In the contemporary business landscape, organizations lacking a robust data management strategy are inevitably headed for a crisis. Regrettably, this predicament is widespread, evident in the prevailing disconnect regarding the pivotal role of a strong data foundation. IT leaders, take heed: Without a proactive shift, your organization risks mirroring the Titanic, with its data as the looming iceberg. To avert this, Chief Information Officers (CIOs) must prioritize and elevate their approach to data management.
While data has rightfully earned its status as the “new oil” in the digital economy, the less glamorous side of the spectrum—data management—often languishes in the background. Perceived as mundane, tedious, and costly, this discipline is frequently overlooked. However, for organizations to extract enduring value from data, mastering data management is imperative. This involves excelling in the often-underappreciated realms of data architecture and data governance. As Sumathi Thiyagarajan, VP of Business Strategy and Analytics for the Milwaukee Bucks, aptly puts it, data management should be rebranded as “joyous” work, resonating emotionally, culturally, and psychologically.
Surprisingly, amidst the data-centric era, there is a glaring dearth of information about data itself. Many organizations struggle to quantify their spending on data—a critical aspect often overshadowed. Analysts, in their pursuit of the “Next New Thing,” contribute to this information gap, neglecting the crucial domain of data management. This results in a scenario where Master Data Management (MDM) often translates to “Major Data Mess.”
Despite substantial investments in data, enterprises grapple with complexity and inefficiencies. Data is frequently scattered across the organization, poorly classified, and ensnared in local processes. To unleash the full potential of data, it needs to transform into a more liquid asset portfolio, facilitating reuse and recombination.
The payoff of effective data management is significant, with estimates placing data spend between 10% and 57% of total IT budgets. However, the dissatisfaction arises from the failure of analytics, big data, and artificial intelligence to deliver tangible benefits. The importance of clean, consistent, and accurate data becomes even more pronounced with the advent of artificial intelligence.
CIOs must assume a leadership role in ensuring transparency regarding data investments, their purpose, and efficacy. As data takes center stage in the executive agenda, business leaders must recognize its significance, dispelling the notion that data is someone else’s responsibility. Creating awareness and understanding of data responsibilities among executives is crucial for a future where organizations harness the full potential of technology while sidestepping potential catastrophes.
