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Alation today released its latest State of Data Culture report, which focused on how ignoring data can lead to important business action. The report highlights that 97% of data leaders say their companies have suffered the consequences of ignoring data, whether it was missing new revenue opportunities, poorly forecasting performance, or making poor investments.
“Organizations that learn from data more quickly understand their customers, innovate and perceive markets more quickly and clearly than others,” Alation co-founder and CEO Satyen Sangani said in a press release. “Companies that invest in data and create a culture of data literacy do well. Those who are not far behind. Companies need to transform the way they make decisions and work to incorporate data into everything they do. They have to build a culture of data. “
Produced by Wakefield Research, the new Alation The report, which surveyed 300 leaders of companies with more than 2,500 employees, found that 89% of organizations that did not meet their revenue goals blame their CFO for not investing enough in data and analytics. Respondents emphasized the value data and analytics bring to the business, including process optimization, increased revenue opportunities, and the ability to assess risk and better prepare for uncertainty, as well as increase customer retention and drive business. product innovation.
Respondents in a recent The McKinsey study expressed a similar sentiment, with employees at companies with the highest overall growth in revenue and earnings citing data and analysis as a factor in the momentum. Compared to others, employees in high-performing organizations were three times more likely to say that data and analytics initiatives contributed 20% or more to earnings before interest and taxes from 2016 to 2019.
Previous Alation polls investigating corporate data strategies have been decidedly pessimistic. In April, an organization whitepaper found that only 13% of companies are meeting their data strategy, with a clear majority of employees identifying data quality issues as the reason management failed to implement. successful technologies that rely on data such as artificial intelligence and machine learning.
But despite the pessimism of the most recent Alation report, respondents generally said their data culture has improved in the last year due to improved data tools, governance, or literacy. For example, data leaders reported growth of more than 14% in the three main pillars of data culture (literacy, search and discovery, and governance), with year-over-year increases reaching 22 points (37% to 59% ) in companies that have adopted data literacy and 15 points (39% to 54%) in companies that have adopted data governance.
Data governance, the general management of the availability, usability, integrity, and security of data used in an enterprise, is a particularly fast-growing subcategory. Kenneth Research awaits market for governance solutions to reach $ 5.13 billion by 2025, compared to $ 879.25 million in 2016, driven by benefits including data consistency and superior data quality and accuracy.
“The big bottom line is that organizations are rapidly investing in data culture, embracing data literacy, data discovery and search, and data governance,” continued Sangani. “This report should be a wake-up call for companies that want to delay their data [analytics] Investments for another year or even another quarter. Creating a data culture is the only sustainable way to develop a consistent competitive advantage. “
Increase in spending
Stronger data cultures could lead to increased adoption of artificial intelligence and machine learning technologies across companies. According to a new Gartner survey, one-third of technology and service provider organizations with AI technology plans said they would invest $ 1 million or more in these technologies over the next two years. The majority of respondents (87%) with AI as a major investment area believe that AI funding across the industry will grow at a moderate to rapid rate through 2022.
“The various rapidly evolving artificial intelligence technologies will affect all industries,” Gartner Managing Vice President Errol Rasit said in a statement. “Technology organizations are increasing investments in AI as they recognize its potential not only to evaluate critical data and improve business efficiency, but also to create new products and services, expand their customer base and generate new revenue. These are serious investments that will help dispel the AI hype. “
However, challenges got in the way, as the Gartner survey shows. Just over half of those surveyed report that consumers adopt “significantly” their AI-enabled products and services, while 41% mentioned that emerging AI technologies are still in the development or adoption stage. initial.
“Very few respondents reported funding amounts of less than $ 250,000 for AI technologies, indicating that AI development is expensive compared to other technology innovations. This is not an easy segment to enter due to the complexity of building and training AI models, ”said Rasit. “These survey responses reflect the difficult development cycle of AI technology, given its complexity, as well as the industry-wide challenges in recruiting AI talent due to the finite number of people trained.”
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