Making instinct-based decisions has uncertainties associated with it, thus leading organizations to explore ways to minimize risk. In an attempt to maximize the predictability of a decision’s outcomes, companies are now depending highly on data-driven decisions. While customer acquisition increases by 23%, the use of big data also helps businesses to increase the overall profit by 8% (BARC research).
Since data is offering a multitude of information, organizations are struggling to leverage its full potential. The topmost big data strategy is to identify the requirements of the business and then accordingly create the infrastructure to support and seize business opportunities. Following are some of the major challenges companies are facing when it comes to data adoption:
As per a Harvard Business Review article, firms that identify themselves as data-driven have come down to 31% (2019) from 37.1% (2017). This declination came despite the fact that there has been an increase in AI initiatives and big data investments.
Data Interactions up by 5000%
Between the years 2010 and 2020, the data interactions (creation, copying, capturing, and consuming) have increased by 5000%. Also, the usage of data significantly increased from 1.2 trillion GB to around 60 trillion GB. Adoption of work from home contributed to this rise in data interactions. However, the organizations are failing to analyze and utilize the data for driving insights. As per the study of IDC Digital University, only 0.5% of the entire data has been analyzed
in the year 2012. This is a matter of concern for many companies as they are struggling with identifying the proper use cases.
The Road to Digital Transformation and Data Adoption
As per a survey conducted, 77% of the CEOs held pandemic responsible for speeding up the company’s plans for digital transformation. Satya Nadella, the Microsoft CEO, mentioned that the company has witnessed two years’ transformation in just two months.
It has been found that if data adoption is less among C-Suite, the entire transformation fails in the initial part. The low adoption of data among C-Suite results in weak execution, thus resulting in thin data adoption across organizations. To address the issue, C-Suite needs to devise a strong data science strategy. If and when the company decides to leverage data, the adoption needs to first start from C-suite and then spread across different levels. This will instill confidence among employees across levels and help them to smoothly accept the changes.
Major Challenges Faced by Companies during Data Adoption
When it comes to Big Data, companies not only lack the infrastructure to support data processes but also have insufficient human resources. Following are some of the major big data issues companies are facing:
Overcoming the Challenges
Taking one step at a time and brainstorming how to adopt data for digital transformations is the most effective way to overcome the challenges. However, in addition to overcoming the existing challenges, the companies must also focus on building the strength for future developments. Following are some of the ways with which companies can overcome major challenges posed during data adoption:
The company’s attempt to leverage data for optimizing its day-to-day operations has unlimited benefits, however, the first step is to address the challenges that are posed by data adoption. From hiring top data science talents to upskilling existing employees by offering them data science certification courses, a company will surely see a successful transition and transformation.