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Big data analytics implementations are up, but satisfaction with those implementations is down, according to a recent survey. Why are companies frustrated with their attempts to harness the power of large sets of supply chain data? We are at the beginning of a supply chain technological revolution. Everything—from pallets and trucks to a bag of Romaine lettuce—has the potential to collect, store, and transmit information. If only companies could take this data and feed it into analytics and artificial intelligence systems, they could make better, faster decisions than ever before, driving down waste and increasing value. That, at least, is the vision of what big data analytics could achieve.
But now, reality is beginning to set in. As more companies try to wrap their arms around their 'big data' and implement more complex analytic tools, they are beginning to realize that achieving this vision is hard work.
It takes significant investment in information technology (IT) systems as well as change and process management. Companies are also finding that the key data that they need is often missing or inaccurate. The promise of big data analytics is coming, but perhaps not as easily as initially thought. That was the main message conveyed by the results of the 'Second Annual Big Data Analytics Study' conducted by the analytics company Competitive Insights LLC; the consultancy lharrington group; CSCMP's Supply Chain Quarterly; and two prominent supply chain management schools, Arizona State University and Colorado State University. [Figure 6] Impediments to a big data analytics implementation This annual study is designed to provide companies with a benchmark that they can use to understand the current state of supply chain data analytics and learn what analytical strategies organizations are adopting to harness the power of big data. The intent is to show the levels of progress that companies are making in addition to the obstacles impeding that progress. A survey was conducted in both 2017 and 2018 with readers of Supply Chain Quarterly, subscribers to a newsletter produced by Competitive Insights, and a contact list generated by Arizona State and Colorado State University researchers.