Traditional industries are at serious risk of losing a significant percentage of their revenue to more data-driven organisations by 2018.
This is according to the findings of global research, undertaken by NetApp and IDC, which focused on how well companies are embracing digital transformation.
The study results show what separates 'data thrivers', who are aggressively disruptive in the use of digital technologies to affect new markets, from those who are merely 'data survivors' or even 'data resisters'.
The researchers say while the transformation from a data survivor to a data thriver is an ongoing process, only 11% of companies currently fit the profile of a data thriver.
"Data thrivers are taking steps to increase revenue, improve business outcomes and transform data into dollars. Many Fortune 100 companies are building out innovation labs, as well as creating new roles for innovation executives and data management officers," the report says.
Of the organisations that participated in the study, almost half already have a chief data officer.
On the other hand, data survivors "are losing revenue opportunities, lagging in employing data to enhance customer satisfaction, and being overwhelmed by their data". The research found they use disparate tools to manage data that is in different formats and different locations, which adds extra complexity to managing security, risk, privacy and compliance.
"If companies don't transform to become data thrivers, they will find themselves the victims of digital Darwinism, which is impacting businesses across industries and sizes," says Laura DuBois, IDC group VP for enterprise storage, server and infrastructure software.
"Organisations are moving away from business as usual and embracing digital transformation. Companies are discovering they must modernise their systems, models, processes and architectures to compete," adds DuBois.
Top industries at risk include utilities (29%), retail (>25%), industrial equipment (20%), financial services (18%), and government (18%).
"Every industry vertical is now seeing the impact of digital transformation or DX - a set of practices and disciplines used to leverage new business, technology and operating models in pursuit of business performance and growth. In DX, data is core, as every change and process relies on converting data into actionable insights," the report says.
Researchers say we are fast approaching a new era of the data age, as IDC forecasts that the global "datasphere" will grow to 163 zettabytes (one trillion gigabytes) by 2025.
"All this data will unlock unique user experiences and a new world of business opportunities. What we see is that organisations that embrace data-driven DX are attracting new customers and enjoying new revenue streams faster than those organisations that are not."
NetApp says organisations which exhibit data thriver behaviours are adopting a diverse set of technologies, including data services for hybrid cloud. Nasdaq-listed NetApp is a hybrid cloud data services provider.
"Data visionaries inspire their organisations to be data thrivers. They recognise data is no longer locked away on devices hidden behind firewalls. It is now distributed, dynamic and diverse," says Jean English, SVP and CMO of NetApp.
Data thrivers have three times greater new customer acquisition, employee productivity and increased profitability, the report found.
"Success, relevance and innovation start with a leadership culture that is willing to evolve by investing in new people - roles and staffing models, processes and technology that drive more value to both employees and customers. Companies that resist evolving are putting their businesses at risk," the report found.
"To address these data challenges, gain competitive-edge and thrive in the DX era, organisations need to make investments in cloud while also adopting data services for hybrid cloud."
The study is based on a global survey of 800 line of business executives, IT leaders and technology-savvy workers from large and medium companies (those with 1 000+ employees in the US and 500+ employees in other countries) conducted in September. Respondents were from seven countries (Canada, China, France, Germany, Japan, United Kingdom and United States), with data weighted according to regional GDP.
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