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As enterprises today recognize the growing value of data, leveraging data better and its effective use is becoming high priority. In my previous post (read here), I wrote about companies expecting to generate a 547% return on their data investments and increasing revenue by an average $5.2 million as a result of more effective data use.
But, the not so good news is that despite the potential value that data holds most organizations are struggling to extract that value and reap the desired ROI.
According to ‘The 2018 Data Value Report’, a study conducted by SnapLogic in association with Vanson Bourne, there is a deep disconnect between organizations’ data ambitions and real results and that while data may be a top priority among organizations, majority are yet to generate the value they have set out to achieve.
Some data points from the study that corroborate this disconnect between data and business value:
- 74% respondents believe that their organization has more data than ever but is struggling to use it to generate useful business insights.
- On average, respondents estimate that their organization only uses around half (51%) of the data that it collects or generates.
- Less than half (48%) of all decisions in their organizations are data-driven, suggesting they’re unable to access or analyze the right data when they need it or do not fully trust the data when making business-critical decisions.
- Only 29% of respondents have complete trust in their organizations’ data when it comes to making business-critical decisions.
Its like organizations realize that data means a lot to them but don’t really know how to use it to deliver the desired results. This is where a majority of enterprises are currently stuck in their journey towards becoming data-driven and failure to address it in time can put a spanner in their digital transformation efforts.
According to the study, some of the common snags in taking full advantage of data and turning it into actionable insights and measurable results are legacy technology, sharing and integrating data between different teams and departments and tedious and manual data integration work.
Going forward, the data deluge is only going to get bigger and deeper with IDC estimating a ten-fold increase in data by 2025. As organizations drown further in the sea of data, the issues are bound to get even more out of hand, putting them even further behind the curve in their data driven ambitions.
Here new age technologies such as Artificial Intelligence (AI) and Machine Learning (ML) are going to play an important role in overcoming the data-related challenges. Organizations have already started investing or planning to invest in these two technologies for automating various parts of preparing and processing data as well as for automating data analysis and data preparation/management.
Today more than ever, the ability to leverage torrents of data is becoming foundational to organizations’ growth and competitive strategy. Thus, making it imperative for organizations to find ways to more effectively harness their data and manage it efficiently to truly realize value from all their data.
(Image Courtesy: www.hbr.org)