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DAYTON, Ohio - Seventy-three percent of 113 top-tier executives queried at U.S. companies with revenues exceeding $500 million revealed that the number of decisions they make is on the rise. At the same time, 54 percent reported that the amount of data is at least doubling, and 55 percent say there is less time to make decisions. The findings were released on Friday in The 2002-2003 Teradata Report on Enterprise Decision-Making.
"Making decisions in time to control the performance of the business, including the outcome of profits, customer loyalty, margins or any other key measurement, is getting harder for many executives. They suffer from information overload and often can't interpret data in a timely manner," said Ruth Fornell, chief marketing officer of Teradata, a division of NCR Corp.
Other survey findings reveal that the top three casualties of poor decision-making are profits (80 percent), revenue (78 percent) and employee morale (73 percent).
Of those who reported there's less time to make decisions, 55 percent said they "missed opportunities," 29 percent reported their "competitive position" had been negatively affected and 26 percent said it hurt "profitability."
One key culprit in poor decision-making is the housing of data in separate silos (or data marts) throughout an enterprise, according to Teradata, a data warehousing provider.
Thirty-one percent of respondents said their data is stored in 11 to more than 100 separate silos. Another 35 percent cannot estimate the number of data marts at their companies.
"If a company does not even know how much data it has, or where all its data is housed, it adds up to 'data dysfunction.' The company cannot tap the right data at the right time. Our survey also shows that 68 percent admit that data marts contribute to problems in corporate governance," said Fornell.
The Teradata study was fielded by BuzzBack online market research Sept. 17-22, 2002, and 113 executives who hold the title of "director" or higher at U.S. companies with annual revenues exceeding $500 million were queried. Eighty percent of respondents work at companies with annual revenues exceeding $1 billion.