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Data Paradox

DIGITAL TRANSFORMATION

Managing data overload in the on-demand economy

The Data Paradox, based on a commissioned study conducted by Forrester Consulting on behalf of Dell Technologies, seeks to uncover what’s preventing businesses from turning data into actionable insights.

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Data overload has become a significant barrier to transformation

The 2020 Dell Technologies Digital Transformation Index revealed that “data overload and the inability to extract insights from data” is the third highest barrier to digital transformation, up from 11th place in 2016. To uncover what’s preventing organizations from leveraging their data, Forrester surveyed 4,036 leaders responsible for data strategies and spend across 40+ locations.

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The on-demand economy is producing a massive data influx

Despite being an organization’s greatest asset, data can paradoxically become the biggest barrier to transformation. This likelihood increases as the expanding on-demand economy generates an immense amount of data, including new data types across new locations, and fuels expectations that data in motion will be processed in real time.

The research revealed key data paradoxes:

Businesses believe they are data-driven but they don’t prioritize the use of data across the organization.
Businesses need more data, but they have more data than they can handle right now
Many believe in the benefits of aaS, but only a few have made the transition to such a model.

Businesses crave more data than they can handle

67% of businesses say they constantly need more data than their current capabilities provide.
However, analysis is lagging behind demand. The number of businesses that say they are analyzing more data is only half of those who have seen an increased demand in data.

70 %

are gathering data faster than they can use it

64 %

have too much data to meet security and compliance requirements

61 %

are consequently dealing with overwhelmed data teams

Assessing businesses’ data readiness

To help businesses navigate the expanding on-demand economy, Forrester scored respondents’ data readiness based on their technical ability to manage and analyze data, their data culture and data skills. The result? Most businesses performed poorly, scoring low in both technical ability and culture.

Data Novices

Overwhelmed by data volume & lack the right skills/culture and tech infrastructure

Data Technicians

Able to turn data into insights by using multi-cloud and aaS models but lack data-driven culture and right skills

Data Enthusiasts

Data-savvy staff and culture but lack right technology for automation leads to manual data processes

Data Champions

Data-driven organization with data-savvy staff and culture; able to turn data into insights by using multi-cloud, aaS models, and edge

Global Results

Novices: 54.0
Technicians: 17.0
Enthusiasts: 17.0
Champions: 12.0

The barriers to uncovering the true value of data

There are many barriers to better capturing, analyzing and leveraging data for actionable insights. The top barriers to achieving data excellence are:

Insufficient in-house data science and technical skills

Business and data silos

Manual processes that are too slow to meet business needs

Harnessing the potential of the as-a-Service model

Although currently only 20% of companies have transitioned the majority of their applications and infrastructure to an as-a-Service model, most see a path forward. The study suggests businesses are waking up to the benefits of as-a-Service:

63%

believe it would enable firms to be more agile

64%

see the opportunity to scale to changing customer demands

61%

predict firms would no longer be bound by limited in-house data storage skills

Becoming a data-first, data-anywhere business

While the on-demand economy is propelling unprecedented growth in data, it’s also the route to affording businesses the agility, resources and flexibility they need to turn a data burden into a data advantage.

With technology as the great leveler, any business can maneuver into prime position and harness the immense value of a massive expansion of data.

View the full Forrester analysis

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