A few years ago, The Economist published a story titled, “The world’s most valuable resource is no longer oil, but data.” Since its publication, this assertion is no longer controversial. “Data is the new oil” has become a common refrain – and even more so in light of the digital path that the disruption of 2020 defined. COVID-19 threw a massive challenge in the global economy’s data management journey, becoming an impediment for some and an accelerant for others.
One thing is clear: today’s enterprise organizations must go beyond viewing data as a technical responsibility and make it ubiquitously available and usable so they can grow revenue, reduce risk, and remain competitive in an increasingly digital world. How an enterprise prioritizes data as a strategic company asset will determine its survival, growth potential, and competitive advantage.
But according to a survey of 100 CXOs at global enterprises, while data is widely viewed as crucial to business viability, the majority are not currently prepared to capitalize on this opportunity. Even more concerning, though, is new research indicating that while 90% of C-level executives at Fortune 2000 companies consider data as a critical business success factor, only 5% trust the data they have.
The high cost of bad data
After working on thousands of customer projects, we know that almost 90% of the time, operational business issues are caused by a data problem. If you talk to a C-level executive about the challenges they face, they’ll say they have an inventory problem or their supply chain has issues – but in reality, they are indirectly referencing an underlying data issue.
The cost of not having an effective data management strategy in place can be high. According to our research, half of the companies that implement data management at scale are projected to achieve 10% or more revenue growth, which is more than three times the average. And 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.
These are all positive business outcomes that could not have been realized if they had not invested in ways to address their bad data.
Implications for every digital transformation initiative
The impacts of data problems must also be understood from a digital transformation perspective. Every digital transformation requires a data transformation. In the digitally transformed world, data is a powerful asset – if it’s well managed. And data-empowered companies are reinventing industries and shaping the world.
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, according to our research, 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.
Knowing this, investment priorities will change rapidly over the next two years. Looking ahead, our research shows that companies are planning to invest more in security and data protection (50%), support for artificial intelligence and automated machine learning (41%), and advanced analytics and predictive modeling (40%). These priorities all depend on having quality data they trust.
Want to learn more?
As a proud SAP Solution Extension partner, Syniti can help companies solve their underlying data problems and achieve superior business outcomes. For more information, we invite you to:
Join our Customer Experience track session CX606, titled, “Implement a Data Strategy to Drive Growth, Margin, and Capital Efficiency,” where we’ll share how to capitalize on your data assets to drive digital transformation, scale your enterprise AI agenda, and sustain competitive advantage.
Hear How Johnson and Johnson Gets Data Migration Right During Transformation (session ID: IT207)
June 7, 2:30pm EDT – Add to your schedule
Be sure to visit Syniti’s booth for the chance to win $500, and stay to find out how to get to SAP S/4HANA quicker and easier than ever before. (Bonus: set up a 30-minute virtual meeting and get lunch on us!)