The volume of data available and technology advancements creates unlimited business opportunities for any organization. However, most organizations are faced with a “More is Less” syndrome. They tend to spend a considerable amount of time and effort managing their data without reaping the rewards. Imagine if an organization flipped the model. What would be the outcome if an organization focused less on the data itself and spent more time on data-driven decision-making based on trends, patterns, and insights derived from actually using the data?
We were curious if enterprises that embraced a holistic data-centric approach operate and compete more effectively. We partnered with Tilburg University / TIAS School for business and society and ICT- Media to test our hypothesis.
For our analysis, we focused on global enterprises in the Netherlands as a sample and surveyed sixty-two noteworthy Dutch organizations and ten C-level information technology leaders (chief information officers and chief data officers). We then compared the research findings with the data from our global TCS DATOM™ assessments.
The insights from this research are available in “HPDO: Demonstrate Data-Driven Business Behaviour”. High-Performance Digital Organizations (HPDO) are enterprises that have achieved high data and analytics maturity that they use to focus on the four TCS Business 4.0TM business behaviors: 1) driving mass customization; 2) creating exponential value; 3) leveraging ecosystems, and 4) embracing risk. This report details the challenges faced by the Dutch organization who contributed to the survey and how they can become an HPDO.
The report indicates that the Dutch market is operating with a LOW to MEDIUM data and analytics maturity level, with less than 10 percent actually achieving high maturity. They lack proper data management. The adoption of analytics automation is low, as over 50 percent of the Dutch organizations surveyed report analytics automation under 25 percent. Furthermore, they still predominantly use only managed data and, to a limited degree, data lakes, and active data warehouses, which limits their ability to fully extract insights from their enterprise data.
More than 70 percent of the Dutch organizations surveyed indicated their extent of adopting data and analytics mindset/culture to be proportional to their business effectiveness. See the figure below. Data and analytics maturity is gauged by an enterprise’s readiness to adopt one of the following five adoption levels: data management, analytics automation, type of data used, type of analytics platforms used, and cloud adoption. Eight respondents that qualify as highly business effective organizations report a lower than expected adoption, while seven respondents with low business effectiveness report a higher than expected adoption.
A HPDO characteristically ranks high on data centricity and makes strategic investments accordingly. As an example, one of the HPDOs:
- Spends 10 percent of their annual revenue/budget on information technology and digital
- Outsources their analytics to a minimal degree (<10%)
- Leverages any data type, including external unmanaged data and open data
- Automates 50 and 75 percent of their analytics
- Operates their analytics on the cloud
- Sets up enterprise-wide data literacy programs
- Follow agile methods for every process in their organization
The report also explores what is hindering organizations from embedding analytics in their business value chain. Four key areas emerged from the research: 1) anchoring by the board or management; 2) implementing a data-driven mindset and culture; 3) investments in data and analytics; and 4) monetization of data insights.
The research (as seen in the figure below) highlights the difference between the types of organizations and their priorities. Emerging data-driven organizations put more effort in getting their data and analytics basics first. Data-driven HPDOs have more successfully put data and analytics on the agenda of their boards and better understand that their performance can be improved by focusing on internal communication, change management capabilities, and data literacy.
As part of the research workshops, we were able to glean insight from successful data and analytics leaders at VIVAT and Tata Steel. VIVAT started their journey to address reporting compliance but is now heavily using big data for fraud protection, document handling/classification, and separating medical data from general data. Likewise, Tata Steel, backed by their executive board, embarked on a commercial data strategy that has since enabled them to create value in sales and marketing, supply chain, and logistics.
The report and workshops confirmed our hypothesis. Successful organizations that have high data and analytics maturity are further along on their growth and transformation journey. Simply put, data-driven business behavior is a pre-requisite to thrive. This statement is more evident now during this pandemic crisis than ever before as we are finding that everything we thought we knew is no longer valid. Today, insights into enterprise date will be more critical as businesses navigate the new territory.
About the author(s)
Dinanath (Dina) Kholkar is Vice President & Global Head, Analytics & Insights at Tata Consultancy Services (TCS). In this role, Dina guides some of the world’s best companies in their journeys to unlock the potential of their data through the power of analytics and artificial intelligence (AI) to uncover new business opportunities, drive business growth and increase revenue streams.
Dina advocates ‘data centricity’ as a strategic lever for business growth and transformation and believes that the need of the hour is ‘evangelization’ of data & analytics. His thought leadership in addition to his team’s expertise and collaborative working with customer organizations is empowering them to realize the power of their data in real-time decision making and ensuring success in their Business 4.0 transformation journeys.
With nearly 30 years of industry experience, Dina has held diverse leadership roles across the organization and amplified business value to customer organizations covering all major industries. He was responsible for building TCS’ data warehousing and data mining expertise and laying the foundation for the organization’s Business Intelligence practice. Dina has also led TCS’ Business Process Services (BPS) & Business Analytics units and served as the CEO & Managing Director of TCS eServe.
Dina is a member of the Board of Governors of his alma mater Veermata Jeejabai Technological Institute (VJTI), Mumbai and actively involved in the institute’s modernization journey.
Dina currently resides in Pune, India with his wife, son and parents. Outside of work, Dina currently serves as IEEE Pune Section Chair and provides leadership guidance in the areas of NextGen engineering education, agriculture and open data. He is a sports enthusiast who loves playing badminton and running long-distances. He loves to travel to explore new places and is a passionate photographer.