Data Democratization Driven by New-Age Tech and Culture

For organizations to fully leverage the value of data and reap its benefits, it has become crucial to democratize data. By making data accessible to everyone within the organization, businesses can enhance customer service and make informed decisions that align with their goals and objectives. Essentially, data democratization involves granting employees access to a company’s data resources, while also ensuring that reasonable limitations are in place to uphold legal confidentiality and security.

The importance of data democratization in eliminating data silos within organizations is evident. By democratizing data, organizations can grant broader access and utilization of data, resulting in better decision-making, enhanced collaboration and innovation, and optimized use of resources.

Reducing data silos can aid in mitigating the risk of data breaches and enhancing data security. Although it may be debatable whether data democratization can effectively prevent security breaches, silos between networks or security systems can impede the detection of large-scale attacks, as they often involve disconnected security protocols. Non-communicating teams are less likely to have robust security measures in place.

New-Age Tech as an Enabler of Data Democracy

Emerging technologies such as cloud computing, blockchain, and advanced analytics are facilitating the process of data democratization. 5G, for instance, enables the swift and secure transfer of large amounts of data in the form of big data. Blockchain improves the quality of data and enhances the performance of both cyber and physical systems. Similarly, IoT allows for the exchange of data between devices, enabling the establishment of processes without the need for intermediaries.

According to a survey conducted in March 2022 of IT professionals primarily located in North America and Europe, 93% of the IT industry is likely to adopt a hybrid of cloud and on-premises solutions or shift entirely to the cloud within the next five years, using it to store and manage data. Gartner has predicted that by 2025, 85% of enterprises will adopt a cloud-first principle, considering it crucial for implementing digital strategies in business.

This indicates that emerging technologies have a substantial impact on dismantling data silos and enabling universal access to data within organizations. With the help of these technologies, companies can efficiently store, process, and share data, resulting in improved decision-making, enhanced collaboration, and better business results.

The process of data creation, development, and utilization is intrinsically linked to Industry 4.0 applications, and the implementation of data democratization can be seamlessly incorporated into these applications. This leads to the question of whether industrial companies currently possess the necessary capabilities to implement data democratization effectively and to what degree.

The rise of new-age technology has spurred the emergence of novel business models, and companies that can effectively spearhead a cultural transformation in addition to a technological evolution will likely achieve success. One approach to achieving this is through the implementation of a business-centric data strategy that incorporates the democratization of analytical tools and platforms. This empowers stakeholders to develop more profound insights into their business processes, leading to improved outcomes.

Culture as a Prerequisite for Data Democracy

According to a survey by Google Cloud and Harvard Business Review of industry leaders, 97% of respondents believe that organization-wide access to data and analytics is vital for their business’s success. However, only 60% of those surveyed thought that their organizations currently provide adequate access to data and analytics.

What are the fundamental requirements for implementing data democracy? Firstly, organizations should cultivate a culture shift that fosters internal demand for data access rather than prioritizing technological development. Secondly, since decision-making in many companies is typically guided by experience and intuition rather than data, it is crucial to start using data as a foundation for business decisions. Finally, leaders should foster a data-driven culture that develops organically within the organization.

Sharing and formalizing knowledge can help eliminate obstacles to the democratization of data. One approach to achieving this is to establish specific incentives that encourage a culture of knowledge sharing. For instance, existing strategies that incentivize participation in a suggestion or lessons-learned programs can serve as a useful reference point.

Although many companies have processes in place to engage employees in continuous improvement efforts, these employees may require additional capabilities beyond their day-to-day IT systems to fulfill their individual information needs. As a result, it is critical to invest in internal capability building as a way forward. Decentralizing decision-making is another viable approach; if employees can independently obtain insights, they should be empowered to act on these insights autonomously.

The importance of organizational culture in data democratization cannot be overstated since it shapes the attitudes, behaviors, and values governing how data is shared and used. Conversely, a culture that prioritizes secrecy or hierarchical control over data can create obstacles to data democratization and perpetuate data silos. Similarly, a culture lacking trust and transparency can result in a reluctance to share data, hindering collaboration and impeding data-driven decision-making.

Data Democratization – The Way Ahead

To promote a data-friendly culture and enable data democratization, organizations must evaluate and improve their technology infrastructure and internal culture. Encouraging open communication and collaboration among employees, and providing training and resources to access, analyze and understand data are critical to building a data-friendly culture.

Effective communication, collaboration, innovation, and trust are key attributes for dismantling data silos. A company culture that values data-driven decision-making will encourage broader access to and utilization of data and facilitate the implementation of new-age technologies. Additionally, it is crucial to establish well-defined data governance policies and procedures that promote data democratization and create a continuous improvement process by fostering experimentation and learning from mistakes.

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