New research released by Appsbroker & CTS reveals that more than two-thirds (73%) of businesses are struggling to effectively utilise their data, indicating that the process of harnessing this information is a major challenge for UK IT leaders. This is underlined by the fact that 91% of IT leaders have been tasked with making their organisation more data-driven.
Described as their 'data brain', the wealth of information collected by businesses presents a double-edged sword. It's clear that while data has the potential to drive business value, the challenge lies in effectively harnessing and analysing it. More than two-thirds (69%) of the businesses surveyed confessed to hoarding data in data lakes and only using a fraction of it, meaning they're using less than half (39%) of their 'data brain'.
As a result, the majority (88%) of companies are facing obstacles in becoming data-driven. The most common issues cited include IT and data complexity, legacy systems, and a lack of skills and resources. Additionally, while 87% of respondents believe citizen developers could help bridge the data skills gap, a staggering 81% lack the skills to enable these 'data citizens'.
The failure to utilise data properly goes beyond IT difficulties. Almost a third (31%) of businesses have received customer complaints due to inadequate use of data, while 27% have missed important reporting deadlines. Some businesses have overspent or underspent on projects (39%), others have made inaccurate forecasts (36%) or have made decisions based on flawed data (37%), showcasing the real-world impact and potential cost when data is mismanaged.
Matt Penton, Head of Data and Analytics at Appsbroker & CTS, emphasises the potential fallout of mismanaging data, stating, “Reporting bad numbers can have very serious and public repercussions, and customer complaints can quickly lead to churn. These are the tangible costs that can sink a company when data is used ineffectively.”
Other key findings suggest that less than half (46%) of IT projects relying on data run on time, within budget, and to the intended scope. IT leaders also reported using over 30 different data sources on average, magnifying the complexity and cost associated with data management. Furthermore, 76% say the complexity of their data architecture is increasing exponentially.
Yet, Penton argues that complexity doesn't have to mean chaos, and that with a structured and controlled approach, it's possible to harness the 'data brain' effectively. He added, “Don’t try to boil the ocean – start with a smaller data set and then expand to ensure you are getting things right, and doing it in a timely manner. Complexity isn’t going away, but automation, common tooling, low code, and no code can make it easier to manage data."
The research findings are part of Appsbroker & CTS' data maturity report which outlines steps businesses can take to better manage and utilise their data.