The newData Distrust study conducted by independent research firm Vanson Bourne found that the majority of this distrust in data comes down to ineffective or flawed data analytics processes.
Even though data analytics was seen as essential for 82 percent of organisations, it’s almost become commonplace for data snags to impact results. In 84 percent of organisations, data analytics projects are delayed due to the data not being in the right format, while for 82 percent the data used is of such low quality that analytics projects need to be reworked.
The distrust caused by these data issues has a significant impact on organisational success, with 76 percent reporting missed revenue opportunities, 72 percent stating customer engagement and satisfaction is negatively impacted, and 68 percent believing they are slower than competitors to react to market changes.
Those who have little or no trust in their organisation’s data report that 54 percent of strategic decisions continue to use that same data, risking flawed decisions and perhaps hindering, rather than helping, the business achieve their goals. Almost two-thirds of ITDMs believe a lack of trust in data is causing their organisation to move forward cautiously, in turn, missing opportunities that may otherwise put them ahead.
Rebuilding trust in data and data analytics overwhelmingly comes down to improving the ease and speed of access to quality, decision-ready data within the organisation. When asked what was needed to enhance the quality of data for analysis, respondents noted some key areas: better data cleaning and standardisation, modernisation of infrastructure, and the integration of data silos. The latter was important, as more than half called outgrowing data siloes and inaccessible data as the most significant drivers behind their lack of trust.
SnapLogic CTO Craig Stewart said: “It’s known that the effective use of data analytics can provide significant business advantages. But to know that so many organisations are making business decisions using data they do not trust is alarming.
“To get data analytics projects right, organisations must review what data they have, the applications and sources it comes from, and how they are bringing it all together. Modern integration tools can help with this, providing an automated way to democratise data throughout the organisation, so it’s accessible at the right time in the right format to all those who need it.”
Despite the data trust gap, analytics is an area that is seeing increased focus and investment during the COVID-19 pandemic, as 66 percent of organisations surveyed have either continued or even accelerated their warehousing and analytics projects during this period. This seems to indicate that organisations continue to see tremendous value in data driven insights and are committed to getting analytics right, even or especially in tough times, to emerge stronger on the other side.