Why data management challenges cost organisations US$2 million a year
Global organisations are scrambling to gain a competitive advantage in today’s digital economy, but failure to effectively manage their data can end up costing them dearly in lost productivity and missed opportunities, finds new research from Veritas Technologies.
When employees have efficient access to data, they are empowered with the insight they need to make better, more informed decisions.
However, the Value of Data study, conducted by Vanson Bourne for Veritas, surveyed 1,500 IT decision makers and data managers across 15 countries and reveals that data management challenges are having a severe impact on employee efficiency, productivity and the profitability of businesses around the world.
On average, employees lose two hours a day searching for data, resulting in a 16 per cent drop in workforce efficiency.
Conversely, organisations that invest in effective day-to-day management of their data have reported cost savings and better employee productivity as a result.
Seven in ten (70 per cent) of those surveyed globally (69 per cent in Singapore) say they have reduced costs, while over two-thirds (69 per cent globally and 68 per cent Singapore) say their employees are now empowered to be more productive.
Data challenges could equal missed opportunities and lost revenue
Beyond productivity challenges, the wider consequences of poor data management can cripple organisations. Almost all (97 per cent) of the global organisations (99 per cent in Singapore) surveyed believe they have missed valuable opportunities as a result of ineffective data management.
In fact, almost half (45 per cent) of all respondents in Singapore (35 per cent globally) admit to losing out on new revenue opportunities while two in five (39 per cent globally and 43 per cent in Singapore) say their data challenges have caused an increase in operating costs,
Alarmingly, respondents estimate that their organisation loses over US$2 million a year due to challenges faced with managing their data.
Companies that fail to address their data management issues also risk significant longer-term damage to their business.
Those surveyed in Singapore (53 per cent) say their challenges with managing data meant their ability to make strategic decisions is hindered (38 per cent globally), they’re less agile (45 per cent in Singapore and 35 per cent globally) and unable to compete successfully in the market (43 per cent in Singapore and 29 per cent globally).
Close to half (44 per cent) in Singapore are more vulnerable to data security threats (27 per cent globally), and 29 per cent (25 per cent globally) have experienced customer dissatisfaction.