Data Strategy
Although many senior executives see potentially high value in the data in their company's information systems, less than half say their organization has been effective at converting it to usable knowledge, according to PricewaterhouseCoopers' Management Barometer survey, released recently. Major roadblocks include a limited ability to "mine" or interpret the data, competing corporate priorities and the lack of a clearly articulated data strategy.
Elusive value
Seventy-one percent of senior executives describe the data in their company's information systems as potentially very valuable, including 16 percent who say these data may be among their business' most valuable assets. Moreover, 68 percent expect these data will become even more valuable as a source of competitive advantage over the next 12 to18 months.
But, only 43 percent say their company has been very effective in converting its data into usable knowledge. In fact, two-thirds cite a whopping five or more problem areas in their organization's ability to effectively utilize its data---the most-significant being the ability to “mine” or interpret it, noted by 84 percent--including 35 percent calling this a major problem. Other common limitations include data consistency, mapping capability, accessibility, and timeliness:
|
A |
Major |
Minor |
Potential Problems |
Problem |
Problem |
Problem |
Ability to “mine” or interpret data |
84% |
35% |
49% |
Consistency of the data |
78% |
20% |
58% |
Mapping of the data |
78% |
17% |
61% |
Accessibility of the data |
77% |
30% |
47% |
Timeliness of the data |
67% |
25% |
42% |
Protection of the data |
62% |
12% |
50% |
Accuracy of the data |
61% |
11% |
50% |
When it comes to deriving value, most executives say the ability to “mine” their company's data is "very important," even more than cite the ability of their IT systems to deliver it. Also seen as "very important" is the ability to get real-time information and the integration of data with business processes.
Keys to Significant Value |
Very Important |
Ability to “mine” or interpret data |
75% |
Ability of IT systems to deliver data assets |
70% |
Ability to get real-time information |
66% |
Integration of data with business processes |
66% |
An enterprise-wide data strategy |
54% |
A data governance structure |
52% |
"The opportunity here is significant," said Bob Zukis, a partner in PricewaterhouseCoopers' Advisory practice. "There is broad recognition that the data in these companies' information systems are of potentially great value, but there are multiple problems when trying to realize this value. The biggest roadblock is the last mile of the data lifecycle, or the ability to 'mine' or interpret their own data. Firms have invested substantially in creating and getting data, and are now struggling with making sense out of the mountains of it that they have created."
High potential, but limited corporate clout
Surveyed executives report that if their company's data were to be treated as a key corporate asset, several benefits would be realized over the next 12 to18 months, including reduced costs (cited by 75 percent), increased workforce efficiency (68 percent), more-effective compliance (67 percent), and revenue enhancements (66 percent).But an overwhelming 74 percent of executives cite competing corporate priorities as a barrier to realizing significant value from data management over the near term. Technology issues and lack of ability to process or “mine” the data are also noted by approximately one-third:
Business Barriers |
|
Competing corporate priorities |
74% |
Technology issues (hardware or software) |
35% |
Lack of process or ability to “mine” data |
30% |
Lack of data management strategy |
18% |
Management doesn’t see the business value |
9% |
Lack of data governance |
4% |
"Data is a bit like global warming," said Zukis. "Many people see it as an issue, but nobody really owns the issue, so it often suffers from a lack of focused effort.
"These business leaders believe that, if treated as an important corporate asset, the data in their information systems would add significant value," Zukis said. "Firms have invested billions in IT infrastructure, but the data being thrown off by these systems are still an untapped gold mine."
Lack of an articulated data strategy
Less than half (48 percent) say that data management will be one of their company's "top 5" priorities for the coming 12 to 18 months, while another 37 percent place it in their second tier of priorities (6 through 10). Only 13 percent say data management isn't among their company's "top 10" priorities, but is acknowledged as important; 2 percent did not report.
Only 60 percent of surveyed executives report that their company has a clearly articulated data strategy, including nearly 80 percent of those where data management is seen as a "top 5" corporate priority. But, among companies where data management is not a "top 5" priority, only 42 percent report having a clearly-articulated data strategy.
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