The Main Difficulties in Becoming a Data-Driven Organization

difficulties in data-driven companies woman on laptop

Businesses worldwide are embracing digitalization in a big way. And as it gains momentum, organizations are swamped with massive data streams. The deluge of data is forcing organizations to become more data-driven than ever before. Yet, difficulties in becoming data-driven exist. 

Undoubtedly, data is fast becoming a critical asset for every business. However, its significance depends on how smartly you harness it. When used correctly, data can create actionable insights that drive results to support decision-making.

Data and analytics competencies have advanced at an incredible speed over the years. It is increasingly powering the implementation of data-driven strategies. 

What is a Data-Driven Organization?

A data-driven organization makes all its crucial corporate decisions by leveraging data and business intelligence. The goal is to create a structure in which decisions are made by evaluating relevant data. In such organizations, data-driven intelligence is a natural element of the organizational workflow. 

All stakeholders plan their daily business activities based on data and insights instead of going by instincts and gut feelings. Though difficulties in becoming data-driven exist, by leveraging the power of data, organizations can perform better. Data helps proactively identify those areas of business that need improvement. It also provides insights to strengthen the existing and future decision-making processes. 

Data helps organizations remain consistent in treading the path of improvement. Data-driven organizations are better placed to usher in innovations, become more competitive and operate businesses more profitably.

Challenges that Get in the Way of Becoming a Data-Driven Organization

The rewards outweigh the difficulties in becoming a data-driven organization, and they are apparent. However, businesses still encounter operational and technical challenges on their way to becoming entirely data-driven.

Unstructured Data

In today’s business circumstances, no organization suffers from a lack of data. Yet, one critical problem thwarting their effort to become data-driven is the absence of a structured data collection strategy. Organizations must deal with massive volumes of unstructured data spread across siloed systems.

Also, most organizations do not have standard data collection practices. The traditional systems are not designed to manage the growing data volume and its complexity. Certainly, collating, correlating, and analyzing incongruent data from numerous sources stored across storage towers is daunting. 

Low-Quality Data

Quality of data has a lot to do with decision-making. Low-quality data is one of the reasons why organizations are unable to use them for making business decisions. Insights based on incomplete and inaccurate information tend to be faulty. Many organizations do not utilize modern automated data management systems. Some of them still rely on manual data maintenance procedures. 

The absence of a centralized data system limits data outreach. This makes things difficult for decision-makers as they cannot collaborate and plan their moves as one unit.

Limited Understanding

With data sources proliferating, getting a comprehensive view of a variety of data is critical for effective data analysis. Organizations with insufficient visualization and capabilities make comprehending data difficult and can impede strategic planning. Also, the outdated systems cannot process real-time data effectively. Certainly, this makes it difficult to proactively gain insights into the processes and identify relevant data points that can assist decision-making.

Inadequate Actionable Insights

Organizations without any advanced analytics capability cannot leverage the power of artificial intelligence and machine learning. These systems help simplify the process of data collection from many sources automatically. They can also help correlate data points and identify data patterns. AI can help intuitively leverage real-time insights for driving actions. Indeed, most organizations using manual data analysis methods find it impossible to access real-time actionable insights to support decision-making.

Lack of Data-Driven Culture

It takes more than the right business strategy and technology to become a data-driven organization. There has to be a data-driven culture within the organization in which decisions are based on data-driven facts, not instincts.

Unfortunately, there is some distrust in accepting data as the primary corporate resource for leveraging insight. There is also this tendency among businesses and related stakeholders to view data as the IT territory. They hesitate to collaborate in the data management and analysis process. This often limits the adoption of data analytics tools.

How to Become a Smart Data-Driven Organization

There have been rapid technological advancements in data analytics in recent years. This makes it easy for organizations to overcome the above challenges and become data-driven. 

If you plan to embark on a data-driven journey, consider implementing the following critical steps.

Have a Clear Understanding of Data Analytics Strategy

It is essential to have a well-defined data and analytics strategy in place. You must have clarity about the critical importance of data and analytics across the organization. Also, it will help you take the first steps toward becoming a data-driven enterprise

Choose a Proven and Efficient Analytics Platform

You can simplify the extensive data analysis and carry out complex calculations using the correct data analysis system. It also supports scientific decision-making. Certainly, businesses need a constant flow of data insights to make progress. It helps develop new business models, create new products and boost revenue streams to retain a competitive edge. Advanced data analytics systems have the analytical capabilities to support decision-making. Choose the best one to initiate your move to becoming a data-driven organization.


The message is clear. Only organizations that leverage data for enhanced and accurate decision-making can stay competitive in today’s digital world. There are difficulties in becoming data-driven. But, modern businesses can use the digital platform to apply advanced analytics solutions to problems. Indeed, they can respond to changing business conditions faster to remain ahead in the corporate race to market leadership.