Posted: Jul 19, 2019
The journey to becoming an organization that makes decisions based on data is filled with different types of challenges and considerations.
An HBR article from February 2019 (Companies are Failing in Their Efforts to Become Data-Driven, Randy Bean and Thomas H. Davenport, Feb. 5, 2019) provides some additional context regarding why companies are struggling to become more data driven. Some key points from the article include:
- 92% of survey respondents reported that the pace of their big data and AI investments is accelerating
- 88% report a greater urgency to invest in big data and AI
These findings are very interesting as they highlight that although the vast majority of organizations are investing in data related technologies, organization’s growing internal view is that they do not have data-driven cultures. This seems like a classic case of the more you learn about a complex topic the more you realize how little you know.
When the questions turned to business adoption of big data initiatives, 77% of executives viewed this as a major challenge for their organization, up 12% from the year before. So what is the barrier to business adoption of big data / AI initiatives?W
- Only 7.5% of the Executives cited technology as the challenge
- 93% of Executives highlighted people and process as the largest barrier
At Pontem we have found our experience would back up these findings. Identification of the metrics that provide insight on strategic objectives and developing strong, streamlined processes to collect that information is a key part of being data driven. Doing this right is hard work and when done well, incredibly difficult for your competitors to replicate. This does not mean that organizations have to collect every piece of data they generate, however it does mean they have to be very clear on what information can drive better decision making in their organization.
The technology available in the market can meet and exceed what most companies need to become more data driven. It’s understanding where and when to utilize this technology to improve business outcomes that is challenging.
I encourage you to go read the full article, it’s only a couple pages, at the below link:
https://hbr.org/2019/02/companies-are-failing-in-their-efforts-to-become-data-driven
If you would like to discuss this topic in more detail please e-mail us at [email protected] and we would be happy to buy you a coffee.
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