|Organizations that know how to leverage data are creating the most wealth / Photo Credit: LeoWolfert (via Shutterstock)|
Nowadays, businesses are becoming more data-driven organizations, and firms that are skilled in applying data are known to create the most wealth, wrote Peter Bendor-Samuel of business news platform Forbes. In fact, “five of the top 10 Fortune 500 companies are platform firms.” Bendor-Samuel said that the global market for data management and data analytics will explode. The author’s Everest Group assessed that the global market for data and data analytics will be valued at $125 billion by 2025. Moreover, data management and data analytics will be “one of the most important services” and a leading driver of the success of next-generation companies.
For companies to remain competitive, they must focus on their customers’ experience, as well as employee ecosystems. Firms can help bolster these experiences through digital platforms. For organizations to achieve this objective, they must modernize their operations. Modernization entails increased automation, realigning business companies “along experience lines and away from process lines.” Harnessing the power of analytics is great when the organization has the data. Unfortunately, current technology estates and data vehicles are not meant to foster a data-driven world. This will result in data being partial, unavailable, dirty or not robust.
Hence, it’s important for firms to rethink the way they capture, clean, build, or store data when shifting to a platform perspective, taking data management to the next level. Alternatively, organizations are starting to organize around data management and data capture, as well as the application of data into and across all the platforms they are developing. This move prompts companies to change as to where they will spend money.
Data management doesn’t occur by accident. Therefore, companies are expected to invest in data management. Data analytics is powerful, but it is also expensive. Bendor-Samuel stated, “The amount of money that companies will spend on managing data will be many times what they currently spend.”
Overall, firms must recognize that data is no longer a byproduct. Rather, it is the product and “how they operate,” enabling companies to familiarize themselves with data implications and platform thinking.