A recent study conducted by the MIT Centre for digital business in conjunction with McKinsey revealed that data-driven companies have 4% higher productivity and 6% higher profits than companies that are not data-driven.
This increased productivity and profit could make an enormous difference to companies that identify the importance of data-driven decision making.
“The only way to get the most out of your data and make data-driven decisions is to ensure that your Enterprise Performance Management (EMP) System is adequately aligned to your overall business strategy,” said Steven Joffe, EOH Softworx Director of performance management.
“At present, 70% of EMP solutions do not achieve their original objectives. This is because, while technically the solutions are sound, they do not actually address the organisation’s needs,” explains Joffe.
“Many organisations allow different departments to select a solution that does not necessarily support the company’s overall business strategy and as a result, do not align key performance indicators to their business strategy.”
After years of EMP systems, there is still a gap between IT and real business strategy. Company departments feel that IT is not partnering with business to develop new capabilities supported by technology.
“This is not because the technology is not useful, but because it has not been adequately aligned to deliver quantifiable improvements in productivity and profits,” says Joffe.
In general, the Southern African market is quite immature, with most businesses using a multitude of tools for similar requirements in different business areas. Internationally, we have found there to be a greater understanding of business requirements and solutions and how these tie into the organisation’s business strategy. International clients are also looking for the value add that EMP solutions can provide whereas local clients are usually just wanting to automate current processes or replace manual systems,” said Joffe.
While it is often beneficial is for companies to use multiple systems to fulfil their overall EMP requirements. It is vital though, to ensure that these are all aligned to the company’s overall business strategy.