Unlocking Business Value: The Future of Data Products
The Rise of Data Products Across Industries
Business leaders in diverse sectors understand that harnessing data is essential for growth. A recent KPMG survey involving 250 executives highlighted that 92% of respondents recognize the importance of well-constructed data products. While only 35% have extensively realized value from these projects, the consumer and retail sector is pioneering this transformation. This sector, along with financial services, healthcare & life sciences, and technology, media, and telecommunications, leads in implementing successful data-driven strategies.
Pro Tip: Businesses are not only using data products to enhance efficiency but are transforming operations to maintain a competitive edge in their markets.
Revenue Growth: A Key Performance Indicator
Data-driven strategies are now instrumental in prioritizing revenue growth, with 53% of executives seeing value in this metric. This trend signifies a shift towards leveraging data for direct financial impact, a strategy crucial for sustained success.
Transition from Legacy to Modern Data Ecosystems
Almost all respondents, 96% to be precise, are transitioning from outdated data systems to modern data products. This transformation involves adopting internal data monetization tactics (52%), data-as-a-service (44%), and monetizing insights and analytics (38%). These strategies are vital for IT/Tech, Operations, and Finance/Accounting sectors, which are leading in utilizing data products.
Overcoming Challenges: The Path Ahead
Despite enthusiasm, challenges prevail, such as ambiguous data ownership and slow data acquisition. Addressing these issues is key to unlocking the potential data products hold. Centralizing data ownership within IT can obscure necessary business insights, making collaboration essential.
Industry Insights
Industries like consumer & retail, financial services, and healthcare are ahead in data readiness compared to laggards who struggle with data quality and accessibility. Leaders in these fields are already enjoying the benefits of their data modernization efforts.
Future Trends and Opportunities
The future looks bright with 90% of respondents planning to increase data investments. The data modernization journey continues, aiming to embed a data-first mentality across organizations. Leaders in data strategy, like Danielle Beringer of KPMG, emphasize strategic implementation to achieve these goals.
FAQs
What is a data product?
A data product is a service or function created using data assets, designed to deliver value to various segments of a business.
How can companies overcome data challenges?
Organizations can foster cross-departmental collaboration and ensure clear data ownership to improve data quality and accessibility.
Interactive Insights
Did you know? Data products can unlock new revenue streams, often transforming traditional business models into data-centric enterprises.
Call to Action
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