Only 6% of businesses globally use, access, and share data and data services in a way that grants them all the business benefits provided by a robust data strategy, according to new research from Snowflake. Asked about the top barriers to using data strategically, a lack of investments from leadership teams was ranked fifth according to 13% of global respondents.
Snowflake research identified the four key attributes an organisations needs to possess to become a data economy leader. These include:
• Providing unimpeded access to data, no matter where the data users reside;
• Using data to inform all or most business decisions;
• Using data to a great or significant extent to advance strategic goals, such as growing revenue and identifying new business opportunities;
• Having the ability to share and access data securely with external organisations.
Key take away:
According to Snowflakes the Data based economy has enabled businesses tackle complex business problems and remains ahead of their competitors.
The other aspect is the Data based economy helps to build new revenue streams by taking tailored data products and services to their customers, partners, and any other organisation participating in the data economy.
The research further elaborated that leaders and companies who work on to develop strategies that democratise access to data and integrate new technology has a gretaer business benefits of capitalising in the data economy.
While many companies have ambitions to take advantage of data to give them the business edge needed to be successful, these organisations require guidance to lay the right foundations.
38% of businesses surveyed globally and 40% across APAC are using data to inform the business decisions they make.
What happens when businesses aren’t using data to their full potential?
The research say such business are left behind competition and unable to take any strategic decisions. Over 90% of Businesses are unable to succeed in the data economy says the Snowflake Research. Only 38% of businesses surveyed globally and 40% across APAC are using data to inform the business decisions they make.
‘Successful organisations will attain the business advantage that comes from access to data, data services, solutions, and collaboration – which can only be found in the data economy”, said Snowflake principal data strategist Jennifer Belisssent.
“Forward-thinking organisations are using all that the data economy offers to solve the most complex business problems, improve customer experiences and crack down on fraud. The laggards that don’t yet have total control over all of the data they possess will find themselves falling behind the competition, and potentially at increased risk of security threats”.
Challenges in effectively using data for business benefits:
The main challenge lies in effectively extracting the data and businesses require to get grips with their data. The data strategy says that unless businesses are able to access all forms of data and manage it is not possible to extract value out of it.
45% agreed they can easily access all available data through a single system/application and just half agree their data users have ubiquitous data access regardless of their location.
Many organisations also fail to break down internal data silos, impeding data sharing and collaboration across an organization’s business units only 55% say that sharing can happen freely in their organization.
An effective data platform must be scalable and elastic and manage a near-unlimited amount of data, yet less than one-third of the IT respondents say their data management solutions are easily scalable. More importantly, less than one-quarter say their solution lets them share, access and integrate data in near real-time says Snowflake research.
Leading the data economy
While only constituting 6% of businesses surveyed, the data economy leaders are present in all industries from healthcare and life sciences to technology to retail and CPG
A number of Snowflake’s customers are data economy leaders, using data to reveal new market opportunities, streamline processes and deliver a more personalised customer service.
Over half (58%) of Australian respondents have a fully developed and clearly articulated data strategy, and an internal data/analytics centre of excellence structure to centrally support this work.
Two-thirds (66%) of Australian businesses have a data literacy program in place, and 63% are measuring outcomes although only 41% say the “majority” of all decisions are currently informed by data.
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