Many organisations now use data to guide decision-making and strategy. However, there are many challenges when it comes to dealing with data. Several of these are outlined below, together with some potential solutions.
Cost
Whilst less of an issue for larger organisations, budget implications are a factor when it comes to data and data analytics.
The collection, storage, processing, and analysis of data all require investment in people, infrastructure, and technologies. And it can be difficult to quantify the return on investment of data analytics in particular, even though it can help to optimise efficiencies in operations and supply chains, and enhance marketing.
Some potential ways to keep costs down include using cloud-based architectures, which remove the majority of upfront costs and reduce maintenance expenses. Subcontracting out certain aspects may also reduce costs.
Too many different tools and systems
Many organisations will jump on the data bandwagon without a proper plan, and can end up with a variety of disparate tools for various layers of analysis. This may be departmental or just individuals. The result is a messy and hard to manage suite of tools which can lead to inefficiencies and duplication.
To overcome this issue, organisations should allow IT leaders to design and implement an overarching strategy for data tools. This should ensure standardisation, consistency, and efficient use of resources.
Resistance to change
Some teams or individuals may feel threatened or uncomfortable about data analytics and how it may take decision-making away from them.
To combat this, data analytics needs to be sold as being an “additional” tool as opposed to a replacement. When used in conjunction with human insight, it can boost productivity, streamline processes, and offer deeper insights.
Data experts
If you feel that your business could benefit from the assistance of a dedicated data analysis company, there are a number of specialists such as //shepper.com/ who have a wealth of experience, and who can offer a range of services.
Other notable challenges with data include data quality, data access, data visualisation, privacy, security, goal setting, and skills shortages.