The Crucial Role of Data Quality and Governance: Insights from "The State of Data 2023/24" Survey

The findings from "The State of Data 2023/24" survey provide valuable insights into the challenges and opportunities businesses face in this realm.

Understanding the Landscape: A Data-Driven Approach

In the face of economic challenges, businesses prioritising data and technology have not only weathered the storm but capitalised on the insights and opportunities offered by these assets. The survey reveals a strategic advantage for companies emphasising data initiatives, showcasing their resilience and adaptability in navigating uncertain times.

The Data Section: A Closer Look at Data Quality and Governance

Continuous Improvement in Data Usage

Year on year, the survey monitors how businesses are utilising their available data. Since 2015, there has been a steady improvement in data usage, with a notable 5% increase since 2022. The survey indicates that businesses are recognising the value of data and actively working to enhance their data-related capabilities.

Key Areas for Improvement: Governance and Quality

Delving deeper, the survey highlights two crucial aspects that help improve data uptake: data governance and data quality. These emerged as the top two skills deemed to be lacking within data functions, with 15% and 14% of respondents identifying them respectively.

Solutions for Improving Data Quality

When asked about improving data quality, respondents pointed towards the need for clearly defining data usage across the business. Specifically, articulating what data is needed and why emerged as the most effective way to improve data quality, with 38% of respondents choosing this approach.

Communication is Key

The survey emphasises the importance of communication in the realm of data. Clear communication channels between data functions and business units, along with very clear data entry policies and governance, are highlighted as essential factors. It's evident that effective communication is a linchpin for successful data management.

Aligning Data Function with Business Strategy

Interestingly, the survey challenges the notion that alignment between data function and overall business strategy guarantees success. Despite 88% of respondents stating alignment, at least a third reported that data usage had remained static or poorly improved. This indicates that alignment alone is not a predictor of success; effective data governance and quality play pivotal roles.

The Path Forward: Balancing Innovation with Governance

As businesses navigate the complexities of the data landscape, striking a balance between innovation and governance becomes paramount. The survey suggests that businesses excelling in data utilisation, hiring execution, and business-data alignment also display enthusiasm for innovation, particularly in the realm of generative AI.

Conclusion: A Call for Strategic Data Management

In conclusion, the survey results underscore the critical importance of data quality and governance in the success of businesses operating in a data-centric environment. Striving for continuous improvement, clear communication, and a strategic balance between innovation and governance will position businesses for sustained success in an ever-evolving economic landscape.

Key Takeaways:

Continuous improvement in data usage signifies businesses recognising the value of data.

Data governance and quality are identified as top skills lacking within data functions.

Clearly defining data usage and improving communication are vital for enhancing data quality.

Alignment between data function and overall business strategy does not guarantee success; effective governance is essential.