The power of data and analytics continues to revolutionize industries, fundamentally transforming the competitive landscape. Over the past three years, significant changes have emerged in how businesses leverage data to innovate, collaborate, and gain a strategic edge. Based on recent survey findings, we’ll explore the key trends and what they mean for businesses looking to stay ahead.
Traditional Competitors Evolving Through Data
One of the most remarkable shifts is the dramatic rise in traditional competitors embracing data-driven businesses. In just three years:
44% of respondents reported that traditional competitors are launching new data and analytics businesses, a staggering 144% increase from 18% in 2017.
Additionally, 17% of respondents observed traditional competitors pooling their respective data into shared utilities, marking a 143% rise from just 7% in 2017.
These trends highlight the aggressive pivot of established companies toward becoming data leaders, using analytics not just as a support function but as a core business driver.
The Rise of Value-Chain Partnerships
Collaboration is becoming increasingly important. Companies forming data-related partnerships along the value chain grew by 91%, rising from 21% in 2017 to 40% in 2018.
Such partnerships allow businesses to share insights and resources, creating synergies that benefit all parties. By leveraging complementary capabilities, companies can unlock new efficiencies and deliver better value to customers.
Driving Innovation With New Products
Data is fueling innovation in unprecedented ways. The percentage of traditional competitors launching new products that include analytics services grew by 52%, climbing from 27% in 2017 to 41% in 2018.
This trend underscores the increasing importance of data-driven services in product development. Companies are recognizing that embedding analytics into their offerings enhances functionality and customer appeal, creating a distinct competitive edge.
Extracting Novel Insights
The ability to uncover valuable insights from disparate data sources is also on the rise. Companies extracting novel insights from traditionally unrelated or siloed data grew by 14%, increasing from 36% in 2017 to 41% in 2018.
This reflects the growing sophistication of data analytics tools and techniques, enabling organizations to generate actionable insights that were previously inaccessible.
Improving Core Business Operations
While innovation grabs headlines, data continues to be a powerful tool for optimizing core operations. Traditional competitors using data and analytics to gain material advantages in their core business saw an 11% increase (from 36% in 2017 to 40% in 2018).
This incremental growth signals the steady integration of data into day-to-day decision-making, improving efficiency and driving profitability.
Challenges From New Entrants
Despite the advancements among traditional players, competition from new entrants remains fierce. The percentage of respondents noting that new entrants are launching data and analytics businesses that undermine traditional competitors’ value propositions remained high at 50% in 2017 and 52% in 2018.
These new players, often unencumbered by legacy systems, are leveraging analytics to disrupt markets and capture share from established businesses.
What This Means for Businesses
The data underscores a clear message: companies that fail to embrace data and analytics risk falling behind. To remain competitive, businesses should:
Invest in Data-Driven Innovation: Launch products and services that leverage analytics to meet evolving customer needs.
Collaborate Strategically: Form partnerships that enhance data capabilities across the value chain.
Leverage Insights Across Systems: Break down data silos to uncover novel insights that drive decision-making.
Keep an Eye on New Entrants: Monitor the competitive landscape for disruptive innovations from startups and challengers.
The data and analytics are no longer optional—they are critical to survival and success in today’s dynamic markets. Whether by innovating, collaborating, or optimizing core operations, businesses that harness the full potential of analytics will be well-positioned to lead in the years ahead.
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