Data and trust key to business growth and innovation

- More Singapore CxOs exhibit a data-oriented mindset compared to their global counterparts;

-  Trust and data integration can support business growth; market leadership is gained or lost by level of trust an organisation can create

Organisations attain market leadership most frequently by establishing a high level of trust in the data from its customers, its own business processes, and across its partner ecosystem, according to IBM’s latest C-Suite Study. Conducted by the IBM Institute for Business Value (IBV) in cooperation with Oxford Economics, the 20th edition of IBM’s bi-annual Build Your Trust Advantage report polled nearly 13,500 C-level executives who oversee leading brands across 98 countries and 20 industries.

Through the quantitative and qualitative surveys issued, the research concluded that there is a set of leaders, – dubbed "torchbearers" – who stood out as understanding that transparency, reciprocity and accountability are critical ingredients for earning trust among key stakeholders. These leaders, which made up 9% of the total respondents, were found to outperform peers in revenue growth and profitability – delivering results that are 165% higher – as well as in innovation and managing change. They do so by leveraging data to build customer trust, create cultures of data-based decision makers and are adept at sharing data with ecosystem partners without giving away their competitive edge.

Torchbearers have a deep understanding that building trust in customer relationships is a strategic imperative and work hard to earn and maintain it. Eight in 10 (82%) global leaders strongly believe data helps create a strategic advantage in strengthening their level of customer trust as well as their bottom lines. However, companies are now facing the consumer’s ever-growing concern about how their personal information is shared, a related IBM study on data privacy found.

Eight in 181 percent of global consumers say that in the past year they have become more concerned with how companies are using their data. Consequently, data governance guidelines and the protection of customer’s data are key points that companies need to address openly, in order to nurture and maintain a high level of their customer’s trust.

While the C-Suite Study focuses on the need for transparency on how companies handle customer data, it also highlights the importance of trusting data that is used within an organisation. Eight in ten leaders stated that they have deep trust in data to perfect the quality and speed of the decisions made, with 70 percent extensively using data to develop new business models. Torchbearers were found to take great pains to ensure that the data within its own walls is accurate and clean so they can leverage it to make the best-informed decisions on important business ventures, such as developing new business models and entering new or emerging markets.

The study also revealed an emphasis on the importance of creating trustworthy ecosystems, with 85 percent of leaders expecting that their partner networks will expand. Data that remains solely within the organisation is more likely to become outdated, which could impact the business strategy in the months and years to come. Building and nurturing trust within an ecosystem enables businesses to share and receive data that enables them to build new business models, and 62 percent of leaders are already integrating new modes of monetisation into their data strategies. Deciding what data to share for win-win propositions—and what data to maintain as a proprietary advantage—is one of the most difficult decisions organisations have to make.
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Singapore torchbearers: 11% of Singapore-based executives interviewed were identified as torchbearers, those who frequently integrate business and data strategy – creating value from data. On a global level, these tried and tested methods have been known to help businesses outperform in terms of revenue and profitability.

There are areas where Singapore-based torchbearers trail behind their global peers in maximising the use of data. When looking at making future business choices, such as planning large investments in artificial intelligence or machine learning, 58% of Singapore CxOs have such plans as opposed to 72% at a global level. Surprisingly, Singapore ranked lower in prioritising data privacy as a source of competitive advantage as compared to their global counterparts. Instead, Singapore CxOs focus more on customer relationships, workforce skills and brand value.

“Data privacy and transparency are a core concern for consumers and businesses globally,” highlighted Arun Biswas, GM, IBM Global Business Services Singapore.

“Our survey findings suggest that more business leaders in Singapore need to consider the changing relationship between customers and their data and ensure that they retain their customer’s trust, in order to build the foundation for their future success and avoiding falling behind their peers.”

The overall picture looks more positive. All Singapore-based CxOs polled demonstrated a data-driven mindset ahead of their global peers:

• Fifty-four percent of Singapore CxOs use data, to a large extent, to identify unmet customer needs, which is 12% more compared to global CxOs

• Half of Singapore CxOs use data to develop or enter new markets, as opposed to 41% of their global counterparts

• Six in 10 (62%) Singapore CxOs notably possess the right data mindset to improve the speed and quality of decision-making as opposed to 49% globally

“Leveraging data to help reinvent the customer journey map, Singapore’s CxOs are more likely to use trusted data to create a competitive advantage against their peers,” shared Arun Biswas. “The importance and trust placed in data by Singapore C-suite leaders enables them to make better decisions and push ahead in strengthening their business.”

While the study provides the guidance that companies should always practice transparency, reciprocity and accountability when handling data and engaging customers and business partners, other recommendations include:

1. Strengthen relationships with customers by becoming trusted custodians of personal data, demonstrating transparency by revealing data about offerings and workflows, and using the trust advantage they've earned to create differentiating business models

2. Build confidence in data and AI models enterprise-wide. Stimulate a culture of true data believers and data-based decision makers, and in turn, elevate experiences for customers and partners along their value chains

3. Learn how to share data on business platforms without giving away competitive edge. Turn the corner from amassing data to determining how best to monetise it, including how to build ecosystems to create new exponential value


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The IBM Institute for Business Value (IBV), part of IBM Services, develops fact-based, strategic insights for senior business executives on critical public and private sector issues.