a time when company digitalization targets the performance of its processes, the data & analytics maturity of the organization sign the foundations of its ability to take advantage of both its data and its analytical power,” explained Isabelle Comyn-Wattiau, director of the Strategy and Information Governance Chair at ESSEC Business School. “Yet, the ability to take advantage of this data to improve their business performance, by adapting their processes, their products, their services, and by better managing risks, remains highly variable.”
The findings of the survey suggest that to improve their maturity levels, French companies should prioritize the development of a data and analytics strategy with roadmap, raising the level of data competency in the organization and the establishment of a data culture. Additionally, they need to invest in people, strategic partners and technologies such as cloud and automation.
Conducted in September 2021, TCS’ study was based on a survey of 105 executives from French companies of all sizes. The respondents included business leaders, CIOs, CDOs and functional directors from all industries.