Quantexa has found 95% of organisations suffer from the data decision gap, which is an inability to bring together internal and external data needed to make accurate decisions.
The findings were discovered from its first ever Data in Context study, which is based on interviews with 750 IT and data decision makers in the financial services, insurance and public sectors across three continents.
According to Quantexa, organisations suffer from the gap due to inaccurate and incomplete datasets, which ultimately impacts the bottom line. The top three effects of this were found in the study to be regulatory scrutiny and compliance issues, missed customer experience opportunities and retention problems as well as resource drainage due to increased manual data workload.
The study also found that 50% of strategic decisions are missing crucial intelligence because organisations are unable to take full advantage of data, for operational decisions, only 52% manage to rely on data.
Quantexa said, “Organisations typically struggle firstly with establishing an enterprise-wide data fabric as the foundation to effective decision making. Secondly, that data needs to be connected to create the relationship view that is crucial to managing everything from enterprise risk through to customer experience.
“Without this, organisations can’t spot emerging patterns from real-life entities. For example, uncovering the real beneficiaries behind offshore companies, detecting fraudulent credit applications, and discovering buying patterns that convert shoppers into long-term loyal customers.”
How can organisations analyse data in context at scale? Quantexa believes the answer to this is automating decisions. The study discovered that just 14% of companies have implemented successful automation initiatives in operational decisions, while 9% haven’t started the journey yet.
The majority of respondents – 77% – said they are someone in the automation journey, while 39% struggle with inaccuracies in decision-making. A further 38% said they do not fully trust those decisions due to the lack of explainability.
Quantexa CEO Vishal Marria said, “The pandemic put data in the spotlight. Digitisation has meant organisations face an increasing tsunami of data, and many found they couldn’t take strategic advantage of the opportunity that connected data brings. Today’s organisations have all the data assets they need to make better decisions, but the data decision gap means they can’t extract meaning or value out of their data, as they can’t connect it to generate the single, accurate view needed.
“Contextual Decision Intelligence (CDI) turns traditional data approaches on their head, connecting each datapoint to all others in the organisation and external data sources. With this connected basis, decision-makers can see a single view of customers, from which they can extract real-world intelligence and take action. Then, with the addition of Artificial Intelligence (AI), organisations can scale automated decisions across the business, freeing humans.”
The study can be found here.
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