4 Barriers Preventing Organizations from Effectively Using Their Data (And how to knock them down)
Explore four barriers to effective data use and how Velosio helps organizations transform data into actionable insights.
You’ve heard all the data cliches, like “Data is the new oil,” “Data rich but information poor,” and our analytics team’s favorite, “Without data, you’re just another person with an opinion.” It’s true: even tech-savvy organizations can grapple with the complexities of turning their data into actionable insights. Why is that? What’s standing in their way? In our work with small and midsized enterprises across virtually every industry, we have observed four common barriers preventing organizations from effectively using their data. Here, we outline these barriers and offer a clear perspective on how Velosio can help your organization navigate them.
Barrier 1: Data Silos and Integration Challenges
Within the maze of an organization’s data landscape, data silos often emerge naturally but insidiously. Different departments harbor their own data sets, like isolated islands of information. The challenge is not just the existence of these silos but the arduous task of integrating them without losing the context and integrity of the data.
One-third of business leaders cite the lack of ability to generate insights from data. Nearly another third (30%) say they are overwhelmed by the amount of data (which is expected to more than double in size by 2026). This is not just an IT challenge but a fundamental business impediment. The solution is creating integrated ecosystems where data can flow freely between departments and applications.
Microsoft Fabric is a pivotal new tool that includes services like Azure Data Factory and Azure Synapse Analytics, which orchestrate and analyze data across disparate sources. By implementing these integrative technologies, we have enabled our clients to shift from isolated data points to a cohesive analytics framework.
Barrier 2: Data Quality and Consistency Issues
Quality data is the fuel for any reliable analysis. Unfortunately, many organizations stumble when it comes to maintaining this quality and consistency. Over 80% of data analysts spend around half their time cleaning and organizing data. Inaccurate data entry, outdated information, and irregular formats can distort the picture the data paints. The impact is misinformed decisions and lost opportunities, which impact the bottom line. According to a Gartner report, poor data quality costs organizations an average of $12.9 million annually.
To smash this barrier, data must be treated as a product, with a focus on maintaining its integrity. Utilizing Microsoft’s robust data solutions, we guide organizations to establish and follow rigorous data stewardship protocols. This ensures data is cleansed, standardized, and deduplicated, fostering a data environment where analytics can be conducted confidently, leading to more reliable outcomes.
We encourage organizations to adopt robust data management practices and leverage Microsoft solutions that enhance data hygiene and accuracy, ensuring decision-makers can access reliable and consistent data sets.
Barrier 3: Lack of Data Literacy and Skills
Having data is one thing—understanding it is another. Data literacy is an essential skill in the modern workforce, yet Gartner has reported that fewer than 50% of employees can interpret and use data effectively. A deficit in data literacy can reduce the most complex data warehouses to mere repositories rather than valuable assets. Building a culture of data literacy is not a quick process, but it’s a critical investment.
We provide support in upskilling teams, emphasizing the importance of learning how to interpret data through the lens of Microsoft Power BI and other analytics tools, helping organizations convert data into a narrative that propels business strategy forward. By empowering employees with these skills, we’ve witnessed organizations evolve into data-centric cultures, where informed decision-making becomes the norm.
Barrier 4: Inadequate Data Governance and Management
Data is an asset that requires diligent and ongoing governance. However, only 37% of businesses have a defined data management strategy. Without a framework for data governance, organizations may inadvertently step into a minefield of compliance risks and security vulnerabilities. Furthermore, a lack of clarity in data management policies can leave employees unsure of how to engage with data responsibly, leading to potential data misuse, regulatory fines, and erosion of customer trust.
Our approach to overcoming this barrier involves creating a tailored data governance architecture that harnesses Microsoft’s security-focused tools to safeguard data and ensure it is used effectively and ethically. With these in place, our clients can enforce accountability, ensure compliance with regulations like GDPR, and secure their data without stifling its availability for legitimate use.
Breaking Down Data Barriers
Each of these barriers, while formidable, is not insurmountable. Velosio’s expertise lies in turning these barriers into stepping stones on the path to data mastery. Organizations can transform their data into a strategic asset by partnering with us, driving growth and innovation with every byte. Reach out to our data analytics team to start the conversation.
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Trey Johnson
Data Analytics Solution Specialist