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Peerview Data Insights

Is There A First-Mover Advantage In Big Data, Analytics and Benchmarking?

Nobody likes to be the first to try something new. Remember the old Life Cereal commercial?
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Brother #1: "I'm not gonna try it, you try it."
Brother #2: "No way. I'm not gonna try it, you try it."
Brother #1: "I know, let's get Mikey to try it!"
Big Data, analytics and benchmarking aren't new, but for a lot of companies, the idea of incorporating them into existing processes and procedures on a day-to-day basis is.
That means the question they struggle with isn't why they should do more with the data they already collect, but when they should start  — should they be one of the first or wait to see what happens to their peers and competitors?
(For insights into the "how" of becoming more data-driven, see 10 Simple Rules For Your Big Data Analytics Adoption Strategy.)
Fotunately, there's a growing body of research that suggests the sooner you start, the better off you'll be because the gains in profitability and productivity from Big Data, analytics and benchmarking increase over time.
Three stats to consider:
  1. The average initial increase in profits from big data investments is 6%, but the average increase in profits after five years is 9%(Source: McKinsey & Co.)
  2. The average initial return on big data investments for the average company is 140%, but the average return on big data investments for the average company after five years is 200%. (Source: McKinsey & Co.)
  3. Companies ranked "more productive" are faster adopters of big data than their "less-productive" peers. (Source: Journal of Big Data.)
But that raises the question: then why isn't everybody trying to become more data-driven?
Most are, but the pace varies. 
Because we talk to so many companies, one thing that often holds them up is the question of capacity:  most view big data, analytics and benchmarking as an all-or-nothing proposition and don't think they can start small — as if Mikey's family had to buy an entire truck load of Life Cereal and if Mikey didn't like it, they'd have to throw it out or choke it down at evey meal.
That might be the case if you jump in on your own, staff up and use proprietary or custom-built resources, but there are software solutions that let you "start with a box, or even a spoonful," so you can see if you like it.
In that case, all you need to do to start today is find your Mikey.


Our Big Data, Analytics & Benchmarking Tools are built to give data-driven companies better insights.

Click here to see what they can do for you.

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Topics: Analytics big data Benchmarking CPAs Accounting Trends Accountants Competition Warren Buffet