UK businesses have invested heavily in IT systems and business information technolgy, but there is still a ‘broken information culture’ that is costing the private sector £46 billion per year in missed opportunities, according to a Capgemini report.
For the UK public sector, poor information management costs £21 billion in administrative costs per year, said the Capgemini report, titled ‘The Information Opportunity’.
Two thirds of business decision makers are ‘forced to make crucial decision in the dark’, said Capgemini.
The report, based on interviews with senior leaders from the financial times stock exchange (FTSE) 350 and UK public sector organisations, puts an economic value on lost productivity and missed opportunities as a result of bad information management.
About 60 percent of decision makers claimed poor information culture is resulting in a 29 percent hit to British organisational performance. Survey respondents listed increased operational costs (47 percent), financial losses (43 percent), reputation damage (40 percent) and loss of customers (38 percent) as the major consequences of poor information.
Yet 80 percent of respondents in our survey acknowledged information is critical determinant of business performance.
"We found C-level executives freely admitting failings in their organisational information culture. Failure to properly exploit information is keeping Britain’s bosses in the dark and affecting our international competitiveness,” said Ramesh Harji, head of information exploitation at Capgemini UK.
The report said: "Organisations are generating increasing volumes of information, but this simply isn’t reaching decision makers in time. Why is this when so much money has been spent on information IT?".
"The UK must begin to value information as a business asset and in doing so ensure that any investments in IT solutions are not just quick fixes, but actively enhance and improve the information culture,” said Harji.