According to a recently released Market Vision Paper (MVP), 90% of C-level executives across the Fortune 2000 cite data as a critical business success factor, yet only 5% trust the data they have. New research conducted by HFS Research, in conjunction with Syniti, found that while data aspirations among CXOs are high, most have a long way to go in crossing the chasm between knowing the value of data and leveraging it effectively.
The survey, which sought to understand the benefits, challenges, financial returns and strategic value of optimized data management in global enterprises, reveals insights that may shock you. For instance, respondents cite data as twice as important as management competency to an enterprise’s success, yet only 23% use a consistent and policy-aligned data strategy at scale across their entire organization.
And while respondents overwhelming possess an awareness of the importance of data and claim architectural maturity, the vast majority of global enterprises are behind on effective data management practices.
Data Quality and Company Success Are Tightly Linked
It’s been said, “the world’s most valuable resource is no longer oil, but data.” Whether true or not, the survey found abundant evidence supporting its significant role in enterprise viability. In fact, roughly 70% of executives believe data plays a key role in a company’s survival, top-line growth, and M&A and divestiture activity.
Fun Fact: 90% of CXOs ranked the importance of data as EQUAL to financial stability relative to their company’s success.
Taking it one step further, roughly 15% of companies project increases of more than 10% in cash flow, profitability, and revenue through the use of enhanced data quality, visibility, and strategic use. On the flip side, the research also found that the cost of not having an effective data management strategy in place can be incredibly costly. Half of the companies that had implemented data management at scale are projected to achieve 10% or more revenue growth, which is more than three times the average.
From the survey, it’s clear that effective data management is directly linked to positive business outcomes. In addition to revenue, good data management also allows businesses to better mitigate risks and create better customer experiences, among other benefits.
Using Quality Data as a Competitive Advantage
We’re living in an on-demand economy where consumers expect more than quality products and services; they expect a positive experience with your company. Quite simply, those that deliver, win. This is reinforced by the fact that 90% of executives believe it’s important to harness data in the post-pandemic environment for improving customer experience.
Moreover, as companies increasingly change their emphasis to “digital” products or services via more or better data use, it’s critical to do so in conjunction with the right choice of emerging technologies. Roughly 80% of executives strongly agree that disruptive technologies fueled by data, such as RPA, blockchain, AI and ML, will transform the competitive landscape.
Read more: Download the full report, Bad Data is Killing Your Business Transformation Efforts: A C-Suite Guide to Stop Talking and Start Doing
Investment Priorities Will Change Rapidly Over the Next Two Years
It’s clear that effective data management is directly linked to positive business outcomes. In addition to revenue, good data management also allows businesses to better mitigate risks and create better customer experiences, among other benefits.
As such, enterprises are ready to accelerate investments to get more from their data. Data integration, including enterprise resource planning and application migration (42%), process automation (42%), and data visualization (41%) are currently the top three investment areas related to data management.
Looking two years ahead, companies will invest more in security and data protection (50%), support for artificial intelligence and automated machine learning (41%), and advanced analytics and predictive modeling (40%).
This evolution in investment priorities reinforces the urgent need for companies to implement strong data management strategies and a robust underlying data infrastructure to enable value-added activity that drive positive business outcomes. Otherwise, companies will struggle to remain competitive in today’s data-driven business landscape.
Read the full report, “Bad Data is Killing Your Business Transformation Efforts: A C-Suite Guide to Stop Talking and Start Doing” here.