Thriving as a mainstream company today means being data driven. Companies that have lagged on this front have observed their data-driven competitors seize market share and make inroads into their customer base over the course of the past decade and pioneers like Amazon, Facebook, and Google develop dominant market valuations. Now, mainstream Fortune 1000 companies are fighting back by investing heavily in data and AI initiatives to narrow the gap. For the third consecutive year, investment in data and AI initiatives has been nearly universal, with 99.0% of firms reporting investment in data and AI according to findings from a newly released executive survey from NewVantage Partners, a strategic advisory firm that I founded in 2001 to advise Fortune 1000 companies on data leadership issues. But this year, despite growing investment, it appears most companies are struggling to maintain momentum.
Why Is It So Hard to Become a Data-Driven Company?
To compete today, companies need to be data-driven. But for mainstream, legacy companies, that’s easier said than done. Despite a decade of investment and the adoption of Chief Data Officers, this survey of Fortune 1000 senior executives finds that many companies are still struggling against not just legacy tech, but embedded cultures that are resistant to new ways of doing things — over 90 percent of companies surveyed reported culture was their biggest barrier. In response to this, leaders should do three things: 1) focus their data initiatives on clearly identified high-impact use cases, 2) reconsider how their organizations handle data, and 3) remember that this transformation is a long-term process that requires patience, fortitude, and focus.