Fragmented Data Biggest Barrier To Digital Transformation In 2022


The Global CDO Survey finds that 79 per cent of organisations are using more than 100 data sources, adding to the complexity in managing fragmented data

In 2022, data leaders will start moving beyond data integration to data intelligence but there is one big barrier that CDOs must plan for and overcome: Data fragmentation. The 2021 annual IDC Global Survey of the Office of the Chief Data Officer (CDO) study reveals that data fragmentation will be the biggest barrier facing data leaders next year, while EMEA businesses are found to be slower in adopting automation, with only 25 per cent deploying it in all areas of the organisation.

Informatica, an enterprise cloud data management leader, unveiled the findings of the CDO report that examines the CDO’s challenges, priorities and key performance indicators while stewarding enterprises to success in a digital-first world,

“Data is the lifeblood of digital transformation and how well you manage it impacts your business success in a digital-first world,” said Stewart Bond, IDC Research Director. “The survey shows organisations with higher data maturity are better at using cloud and AI to address the primary challenge of fragmentation and complexity and generate higher levels of business value with their data. Organisations seeking to become digital leaders should place a strong focus on data leadership.”

“The changemakers of tomorrow in digital transformation will have to be move beyond just data integration to data intelligence, but 37 per cent of data leaders are spending most of their time grappling with data complexity as opposed to driving true transformation with data,” said Jitesh Ghai, Chief Product Officer, Informatica.

Three key themes from the 2021 Global CDO study include:

Data Fragmentation and Complexity Distract from Innovation

Enterprise infrastructure will be cloud-first and multi-hybrid for many years, with systems spread across on-premise and multi-cloud environments. The findings showed that:

  • Nearly 80 per cent of organisations surveyed store more than half of their data in hybrid and multi-cloud infrastructures.
  • 79 per cent of organisations are using more than 100 data sources, with 30 per cent using more than 1000 sources.
  • 37 per cent of data leaders are barely keeping the lights on when it comes to data management as opposed to driving strategy or innovation with data

But it is this fragmentation, with data spread across multiple sources and many clouds, that is making it much more difficult to discover, manage and derive intelligence from their data. Highlighting the chasm in delivering business value between data leaders and laggards, the study found that enterprises with a high level of data maturity generate 250 per cent more business value than those only beginning their data-led transformations, where most of the time in data management is spent keeping the lights on.

Operationalising AI to Automate Data Management is Critical to Success

Only AI can deliver the speed and scalability demanded by modern enterprises, and the study found that data mature organisations were three times better at operationalising AI to automate data management activities than their less mature peers.

  • Innovation with data starts with enabling access, yet only 31 per cent of organisations provide AI-powered self-service access to all the data needed by different teams
  • Organisations in APAC lead the way with 37 per cent automating data management across the business.
  • North American organisations follow closely behind with 33 per cent, and EMEA businesses are slower to adopt automation, with only 25 per cent deploying it in all areas of the organisation.

Data leaders were also seen to be leveraging AI driven insights and process optimisation to improve efficiency and the availability and use of data to users within the business.

Cloud-centric models and integrated data management approaches

The study highlighted how critical data management is to digital transformation, noting that organisations with strong data leadership are three times more likely to be well underway with digital transformation. With cloud central to that, migrating to the cloud was a primary objective for 34 per cent of respondents.

  • Over the past year, most organisations increased the data functionality hosted in the cloud by 10-20 per cent. However, a quarter of EMEA and North America enterprises saw a 30 per cent uptick.
  • This momentum is set to continue, with 30 per cent of organisations noting that migrating data management functions to the cloud is a priority.
  • 75 per cent of organisations do not yet have a complete architecture to manage an end-to-end set of data activities, including integration, access, governance and protection.

The way organisations resolve fragmentation and complexity issues separates leaders from laggards, with leaders adopting an integrated approach to data management with standardisation and automation as core facets.

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