Study reveals three crucial pillars to becoming "Data Leaders"

Only 11 per cent of UK companies meet the criteria to be considered "Data Leaders", according to a recent study by Lenovo and FT Longitude. The study, which surveyed 600 C-suite executives and their teams in organisations with revenues of £406 million or more across five countries, including the UK, France, Germany, Italy, and the United States, sought to understand how the world's top firms are using data to gain a competitive advantage and achieve their objectives.

The report, titled 'Data for Humanity', found that companies that excel at utilising data across three pillars of data analytics, data management, and data security have been able to enjoy significant advantages. These data-driven firms have increased their revenues by 78 per cent and improved customer satisfaction by 70 per cent in the past year. Furthermore, they have experienced significantly fewer negative outcomes, such as reduced innovation (10 per cent) and lower employee productivity (13 per cent).

Effective data usage has become even more critical since Covid-19, with many businesses investing in data infrastructure and teams to gather insights quickly and promote innovation. Data has been hailed as the essential fuel for conducting business in the information age, and companies that excel in this area have a distinct advantage over their competitors.

The report highlights the importance of data in a cutthroat business environment and offers insights into how the largest companies in the world are using data to achieve their goals. By understanding how Data Leaders utilise data across various business functions, other organisations can learn from their success and enhance their own data efforts.

The Three Pillars of Data

While only a handful of companies are considered Data Leaders, the Lenovo report found that almost all companies have plans that strongly emphasise data capabilities.

The report highlights investment priorities for the next five years, including cybersecurity tools (59 per cent), artificial intelligence tools (58 per cent), data analytics tools (57 per cent), and data storage (55 per cent). Some companies have already begun incorporating these tools, using cybersecurity to combat threats and artificial intelligence to simplify complex tasks. Other key factors for extracting data capabilities include utilising different forms of data, such as external and unstructured data (88 per cent), and automating data administration or analysis (89 per cent).

The report also revealed that many businesses are pursuing data solutions across different lines. Business leaders believe their data solutions are scalable (58 per cent), simple for employees to use (55 per cent), and highly automated (57 per cent). Furthermore, present technologies and tools provide a view of all the data across the companies' operations (54 per cent), improve visibility, and store most of the data in the cloud (52 per cent).

However, just above half of respondents are satisfied with their present data platform, and almost a quarter believe they need to catch up with their rivals in this market. Issues with data integration and internal communication, along with security and skills gaps, continue to hinder companies. Furthermore, more than half of respondents (56 per cent) reported trouble accessing their data from anywhere in the hybrid working period.

Giovanni Di Filippo, EMEA President of Lenovo Infrastructure Solutions Group, noted that as more companies continue to utilise cutting-edge solutions and tools, it won't take long for people to view the three important pillars of data as having a significant role in future IT investment. He stressed the need for technology providers and partners to collaborate to enable the most optimal solutions.

He said, "Every business is at a different phase of its data journey – some have only just begun, while others are at a more mature stage along the way."

Data Analytics and Data Management are foundational to business growth

Di Filippo noted that Lenovo's research, on Data Analytics and Management, indicates that firms have already laid the groundwork by keeping the bulk of their data on the cloud and putting solutions that provide simplicity, scalability and visibility.

"But there is scope to go much further, particularly when it comes to making data more accessible and giving it the means to inform or make decisions," the EMEA President stressed.

Overall, the report highlights the importance of data capabilities for businesses in the current competitive landscape. By investing in cybersecurity, artificial intelligence, and data analytics tools, businesses can enhance their data capabilities and gain a significant advantage over their rivals.

Data Security is a pillar of focus for businesses

About 91 per cent of business leaders believe that improving their cybersecurity solutions is essential to unlocking the full potential of their data, according to Lenovo.

Despite this, only 57 per cent of respondents feel confident that their data is secure, indicating that there is still work to be done in this area. In fact, security concerns were identified as the biggest obstacle to data sharing, with 89 per cent of respondents citing it as a major concern. Technical debt and legacy systems (88 per cent), cost (87 per cent), and competitiveness-related worries (86 per cent) were also identified as major hurdles to data sharing.

The lack of useful data was identified by 84 per cent of respondents as a significant challenge. Additionally, nearly a third (31 per cent) of respondents admitted that they have been exposed to cyber dangers due to inadequate data analysis and management skills.

According to Marco Pozzoni, Director of EMEA Storage Sales at Lenovo, data leaders are aware that data security requires ongoing attention and investment. He stated, "Security strategies must be ongoing, not isolated. As the amount of data businesses hold continues to grow exponentially, propelled further by increased adoption of AI and analytics, security capabilities must expand in tandem."

Organisations are seeking unified, autonomous solutions to give them the ability to safeguard their data. Pozzoni notes that without security, neither Data Analytics nor Data Management will be able to realise their full potential. All three pillars - security, data analytics, and data management - are interdependent for a company to operate efficiently.

Businesses must, therefore, continue to invest in cybersecurity solutions to ensure that their data remains secure, while also exploring new ways to share data safely and responsibly with outside partners. With the right approach, data can become a powerful tool for driving innovation and advancing critical goals like education and healthcare.

Data Skills crucial to data strategy

As companies increasingly rely on data to make informed decisions, many are facing a new challenge: a lack of data skills. While 88 per cent of business executives view hiring the right talent as a vital part of their data strategy, only a third (35 per cent ) believe their company currently possesses the necessary capabilities and skills to execute their plans.

This talent shortage is seen as a threat by over three-quarters (79 per cent) of respondents, who believe it could hinder their business over the next three years. To address this issue, most companies are looking internally to execute data strategies, including plans to train and upskill staff in data analysis and management (88 per cent ) and effective data usage techniques (89 per cent).

While just a fifth (21 per cent) of companies have appointed a Chief Data Officer to improve the utilisation and integration of data, the majority (88 per cent ) believe that establishing a data-centred culture throughout their firm will be a critical component of their data strategy over the next few years.

However, the study also revealed that many companies are struggling to establish this culture. While 40 per cent of the companies considered to be Data Leaders said their IT team collaborates with the business to implement data-led projects, only 24 per cent of those classified as Data Followers reported the same.

According to Di Fillipino, the onus is on business leaders to give staff more opportunities to develop tech skills beyond their traditional roles. This will create a generation of 'Business Technologists' who are well-equipped to harness the full potential of data.

"Putting the onus on business leaders to give staff more opportunities to develop tech skills beyond their traditional roles will create a generation of 'Business Technologists' who are well-equipped to harness the full potential of data," said the EMEA President. "By doing so, organisations can reap the benefits of higher productivity, increased customer loyalty, and improved revenues, as evidenced by the Data Leaders."

As companies continue to seek new ways to leverage data to gain a competitive edge, it's clear that developing data skills is becoming an increasingly critical part of their strategy.