Enterprises are wasting $140bn with data trapped in legacy systems
Many businesses are not even aware of what data they hold and the amount of data the company has as departments fail at working together.
Businesses in the US and the UK are missing out on an economy worth $140bn due to their disconnected data roadmaps which are hindering innovation, development and growth, a study has revealed.
Commissioned by SnapLogic and conducted by independent research firm Vanson Bourne, the research has found that 47% of companies in the two markets believe disconnected data is negatively impacting their organisation’s ability to innovate, develop new products and services and get them to market quickly.
Furthermore, 46% said their bad data strategy is also negatively impacting their ability to engage, support, and meet the needs of customers.
Beyond data roadmaps, legacy infrastructure is also causing disturbance to businesses. 41% of the 500 IT decision makers and business users said that critical company data is trapped in legacy systems that cannot be accessed or linked to cloud services. 76% of respondents admitted having data trapped in this way.
The study has also found that businesses are “failing to walk the walk” in terms of collaboration.
For more than four in ten (44%), a lack of collaboration between business departments has been a challenge, while three in ten (30%) have found that different departments are hindering collaboration by being overly protective of their own systems and data.
Correlated to the lack of collaboration, is the in-house lack of knowledge of what data other departments of a given business have, according to 21% of those surveyed.
17% of companies admitted to not even knowing how many data sources exist in their business.
The report says that as a result of disconnected data, workers are on average also spending more time searching for, acquiring, entering, or moving data (eight hours per week) than they do making decisions on that data (seven hours per week).
Nearly half (48%) of respondents said they want to get rid of these compromised shortcuts within their organisation.
Nearly a third (31%) have experienced errors, data loss, or privacy violations in their organisation as a result of manual moves or ad hoc coding to integrate data.
All this, according to SnapLogic, is leading companies towards the lost of a combined $140bn annually in wasted time, resources, duplication of effort, and missed opportunities.
The company said that in the US alone, businesses are losing $120bn based on statistics from the SBA Office of Advocacy. The UK accounts for the remaining $20bn, based on the ONS UK Activity Size and Location Report.
Gaurav Dhillon, founder and CEO of SnapLogic, said: “The data economy is in full swing with every department across the enterprise relying on data to get their jobs done effectively, whether Marketing, HR, IT, or Sales.
“Yet, we continue to see the same issues around legacy technology, disconnected systems, and trapped data. This is hampering collaboration, decision-making and timely business outcomes, and with the cost now reaching into the billions, we need to act.
“Organisations need to be rethinking how they approach the access to and use of data within, and across, teams. If a business cannot be innovative, bring products to market in a timely manner, or deliver the level of service their customers expect then they simply aren’t going to be around for much longer.”