How Much of Your Data Actually Goes to Waste?

How Much of Your Data Actually Goes to Waste?

Most of the business data generated every day around the world goes unused. It is hard to believe given the insurmountable importance and value of data in today’s data driven world. Companies are collecting mass amounts of data on a daily basis, but they are struggling to manage it appropriately, leaving the vast majority of it unused.

2.5 quintillion bytes of data is generated every single day. A significant portion of that comes from businesses operating day-to-day. The startling statistic is that around 60-73% of data goes unused in an organization. Companies are sitting on a gold mind of untapped potential and might not even realize it. Unfortunately, making use of that data is not as simple as just assigning someone to collect and analyze it. Data management requires a solid understanding and strategy to be successful. 

The most common reason for companies not using their data to its fullest potential is that they do not have the tools to capture or analyze it. Every company has various systems that are continually acquiring data —  whether that be ERP or CRM tools, website traffic, or operational reports, it is all data that can be analyzed to produce insights. Without the proper tools, that data just feeds into the growing pile of unused data.

Other reasons that data goes unused include missing or incomplete data, the inability to handle mass amounts of it, and the inability to access any unstructured data. All of the reasons illustrate that companies are struggling across the entire process of data management as a whole. 

Given the importance of data in today’s competitive landscape, this poses a number of issues for companies. Businesses who excel at data management and minimize their waste will see tremendous efficiencies, cost savings, and productivity improvements. With cyber physical systems and artificial intelligence products getting smarter and smarter, data management is one of the best ways to boost overall performance. 

Poor data management also comes with an opportunity cost attached to it — the loss of potential gain. An effective data strategy has potential to open a company up to all kinds of hidden value. The insights that data can uncover are endless. From process optimizations to new product development, data can open up a world of opportunity. 

Companies need to begin reevaluating their data management resources and strategy. In most cases, the data is already there, it is just a matter of asking the question, “how can we utilize it to its fullest potential?”