It is a common belief that data is specifically for analysts. After all, they are responsible for processing business data and turning that information into easy-to-digest reports.
That may be true, but in actuality, C-suite leaders care a lot about data, too. Without access to the correct data, executives are essentially left to work in the dark, resorting to educated guesses to influence their decisions. Since data is vital to business outcomes, setting and owning data objectives should be handled at the highest level of an organization.
To that end, through a partnership with HFS, Syniti conducted an extensive analysis of current data management strategies. What we found is that there is a disconnect between the C-suite’s aspirations and the organization’s execution.
Below, we’ll examine some of the key findings of the HFS report and discuss the importance of data for C-suite executives.
Data for the C-Suite — Insights from HFS
HFS Research and Syniti surveyed 300 senior executives across Global 2000 enterprises. HFS conducted the survey from Q4 of 2022 and into Q1 of 2023. Our findings were compiled in the report "Perception Isn’t Always Reality: The Case for More Effective Data Management."
Let's dive into the three key insights gleaned from our comprehensive report.
Most Enterprises Trust Data, But That Trust Is Often Misplaced
According to some estimates, subpar data quality costs US businesses approximately $3.1 trillion each year. The question, then, lies in why companies are losing so many potential profits at a time while everyone is prioritizing data-driven decision-making.
Unfortunately, though most executives explicitly trust their organization’s data, that trust appears unwarranted or misplaced. In our poll, 80% of respondents categorized their organizational data as trustworthy. Contradicting that, over half of the respondents believe 60% or less of their data is consumable, and 15% believe that just 30% of their data is usable.
Of course, data can’t be simultaneously trustworthy and unusable, so it is clear that executives need to reevaluate what they consider trustworthy. By doing so, they can come to grips with their organization’s data management shortcomings and give themselves the information they need to make educated decisions.
Only 60% of Enterprise Data Can Be Operationalized
If data is not trustworthy, it cannot be used. A lack of data usability significantly contributes to the aforementioned $3.1 trillion worth of annual profit losses. Though achieving a flawless usability rate would be ideal, it is nearly impossible to attain data perfection.
The good news is that the C-suite doesn’t have to reach that seemingly unattainable milestone to capitalize on its missed opportunities. According to a study from the University of Texas in Austin, increasing data usability by just 10% could boost a Fortune 1000 company’s revenue by roughly $2 billion, making for a pretty significant return on investment (ROI).
Data Management Is a C-Suite Topic
HFS researchers found that 46% of CEOs set their organization’s key data objectives and that 35% also “own” them. Most other respondents identified C-suite members, like the chief data officer, chief operating officer, or chief information officer, as the individuals that set and own data objectives. In contrast, just 4% of respondents set and manage data goals outside of the C-suite themselves.
When setting and owning data objectives occurs at the executive level, data management receives the attention it deserves. Conversely, investing in these critical processes is often lacking when other organizational members oversee data governance and management. If your senior leadership is not already setting and owning its data objectives, you should relocate these responsibilities to the C-suite.
What Is Data’s Role in Mergers and Acquisitions?
In 2022 alone, over 20,000 mergers and acquisitions occurred among U.S. and Canadian entities. However, according to Harvard Business Review, between 70-90% of acquisitions fail. While there are many possible reasons for this, the most likely culprit is that business leaders struggle to integrate two separate entities into a cohesive organization.
As for what all of that has to do with data for C-suite executives, the answer is everything!
Providing decision-makers with detailed analytics data will help them assess the viability of a merger or acquisition. They can also leverage the data to better understand the company they are interested in acquiring, identify its potential stumbling blocks, and prepare for a smooth transition.
Ultimately, providing data to the C-suite will increase an organization’s chances of success during a complex merger or acquisition. The business can make the most out of emerging opportunities, mitigate risk, and achieve better outcomes.
Benefits of Prioritizing Data for C-Suite Execs
Shifting data objective-setting and management efforts to the C-suite accomplishes several things. First and foremost, by making data management a C-suite responsibility, your senior leaders are made aware of issues such as data quality, transparency, security, and usability. Decision-makers can increase their investments in data management tools to support these functions and protect the organization from the dangers associated with lackluster data governance.
Additionally, making data governance a C-suite responsibility leads to the following:
- Increased data accuracy and quality
- Enhanced visibility
- Expedited decision-making
- Better business outcomes
While there are clear benefits associated with C-suite-centric data management, your organization’s senior leadership cannot tackle the company’s DG woes on their own. They will need access to a powerful, centralized data management platform to succeed. That’s where Syniti can help.
Elevate Your Organization’s Data Management Capabilities
If you and your leadership team want to succeed at data management, you need to ditch the costs and complexity associated with using disparate data tools and vendors.
The Syniti Knowledge Platform (SKP) is the ideal tool to unify your data management capabilities into a single, intuitive platform. Our cloud-based, centralized solution includes robust reporting and analytic tools alongside governance capabilities. Our suite of tools can also facilitate data matching, management, replication, migration, and everything else you need to rein in your unruly data.
If you’re ready to learn more, download the HFS Research Report or schedule a demo of SKP today. We look forward to helping you reshape the way you manage your data.