Lack of Data Capabilities Impedes Organizations’ Success, Global Survey Finds

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12/07/2022 - 07:30 AM

Growth and innovation stifled by limited ability to create value from data

Global survey provides a detailed view of the strategic, organizational and technological gaps that organizations must close to leverage data as a strategic asset
Majority of respondents (62%) say it’s strategically important for their organizations to control their data and the means to create value from data
Closing the capability gaps requires a shift in organizations’ transformation strategies

FRANKFURT, Germany--(BUSINESS WIRE)-- While governments around the world have identified data as a strategic resource to drive economic and social progress¹, Hewlett Packard Enterprise (NYSE: HPE) today unveiled global survey results showing that a lack of data maturity hinders both the private and public sector from achieving key outcomes such as growing sales or advancing environmental sustainability.

Conducted by YouGov on behalf of HPE, the survey of more than 8,600 decision makers from across industries and the public sector in 19 countries reveals that the average organization’s data maturity level – or ability to create value from data – is 2.6 on a five-point scale, with only three percent reaching the highest maturity level.

“There is broad consensus that the world’s data holds an enormous potential to advance the way we live and work – however, unlocking this potential requires a shift in organizations’ digital transformation strategies,” said Antonio Neri, president and CEO of HPE. “We must move from ‘cloud first’ to ‘data first’ as the North Star of digital transformation – meaning that organizations align their strategic, organizational and technological choices with the overarching goal of leveraging data as a strategic asset.”

Lack of data capabilities impedes key outcomes

The survey is based on a maturity model developed by HPE that assesses an organization’s ability to create value from data based on strategic, organizational and technological criteria. The lowest maturity level (1) is called “data anarchy”; on this level, data pools are isolated from one another, and are not systematically analyzed to create insights or outcomes. The highest level (5) is called “data economics”; at this level, an organization strategically leverages data to drive outcomes, based on a unified access to both internal and external data sources which are analyzed with advanced analytics and artificial intelligence.

Survey results reveal that 14 percent of organizations are on maturity level 1 (“data anarchy”), 29 percent on level 2 (“data reporting”), 37 percent on level 3 (“data insights”), 17 percent on level 4 (“data centricity”), and just 3 percent are on level 5 (“data economics”).

The lack of data capabilities, in turn, limits organizations’ ability to create key outcomes such as growing sales (30%), innovating (28%), advancing customer experience (24%), improving environmental sustainability (21%) and increasing internal efficiency (21%).

Organizations must close strategic, organizational and technological gaps

The survey provides a detailed view of the strategic, organizational and technological gaps that organizations must close to capitalize on data along their entire value chain. Sample findings include:

Only 13 percent of respondents say that their organization’s data strategy is a key part of their corporate strategy.
Almost half of respondents say their organization allocates either no budget for data initiatives (28%) or only occasionally funds data initiatives via the IT budget (20%).
Only 28 percent of respondents confirmed they have a strategic focus on providing data-driven products or services.
And almost half of respondents say their organizations do not use methodologies like machine learning or deep learning but rely on spreadsheets (29%) or business intelligence and canned reporting (18%) for data analysis.

Creating value from data also requires aggregating data or data insights from different applications, locations or external data spaces. For example, a manufacturer’s sensor telemetry from sold products can help the R&D department to better align the next product generation with customer needs, and sharing insights from patient data among hospitals can advance medical diagnosis.

Organizations want control across clouds and edges

A characteristic of a low data maturity level is that there is no overarching data and analytics architecture, but data is isolated in individual applications or locations. This is the case for 34 percent of respondents. On the other hand, only 19 percent have implemented a central data hub or fabric that provides unified access to real-time data across their organization, and another 8 percent say this data hub also includes external data sources.

Given that data sources are increasingly distributed across clouds and edges, the majority of respondents (62%) say that it’s strategically important to have a high degree of control over their data and the means to create value from data. More than half of respondents (52%) are concerned that data monopolies have too much control over their capability to create value from data, and 39 percent are re-evaluating their cloud strategy due to increasing cloud costs (42%), concerns over data security (37%), the need for a more flexible data architecture (37%) and the lack of control over their data (32%).

HPE GreenLake brings the cloud to the data to maximize control and outcomes

HPE’s strategy is focused on helping organizations accelerate outcomes by unlocking value from all of their data, regardless of where it lives. The HPE GreenLake edge-to-cloud platform enables customers to deploy a cloud-everywhere model with the freedom to choose the right location for their data and applications while providing one operating model to orchestrate across edges, colocations, data centers, and clouds. As a result, customers can control their data assets and industrialize their data supply chain through a unified data fabric that empowers analysis and decision making at speed.

“Because of the massive growth of data at the edge, organizations need hybrid edge-to-cloud architectures where the cloud comes to the data, not the other way around. HPE GreenLake empowers organizations with the ability to access, control, protect, govern and unlock the value of data anywhere, unified into one consistent experience,” added Neri.

Today, HPE bolstered its hybrid cloud leadership by announcing new application, analytics, and developer services for HPE GreenLake that enable organizations to drive a data-first modernization strategy for production workloads across hybrid cloud environments.

Research Methodology

The data is based on an online survey conducted by YouGov between October 26 and November 18, 2022, among C-level executives, business unit and function leaders, department and division leaders, first-line managers and team leaders across industries and the public sector in Australia (N = 500), Brazil (N = 500), Canada (N = 500), France (N = 500), Germany (N = 500), India (N = 500), Italy (N = 500), Japan (N = 400), Mexico (N = 500), Netherlands (N = 500), Poland (N = 500), Singapore (N = 500), Spain (N = 200), South Korea (N = 400), Sweden (N = 200), Switzerland (N = 200), Türkiye (N = 200), UK (N = 500), US (N = 1000).

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (NYSE: HPE) is the global edge-to-cloud company that helps organizations accelerate outcomes by unlocking value from all of their data, everywhere. Built on decades of reimagining the future and innovating to advance the way people live and work, HPE delivers unique, open and intelligent technology solutions as a service. With offerings spanning Cloud Services, Compute, High Performance Computing & AI, Intelligent Edge, Software, and Storage, HPE provides a consistent experience across all clouds and edges, helping customers develop new business models, engage in new ways, and increase operational performance. For more information, visit: www.hpe.com.

¹ For example, European Commission’s data strategy calls data the “lifeblood of economic development“, the UK government in its National Data Strategy calls data the “the great opportunity of our time”, the U.S. Federal Government has laid out a strategy and action plan to “leverage data as a strategic asset”, and the Communist Party of China has declared data to be a factor of production.