Data debt emerges as core business issue

New Report: Don’t drown in data debt; champion your Data First culture reveals that a lack of comprehensive data strategies among Global 2000 enterprises is curtailing use of AI tools and undermining business goals.

  • Friday, 19th July 2024 Posted 8 months ago in by Phil Alsop

HFS Research, in partnership with Syniti, has released a report titled Don’t drown in data debt; champion your Data First culture that reveals that Global 2000 enterprises are hindered by data debt, lack comprehensive data strategies, and realise the need for specialised talent to meet business goals.

The report interviewed 300+ Global 2000 business leaders (49% from the U.S.) across industries to study how organisations are navigating a complex landscape of data management challenges and how those hurdles could impede their ability to fully leverage operational efficiency and drive business growth. It recommends that enterprises adopt a Data First culture, implement comprehensive data management strategies, and shift towards outcome-driven partnerships with service providers to prevail.

The report specifically recommends five strategic principles that will enable meaningful progress in addressing data debt and championing a Data First culture:

1. Data isn't just IT's problem; it's a core business issue. The strategic goal for data management is to facilitate seamless end-to-end business processes, supporting the "OneOffice" experience, where people, intelligence, processes, and infrastructure come together as one integrated unit, with one set of unified business outcomes.

2. Data and AI have a chicken-and-egg relationship. You need to address both together. Better data management emerges as the #1 initiative to leverage AI capabilities better.

3. Measure the impact of bad data; it’s critical to reducing your data debt. Less than 40% of organisations interviewed have methods and metrics in place to quantify the impact of bad data on their organisations.

4. Data is a huge people issue. The shortage of specialised talent is one of the top 3 challenges in data management.

5. Professional services need to be reframed as business data services—with a focus on outcomes, not effort. Nearly 90% of enterprises rely on third-party providers for data initiatives. However, focusing on effort rather than results leads to inefficiencies. Enterprises must demand providers prioritise meaningful results to drive true value.

Kevin Campbell, CEO, Syniti, said: "This research proves what we have believed for some time, that the fundamental problem with past data approaches is in the skills needed and applied. We are now at an inflection point in the evolution from generalists to specialists; data work is unique and complex and requires 100% dedicated focus to build specialised skills, training and needed career paths. To achieve real, tangible business benefits from your data, you need skilled data specialists who understand data in context - not business generalists or developers. It’s also gratifying to see this research validate that our Data First approach is crucial to driving successful transformations, whether that's achieving the benefits of applying GenAI or transforming the underlying business functions and systems.”

Phil Fersht, CEO and Chief Analyst, HFS Research, said: “Our research proves that a Data First culture means data isn't just IT's problem; it's a core business issue. Many business leaders still take a backseat when setting key data objectives, causing data to remain siloed across departments, and resulting in misaligned expectations across IT and business professionals. The focus for enterprise leaders must be on developing strategic talent that understands the business context behind the data.”

Failure to prioritise testing and integrate generative AI tools raises concerns as agentic AI adds pressure.

CIOs 'overspend' on cloud

Posted 1 day ago by Phil Alsop
43% of CIOs say their CEOs and/or board of directors have concerns about their company’s cloud spend.
Research revealed at Coterie Connect event highlights shifting team structures, evolving skills priorities, and urgent training needed for partner...
Endava has launched its latest research report “AI and the Digital Shift: Reinventing the Business Landscape”.

3,000% surge in enterprise use of AI/ML tools

Posted 1 week ago by Phil Alsop
Zscaler has released the ThreatLabz 2025 AI Security Report, based on insights from more than 536 billion AI transactions processed between February...
Over one in four (28%) British small business owners have used AI tools to help run their business.

Tech fragmentation cited as biggest cyber challenge

Posted 1 week ago by Phil Alsop
New Palo Alto Networks data shows 82% of UK organisations confident in their use of AI, despite AI being identified as biggest cyber risk for 2025.
MIT researchers crafted a new approach that could allow anyone to run operations on encrypted data without decrypting it first.