A lack of technology maturity and delay in investment towards evolving data management practices are preventing CIOs from exploring the full potential of data.
A recent survey by Dun & Bradstreet showcases that though business leaders have now accepted that COVID-19 is more than a short-term hurdle, they continue to struggle with unique Data Collection and Data Management Challenges.
According to the report, 56% of the CIOs plan to invest in more technologies to overcome data management challenges, demonstrating that better technology and data quality have gone from “nice-to-have” to “must-have” status in the current times. 49% of the CIOs plan to combat data management challenges by hiring more data professionals, while 32% of the CIOs plan to seek services from a third party
Over half or 53% of the CIOs said they use data tracking (web database) to collect data, while 31% of the CIOs collect data through primary ways, and 27% of the CIOs source data from third parties i.e., data service providers and social media. Further, 26% of the CIOs source data through websites, cookies and web beacons
Real time data analytics — the ability to obtain meaning from data as quickly as the data arrives — was cited as an issue e by 52% of CIOs, followed closely by data security which was cited by 50% of CIOs. Two in five CIOs agree that their business is facing difficulty in using the full potential of data, the report said.
Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet said, “ Our interaction with the CIO fraternity indicated that lack of technology maturity and delay in investment towards evolving data management practices are preventing them from exploring the full potential of data.”
According to Dr. Singh, most businesses are struggling with real-time data analytics and management. High cost of data solutions, poor data quality, data integration issues, concerns with processing large datasets and handling constantly changing data are some of the core issues.
“It is now evident that an increasing percentage of CIOs are now realizing the need to invest in technologies to improve the data management practices,” he said.
Other research reports also emphasize on the fact that organizations need to have a strong data management strategy. A Veeam Cloud Data Management Report for instance finds that embracing cloud data management often ensures success and drives more value from their data.
“We are living in a data-driven age, and organizations need to wake up and take action to protect their data. Businesses must manage their data in a way that always delivers availability and leverage its value to drive performance. This is no longer a luxury, but a business necessity. There is a significant opportunity and competitive advantage for those who effectively manage their data,” said Ratmir Timashev, Co-Founder and Executive Vice President (EVP) of Sales & Marketing at Veeam.
Timashev questioned, “Ask yourself, are you confident that your business data will always be available? If you are unsure, it’s time to act, and our study shows that many are not acting fast enough.”
The crisis-driven impetus towards value creation even supersedes more traditional goals of CIOs such as driving operational efficiency and reducing cost. 55% of the responding CIOs said they spend their time on value creation for their business compared to 40% of CIOs spending their time on cost savings.
“In today’s digital world, data is an economic factor of production and a kind of a capital asset provided it’s put to good use. There are 2.5 Quintilian bytes of data created each day at our current pace. What’s even more fascinating is that more and more use of emerging technologies will further accelerate this growth,” Srikanth Doranadula, Senior Director and Head-Systems Business, Oracle India said in a interview with CXOToday.
Speaking about good data management practices, Doranadula explains, it would require basic protocols to reduce uncertainty and make data more manageable are the need of the hour.
Also, ownership of ‘data management’ appears to be another grey area for a number of large businesses with many departments. In effect, businesses are missing out on effective and secure data management practices, mentions Doranadula. For example, when it comes to looking at who is accountable for securing data, there seems to be confusion about who is meant to take the lead. At the same time, there are many key internal behaviors that compromise trust. For example, while nearly half of all finance and IT decision makers say they are accountable for securing data within their organization, only a third of those who typically use data – marketing and HR – revealed they take accountability.
The key, therefore, is to align people with the technology and the data, and give people access to the right data that will actively assist them in developing the insights relevant to their jobs, believe experts.