The data maturity of an organization is a measure of how well that organization leverages data to make business decisions. The higher the data maturity level the more likely the organization is to achieve financial success and enhanced reputation. As per the Harvard Business Review only 1 in 4 companies have reached the final stage of data maturity. Also, 91% of enterprises have not reached a “transformational” level, where they utilize data to predict and create a desired future.  In order to know the data maturity of an organization it is necessary to conduct a data maturity assessment. In this blog post your organization will learn the concept of data maturity, the process of conducting a quality data maturity assessment, the different stages of data maturity, benefits of assessing data maturity, challenges in building data maturity as well as how to increase data maturity levels in your organization.

Introduction to Data Maturity

Data maturity informs us in what stage a particular organization stands as regards to the gathering, analysis, and utilization of data. Organizations such as Amazon, Airbnb, Spotify, and Netflix utilize data to comprehend clients and craft products and services serving their unique and specific requirements. Not all entities have the same levels of data maturity. A data maturity assessment makes an entity aware of how advanced it is managing as well as utilizing data.  Entities that skillfully employ data are able to overtake the competition, have more innovative deliverables as well as take superior data-driven decisions. Note that achieving desired data maturity in any organization entails careful planning and takes time. According to HPE Data, the average level of data maturity in enterprises is 2.6 out of 5. This means that many are still in the early stages of fully comprehending as well as utilizing their data.

How to Conduct a Data Maturity Assessment

At the beginning, outline the data assets to be assessed. Next find the person(s) responsible for analyzing the data. The individual(s) who view the reports generated from the data need to be identified. Also find out the person(s) having ownership of that data. Carry out a survey of the people in the organization responsible for data management. Compare various data assets on the basis of their results. Find out the reasons why certain data results have poor results. Next, utilize the results to take relevant action. Craft a detailed data strategy which gives more emphasis on poorly performing data assets. A relevant question would be whether the existing tools and processes in your organization  are apt and suitable. Ask how your organization measures the success of projects. Find out how your organization carries out the collection, storage, and analysis of data. Are data and discoveries shared across the organization? Do employees have access to data and analytics tools?

There are various Data Maturity Assessment models. Each is meant to find out the data maturity level of respective organizations. Few of them are DAMA Data Management Maturity Model (DMM), Gartner’s Enterprise Information Management (EIM) Maturity Model, CMMI Data Maturity Model, TDWI Data Maturity Model, AI and Data Maturity Model by McKinsey and IBM Data Governance Maturity Model.

The Different Stages of Data Maturity

• Data-exploring

Organizations realize the necessity to gather data. However, they are not utilizing the full potential of the data. Decisions are mostly taken with limited or no data. There are no best practices for data management. Mostly the data exists in siloes. Leaders make decisions based on their experience or instinct. This is certainly not a scientific or logical way to make decisions. Most employees are unaware of what data exists or how to utilize them.

• Data-informed

The organization's leadership is starting to show interest in investing in data-related technologies as well as in how data-driven applications can help the organization. Teams get to utilize self-serve applications that give solutions to questions in minimum time. Organizations realize the vital role of data. However, in practice they seldom utilize data for making strategic decisions.

• Data-driven

In this stage there is democratization of data. The decision making is data-driven. Vetted and complete data is available for use. Investment leverages past experiences for maximum business impact. KPI (Key Performance Indicators) as well as metrics for successful outcomes are established. These metrics are monitored for evaluation purposes.

• Data-transformed

Data is part of all aspects of your organization. It is a practice to share data in real-time all across the organization. Freshers are made data literate from the onset. Investment is made in data literacy as well as in data maintenance. Leaders are committed to data-driven decisions. Employees are aware of their roles as well as responsibilities. Here, leaders and data teams are aligned.

Benefits of Assessing Data Maturity

Organizations remain ahead of competitors by harnessing data for superior decisions. Superior action is taken with respect to investing in technology as well as data governance. Data strategy is aligned with the short-term as well as long-term goals of the organization. Strengths and weaknesses are found out. This measure helps target improvement in the right areas.

Challenges in Building Data Maturity

Transitioning from a limited data management entity to a full-fledged data-driven enterprise requires overcoming many obstacles. We take a look at certain frequent challenges confronted by enterprises moving up the data maturity ladder.

• Scalability

As the amount of data surges, several entities discover that their present infrastructure lacks the scalability to accommodate demands. It is imperative to make sure that data infrastructure is able to deal with higher volume data storage as well as processing.

• Governance

Establishing data governance frameworks ensures superior data management as well as compliance with existing regulations. This measure can be challenging given the rigorous regulations which are different in different geographies as well as domains.

• Cultural Adjustment

Achieving a data-driven culture involves getting rid of old mindsets and enhancing data literacy. This process usually takes time and is perhaps met with resistance or reluctance.

• Data Quality Concerns

Since data is usually extracted from heterogeneous sources, the obtained data may not be adequately consistent or accurate. High levels of quality demand superior ETL (Extract Load Transform) procedures as well as uninterrupted validation of data.

• Budgetary Constraints

Obtaining superior data maturity standards demands spending on data professionals, technologies as well as organizational processes. Smaller organizations and those having small budgets may struggle or fail to make the required investments.

How to Ramp Up Data Maturity Within Your Enterprise?

• Invest in the Right Technologies for Obtaining Desired Results

Technology applications should be utilized for the storage and querying of the organization's data. The latest technologies should be leveraged in machine learning to operate advanced analytical models. It is necessary that data flowing through data pipelines are clean as well as reliable. Spending in a quality data integration application is necessary to make sure data from the organization's sources are consistent as well as standardized.

• Leadership Involvement and Cultural Acceptance

The leadership should be united regarding the importance of data. There should be a CDO (Chief Data Officer) post created. The CDO should be responsible for making the whole organization data focused.

• Investment in Training

Organizations are confronted with two barriers while implementing a data-driven culture. The barriers are lack of relevant skills and reluctance to change. Training programs must be conducted so that all staff are equipped with data-related skills. Also, counselling should be provided emphasizing the importance of data for individual and organizational success.

• Employing Automation

The first step to achieve digital maturity is selecting a suitable data integration platform. Automating the data integration procedure frees the data team from devoting time on time intensive as well as repetitive manual activities.

• Invest Right in both Purchasing Infrastructure and Training Human Resources

If your organization invests only in the technology and not spending on training staff it will result in having infrastructure that the staff are not able to utilize satisfactorily. On the other hand, a well-trained staff lacking the requisite infrastructure won’t be able to accomplish much with existing data.

Other steps include ramping up analytics capabilities. Advance from basic reporting in your organization to predictive as well as prescriptive analytics.

How to go about Conducting Data Maturity Assessment for your Organization

Now that you have learnt about the importance of data maturity assessment it's time to carry out a data maturity assessment for your organization. If you have the in-house capability then do the assessment at the earliest. In the event you lack the in-house capability consider outsourcing the work to a reputed firm specializing in data maturity assessment. Do research and come up with a list of firms. Do due diligence on each firm. Ask for references from the respective firms. Talk with past clients to evaluate the level of performance and reliability. Do not make the mistake of hiring the first competent firm you come across. Have a list of questions ready to ask each firm. Finally, discuss with the stakeholders of your organization before making a final decision.

With the relevant expertise and experience in data maturity assessment, CoffeeBeans is well positioned to meet your organization’s goals as well as objectives. We have a pool of talented professionals proficient in data maturity assessment. They will assess your organization’s data maturity quickly and with precision. Our clients can vouch for our transparency, real-time response as well as adherence to stipulated deadlines. We provide stellar quality at competitive rates. Reach out to us at [email protected] to know how we can help your organization obtain its unique and specific needs as well as preferences.