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Businesses are ignoring their data - and it's costing them

data
(Image credit: Shutterstock / whiteMocca)

Ignoring data is a costly mistake for businesses to make, as it leads to missed revenue opportunities, poor performance forecasts and other worrying outcomes.

According to a new report from enterprise software company Alation, of all the companies that decided to ignore the insights their data provided, 97% suffered negative consequences.

The company recently surveyed 300 business leaders and discovered that 89 percent of those who failed to meet their revenue goals blamed the CFO for investing insufficient sums in data and analytics.

It seems that business leaders know exactly what they can expect from data analytics: optimized processes, more revenue opportunities, better risk assessment and more agility. Furthermore, they expect increased customer retention and faster product innovation.

They may not be there yet, but businesses are definitely headed in the right direction, Alation further states. The report found that almost all businesses improved their data culture over the past year, with better governance and more data literacy. 

“The organizations that learn from data faster understand their customers, innovate, and sense markets quicker and more clearly than others,” said Satyen Sangan, Alation co-founder and CEO.

“Companies that invest in data and build a culture of data literacy do well. Those that don’t fall behind. Companies need to transform how they make decisions and how they work to incorporate data into everything they do. They have to build a data culture.”

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.