Within the knowledge decade, knowledge will be each a bonus and a burden

In 2016, Dell Applied sciences commissioned our first Digital Transformation Index (DT Index) research to evaluate the digital maturity of companies across the globe. Now we have since commissioned the research each two years to trace companies’ digital maturity.

Our third installment of the DT Index, launched in 2020 (the yr 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 could be a enormous bounce from the underside to shut to the highest of the rating of obstacles 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 study extra about why this paradox exists and the place companies want probably the most assist, we commissioned a research with Forrester Consulting to dig deeper.

The ensuing research, primarily based on a survey with 4,036 senior decision-makers with duty for his or her corporations’ knowledge technique, titled: Unveiling Data Challenges Afflicting Businesses Around the World, is obtainable to learn now.

Candidly, the research confirms our considerations: on this knowledge decade, knowledge has grow to be each a burden and a bonus for a lot of companies—which one depends upon how data-ready the enterprise is perhaps.

Whereas Forrester identifies a number of knowledge paradoxes hindering companies at present, 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 present.

Clearly, there’s a disconnect right here. To supply 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 expertise and processes and/or their knowledge tradition and expertise. In reality, solely 12% of companies are outlined as Knowledge Champions: corporations which are actively engaged in each areas (expertise/course of and tradition/expertise).

2. The “need greater than they’ll deal with” paradox

The analysis additionally reveals 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’ll analyze and use, but 67% say they consistently want extra knowledge than their present capabilities present.

Whereas this can be a paradox, it’s not all that stunning when you think about the analysis holistically, such because the proportion of corporations which are but to safe knowledge advocacy at a Boardroom degree 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’ll’t meet safety and compliance necessities, and 61% say their groups are already overwhelmed by the info they’ve.

3. The “seeing with out doing” paradox

Whereas economies have suffered through 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 info that they generate and analyze.

Though these companies are rising, and doing very effectively, they’re nonetheless comparatively small in quantity. Solely 20% of companies have moved the vast majority of their functions and infrastructure to an as-a-service mannequin—despite the fact that 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.

Attaining 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 setting, by shifting to a data-as-a-service mannequin and automating knowledge processes with machine studying.

Granted, they’ve rather a lot 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 move freely and securely whereas being augmented by AI/ML; and thirdly, by growing software program to ship the personalised, built-in experiences clients crave.

The staggering quantity, selection and velocity of knowledge could appear overpowering however with the suitable expertise, processes and tradition, companies can tame the info beast, innovate with it, and create new worth.

To study extra concerning the research, go to www.delltechnologies.com/dataparadox.

This content material was produced by Dell Applied sciences. It was not written by MIT Know-how Evaluate’s editorial workers.