In part I of our digital transformation series, we highlighted the role of modernizing legacy infrastructure with scalable solutions and discussed the defining characteristics of “digital transformation”.
A key driver of organizational success for enterprises undergoing digital transformation will be the role of their data.
Data simply defined is information collected for use. Historically, organizations have viewed data as just a record of something that happened. In the age of digital transformation, data is much more. Data is now a form of capital with the capacity to create new digital products and services
Think of companies such as Uber, Netflix, Amazon, Airbnb and Facebook- all are enterprises that utilize data to render new services, experiences and goods. Advanced digital market platforms offer multidimensional information. Interrelationships that would normally be overlooked due to the limitations of brick-and-mortar stores are now sorted, contextualized and applied in fascinating new ways.
A recent IDC study revealed that data driven organizations could achieve 34% additional revenue and drive down operational costs by 2.7x. An older study conducted by MIT in 2011 of 180 large public companies concluded, organizations utilizing data driven decision making performed 5 – 6 % higher in terms of output and productivity. With proper data analysis organizations can easily spot patterns and predict how one variable will affect another. Data now has an economic value however, there are also challenges that companies must address.
Challenges such as unlocking data trapped in silos, exponential data growth and effective disaster recovery plans are just some of the issues facing companies. As data is increasingly incorporated into organizational business models, the risk of revenue loss due to an IT outage or the loss of data is heightened.
Mitigating against these risks will require three pertinent items to be addressed:
- Data management software that can accommodate structured and UNSTRUCTURED data.
- Strong data governance policies that protect and store data.
- Hybrid cloud environment.
The importance of data will only continue to grow. Choosing solutions that simplify the data landscape, automate data services and secure data assets will help you get the most benefit from this resource and remain competitive.
In part three of this series we will discuss choosing the correct cloud solution for your organization.