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Business Management Review | Monday, December 26, 2022
A lack of data maturity hinders the private and public sectors from achieving key outcomes such as growing sales or advancing environmental sustainability.
FREMONT, CA: While governments all over the world have identified data as a strategic resource to promote economic and social advancement, the public and private sectors struggle to achieve important goals like increasing sales or advancing environmental sustainability due to a lack of data maturity.
The average organisation's data maturity level, or ability to create value from data, is 2.6 on a scale of five, with only three per cent reaching the highest maturity level. There is universal agreement that the world's data offers immense promise to improve the way we live and work; yet, tapping this potential needs a shift in organisations' digital transformation plans.
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Lack of Data Capabilities Impedes Key Outcomes
The study is based on a maturity model that evaluates a company's capacity to derive value from data using organisational, technological, and strategic factors. Data pools are segregated from one another and are not systematically analysed to produce insights or results at the lowest maturity level, known as data anarchy. Data economics is the ultimate level, where an organisation strategically uses data to generate outcomes based on unified access to internal and external data sources analysed with advanced analytics and artificial intelligence.
14 per cent of organisations are at maturity level 1, 29 per cent are at maturity level 2, 37 per cent are at maturity level 3, 17 per cent are at maturity level 4, and only three per cent are at maturity level 5.
The inability of organisations to create critical results, such as raising sales (30 per cent), innovating (28 per cent), expanding customer experience (24 per cent), enhancing environmental sustainability (21 per cent) and boosting internal efficiency (21 per cent), is a result of the lack of data skills.
Organisations Want Control Across Clouds and Edges
Lack of a comprehensive data and analytics architecture and data isolation within specific applications or locations are traits of low data maturity levels. 34 per cent of the respondents are in this situation. However, just 19 per cent of businesses have developed a central data hub or fabric that gives all employees access to real-time data, and another eight per cent claim that this data hub also integrates external data sources.
The majority of respondents (62 per cent) believe that having a high level of control over their data and the ability to derive value from it is strategically vital given that data sources are becoming more dispersed across clouds and edges. More than half of those surveyed (53 per cent) worry that data monopolies control too much of their ability to derive value from data, and 39 per cent are rethinking their cloud strategy due to rising cloud costs (42 per cent), worries about data security (37 per cent), the need for a more adaptable data architecture (37 per cent) and a lack of control over their data (32 per cent).
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