One of the action items associated with digital transformation is the need to become data-driven.
In the report, 100 Data and Analytics Predictions Through 2024, Gartner analysts noted that the digital business future provides organisations with nearly unlimited possibilities to create business value.
Gartner acknowledged that data and analytics have become primary drivers of business strategy and the potential for data-driven business strategies and information products is greater than ever. It is a part of everything that organizations do. Yet, for many, the ability to “think in data” is still difficult.
In Indonesia, for example, IDC estimated that IT spending in Indonesia’s Financial Services Industry for Big Data & Analytics is “quite high” with 14% growth per year.
However, Handojo Triyanto, senior research manager at IDC Financial Insights Asia/Pacific, noted that most banks in Indonesia are still struggling with data management.
Truth of the matter is, there is no shortage of technology or incentive (and disincentive as well) for organisations to take on the data-driven mantra.
Barrier to entry is not tech
“Even the most advanced banks still have limited implementation to other areas, and data-driven decision making,” observed Triyanto.
Triyanto acknowledged that the real challenge is culture not technology. He explained that the barrier to acceptance of what is required to be data-driven is not confined to the IT function.
Action items for leadership
Gartner says the transition to data-driven business requires data and analytics leaders, such as chief data officers (CDOs), CEOs and CIOs to elevate data and analytics strategies and advance a new vision of business problem-solving.
“It also profoundly impacts the work of a data and analytics organization and the enterprise competencies that must be built. It potentially changes the management ethos of the organization, such as the role of the centralized function,” noted Gartner.
IDC's Triyanto explained that most CIOs already have an understanding of the technology and its roles to support a data-driven enterprise. However, the initiatives being launched at the moment mostly come from the business side where they still lack sufficient knowledge on the implementation to become a fully data-driven enterprise.
“Some advanced CIOs have broken the deadlock by pushing data-driven related initiatives, going further with digital innovations. Like any other organization, most CIOs have a problem with the trigger of the initiatives and the budget,” he concluded.
IDC action items for CIOs:
- CIO should take the lead on initiatives to become a data-driven enterprise, especially if there are no initiatives being taken by other departments. If there are ongoing initiatives, CIOs must still take on significant roles in data-driven related projects as they are the most suitable with their knowledge and capability regarding the technologies and its implementation. In cases where the CIO lacks the capability in the implementation, they should build that capability or ask for help from external consultants. (CIO means an IT group, not a person).
- Develop the capability for advanced analytics extended to AI (Artificial Intelligence). The AI initiatives must be started now even though it just starts with an experimental stage. Most AI initiatives need large data that are most probably not sufficient right now. The objective of the experimental stage is to identify the data needs and requirements so that it can be prepared for future AI-related utilization.