Half of SG Companies Are Still Beginners in Data Maturity
Today's digital world likes to talk about data, but many companies have yet to entirely understand how to make the most of it. To bridge this data maturity gap, companies need strong digital skills, increased funding, and reliable data security — all of which are more complex than expected.
The Demystifying Data 2022 report from AWS and Deloitte Access Economics found that Singaporean companies who leverage the power of data are, on average able to increase their annual revenue by 10.6%, equivalent to an extra SGD149 million for those with over 100 employees.
Measuring data maturity
The report gauged maturity levels using a five-point scale, with the lowest level (Basic and Beginner) representing those organizations with limited or no data strategy that is effectively capturing or analyzing data. The highest level (Advanced and Mastery) is characterized by firms having analytic tools embedded frequently into decisions thanks to an effective firmwide data strategy.
Based on this scale, AWS and Deloitte found that many companies are still in the early stages of data maturity. In particular, 57% of the 501 companies surveyed were considered to be at the Basic or Beginner levels.
Almost half (45%) of those surveyed shared that effectively capturing and analyzing data can lead to improved productivity. Meanwhile, 43% and 39% understand that data maturity can lead to improved customer experience and increased sales.
When it comes to the industry breakdown, companies within the finance and insurance sector ranked highest on the data maturity scale, with 32% achieving Advanced or Mastery levels. Healthcare and social assistance, as well as information, media and telecommunications, were close behind at 26%.
On the other end of the spectrum, electricity, gas and water supply, as well as education and training, had the lowest levels of data maturity, with less than 10% achieving Advanced or Mastery levels.
Challenges abound
Despite understanding data's potential benefits, companies in Singapore face several challenges when it comes to achieving true data maturity.
According to the organizations surveyed, lack of funding is the main barrier, with 38% reporting a shortage of resources for data and analytics. The COVID-19 pandemic has made this worse, with 40% of businesses saying that since the pandemic began, competing priorities have led to even fewer resources for data and analytics.
Data security and risk (37%) and access to skilled resources (36%) were also key challenges. This highlights the need for companies to focus on reskilling staff to make the most of data and strengthen their cybersecurity infrastructure.
“As organizations invest more in digital transformation, it has created an opportunity for greater use of data to improve productivity, generate financial returns for their business, and create a positive impact on the economy. Yet from our research, only 18% of organizations in Singapore have invested in the necessary technology, talent, and processes needed to unlock the full potential of their data,” said Chris Lewin, a partner at Deloitte.
“Investing in cloud solutions will help businesses accelerate their data maturity levels and achieve data-driven insights. In fact, businesses that already use the cloud are 22% more likely to cite productivity improvements as a benefit of data and analytics compared with businesses that have not adopted the cloud. To effectively turn data into a business advantage, organizations should have a clear and practical roadmap for advancing on the data maturity ladder, invest in attracting and retaining talent, and leverage the right technology to reap the full benefits," he added.
Image credit: iStockphoto/Ginanjar Hutomo Bangun
