UK firms hindered by fragmented data processes, says study

Research conducted by Alteryx has found that a lack of cohesion in data processes is hindering the effectiveness of UK businesses.

The study, titled "Data Stack Evolution: Legacy Challenges and AI Innovation," surveyed global IT decision makers, including 350 in the United Kingdom. It revealed that a significant 61% of UK firms experience siloed operations between their data leadership and IT teams. Around 16% admitted to having no collaboration between these teams, which blocks data and knowledge sharing necessary for new analytics use cases.

According to the research, the fragmentation is impacting how businesses manage and utilise data. The research showed some 46% of IT leaders reported that data is kept within the department where it is generated, while 40% indicated that each department is responsible for managing its own data. This decentralised approach reveals a lack of agreement on where data process responsibilities should lie, the report says.

The survey found a 50/50 split among respondents regarding whether data quality management should fall under the IT team or the data leadership team's oversight, with 45% opting for each. Moreover, 44% viewed managing and processing large datasets as the responsibility of the data leadership team, whereas 41% assigned this to IT teams.

This unclear ownership has led to inadequate data culture within organisations. Only 25% of IT decision-makers prioritised data consistency across sources to ensure high-quality data. Governance policies for data distribution are present in only 17% of UK firms, highlighting a lack of data democratisation.

Alan Jacobson, Chief Data and Analytics Officer at Alteryx, emphasised the importance of a centralised approach, saying, "The full potential of data analytics cannot be unlocked without a centralised strategy and chain of command.

"Businesses that are still relying on fragmented operations and reactive analytics on an IT project basis risk getting left in their competitors' dust as the opportunity to drive real transformation is simply not there," he said.

"Aligning data science with overall strategic corporate direction and embedding a data culture across the organisation, enables multi-domain problem-solving through shared datasets and insights. With this approach, organisations can reach the analytics maturity needed to unlock new use cases that drive innovation."

The report calls for businesses to restructure and centralise their data strategies to prevent falling behind in a competitive market environment. Alteryx's findings suggest that embracing a more cohesive data approach could facilitate transformative business capabilities and innovation in the analytics field.