Fewer than Half of Business and IT Leaders Rate their Data Management Efforts as Effective

Kalido-sponsored research also reveals that accurate data can contribute tens of millions of dollars to the bottom-line

• Research released today by Kalido has revealed that data management efforts in large companies remain significantly ineffective, with less than half of all respondents (47 percent) rating their organization’s data management efforts as effective or very effective. The research is available at www.kalido.com/data-governance.htm.
• Meanwhile, business and IT leaders who have estimated the value of accurate data calculate an average of $38 million in cost savings and/or revenue increase from current or planned initiatives that require accurate and trusted data.
• Seventy-seven percent of respondents expect savings to occur on an annual basis, while 45 percent expect an annual increase in revenue.
• Business initiatives cited include regulatory/statutory reporting (63 percent), cost-reduction activities (45 percent) and cross-sell/up-sell campaigns (31 percent).
• The findings highlight the contrast between the monetary value that accurate, consistent data can bring to an organization and the absence of processes and safeguards implemented to ensure that accuracy.
• Furthermore, less than a third of businesses have taken steps to improve this situation with a data governance program – and 13 percent are unclear as to what data governance even is.
• Of those questioned, 30 percent were unsure of their organization’s plans for data governance, and 25 percent do not have a program in place.
• Seventy-eight percent of businesses that do not have a program have no plans to implement a data governance strategy within the next year.
• The survey of 123 business and IT leaders in organizations with annual revenues of $500 million or more, conducted by IDG Research Services and sponsored by information management specialist Kalido, highlights the disadvantages faced by business that do not have a clear data quality strategy.
• The research also reveals a lack of consensus as to who is responsible for maintaining the accuracy of data within an organization.
• In 31 percent of the companies questioned, this role is held by the IT department, while 25 percent place the responsibility on a cross-functional team. Other sections of the business responsible include finance (10 percent), manufacturing (6 percent), sales (6 percent) and marketing (3 percent), while in 10 percent of organizations, nobody is in charge.

Quotes

• “Data is the lifeblood of any business and yet companies continue to ignore the importance of managing it. This survey highlights the importance that executives place on being able to effectively govern business data and improve the level of trust in their information. Without an effective governance system, companies risk not having the critical business information at their fingertips that they need to remain competitive and in some cases, to stay in business.”