The evidence that data-driven organizations perform better in the marketplace is growing, and businesses have reaped the benefits of this abundance of data.
As internet-connected devices continue to increase at exponential rates around the world, so does the amount of big data generated. The role of data in empowering business leaders to make better-informed decisions is also increasing. As the global economy becomes more complicated and turbulent, the more digitally developed businesses are proving to be more resilient to economic shocks. Digital maturity is the benchmark that can be used to determine where a company falls on the business resilience scale.
Moreover, there is a strong link between data maturity and economic shock resilience. The following are the five most essential indications of data maturity.
Leadership and culture
Creating a data-driven culture necessitates an organization’s leadership team to evolve its data thinking and adapt its business model accordingly. To centralize and extend the role of data throughout the corporate strategy and drive the vision, executive teams must understand that turning data into an asset is a crucial priority and formalize the addition of a Chief Data Officer (CDO) among their ranks. Many businesses are grouped in the developing and linked stage, and many companies, particularly at the top, may exaggerate how data-driven they are. However, those with a thorough understanding of the technology in use and investments in IT elements are more prosperous.
Development of DataOps
A corporation cannot be data-driven unless it invests in the technology stack that will enable it. Before investing in a solid digital infrastructure to process data, a corporation must audit all of its structured and unstructured data. DataOps is becoming increasingly important to businesses, and so are its broader impact on the workflow and how the data pipeline is architected and designed within the organization. That section relates to establishing infrastructure so companies can begin integrating all of their data. As a result, corporations are increasingly adopting it as an operational guideline.
Investment in data and technology
Organizations must prioritize data and technology investments to establish a solid data architecture. Most businesses fail to achieve a positive outcome from their digital transformation and IT investments if they don’t develop the necessary culture to take advantage of the technology. They haven’t adequately developed a strategy or infrastructure to maximize the return on that investment.
However, transformation is a never-ending process, so organizations need to establish certain milestones so that they may calculate their return on investment.
Culture and talent skill gaps, according to several studies, are the most significant internal hurdles to enabling a data-driven workforce. According to Gartner’s third annual CDO survey, “low data literacy” is the second most significant hindrance to success, trailing only “cultural hurdles to accept change.” Companies that rely solely on the IT department, will experience a massive bottleneck because every issue is referred to the IT department. Companies must upskill or rescale all teams to ensure that data literacy is spread throughout the organization, so there are no centers of knowledge, and everyone is comfortable working with digital platforms across processes.
Another issue to consider when evaluating a company’s digital maturity is its ability to use automation efficiently. When a company achieves appropriate levels across essential pillars such as people, process, technology, and data, it is in a solid position to deploy automation. The primary goal is usually to reduce expenses and improve performance. Automation will not benefit all processes, tasks, or businesses. As a result, organizations with a greater range of functions to automate benefit the most from digital and data expenditures. This refers to a company’s ability to automate processes and tasks against those that don’t require it.
The need to be more data-driven must come from the top down. Continuous learning and employee training in data literacy must be fostered across the board. Only then can a corporation become more resilient to economic shocks by investing in technology and R&D.