Businesses in Australia and New Zealand that use data effectively can, on average, increase their annual revenue by 9.5%.
This translates to an additional $38 million in annual revenue for large organisations in Australia with more than 200 employees.
According to a new AWS report prepared by Deloitte Access Economics, organisations with more than 100 employees improved their data capabilities in the previous year, with 34 per cent achieving Advanced or Master levels of data maturity, compared to 16 per cent in 2021.
Almost half of the organisations polled (48 per cent ) stated that effectively capturing and analysing data can lead to increased productivity, followed by improved customer experience (45 per cent ) and lower operating costs (42 per cent).
Finance and insurance companies scored the highest on the data maturity scale, with 50 per cent achieving Advanced or Master status, followed by manufacturing (45 per cent ) and information, media, and telecommunications (33 per cent ).
On the other hand, construction, healthcare and social assistance, and retail trade organisations have the lowest data maturity levels, with less than 20 per cent of surveyed organisations in these industries achieving Advanced or Master levels of data maturity.
While improving data maturity benefits businesses, large organisations in Australia and New Zealand continue to face challenges in climbing the data maturity ladder, with 42% of organisations achieving Basic and Beginner data maturity.
The main barrier cited by organisations to use data and analytics was a lack of funding (44 per cent ), which has been exacerbated by COVID-19, with 49 per cent of respondents reporting that competing priorities have resulted in fewer resources for data and analytics since the pandemic’s onset. Furthermore, 37 per cent of organisations cited poor data quality as a barrier to businesses adopting more advanced data analytics.
“We are excited to see that more organisations have advanced their data capabilities, which will help them to drive productivity, and create a positive impact on the economy while delivering significant financial returns for their business,” said John O’Mahony, partner at Deloitte Access Economics.
“Investing in cloud solutions will help businesses further their data capabilities and leverage advanced analytics tools such as artificial intelligence, machine learning, and the Internet of Things to achieve data-driven insights.
In fact, businesses that already use the cloud are 71 per cent more likely to have invested in artificial intelligence and machine learning capabilities versus organisations using on-premises data storage. To increase productivity and innovation, organisations should have a clear and practical roadmap for advancing on the data maturity ladder, invest in attracting and retaining talent, and leverage the right technology to reap the full benefits.”
According to the report, one-third of Australian and New Zealand organisations (35 per cent ) cited a lack of skilled resources as a barrier to developing their data and analytics capabilities. To improve data maturity, 33 per cent of surveyed organisations prefer to upskill their current employees, followed by outsourcing to other organisations (24 per cent ), and hiring skilled staff (24 per cent ).
“Data can be an invaluable source of growth for organisations in Australia and New Zealand. The key is recognising its inherent value, analysing it effectively, and building a data-driven culture.
“No matter what stage organisations are in their data journey, AWS is committed to helping customers leverage the scalability, cost efficiency, and security of the cloud to scale their data projects and unify their data to drive productivity and innovate on behalf of their customers,” said Rada Stanic, chief technologist at AWS in Australia and New Zealand.
“Organisations will also benefit from building data skills within their teams, which may involve upskilling current staff through on-the-job training and training courses or collaborating with organisations such as our extensive network of AWS Partners.
“As organisations increase their data maturity, it will transform how they solve problems and build customer experiences, leading to breakthroughs in all industries, including healthcare, finance, retail trade, and manufacturing operations.”