5 Reasons You’re Not Getting Full Value From Your Data

Everyone’s investing in data BUT not everyone’s seeing returns. Here’s why your dashboards might look great but still fail to drive results.

According to NewVantage Partners' Big Data and AI Executive Survey, 77.5% of executives believe that their organizations are data-driven, but only 29.4% report that they have created a data-driven organization.  This indicates a significant perception gap between organizations' aspirations to be data-driven and the actual implementation and efficiency in leveraging data.  Given our industry expertise at TAP Analytics, we have identified 5 barriers organizations face that hinder their ability to address this gap and become that data-driven organization.

(1) No Clear Data Strategy or Ownership 

Having a strong data governance ensures that data is properly classified, organized, and made accessible to the right stakeholders. Experian Data Quality revealed that 66% of organizations struggle with data integration due to a lack of data governance practices.  Given that organizations with effective data accessibility achieve up to 70% more value from their data initiatives compared to those without, it is vital for all organizations to implement a strong Data Strategy, Governance, and Organization to achieve the greatest value from their investment.

(2) Siloed Systems, Siloed Thinking 

Many organizations have data stored in separate systems or departments, creating data silos. Siloed data inhibits the ability to connect and analyze data from different sources, limiting the organization's ability to identify valuable insights that require cross-referencing or integration of disparate datasets.  This leads to inefficient decision-making, incomplete and inaccurate insights, hindered collaboration, redundant data, and limited cross-functional understanding.  To mitigate the impact of data and analytical silos, organizations need to prioritize data integration initiatives, establish robust data governance practices, invest in data infrastructure that facilitates data sharing, and promote a culture of collaboration and information exchange across departments. 

(3) Data solutions built in isolation

Organizations that develop data solutions which are not scalable and limited to a single project can hinder them from realizing the full value of their data investments. Single-project-focused data solutions tend to address immediate needs but may not have broader applicability or scalability.  Without scalability, the value derived from the data investment is limited to a specific project or use case, missing out on opportunities for wider impact and value creation.  By focusing on scalable data solutions, organizations can avoid silos, improve resource utilization, drive cross-project insights, enhance efficiency, and future-proof their data investments. This approach enables organizations to maximize the value of their data across various projects and initiatives, driving overall business success and growth.

(4) Reporting Without Insight → Action 

The true value in data is providing insight, not just reporting the news which most organizations focus on.  Organizations that focus solely on reporting data without extracting key insights are missing out on the true value of their data investments. Without insights, organizations may struggle to understand the underlying factors driving performance or to identify opportunities for improvement.  By going beyond mere data reporting and focusing on identifying key insights, organizations can leverage their data investments to drive actionable decision-making, gain a competitive edge, create value, foster innovation, and adapt to changing business landscapes. 

(5) Misaligned Metrics, Misaligned Teams 

Departments within an organization tend to focus on metrics to the department, but these do not always align to other departments and sometimes even contradicts them.  This misalignment leads to inefficiencies and ineffective use of resources, decision-making, and investments.  By aligning the organization to key metrics and having standardized definitions, businesses can ensure that data investments are purposeful and effectively drive decision-making, performance improvement, resource allocation, and collaboration. This alignment provides a strategic framework for leveraging data to achieve desired outcomes and maximize the value derived from data investments. 

To close the significant perception gap between organizations' aspirations to be data-driven and the actual implementation and efficiency in leveraging data, organizations need to address the above barriers.  At TAP Analytics, we have the experience and capabilities to help you overcome these issues and get the most value from your data investments.  If you’d like to learn how we may be able to help your organization, get in touch with us as hello@thetapconsultancy.com.