Data And Analytics Strategies: What Investors Think - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Data Management // Big Data Analytics
News
8/14/2015
11:06 AM
Lisa Morgan
Lisa Morgan
Slideshows
Connect Directly
Twitter
RSS
E-Mail
100%
0%

Data And Analytics Strategies: What Investors Think

Whether raising a round of funding or creating shareholder wealth, companies increasingly need a well-articulated and demonstrable data and analytics strategy. Here are some things that can sway an investor's opinion, for good or bad.
Previous
1 of 7
Next

(Image: Geralt via Pixabay)

(Image: Geralt via Pixabay)

Data and analytics strategies are no longer merely nice-to-have. They're becoming mandatory because data and analytics are changing the competitive landscape in every industry. Some Wall Street analysts and venture capitalists are keenly tuned into the top-line and bottom-line differences the use of data can make. If you're presenting to one of these firms in hopes of getting funded or maximizing shareholder wealth, you'd better be prepared to answer some very smart questions, and be able to back up what you say.

Institutional Investor recently published a report, sponsored by KPMG, based on a survey of 260 investors and sell-side analysts. Twenty-four percent of the respondents said they changed one or more of their investment opinions based on a company's data and analytics strategy, and 45% expect that to be the case in the next two years.

"The [companies] that have been using analytics for years are farther along, but one by one they're getting it, and I'll call it the competitive advantage or competitive disadvantage," said Brad Fisher, national data and analytics leader at KPMG. "You're either playing offense or defense."

The report indicates that data and analytics strategies are affecting organizations across industries. While the data-driven maturity of companies varies from industry to industry and business to business, momentum is building. Failing to have a data and analytics strategy, or executing one poorly, can negatively impact a company's ability to compete -- and therefore its value.

"Data strategies are here to stay across a number of different areas [where] we're going to continue to invest, and it will be a bigger part of our investing thesis as far as where we put our time and energy in the portfolio," said Ron Heinz, managing director at venture capital firm Signal Peak Ventures.

Data and analytics strategies need three key elements to succeed: The technology, the ability to execute, and a culture that embraces data-driven decision-making. How all that is evaluated is interesting indeed. Here are six examples of what investors look for before they decide to pump capital into an organization.

Lisa Morgan is a freelance writer who covers big data and BI for InformationWeek. She has contributed articles, reports, and other types of content to various publications and sites ranging from SD Times to the Economist Intelligent Unit. Frequent areas of coverage include ... View Full Bio

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Previous
1 of 7
Next
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
shamika
50%
50%
shamika,
User Rank: Ninja
8/31/2015 | 12:54:26 AM
Re: True
Analytics will always help in better decision making. However it is important to have proper analytical tools to perform this task.
LisaMorgan
50%
50%
LisaMorgan,
User Rank: Moderator
8/19/2015 | 12:01:16 PM
Re: True
Thank you.
shamika
50%
50%
shamika,
User Rank: Ninja
8/19/2015 | 11:49:39 AM
True
Interesting article. Data and analytics have become the core for all industries. This will definitely help in gaining competitive advantage. It will also help in understanding the business better.
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Slideshows
Flash Poll