Last week I had the privilege of presenting at the European Pharmaceutical Market Research (EphMRA) Annual Conference in Brussels. My talk was on the important topic of the future of the Market Research profession.
My invitation came as the result of one of the committee members seeing a question I had posted at the end of last year on several LinkedIn groups: “Does your organisation need a market research department? And in the future?” Whether you are a researcher or a user of research data, the following summary of that presentation should help you underst and the need for us all to change the way we work with information and data, in order to increase their value to the business. Recent studies by both IBM and Business Intelligence about the information needs of top management in general and marketing in particular give us some great clues about what they dislike and what we need to change.
Management don’t get what they need
Executives complain that their information currently comes from numerous, disparate sources, is rarely available in real-time, cannot be easily accessed without the help of IT, and anyway takes too long to customise it to their needs. The good news is that they don’t seem to get too much; in fact it looks as if they actually want more, but more of what they need.
Executives don’t get it in the format they need
Management currently get their information primarily via emails and spreadsheets, which I find shocking. Why do we expect them to take the time to sift through all the information to draw their own conclusions? Are we still too scared to voice our own opinions, or to make recommendations? Only one in eight receive dashboards and yet this is their preferred medium. They want someone to have thought about their needs and then to provide a simple form that is easy to scan, interpret and take action on.
Marketing needs their data in real-time
It’s a hard time to be a CMO or head of marketing these days. They are being challenged more than ever before, to prove the ROI of their spending. They want more real-time information so they can take better informed decisions. They also need consistency so they can compare across channels and link sales back to individual campaigns and lead-generation efforts.
Marketing don’t feel ready to manage even more information
More than two-thirds of CMOs feel totally unprepared for the current data explosion, especially as it relates to social media. They also feel that they aren’t keeping up with all the rapid market changes, even when they have the money to do so.
The solution is as easy as ABC
Taking into account what management have said about their current information sources, providing what they need is as easy as ABC:
- Accessibility to the information they need, where and when they need it.
- Business impact so that what they receive enables them to identify and take the actions needed.
Last week I presented at the first Swiss Business Intelligence Day. It was an inspiring conference to attend, with world-class keynote speakers opening the day. They included Professor Stephane Garelli from IMD, Philippe Nieuwbourg from Decideo and Hans Hultgren from Genesee Academy.
After such an illustrious start, you can imagine that I was more than a little nervous to present my very non-IT perspective of business intelligence. However, the presentation did seem to go down well, so I want to share with you some of the ideas I talked about. Not surprisingly, with my passion for customer centricity and always with the end-user in mind, I took quite a different perspective from that of the majority of IT experts who were present.
BI should Collaborate More
With the explosion of data sources and the continuous flow of information into a company, managing data will become a priority for everyone.
The Big Data market, which more than doubled last two years, is forecast to triple in the next four, according to Statista. BI will have to exp and its perspective, work with more varied sources of information and exp and its client base.
In the past BI was inward looking. It ran data-mining exercises, reviewed corporate performance, developed reports and occasionally dashboards. It was, and still is in many organisations, mostly concerned with operational efficiencies, cost-cutting and benchmarking.
The above plot is my own, simplified view of how BI fits into data management within most organisations today. The other three quadrants are:
- Competitive intelligence (CI) uses external competitor knowledge to support internal decision-making. Although BI is sometimes considered to be synonymous with CI because they both support decision-making, there are differences. BI uses technologies, processes, and applications to analyze mostly internal, structured data. CI gathers, analyzes and disseminates information with a topical focus on company competitors.
- Investor Relations (IR) uses internal data to get external people, such as shareholders, the media or the government, to support and protect the company and its views.
- Market Research (MR) on the other h and is mostly outward looking. It studies customers’ behaviours & attitudes, measures images & satisfaction, and tries to underst and feelings & opinions. That information is then used, primarily by marketing, to develop actions and communications for these same customers.
The four quadrants, even today, usually work in isolation, but that will have to change with this new data-rich environment in which we are working.
BI is Ripe for Change
According to a recent (Jan 2014) Forbes article, BI is at a tipping point. It will need to work in new ways because:
- it will be using both structured and unstructured data
- there will be a consolidation of suppliers
- the internet of things will send more and more information between both products and companies.
- thanks to technology, data scientists will spend more time on information management & less time on data preparation. At present it is estimated that they spend 80% of their time on data cleaning, integration and transformation, and only 20% on its analysis!