The post-pandemic period has been characterized by an economic slowdown and geopolitical interruptions. The situation is still grave in some parts of Ukraine and the end of the war has become difficult to predict. So, businesses have to go ‘aloooong’ way in grappling with the soaring inflations and disturbing employees’ mental health.
Nonetheless, business leaders are obliged to make decisions on organizational capabilities – one they can’t postpone without becoming irrelevant in the current environment. This is why data governance and digital transformation for business growth is one of the compulsory responses for an enterprise.
In 2020, McKinsey Survey put digital leaders at 83% in terms of profitability taking home 90% of gains, especially in the retail sector. Three years later, little has changed. McKinsey’s State of the Organization Survey, 2023, revealed that:
Only 5% of the 2500 respondents from 7 countries agreed that their organizations have the capabilities that they need.
The desire for digital transformation stirred an increase in the number of data regulations. Statistical predictions show that by the end of 2023, 65% of the world’s population will be under laws similar to GDPR.
Here are some of the statistics to know on data governance and digital transformation for business growth…
- 20-30% of critical roles in enterprises in 2023 aren’t filled by the most appropriate people
- Only 17% of companies in 2022 had committed data governance board seasoned with risk and legal professions.
- Data Governance Market is growing at a Compound Annual Growth Rate of 7% and is expected to reach USD7.42 billion by 2026.
- Companies that make quality data accessible to employees are likely to report a 40 times positive impact on revenue growth.
These statistical insights are indicative of the importance of data governance setup in digital transformation for business growth. However, there are noticeable barriers to data governance in 2023.
Barriers to Data Governance Setup and Management in 2023
Lack of data democratization. Most companies’ data are hidden somewhere in silos around the company store. You can work with specialists to enable you to put quality data in the hand of the right people within your organization to trigger business growth.
Organization’s Culture. Culture can be a stumbling block between you and success. When the prevailing culture encourages stakeholders to embrace digital transformation, employees begin to see their work as science than art.
Organ withdrawal: Harvard Business Review pointed out that the analytics functions in organizations are run by people who lack an understanding of the business. We, therefore, ask the question; how can they lead the way when they don’t have an idea of the business operations and functions? The result is that no one will take seriously the “analyst” with no idea. The stakeholders withdraw leading to retarded business growth!
When it comes to data governance and digital transformation for business growth, century-old management philosophies and approaches can’t offer solutions. Every organization must move with speed to place the right information in the right hands through data governance setup and management. It is the only way to make meaningful progress and remain relevant in the dynamic business environment.