Data management is an increasingly important factor in the success of any business, large or small. It is the process of collecting, organizing, and maintaining data in order to ensure accuracy, security, and accessibility. Data management statistics show that organizations that invest in data management solutions are more likely to have better operational efficiency, improved customer satisfaction, and increased revenue. With the right data management strategy, businesses can maximize the value of their data and gain a competitive edge in the market.
This blog post will look at the latest data management statistics and explore how businesses can use them to their advantage.
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Data Management: The Most Important Statistics
The amount of data created by consumers doubles every 2 years. Cisco estimates that about 5 quintillion bytes of data are produced each day.
Marketing data management is another challenge for businesses, with 54% of businesses citing data quality and completeness as their biggest challenge.
The Crucial Role Of Data Management
In 2019, businesses spent $5.5 billion on first-party data management, processes, and integration, representing a growth rate of 9.8%.
Third-party data management investments, on the other hand, increased by only 6.1% to $11.9 billion.
Data-driven companies are 58% more likely to surpass their revenue targets than those that do not prioritize data.
Companies that place a strong emphasis on data can experience an average annual revenue increase of 5.32% due to better data use.
The University of Texas, Austin found that a 10% improvement in data usability could increase the revenue of an average Fortune 1000 company by more than $2 billion.
62% of retailers report gaining a competitive advantage from information and data analytics.
By 2025, China is projected to generate 48.6 zettabytes of data, accounting for 27.8% of global data generated, while the US is expected to generate only 17.5%.
The amount of data created by consumers doubles every two years, while Cisco estimates that about five quintillion bytes of data are produced each day.
Around 20% of the average US marketing budget is spent on data.
Elite marketers consider having the appropriate technologies for data collection and analysis to be the most useful in understanding customers, according to 33% of them.
Furthermore, nearly 87% of marketers believe that data is an underutilized asset in their businesses.
In the years ahead, nearly 100% of C-level executives surveyed believe that data on customers and clients is “critical or important” for gaining an edge over rivals.
Data Quality: The Importance Of Accurate Data
Data quality is crucial for accurate analysis and informed decision-making. That’s why companies need to focus on improving their data quality through effective data management.
Read more about Data-Driven Decision-Making
The estimated cost of data quality issues to the US economy is around $3.1 trillion per year.
Poor data quality accounts for 21 cents of every media dollar spent and 12% of a company’s revenue.
Typically, about 20% of database records contain contact data with data quality issues. Inaccurate and incomplete contact data has resulted in revenue loss for 77% of companies.
Every month, roughly 3% of business records become outdated due to employee turnover.
Data scientists spend more than 80% of their time dealing with “unruly digital data” and “data wrangling” before the data can be used.
Up to 50% of employee time is wasted dealing with tedious data quality problems.
On average, 65% of contact data obtained from online web forms is invalid. Merely 3% of data within an enterprise satisfies quality standards.
In the world’s leading firms, approximately 27% of the data is defective.
The CMMI website cites that 52% of C-suite executives have dismissed data because they were unable to comprehend it.
Lastly, many businesses face data quality issues that cost them dearly. For instance, on average, 20% of database records have contact data with data quality issues.
Data Security: Protecting Sensitive Information
Data security is a significant concern for businesses and organizations when it comes to data management.
To begin with, in 2017, nearly 83% of businesses disclosed conducting data compliance audits every year or approximately 2.9 audits on average.
The average enterprise spends around $5.47 million on data privacy compliance, whereas the cost of non-compliance is almost three times that amount at $14.82 million.
Over recent years, the cost of data breaches to businesses has grown by 10%, and on average, it takes a company 280 days to recover from a data breach.
About 27% of consumers who experienced an online security incident, such as a data breach or stolen password, estimated that the incident cost them from $100 to $10,000 or even more.
In the US alone, there were 1.473 million data breaches in 2019, exposing over 164 million records, while 46% of businesses had experienced data breaches in 2018 compared to only 24% in 2017.
It is important to note that consumers take data privacy seriously as 77% would stop doing business with a brand that lost their data or used it irresponsibly, and 32% opted out of personalized advertising in the past year.
In terms of regulatory compliance, only 40% of the 600 largest US companies have operational CCPA rights portals.
Furthermore, only 16% of the 600 largest public companies and 100 largest private companies have a ‘Do-Not-Sell’ website link in response to CCPA.
Additionally, one-third of publishers have not implemented a cookie-free ID solution, and 77% authenticate less than 50% of their visitor traffic.
However, it is noteworthy that third-party cookies found on European news sites have declined by 22% since GDPR took effect.
59% of brands and 40% of agencies either have already appointed or plan on appointing a Data Protection Officer.
Data Management Challenges
The retail industry faces numerous strategic challenges with network security (57.2%), web security (55.7%), data security (55.7%), and fraud prevention (55.2%) being among the top ten Information Communications Technology (ICT) challenges.
Marketing data management is another challenge for businesses, with 54% of businesses citing data quality and completeness as their biggest challenge.
Misinterpreting data is a significant issue for marketers, with 57% getting poor results as a result.
Nearly half (47%) of new data collected by businesses has one or more critical errors.
The absence of a unified customer view is the most significant challenge in providing an excellent customer experience (CX), with only a third of high-performing businesses having unified customer data.
B2B marketers lag behind in personalization automation, with just 7% fully automating personalization.
Fortune 1000 executives point to cultural factors as the primary obstacle to big data adoption (95% versus 5% for technology).
Manual data entry is a significant challenge for salespeople, with 23% citing it as their biggest challenge when using a CRM.
Outdated data management costs businesses over $600 billion per year.
Adopting a data-driven culture is one of the most important business intelligence trends in 2021, with 40% of executives citing a lack of alignment within the organization as a barrier to adopting big data.
Emerging Trends In Data Management
The realm of data management is in a constant state of flux, with emerging technologies such as big data, artificial intelligence, and machine learning leading the way in how companies and organizations store and manage their data.
Nearly all organizations, 97.2%, are investing in big data and AI.
The worldwide spend on big data analytics solutions is expected to be worth over $274.3 billion in 2022.
The big data industry is forecasted to reach $103 billion by 2023, and COVID-19 has caused 78% of surveyed board directors to consider data analytics as a “top three game-changing” technology for industries.
In addition, 21% of companies are investing more than $500 million in big data and AI.
Nearly 90% of businesses will list information as a critical enterprise asset by 2022, and digital transformation is essential to ensure proper analysis of data, especially as Excel alone is inadequate for managing large volumes of data.
As data regulations increase, over 74% of $100MM+ companies in the UK and the US have increased investments in tech and vendor solutions.
Finally, most enterprise companies will store their data in public cloud warehouses, such as Google Big Query and Amazon Redshift, by 2023.
Conclusion
Data management is a critical part of modern business operations. With the right tools and processes in place, companies can ensure their data is secure, organized, and accessible. The statistics in this blog post demonstrate the importance of data management and the value it can provide to businesses. By investing in data management solutions and strategies, companies can improve their operational efficiency and maximize their return on investment.
References:
Data Services Inc: “45 Marketing Data Management Statistics 2020”, cited in February 2023 (Source)
Mordor Intelligence: “Data Governance Market – Growth, Trends, COVID-19 Impact, And Forecasts (2023 – 2028)”, cited in February 2023 (Source)
Webinar Care: “Data Governance Statistics 2023 – Everything You Need to Know”, cited in February 2023 (Source)
Forbes: “The State Of Enterprise Data Integration, 2020”, cited in February 2023 (Source)
EDM: “Some Fascinating Data Management Statistics”, cited in February 2023 (Source)
Pipartners: “55+ Must-Know Data Analytics Statistics for 2021: Driving Business Value With Analytics and Big Data”, cited in February 2023 (Source)
Sas: “Data Management What It Is and Why It Matters”, cited in February 2023 (Source)
EDQ: “Top 10 data management stats for 2018”, cited in February 2023 (Source)
ZipDo, cited June 2023: Data Management Statistics
