Almost all businesses fail to extract maximum value from their data, and it's damaging the bottom line, new research suggests.
According to a report from data analytics firm Quantexa, the main problem is that businesses are dealing with inaccurate and incomplete datasets. Besides regulatory scrutiny and compliance issues, the number one effect of this so-called “data gap”, businesses are also facing missed customer experience opportunities and retention problems, as well as resource drainage due to increased manual data workload.
Polling 750 IT and data decision-makers in the financial services, insurance, and public sectors, the company found that 50 percent of strategic decisions are actually missing crucial intelligence because of their inability to fully engage their data. When it comes to operational decisions, the situation is only slightly better.
The data gap, the report further argues, is growing fast. The installed base of enterprise storage is growing at an annualized growth rate of 31 percent, totaling 5,451 exabytes in 2025. If the data foundation is incomplete, analytic models fail.
There are three major problems businesses are tackling, with the aforementioned data foundation being one of them. The other two are contextual analysis and automation, Quantexa explains.
The first challenge is to establish an enterprise-wide data fabric as the foundation for making decisions. Then, the data needs interconnectivity, without which businesses are unable to spot emerging patterns. Finally, scaling becomes a problem. Quantexa believes “automating decisions” is the way to go. In fact, 14 percent of the survey’s respondents have already successfully implemented automation initiatives in operational decisions.