Report reveals 95% of UK, US firms struggle with data issues
Research from technology consultancy esynergy has revealed that 95% of organisations in the UK and US report data issues, impacting their business operations and decision-making processes. The comprehensive report, "Aligning data governance with business strategy for exceptional business outcomes," surveyed over 700 business and technology leaders, uncovering significant shortcomings in data governance.
The survey highlighted that nearly half (45%) of the organisations consider their data governance ineffective. This figure rises to 53% in the financial services sector and 50% in the insurance sector. The findings are a cause for concern among senior technology leaders, with 45% of CIOs indicating that their data is not being utilised effectively. Moreover, half of the respondents stated that the objectives of data governance within their organisations are unclear.
The rise of e-commerce and advances in business processes and personalisation have enabled organisations to access varied and rich data sources. Despite this, many fail to gain insights or improve business performance due to inadequate data governance. A significant 60% of the surveyed organisations reported that their data governance policies do not align with their business strategy, causing their data to become outdated and leading to poor decision-making.
Prasad Prabhakaran, Head of AI at esynergy, emphasised the importance of high-quality data. "Our research underscores that high data quality is the cornerstone of success," he said. "Accurate, reliable data enhances decision-making, fosters trust, and unlocks the full potential of data-driven insights, ultimately driving revenue and competitive advantage. By aligning data governance with business strategy, companies can unlock the full potential of their data assets."
The report also sheds light on organisations' expectations from artificial intelligence (AI) in ameliorating data issues. About 63% of CIOs are confident that AI can improve data usage. Nonetheless, only 48% believe that data quality is essential to the success of AI models. This gap indicates the necessity for focused efforts on data governance, quality, and control, especially with the impending regulations such as the EU AI Act.
Parul Kaul-Green, Founder and CEO of Eudaimon Consulting and former Chief Data and Analytics Officer at Liberty Mutual, attested to the need for robust data governance to leverage AI effectively. "As insurance leaders, we understand the transformative potential of generative AI, but also the critical importance of governance and control," she noted. "Imagine automated yet fully compliant policy quotes and claim determinations at scale. Robust data governance enables this AI-driven productivity revolution while mitigating risks. The future belongs to those of us who master this capability."
Other key findings from the esynergy report include that only 39% of business and technology leaders use Key Performance Indicators (KPIs) to measure the effectiveness of their data governance. Additionally, 56% of respondents do not believe their data is of high quality, and less than 20% of organisations in the financial services and public sectors have access to real-time data.
The research underscores the critical role of aligning data governance with business strategy to realise the full potential of data. The findings suggest a significant portion of organisations need to reassess their data governance frameworks to ensure accuracy, reliability, and security, thereby enabling better decision-making and fostering sustainable growth.
