Incorrect analysis of big data has significant impact on organisations’ revenue according to a survey by the Chartered Institute of Management Accountant (CIMA) and American Institute of Certified Public Accountants (AICPA).
Of the 2,000 chartered global management accountants (CGMAs) surveyed, 86% said that they are struggling to turn growing volumes of data into valuable insight and that their revenues are impacted as a result.
Respondents said that the main hurdles they face when analysing data are the difficulties in bringing data together from different databases and silos as well as ensuring the business captures reliable, good quality data in the first place.
According to the survey 44% of the respondents believe that their organisation don’t have the sufficient technology tools in place to understand new trends impacting their business but only 53% are investing in the capabilities to harness the benefits.
The costs and time availability are amongst the main reasons mentioned by participants for organisations not introducing improved practices.
These findings contrast with those of a joint survey by the Association of Chartered Certified Accountant (ACCA) and the US Institute of Management Accountants (IMA) entitled Digital Darwinism: thriving in the face of technology change, which found that big data was amongst 10 technology trends that would impact the accountancy profession.
Out of the 10 technology trends big data was the most mentioned trend after mobile, with 62% of the 2,100 participants saying it will reshape the accountancy profession and business landscape.
CIMA technical specialist Peter Simons said: "Big data is increasingly becoming a core business asset. According to the survey, 93% of respondents agreed that finance has an essential role to play in helping organisations benefit from data-related projects.
"Finance professionals, especially CGMAs, are well placed to do this by helping organisations translate analytical insights into commercial insights to create value."