A recent report examines the correlation between the maturity of an organization's enterprise data strategy (defined as an organization-wide, integrated, holistic strategy across all lines of business) and its business performance. It also explores the impact that the ongoing COVID-19 pandemic and its uncertainties have on businesses.
The research, gathered by enterprise data cloud company Cloudera in association with technology market research firm Vanson Bourne, found that organizations with mature enterprise data strategies in place for at least 12 months report higher profit growth at an average of 5.97%, according to surveyed senior business decision makers (SDMs). Ninety-six percent (96%) of SDMs reported that the way data is handled and managed has positively impacted their organizations' performance, and close to two-thirds (64%) reported stronger levels of resiliency from the presence of a mature data strategy. Both SDMs and IT decision-makers (ITDMs) share similar views, recognizing data as a strategic business resource, but these groups have differing opinions on operational processes and implementation.
"The presence of mature enterprise data strategies, optimized for hybrid and multi-cloud environments, generates better business outcomes," said Cloudera Chief Technology Officer Ram Venkatesh. "Businesses look to data as an essential asset not only to make sense of the constant change and upheaval of today, but also to help prepare for what comes next."
Visibility remains a key issue for organizations, with close to nine in 10 (89%) reporting secure, centralized governance and compliance over the entire lifecycle as being valuable when handling and managing data. Only 12% of surveyed ITDMs report that their organization interacts with all stages of the data lifecycle process – something immensely helpful in helping organizations achieve an enterprise data strategy. Without complete control and visibility over every aspect of data, organizations will lack key capabilities required to drive innovation.
Organizations see value in enterprise data strategies but struggle to make them effective. Organizations utilizing enterprise data strategies for more than a year reported them to be very effective (63%), along with higher profit growth. Nearly all ITDMs (91%) whose organizations have an enterprise data strategy in place agree that their current strategy is key to their business resiliency.
SDMs surveyed report an average of $384,962 lost annually due to missed opportunities involving data, with the telecommunications industry reporting the highest average annual loss of $6,617,348.
The report shows an anticipated shift to hybrid cloud in the next 18 months. With both SDMs and ITDMs reporting that 43.07% of their workforce will continue working remotely in the next year, organizations are investing in infrastructure to support hybrid working environments. A majority (79%) of ITDMs' organizations are looking to house their data and performance analytics on hybrid architectures. Among cloud options, multi-cloud emerged as a clear favorite, with 44% of ITDMs indicating their preference for multi-cloud architectures in 18 months' time. With the hybrid data cloud, organizations can access and analyze data quickly and with ease to make smarter, data-driven decisions to effectively meet the demands of today's hyper-competitive business climate.
Accessing and managing data from multiple sources and locations will give organizations the control and flexibility of utilizing a hybrid workforce while still being able to run business as usual. Nearly all SDMs (92%) believe that making sense of all data across hybrid, multi-cloud and on-premises architectures is or would be valuable.
This finding mirrors the sentiments of a majority of ITDMs (90%), who report that managing data with at least some cloud capacity is a priority for their organization. A similar majority (89%) believe that organizations implementing a hybrid architecture as part of its data strategy will gain a competitive advantage.
Utilizing data and analytics can yield more benefits than simply increasing profit margins or gaining a competitive advantage. Most organizations recognize the vital link between diversity, equity, and inclusion (DEI) initiatives and organizational success. The research found that thoughtful data collection and analytics contribute to the success of DEI initiatives. Nearly all ITDMs (96%) and SDMs (95%) believe that data and analytics are important to ensuring successful and effective DEI initiatives, and 95% of both ITDMs and SDMs agree that DEI initiatives contribute to organizational success.
Organizations with effective enterprise data strategies in place are better able to utilize data and analytics to benchmark and evaluate employee diversity programs. With greater visibility over diversity within organizations, comes better decision-making, greater innovation, and higher engagement in the workplace.
For more information, view the full report.
Article published by icrunchdata
Image credit by Getty Images, Moment, Andriy Onufriyenko
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