Companies soon learned that it wasn’t enough to just collect data. They also had to invest in data-centered teams driven by data scientists and analysts who created reports and visualized the data that was being collected – creating company-wide data strategies. Businesses today are relying more and more on data to validate their success. Data is crucial as it allows companies to visualize, assess, and verify performances within their organization.
While it’s no surprise organizations that continue to embrace data-driven decision-making are at an advantage – it can be hard to figure out what data to collect, who is collecting it, and how to combine the different findings to make a comprehensive plan. As businesses relying on data – the ability to keep track of their data can be overwhelming for a data team. Often times these companies are affected by what researchers call “data sprawl” or the vast amount of stored data within your organization.
Not having the visibility on where your data is stored or what it’s used for can cause complications and threats that go undetected. According to a study by Hakkoda data sprawl can be costly. “According to McKinsey data, a mid-sized company with $5 billion of operating costs might spend $250 million on data management," said Ha Hoang, Chief Operating Officer and co-founder of Hakkoda and the former head of client-facing cloud services at McKinsey stated in a press release. Hoang went on to say, "Those are just the hard costs. When you factor in the impact of inefficient and duplicate processes, bad data and the inability to innovate -- which this research shows are fundamental issues -- the business costs are much greater."
Would you consider your data organization at your company to be a “dumpster fire”? If so, you are not alone. Around 6% of IT leaders refer to their data processes as chaotic and mishandled. "Data sprawl is clearly an issue, and leaders tend to use data sprawl as an argument for tighter controls. However, tighter controls are not the way to unlock the value of data,” warns Erik Duffield, CEO & co-founder, Hakkoda.
Key findings of the report mentioned that the lack of talent can lead to data sprawl also impacting innovation. Of those surveyed 97% stated they had a problem finding talent. Specifically, research found that many companies couldn’t find data scientists and data architects.
So how do companies solve for data sprawl? "Modern governance practices and platforms like Snowflake can increase control while providing greater speed, quality and access,” Duffield noted. It’s important note that Hakkoda is a services firm which specialists in Snowflakes Data Cloud. If your business is struggling with data sprawl and you haven’t already – now is the time to move your data to the cloud.