Indian companies can grow revenues by improving data maturity

Harnessing the power of data can be a lucrative investment. According to an Amazon Web Services (AWS) report, Indian organizations that make use of this valuable resource can grow their annual business revenue by 13.6% on average, equating to approximately INR 7,451 million for larger companies annually.

An organization’s data maturity measures its capabilities to manage strategy, people, technology, process, data, and machine learning. The Demystifying Data 2022 report finds that 7% of Indian organizations have intermediate, advanced, or master levels of data maturity.

Data maturity in Indian organizations

Across industries in India, retail trade organizations are on top when it comes to the highest levels of data maturity with 78% achieving advanced or master level. This is followed by Media & Telecommunications and Finance & Insurance at 78% and 67%, respectively. On the other hand, non-marketing focused sectors such as Education and Training, Health Care, and Social Assistance are lagging in terms of data maturity but hold strong potential for growth moving forward.

With the current economic climate being unpredictable and operating costs at a high, organizations can ensure their longevity by focusing on boosting data maturity. 63% of them believe that doing so can provide increased productivity. Businesses also report that investing in data will have a positive impact on sales and revenue (60%) as well as customer experience (56%).

Barriers faced by organizations in improving data maturity

Data quality

With up to two-thirds of customer data potentially inaccurate, it is no surprise that 64% of organizations list inadequate data quality as their greatest obstacle to gaining maturity. Poor data can leave businesses lagging behind the competition in a fast-paced global market.

Data security

Despite the benefits associated with advanced data analytics use cases like machine learning and artificial intelligence, organizations in India are still hesitant about adoption due to security risks. The research revealed that 78% of surveyed companies endured a ransomware attack within the last 12 months – an increase from 68%, indicating escalating cyber threats for businesses.

Skills shortage

As organizations look to unlock the potential of data analytics capabilities, an acute talent shortage (as reported by 61% of companies) brought on by COVID-19 could prove problematic. Already 30% report their analytical skills are inadequate or outdated and with a projected 7% quitting in the next 12 months – retention has become imperative for success. Investing heavily into technical training is essential – giving current staff access to cutting-edge tools needed now more than ever before.

What can organizations do to improve their data maturity?

Engage the senior leadership

Senior leaders have a critical role to play in the success of a business’s data and analytics initiatives. When senior decision-makers are active advocates, companies are far more likely to invest in cutting-edge technology such as artificial intelligence and machine learning.
As per the report, 93% of businesses had invested in these technological advancements when senior leaders were driving data and analytics, compared to just 78% when the data teams took the wheel. Involving senior leadership will lead to increased investments in capabilities, thereby ensuring that organizations can reach their strategic goals.

Attracting and retaining talent

With the ever-increasing amount of data that is being collected, using data analytics to analyze and interpret it has become vital for businesses to remain competitive. For businesses to realize the full value of their data analytics efforts, having the right talent in place is essential.
Travel restrictions during COVID-19 created issues when it came to finding and retaining the desired skillsets needed for proper data analysis with 61% of businesses reporting a significant shortage in data analytics skills during this time.
Moreover, 12% of current data builders will leave their role within the next 5 years. Businesses can plan a mentorship program for data builders and invest in their professional development to create a desirable long-term work environment that can attract and retain the much-desired specialized skills.

Develop a data strategy

A comprehensive data strategy across an organization requires identifying use cases and associated benefits from the investment.
A deeper understanding of the current data maturity within the organization is necessary, as performing a self-assessment can help determine which areas should be in focus for improvement. Such an exercise could allow for targeted funding for both investing in data analytics capabilities and improving security measures.
Over two-thirds of organizations in India with an evenly distributed strategy demonstrate advanced or master levels of data maturity. By establishing a backlog of data analytics use cases, businesses can carefully determine priorities based on the greatest benefits and start working on them.

Adopt the cloud

Companies that have already migrated to the cloud have reaped significant benefits, including a 179% improvement in productivity. This suggests that investing in cloud solutions will allow organizations to take full advantage of data-driven insights, even with increasing volumes of data being collected.
To help ensure success, it’s important to invest in developing knowledge and skills in the cloud for existing staff through courses, micro-credentials, and other resources.
Doing so can provide a foundation for organizations to ensure they get the most out of their investment in cloud technology.

Develop a shared vision between data builders and senior decision-makers

Establishing a shared vision between data builders and senior decision makers for future needs and uses of data within an organization is paramount for understanding the improvements needed to data capabilities.
Such collaboration encourages the attainment of benefits identified from being data-driven in this report. To reach this level of collaboration, it would be beneficial to have the data team ask business leaders questions that will help discover problems present in the company and areas where data could provide a resolution.
Instead of generating use cases independently, it’s recommended that they be developed on an organizational level.

Source: The Demystifying Data 2022