Only 10% of organizations are using data effectively for transformational purposes, according to NTT DATA Services.
While 79% of organizations recognize the strategic value of data, the study concludes their efforts to use it are hindered by significant challenges including siloed islands of data across the organization and lack of data skills and talent.
The study analyzes the critical role of data and analytics in helping businesses and organizations pivot from disruption to transformation, an imperative as they respond to today’s global economic climate.
Organizations starting to prioritize a data-driven culture
The study shows only 37% are very effective at using data to adopt or invent a new business model, and only 31% are using data to enter new markets. These different use cases show that organizations have started prioritizing a data-driven culture, but many are still lagging in the most basic aspects of data management and governance.
“Our study reinforces that organizations who act quickly and decisively on their data strategies – or Data Leaders – will recover from the global crisis better and even accelerate their success,” said Greg Betz, Senior Vice President, Data Intelligence and Automation, NTT DATA Services.
“C-suite executives must be champions for the vital role strong data governance plays in resolving systemic process failures and transitioning to new business models in response to the crisis.
“To rebound effectively, corporations, organizations and government agencies must shift to next-generation technologies and create contactless experiences, increased security, and scalable hybrid infrastructures – all reinforced by quality, integrated data.”
Data crisis: Organizations struggle to use data for transformation
The financial services (FS) sector accounts for 25% of the data leaders, making this the sector with the most data leaders. The survey shows that 59% FS organizations report being aware of and fully prepared for new data regulations.
34% report data is shared seamlessly across the enterprise; however, they are the least likely to report they have clear data security processes in place.
The manufacturing sector boasts the second-highest number of data leaders in the study. More than eight out of 10 respondents say they can act swiftly if there is a data privacy breach; however, as with other sectors, when they attempt to derive value from their data, manufacturers struggle with data silos (24%), and they lack the necessary skills and talent to analyze their data (19%).
Among healthcare respondents, 60% say they’re aware and fully prepared for new and upcoming regulations, and approximately eight out of 10 say they’re confident they can comply with data privacy regulations.
However, this sector ranks first in its lack of data literacy skills — about a fifth of respondents report they don’t understand how to read, create and communicate data as information.
Lack of data talent and skills in the public sector
The public sector has the highest number of data laggards at 37%. Like other sectors, lack of data talent and skills is one of the public sector’s biggest barriers when attempting to understand and derive value from data.
Insurance companies are among the most likely to report they’re aware and fully prepared for new data regulations (58%) and have clear processes in place for securely using their data (50%).
However, when it comes to deriving value from data, insurance companies – like manufacturing, struggle with data silos and the lack of the right technologies to analyze their data.
“This study validates that many of the top data challenges organizations face today are decades old,” said Theresa Kushner, Consultant, AI and Analytics, NTT DATA Services. “The 2020 pandemic is a wakeup call for businesses at any scale, and a reminder that in today’s global economic climate the time to address data challenges and chart a new path is now.”