South African businesses use analytics mainly for reporting rather than forward-looking strategies and analyses, according to a new study.
The study conducted by business analytics software and services company, SAS South Africa, found that although the country advanced considerably in the adoption and use of analytics we still have far to go.
SAS carried out the study on Business Analytics in South Africa to assess the rate of adoption, the faith in the data and the level of buy-in to the results of business analytics implementations, according to a statement.
Desan Naidoo, managing director of SAS South Africa said, “Analytics has great potential to transform the way that we do business and respond to market factors.”
“As the adoption and use of these tools matures in South Africa, we believe that we’ll start to see far greater focus on the predictive capabilities of analytics, rather than simply reporting on things as they are. In fact, in his budget speech earlier this year, Minister Pravin Gordhan mentioned the importance of analytics... analytics will contribute to reducing identity fraud, lower administration costs and enhance compliance,” Naidoo added.
The study reveals that companies are using analytics substantially for decision-making – 53% of respondents state that analytics contributes to more than 60% of their organisation’s decision-making. Another 8% indicated that analytics contributes to 0% to 20% of their decision making.
“It has been shown that the more organisations trust their data, the more they combine the results with their own gut feel when making decisions,” said Naidoo.
“The capabilities of these business tools are only beginning to be unlocked. But we have faith that the extraordinary benefits for profit creation, responsiveness and competitiveness will continue to promote acceptance as their use becomes more widespread,” he concluded.
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