Half of companies lack the basics for data resilience

14 February 2023 Consultancy.eu 3 min. read
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Even as data becomes essential to companies navigating market disruption, more than half of companies lack the basic data resilience needed to enable accessing the right data at the right moment. A skills shortage is not helping matters, either, with more than one-in-seven organisations complaining of a lack of data literacy among their organisation.

In a new age gold rush, nearly half of organisations today apply data – and big data – for insights and decision-making; manifesting in the creation of data ecosystems worth billions of euros. Across every sector, public and private organisations are leveraging data to enhance their customer experience, forge new relationships with customers, and bolster their operations.

However, a new report from BearingPoint suggests that many companies still struggle to ensure data resilience. The company’s analysis of over 5,000 client projects reveals that while 20% of organisations identify ensuring the availability of relevant data to be a top challenge for the coming three years, a majority of 58% are not resilient.

Data and analytics: The biggest challenges over the next 2 to 3 years

The finding come back to haunt organisations who also identified being able to transform quickly enough as a top challenge – a 25% chunk, who will possibly struggle if unable to source the right data at the right time.

According to BearingPoint’s research, data resilience is underpinned by five key dimensions. These are understanding the data ecosystem; empowering people for change; aligning data centricity with business outcomes; using technology to improve agility; and building effective governance.

Jan Henderyckx, a partner at BearingPoint noted, “Our research shows companies will only survive and thrive if they adopt a rounded, well-balanced and progressive approach across five fronts. Only by delivering on all of them, your organisation will become resilient to change. As all firms, in all sectors must understand that data needs to be at the heart of their business strategy.”

Major obstacles to the success of the CDO office/data and analytics team

When it comes to meeting those goals, however, many firms seem to lack many of the key skills necessary. Amid a widely reported digital talent shortage, 65% of companies contend with poor data literacy, and 56% face cultural challenges to change from employees resistant to change. Meanwhile, 49% stated they either lacked the relevant skills or staff for the job – meaning their data and analytics teams may be hamstrung before even trying to gain resilience.

Addressing those issues cannot be avoided, though, as the importance of data for businesses is only set to grow.

Henderyckx added: “We are living in a world in which it is increasingly more important to be able to adapt to the changing environment. Your decisions should be based on facts rather than assumptions. Companies that put data centricity at the core of their strategy are going to create value. Especially if they apply a comprehensive approach to all dimensions that impact the implementation of a data strategy.”