In 2016, Dell Applied sciences commissioned our first Digital Transformation Index (DT Index) examine to evaluate the digital maturity of companies across the globe. We have now since commissioned the examine each two years to trace companies’ digital maturity.
Our third installment of the DT Index, launched in 2020 (the 12 months of the pandemic), revealed that “knowledge overload/unable to extract insights from knowledge” was the third highest-ranking barrier to transformation, up from 11th place in 2016. That may be a enormous bounce from the underside to shut to the highest of the rating of boundaries to digital transformation.
These findings level to a curious paradox—knowledge has the potential to grow to be companies’ primary barrier to transformation whereas additionally being their best asset. To be taught extra about why this paradox exists and the place companies want essentially the most assist, we commissioned a examine with Forrester Consulting to dig deeper.
The ensuing examine, primarily based on a survey with 4,036 senior decision-makers with duty for his or her firms’ knowledge technique, titled: Unveiling Data Challenges Afflicting Businesses Around the World, is accessible to learn now.
Candidly, the examine confirms our issues: on this knowledge decade, knowledge has grow to be each a burden and a bonus for a lot of companies—which one will depend on how data-ready the enterprise is likely to be.
Whereas Forrester identifies a number of knowledge paradoxes hindering companies at this time, three main contradictions stood out for me.
1. The notion paradox
Two-thirds of respondents would say their enterprise is data-driven and state “knowledge is the lifeblood of their group.” However solely 21% say they deal with knowledge as capital and prioritize its use throughout the enterprise at this time.
Clearly, there’s a disconnect right here. To offer some readability, Forrester created an goal measure of companies’ knowledge readiness (see determine).
The outcomes confirmed that 88% of companies are but to progress both their knowledge know-how and processes and/or their knowledge tradition and expertise. In truth, solely 12% of companies are outlined as Knowledge Champions: firms which can be actively engaged in each areas (know-how/course of and tradition/expertise).
2. The “need greater than they will deal with” paradox
The analysis additionally exhibits that companies want extra knowledge, however they’ve an excessive amount of knowledge to deal with proper now: 70% say they’re gathering knowledge quicker than they will analyze and use, but 67% say they continually want extra knowledge than their present capabilities present.
Whereas this can be a paradox, it’s not all that shocking when you think about the analysis holistically, such because the proportion of firms which can be but to safe knowledge advocacy at a Boardroom stage and fall again to an IT technique that may’t scale (i.e., bolting on extra knowledge lakes).
The implications of this paradox are profound and far-reaching. Six in 10 companies are battling with knowledge silos; 64% of respondents complain they’ve such a glut of knowledge they will’t meet safety and compliance necessities, and 61% say their groups are already overwhelmed by the information they’ve.
3. The “seeing with out doing” paradox
Whereas economies have suffered throughout the pandemic, the on-demand sector has expanded quickly, igniting a brand new wave of data-first, data-anywhere companies that pay for what they use and solely use what they want—decided by the information that they generate and analyze.
Though these companies are rising, and doing very nicely, they’re nonetheless comparatively small in quantity. Solely 20% of companies have moved nearly all of their functions and infrastructure to an as-a-service mannequin—although greater than 6 in 10 imagine an as-a-service mannequin would allow corporations to be extra agile, scale, and provision functions with out complexity.
Reaching breakthrough collectively
The analysis is sobering,however there may be hope on the horizon. Companies wish to revise their knowledge methods with a multi-cloud surroundings, by transferring to a data-as-a-service mannequin and automating knowledge processes with machine studying.
Granted, they’ve so much to do to prime the pumps for a proliferation of knowledge. Nonetheless, there’s a path ahead, by firstly modernizing their IT infrastructure to allow them to meet knowledge the place it lives, on the edge. This incorporates bringing companies’ infrastructure and functions nearer to the place knowledge must be captured, analyzed and acted on–whereas avoiding knowledge sprawl, by sustaining a constant multi-cloud working mannequin.
Secondly, by optimizing data pipelines, so knowledge can circulate freely and securely whereas being augmented by AI/ML; and thirdly, by creating software program to ship the customized, built-in experiences clients crave.
The staggering quantity, selection and velocity of knowledge could seem overpowering however with the precise know-how, processes and tradition, companies can tame the information beast, innovate with it, and create new worth.
To be taught extra in regards to the examine, go to www.delltechnologies.com/dataparadox.
This content material was produced by Dell Applied sciences. It was not written by MIT Know-how Evaluation’s editorial workers.