5 Limiting Factors for Data-driven Businesses

Many companies today claim they are data driven just because they have a central system that stores all their data. Unfortunately, they are not. A company that is truly data-driven must have a system where anyone in the organization who can use data can access it at any time. There are many challenges and difficulties today faced by many companies who want to become data driven. Many of these problems are stated below to help you identify them and find solutions to data issues in your organization.

Data Aggregation Is A Big Challenge

Many companies know that making decisions based on available and accessible data can help improve productivity, and they are willing to adopt it. The problem is, they don't know how to aggregate data from different sources. Gathering data from various sources into a single system can make it easy to access, and users will be able to interact with it as efficiently as possible. Many companies don't know how to use data, and they have to understand why experts are needed to help them find a resourceful means to build a system that delivers results.

Read Also: How You Can Use Data to Improve the Customer Experience

Disruptive Innovation Is Hard To Predict

Companies need to be able to understand the impact that a disruptive innovation can cause before they make up their minds to adopt it. History shows that disruptive ideas are usually over-hyped in the short-term and under hyped in the long term. The lack of a precise definition of the magnitude of impact data driven systems can have on the entire society or industries is still not clear. Companies who are installing and adopting sophisticated data processing and utilization systems are seeing the impact and benefit it offers their operation. But until such influence spreads across the board it will remain an issue that many organization will look and wait for it to explode.

Mapping out Analytics Is Difficult

Data analytics and utilization are the future, no doubt about that. Many companies today also do realize that, but analyzing data is a very complicated process.

Adoption of data analytics involves so many things including:

  • Mapping out a strategic plan
  • Drawing a detailed road map for investing in tools, technology, and data sets
  • Reinventing processes, ensuring commitment, and changing behaviors within the organization

The ability of a company to gather, analyze, access and use data will determine the difference between the winners and the losers in the future. Companies need to make up their minds about establishing data driven processing platforms like Apache Kafka, which enables a unified low-latency platform for handling real-time data feeds.

There Are No Enough Data Analysts With That Level Of Skill

The human resource factor is also a huge problem. To be able to run a successful data-driven company, there must be skilled experts with the right knowledge who can handle that kind of complexity. Challenges of organizing and integrating new capacities, peoples, and roles have to be surmounted. Companies also have to create programs that help instill organizational changes so that they can become truly data-driven.

The Value of Data Depends On How It Will Be Used

In data analysis, the way the data gathered is used matters a lot. A piece of data can provide the solution to a serious of problems or suggest the launching of a new product. Companies need to understand this aspect of big data analysis and have a plan towards ensuring they get the best of it.

The ultimate goal of any company is to work towards installing a data driven system. In spite of the challenges, there are many who are taking the bold steps to create an innovation that will see them lead the park, in their respective industry, in the not so distance future.

  1. Also Read: What is the Impact of Big Data on Mobile Marketing

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