SOURCE: Oracle Corporation
REDWOOD SHORES, CA--(Marketwire - Sep 24, 2012) - Oracle (NASDAQ: ORCL)
- Today Oracle announced the results of its "From Overload to Impact: An Industry Scorecard on Big Data Business Challenges" report, which surveyed 333 U.S. and Canadian C-level executives from the financial services industry and 10 other industries to determine the pain points they face regarding managing the deluge of data coming into their organizations and how well they are using that information to drive profit and growth.
Overall Key Findings
- The data deluge is here.
- Ninety-four percent of financial services executives surveyed say their organization is collecting and managing more business information today than two years ago, by an average of 75 percent more.
- For all industries collectively, 94 percent of C-level executives say their organization is collecting and managing more business information today than two years ago, by an average of 86 percent more. Executives note they see the biggest data growth areas coming from customer information (48 percent), operations (34 percent) and sales and marketing (33 percent).
- Room for Improvement. Financial services executives say they are not prepared to handle the increasing amount of data they face.
- Twenty-five percent of financial services executives surveyed give their organization a "D" or "F" in preparedness to manage the data deluge. Fifty-six percent give their organization a "C" or below. Only three percent of executives give their organization an "A" in preparedness.
- Financial services respondents say that are unable to realize, on average, 12 percent of additional revenue per year, translating to an average $64.6 million per year (figure based on the average revenue of financial services organizations surveyed) -- by not being able to fully leverage the information they collect.
- For all industries collectively, 60 percent of executives surveyed give their organization a "C" or lower in preparedness to manage the data deluge, and 93 percent believe their organization is losing revenue opportunities -- representing on average, 14 percent of revenue per year. On average, private-sector organizations with revenues of $1 billion or more say they are losing approximately 13 percent of incremental annual revenue as a result of not being able to fully leverage their information. That translates to $130 million each year for a $1 billion organization. Only 8 percent of executives give their organization an "A" in preparedness.
- Managers do not have or cannot get to the timely information they need. Financial services executives are frustrated with their organizations' data gathering and distribution capabilities.
- Respondents from the financial services industry note they are most frustrated with the fact that information is no longer timely when it gets to business managers, with 38 percent citing this as a key issue.
- Rounding out their top data management frustrations, 34 percent of financial services executives say they do not have the right systems in place and 34 percent say their existing systems are not designed to meet the specific needs of the industry.
- Industry-specific applications are important.
- Ninety-one percent of financial services organizations use industry-specific applications and software to help leverage information to make strategic decisions, the highest across all industries in the study.
- Financial services executives, however, still see room for improvement in their industry-specific applications, with 34 percent looking for industry-specific applications to enhance financial management, 34 percent seeking more industry-specific customer relationship management solutions and 34 percent looking for regulatory compliance platforms more specific to their industry needs.
- Data is hard at work in some areas; still facing challenges in others.
- Financial services executives note that they are making the best use of their data to move the business forward in the areas of regulatory compliance (38 percent), customer service (34 percent) and sales/marketing (31 percent).
- Respondents call out risk management and regulatory compliance as areas in which their organizations could benefit most from additional business intelligence and analytical solutions. Forty-four percent cited risk management, 41 percent say alignment of risk and finance and 41 percent said regulatory compliance.
- Executives give their organizations mixed reviews when it comes to preparation for dealing with the analytical needs associated with financial reform and new regulatory requirements. Sixty-three say they are only somewhat prepared, and only 28 percent say they're very prepared. Six percent say they are not very prepared and 3 percent say they're unsure of their level of preparation.
- Setting a path forward. Financial services industry respondents note their organizations must improve information optimization.
- Top priorities include more customized systems and applications to meet the needs of the industry (47 percent), greater ability to translate information into actionable insight (38 percent) and improved tools to collect more accurate information (38 percent).
- To access the full report -- which delves extensively into how prepared organizations within each industry are for the data deluge and the resources they need to enhance their ability to leverage incoming data -- visit here.
- "Banking channels are becoming more diversified, with mobile and online banking leading the way in generating increasing amounts of customer information. At the same time, regulators have called for more rigorous and granular supervision and oversight of financial information. While data continues to grow, financial services organizations must learn how to use the information available to satisfy regulators and customers alike. This report highlights the importance for institutions to think analytically and ensure managers have the applications and access they need to examine business-critical information first hand," said S. Ramakrishnan, vice president and general manager, Oracle Financial Services Analytical Applications.
Oracle engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle (NASDAQ: ORCL), visit www.oracle.com.
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