Business conundrum revolving around the balance between protecting sensitive data and harnessing its potential during mobility - research findings
In today's digital age, businesses are increasingly recognising the importance of harnessing the power of data to drive strategic decision-making and gain a competitive edge. However, a new study reveals that many companies are struggling to break down data silos and effectively exploit their data for value.
According to the Iron Mountain study, sourced from Sue Trombley, Managing Director of Thought Leadership, companies that allow IT department access to valuable information are more likely to grant such access to various functions, including research and development (27%), finance (35%), records and information management (27%), and marketing (26%). However, two-thirds of R&D and finance departments, and three-quarters of records management and marketing, don't have free access to high-value company information, despite its importance.
One of the major challenges lies in the traditional role of IT in protecting information, which could lead to data flow restrictions due to fear of risk or data breach. This is a significant obstacle to deriving full value from information, as a majority of business leaders exhibit a false confidence in their ability to manage information for value.
To overcome these barriers, businesses need to adopt a combination of organizational, cultural, and technological strategies. Establishing clear data ownership and governance is crucial, with specific data domains assigned to business units and supported by a federated governance model to ensure consistent standards, security, and compliance across teams.
Adopting modern data architectures like data fabric or data mesh can also help. Data Fabric creates a unified layer allowing seamless access to distributed data using AI and metadata management, enhancing governance without physically moving all data. Data Mesh, on the other hand, decentralises data ownership but enforces organization-wide interoperability standards, treating data as a product managed by domain teams.
Breaking down communication barriers is another key approach. Improving interdepartmental collaboration by encouraging cross-functional teams, improving transparency around data usage, and communicating the strategic value of data initiatives can help reduce resistance to change.
Leveraging technology solutions is also essential. Tools like customer data platforms, ETL pipelines, metadata catalogs, and query engines that unify data sources and automate data quality, lineage, and governance enforcement can streamline the process of data integration and management.
Businesses should also support digital transformation with adequate investment. Allocating a strategic budget recognising digital transformation and data integration as investments that drive operational efficiency and agility, rather than as mere expenses, is vital.
Conducting data audits and flow analysis can help identify redundant or siloed data, enabling businesses to target integration efforts effectively. Fostering a collaborative data culture, promoting shared accountability for data quality and use, and positioning data-driven decision-making as central to competitive advantage can further enhance the effectiveness of these strategies.
The C-suite has a major role to play in breaking down unnecessary barriers while keeping the information secure, ensuring important decisions about information access and protection are made by all those affected. Despite the challenges, the study reveals that 73% of those surveyed are confident that valuable information can be accessed easily by all those who need it.
However, legal departments represent a similar or greater obstacle, prioritising security and risk mitigation over ease and speed of access, and disagreeing with IT and other business functions on key aspects of data archiving. More than two in three businesses (69%) believe they know how information flows through the business and where it is most valuable.
The study found that many businesses (64%) believe they are already getting the most from their information. Yet, few were able to give a clear answer and most didn't answer at all when asked how they determine where information flows and delivers greatest value. Only 50% of senior managers in Europe and North America are allowed access to valuable information.
In conclusion, by combining these organizational changes with modern technical architectures and tools, businesses can overcome silos and exploit data as a unified strategic asset, enhancing agility, insight, and competitive positioning. The goal is to multiply the number of companies with an effective information strategy from the current 4% to 25%.
- Companies adopting technologies like Data Fabric or Data Mesh, which promote seamless data access and organization-wide interoperability standards, can help break down data silos in both the finance and business sectors.
- To unlock the full potential of data and gain a competitive edge, businesses should invest strategically in technology solutions and digital transformation, supporting the democratization of valuable information across various functions, including finance, research and development, marketing, and records management.
