Home >Industry >Infotech >Return on emerging technologies uncertain: report

New Delhi: Adoption of big data and analytics for business growth is fast becoming the new norm for enterprises the world over. Companies are earmarking bigger chunks of their annual budget to digital. But multiple studies show that the return on investment (RoI) in such emerging technologies has not been all that great.

A recent study by outsourcing services firm Genpact Ltd is one of them. The company surveyed 100 executives responsible for business operations between March and July 2015, of which over 70 companies make over $1 billion in revenues a year.

While 65% of the respondents said they are “so far seeing, at best, some benefits, from digital technologies deployment", this number stood at 74% for analytics.

Only 31% of executives felt that their digital initiatives meet or exceed their expected business outcomes, while 26% said analytics delivered the expected results.

Another study by research firm Gartner Inc., released earlier this week, said the return on investment on big data initiatives remain uncertain.

The study surveyed 437 enterprises. About 43% of them have plans to invest in big data and analytics and 38% are already investing in it. But all of them were uncertain whether their RoI will be positive, Gartner said in its report.

However, businesses remain conducive to using big data analytics going forward, the studies show.

The data collated by Gartner revealed that investment in big data continued to increase in 2015, but not as rapidly as in previous years. More than three-quarters of companies surveyed are investing or planning to invest in big data in the next two years but it is only a 3% increase over 2014.

Also the companies are making investment in big data initiatives for specific objectives. Like in previous years, organizations are targeting enhanced customer experience as the primary goal of big data projects.

Other areas for big data investments include process efficiency and more-targeted marketing and enhanced security capabilities, said Gartner.

About 71% of Genpact’s respondents believe in “high or extremely high emphasis on digital technologies to improve their business operations", while 64% said the same for analytics.

As the companies continue to splurge on new-age technologies, the business growth is hindered among other reasons by a lack of aligned digital strategy for business operations such as middle and back-office operation, difficulty in integrating traditional or legacy systems with the new ones and unavailability of right business intelligence tools, said the Genpact study.

“Our research underscores how the adoption of digital technologies and analytics, not unlike other disruptive technology inflections of the past, is hindered by many enterprises’ ability to design and transform effectively," said Gianni Giacomelli, senior vice-president and leader of the Genpact Research Institute.

“We believe that this current wave is of unprecedented magnitude. Many companies, however, still do not realize that the issue is not just technology, but could be their own ability to re-imagine the way they run and implement their vision."

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