UK IT leaders struggle to balance data growth & compliance risks

Over half of UK IT decision makers have expressed concern about the exponential increase in data handled by their organisations, according to research commissioned by Splunk.

The findings, gathered from a survey of 500 IT decision makers (ITDMs) working in UK companies with over 250 employees, indicate that 58% of respondents are apprehensive about the growing volumes of data generating within their businesses, even as demand for data-driven insights continues to escalate.

Rising demand, rising risk

The research shows that 97% of UK ITDMs have witnessed an uptick in demand for insight derived from data in the last two years. Within this group, 29% of respondents report that their data volumes have doubled over the past three years, while 11% have seen data grow by three times or more.

This proliferation of data brings with it a series of challenges. Two-thirds (67%) of those surveyed believe that increased data volumes have heightened their exposure to cybersecurity threats. At the same time, 68% agreed that data overload could make their business operationally less effective. Forty-six percent said that difficulties in managing data have hampered their ability to glean operational insight over the past three years, and a similar proportion believe this will remain a problem over the next three years.

ITDMs are also grappling with increased pressure to improve productivity and drive innovation through more sophisticated use of data, with 44% citing a push to improve productivity and 42% highlighting the need to enhance the speed and quality of innovation as driving the focus on data.

Compliance and competitive pressure

The survey highlights that increased data volumes are impacting compliance activities within organisations. Sixty-four percent of ITDMs said the quantity of data they deal with has made it harder to remain compliant. The risk of falling foul of regulations is a notable concern, with 64% of ITDMs worried their company may face fines in the future due to non-compliance.

The business imperative behind the drive for better data insight remains strong, however. Board-level demand for improved data-driven insight is mainly motivated by the need to stay competitive (60%), manage economic uncertainty (58%), and navigate more challenging operational environments (57%).

As a result, the survey found that data-driven insights relating to operations and business performance are a 'very high priority' for 77% of UK ITDMs.

Quality over quantity

"Data is the backbone of today's digital business models – yet many companies face a paradox: they want to be data-driven but struggle with overload and poor data quality. On average ITDMs estimate they can only derive insight from just under 57% of the data that they hold, and 86% believe 'bad' data poses a threat to their organisation."

This statement from Petra Jenner, General Manager & SVP EMEA at Splunk, underscores the difficulties being experienced by UK IT decision makers regarding both the quality and the management of increasing data volumes.

The competitive benefits of compliant data are also recognised, with 80% of respondents stating that well-managed data helps deliver a competitive edge. However, the dual exposure to regulatory risk and cybersecurity threats is apparent: 82% said their ability to extract meaningful insights from data is critical for detecting and responding to cybersecurity threats, yet 67% also believe that the sheer volume of data held increases security risks in itself.

Call for strategic action

"Digital resilience starts and ends with good data. Without visibility and control over their data, organisations risk non-compliance, security gaps, and could fall behind the competition

Ultimately, a desire for more data-driven insights doesn't come without its costs. As businesses onboard more and more insights, only those who treat data governance, quality, and compliance as strategic imperatives will come out on top. Only they will have the clarity and confidence to innovate with confidence and gain a critical edge everyone wants."

Petra Jenner's comments suggest that while the growing demand for data insight is understandable, a rethink on how data is managed, governed, and utilised is necessary to avoid the potential downsides of data overload. The survey data indicates that UK IT leaders are acutely aware of this challenge, with data governance and quality moving to the top of the strategic agenda.