Global research highlights ‘data decision gap’ risks
- Published: Wednesday, 10 November 2021 09:54
Quantexa has published a new study report, Data in Context, which identifies the ‘data decision gap’ as an emerging enterprise risk. The report is based on interviews with 750 IT and data decision makers in the financial services, insurance, and public sectors around the world.
The research showed 95 percent of organizations suffer from a data decision gap, which is the inability to bring together the internal and external data needed to make accurate and trusted decisions. This is due to inaccurate and incomplete datasets, which ultimately impact the bottom line.
The top three effects of this are:
- Regulatory scrutiny and compliance issues: 47 percent
- Missed customer experience opportunities and retention problems: 44 percent
- Resource drainage due to increased manual data workload: 42 percent.
Inevitably, strategic and operational decisions suffer when they are based on a poor and incomplete picture. Quantexa’s study finds 50 percent of strategic decisions are missing crucial intelligence because organizations can’t take full advantage of data. The situation is only slightly better for operational decisions.
Vishal Marria, CEO and founder of Quantexa, said: “The pandemic put data in the spotlight. Digitization has meant organizations face an increasing tsunami of data, and many found they couldn’t take strategic advantage of the opportunity that connected data brings. Today’s organizations have all the data assets they need to make better decisions, but the data decision gap means they can’t extract meaning or value out of their data, as they can’t connect it to generate the single, accurate view needed.”
The data decision gap is growing fast. The installed base of enterprise storage is growing at an annualized growth rate of 31 percent, totaling 5,451 exabytes (EB) in 2025 according to IDC. If the data foundation is disjointed and incomplete, analytic models are inaccurate and lack explainability. Even when an organization solves the issues around analyzing data in context accurately, the question becomes how to do it at scale. The answer is automating decisions. The research discovered just 14 percent have already implemented successful automation initiatives in operational decisions, while 9 percent have yet to start the journey.
Overall, the inability to see data in context, analyze it for trusted decision making, and automate it at scale, add up to the data decision gap.