Business leaders in Asia Pacific and Japan have shown a clear disconnect between the significant value they put in using data and their actual willingness to harness data in their decision making.
According to a global survey conducted by Salesforce in partnership with YouGov, 73% of senior business executives in APJ agree that data helps reduce uncertainty and make more accurate decisions in business conversations. However, nearly 7 in 10 (69%) business leaders are not using data to decide on pricing in line with economic conditions, such as inflation. And only 30% are using data to inform their strategy when launching in new markets.
“Business leaders already acknowledge that data provides critical business advantages, and they need to match this with action for a data-driven culture to permeate,” said JY Pook, senior vice president and general manager, Asia Pacific, Tableau at Salesforce.
“The onus is on leaders to operationalise company-wide data skills training across every role and rank to build a knowledgeable workforce that can uncover new opportunities while ensuring the business’s competitive advantage.”
JY Pook, Tableau
The global survey entitled “Untapped Data Research” was conducted in September 2022 and included 4,295 respondents from APJ, including Australia, India, Japan and Singapore.
Survey results also showed missed opportunities for companies to use their data to drive company values:
- More than three-quarters (77%) of business leaders are not using data to inform their organisation's diversity and inclusion policies.
- Only 18% of business leaders are using data to help guide their climate targets.
Close digital skills gap to realise data value
The survey showed business leaders in APJ are paralysed by the influx of data, their knowledge of how to best operationalise it, and how to use it to invest strategically going forward.
For one, 41% cite a lack of understanding of data because it is too complex or not accessible enough. Also, more than a third (36%) of business leaders cite the lack of ability to generate insights from data.
Furthermore, almost one-third (29%) are overwhelmed by the amount of data, which is expected to more than double in size by 2026.
To address these concerns, 74% of companies in the region are planning to continue or increase spending on data skills development and training for employees.
According to Pook, data literacy training for employees can establish a data culture that supports business goals and improves resilience during the tough economic climate.
“Good decisions start with data. As inflation and growing challenges in the external environment cast a dark shadow over markets, our research has shown how data-driven organisations are in a better position to drive smarter, faster decisions to solve today’s most pressing challenges,” said Pook.
Data creates efficiency and trust amid uncertainty
When integrated and leveraged correctly, the survey revealed data has huge potential to build efficiency and trust among both customers and employees:
- 71% of business leaders think data keeps people focused on the things that matter and that are relevant to the business.
- Three-quarters (75%) agree data helps accelerate decision-making.
- 72% believe that data builds trust in business conversations.
- 67% think that data helps minimise the influence of personal opinions or egos in a business conversation.
Insurance firm Sompo Holdings (Asia), which has deployed Tableau in its organisation, shared how using data has enhanced decision-making
“Tableau has helped to democratise data for our employees across the organisation, from sales, marketing, underwriting to claims, sparking an internal culture that embraces data curiosity and collaboration,” said Aditya Tibrewala, chief consumer officer, Asia at Sompo Holdings (Asia). A clear view of important data sets also helps to inform key business decisions such as pricing and deliver better customer experiences and growth.”
“By looking at past claims data, our motor claims team, for instance, has identified opportunities to maximise efficiency and saw 20% improvement in turnaround time for claims settlement in some areas.”
Aditya Tibrewala, Sompo Holdings (Asia)
