Data and analytics leadership survey 2023 — Delivering business value from D&A investments [it´s a long & difficult road]

29 de dezembro de 2022

13 minute read

This is a republication of the excerpt of the report “Data and analytics leadership annual executive survey 2023”, published by “NewVantage Partners”, with the title above.

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Joaquim Cardoso MSc
Chief Researcher, Editor and Advisor
December 29, 2022

Key Messages:

There is much evidence of data’s rise in importance within large corporations when compared to earlier surveys on the past 10 years.

Some of this change has taken place amazingly rapidly.

… data consumption has become much more of a focus in recent years, and that companies are using analytics and AI to deliver value from data.

It’s clear that data is driving substantial amounts of business innovation.

But, there is a low level of overall success of the CDO/CDAO function

In the end, however, the ultimate value from data comes when people use it in decisions and actions. That is both a long game and a difficult one.

Executive Summary

What is the importance of data?

Data is the primary driver of software’s growth.

Data, and the ability to make sense of it, has been one of the greatest drivers of innovation in both business and society in recent decades, and a primary driver of economic success in the 21st century.

What are the findings of the survey?

There is much evidence of data’s rise in importance within large corporations when compared to earlier surveys (10 of them).

Some of this change has taken place amazingly rapidly.

(1) The Chief Data Officer role has quickly become much more common over time and across more industries, …

(2) … as has the incorporation of analytics and AI into the role, and the prevalence of the Chief Data and Analytics Officer.

(3) There has been a pronounced shift to offense-oriented activities during this short period.

(4) The number of companies reporting measurable business value from data and analytics has grown enormously, …

(5) … and the investment in these resources continues to increase even during a potentially uncertain economic climate.

What is the success rate?

Data consumption has become much more of a focus in recent years, and that companies are using analytics and AI to deliver value from data.

There is a low level of overall success of the CDO/CDAO function

It’s clear that data is driving substantial amounts of business innovation.

What are the barriers?

But these rapid changes in the importance of data stand in contrast to lack of progress — even regression in some cases — in other areas.

The human side of data continues to challenge companies, and data leaders and the organizations that they serve appear reluctant to change their paradigms toward more emphasis on these issues.

The great majority of respondents report that the principal challenges to becoming a data-driven organization are human — culture, people, process, or organization — rather than technological.

And they make little progress toward that goal; this year less than a quarter of firms report a data-driven organization or data culture.

Here is a summary of the major takeaways from the 2023 Data and Analytics Leadership Annual Executive Survey:

CDO/CDAO Role

1.Continued growth and commitment to data is reflected in record survey organization representation and record CDO/CDAO participation

2.Adoption of CDO/CDAO role is reflected in record CDO/CDAO participation

3.Expansion of data and the CDO/CDAO role across industries and geographies is reflected in higher and more diverse industry and geographic participation

4.The CDO/CDAO role has achieved critical mass as evidenced by widespread adoption

5. Lack of clear expectations for the CDO/CDAO role contribute to lingering dissatisfaction as organizations struggle to deliver business value from their data investments

6.The CDO/CDAO role is evolving and maturing as organizations strive to deliver business value from their data investments

Investments & Results:

7.Investments in data are growing and remain strong, even with potential economic headwinds

8.Becoming data-driven and building a data culture remain aspirational objectives for most organizations

Barriers to overcome:

9.Cultural factors continue to be the greatest obstacle to delivering business value from data investments

10.Companies continue to fall short in attention and commitment to data ethics policies and practices

ORIGINAL PUBLICATION (exec.sum.)

Data and analytics leadership annual executive survey 2023

NewVantage Partners
With a Foreword by Thomas H. Davenport and Randy Bean
January 2023

FOREWORD

Shortly before the first NewVantage Partners survey of data and information executives in 2012, the venture capitalist Mark Andreesen wrote in the Wall Street Journal that “software is eating the world.”

While it’s certainly true that the importance of software has grown in leading economies, one could easily argue that data is the primary driver of software’s growth.

Data, and the ability to make sense of it, has been one of the greatest drivers of innovation in both business and society in recent decades, and a primary driver of economic success in the 21st century.

Data, and the ability to make sense of it, has been one of the greatest drivers of innovation in both business and society in recent decades, and a primary driver of economic success in the 21st century.

Indeed, the 11th survey in this series contains much evidence of data’s rise in importance within large corporations when compared to earlier surveys. Some of this change has taken place amazingly rapidly.

The Chief Data Officer role has quickly become much more common over time and across more industries, …

… as has the incorporation of analytics and AI into the role, and the prevalence of the Chief Data and Analytics Officer.

There has been a pronounced shift to offense-oriented activities during this short period.

The number of companies reporting measurable business value from data and analytics has grown enormously, …

… and the investment in these resources continues to increase even during a potentially uncertain economic climate.

But these rapid changes in the importance of data stand in contrast to lack of progress — even regression in some cases — in other areas.

The human side of data continues to challenge companies, and data leaders and the organizations that they serve appear reluctant to change their paradigms toward more emphasis on these issues.

Every year in recent surveys, the great majority of respondents report that the principal challenges to becoming a data-driven organization are human — culture, people, process, or organization — rather than technological.

And they make little progress toward that goal; this year less than a quarter of firms report a data-driven organization or data culture.

… the principal challenges to becoming a data-driven organization are human — culture, people, process, or organization — rather than technological.

And they make little progress toward that goal; this year less than a quarter of firms report a data-driven organization or data culture.

Yet it would appear that too much of the focus of data executives is on non-human issues — data modernization, data products, AI and ML, data quality, and various data architectures.

Less than 2% of respondents ranked “data literacy” as their top investment priority.

Could it be that we are leading the horse to water, but it isn’t drinking?

Perhaps this accounts for the low level of overall success of the CDO/CDAO function found in the survey.

This is not to diminish the real progress made with data in organizations.

The survey and our own observations indicate that data consumption has become much more of a focus in recent years, and that companies are using analytics and AI to deliver value from data.

It’s clear that data is driving substantial amounts of business innovation.

In the end, however, the ultimate value from data comes when people use it in decisions and actions. That is both a long game and a difficult one.

… data consumption has become much more of a focus in recent years, and that companies are using analytics and AI to deliver value from data.

It’s clear that data is driving substantial amounts of business innovation. In the end, however, the ultimate value from data comes when people use it in decisions and actions. That is both a long game and a difficult one.

Thomas H. Davenport and Randy Bean

January 2023

INTRODUCTION

Data and analytics can be utilized by companies in ways that can transform industries.

Organizations can make informed and hopefully better decisions using data, without having to rely exclusively on intuition.

Yet many organizations continue to struggle to deliver business value from their data and analytics investments.

Turnover in corporate data and analytics leadership roles remains high.

Investments in data and analytics capabilities and initiatives are greater than ever, but organizations are coming to the growing realization that embedding these capabilities within their firms and transforming the cultures of their organizations will take time.

Investments in data and analytics capabilities and initiatives are greater than ever, but organizations are coming to the growing realization that embedding these capabilities within their firms and transforming the cultures of their organizations will take time.

A new generation of data and analytics professionals are assuming data leadership roles.

How ready are leading companies to make the changes and investments required to establish data leadership?

The central theme of NewVantage Partners, A Wavestone Company 2023 Data and Analytics Leadership Executive Survey is Delivering Business Value from Data and Analytics Investments.

If we are not delivering business value in some measurable form, what have we accomplished and what should we be doing as data and analytics leaders?

This year marks the 11th edition of this C-Executive survey, which was first published in 2012.

The survey was launched in response to a constituency of Fortune 1000 business and technology C-Executives seeking to understand the transformational impact that data and analytics would have on their organizations and industry.

We are entering into the 2nd decade since data leadership roles such as the Chief Data and Analytics Officer have been widely embraced. How much progress has been made? What are the greatest challenges that remain? What are the obstacles to progress and success?

These are the central questions that we sought to provide insight into from this year’s executive survey.