Data-driven organizations perform better – what is the state of Finnish data maturity?

Data-driven organizations outperform their competitors and have efficient data management processes, reveals a study by Capgemini Research Institute. We also researched the data maturity of Finnish organizations, finding that while investments in data are growing, only a fraction of companies currently have the mechanisms for truly reaching data mastery.

Capgemini Research Institute’s study on data maturity Data Mastery: How data-powered organizations outperform their competitors , affirms what we already know about data: it is crucial in terms of business performance and innovation, regardless of industry. We surveyed what sets the so-called data masters apart from other organizations and how they make data work for them. We have also collaborated with Nordic universities to discover how Nordic companies scale and transform with data and AI in the book The Future of Data.

What about the state of data maturity in Finland? To understand where Finnish organizations are with their data transformation process, we interviewed 42 key organizational decision-makers in Finland. The results were highly interesting, and even somewhat surprising.

The deal with data-driven organizations  

To truly realize the potential of data for business, we need to look at its numerous benefits. According to Capgemini’s research , data masters see topline benefits, such as increased sales of traditional or new products and services. Data-driven organizations also performed 22% better on average in the financial year 2019–20, with their employees generating over 70% more revenue per person.

It is also heavily linked to talent retention – employees proven to be more motivated and happier in their work when the workplace is driven by data.

Investments in data have increased 

When surveying the state of data investments in Finnish organizations, a shift was evident: 95% of respondents have increased investments in data and analytics in the last 5 years. This marks a clear indication of increased commitment to data.  

Yet only 30% are measuring the benefits through data and analytics initiatives. Typical future data and analytics (D&A) initiatives include enabling a customer 360 view, along with data governance improvement. 
 
Investments have been made in several areas, with process improvement as the most significant one, and the customer experience as number two. Marketing and sales both held the same share of responses. 

Different functions are at different stages of the process 

There are notable differences when it comes to the data maturity of different organizational functions. When mapping out which functions are the most advanced in terms of data utilization and analytics, the top three were finance, marketing and IT. These were followed by sustainability, R&D and a combination of HR, product development and account management.  

Data strategy is more important than ever 

The importance of having a data strategy has only increased. Aligning a data strategy, including data collection and metrics, with the overall business strategy is a key characteristic of data masters. Data-driven organizations that have this strategy in place, along with top leadership support, helps organizations to set strategic priorities and ensure that the foundations of data elements are driving larger business goals.   

Yet, the state of data strategies in Finnish companies has plenty of room for improvement: only 29% responded having data and analytics on their leadership’s agenda. 15% reported having an organization-wide data and analytics strategy, but 8% gave a strict no when it comes to having a strategy in place

People are the key to data transformation 

People are and will always be the drivers of data. In organizations, this may mean employees or teams with particular job, role or ownership descriptions. Data work in Finnish organizations is carried out under different roles such as data security officer, data privacy officer, head of data – the list goes on. However, the study reveals that data roles in Finnish organizations are still quite operational and corporate-level leadership roles are yet to emerge. While data ownership and dedicated roles are important in a streamlined data organization, data-driven operations require leadership and alignment across the board.  

Data masters invest in data sharing ecosystems. Sharing and using data from partners, suppliers, distributors and customers increases agility. Among Finnish organizations, 35% reported a siloed way of operating the largest obstacle in sharing data within the ecosystem. This applies particularly to consumer products and retail. In fields such as finance and public services, this has to do with regulation and compliance demands.  

Generative AI and the future of data 

Generative AI has accelerated remarkably in recent years, most recently with the launch of Chat GTP to the public in late 2022. 62% of respondents believe that it will have a major impact on how their organizations will work in the future.  For organizations to maximize the potential of AI, they need to become data masters. 

The possibilities of AI for business are already here, and some companies see it as an important area of investment in the coming years. AI can indeed be an enabler and support digital strategies and creating better customer experiences, among others. Yet AI on its own is not the answer – the key is human–AI interaction and collaboration, as AI requires context to produce correct results and truly support humans. 

On their road towards data mastery, the main challenges organizations currently need to tackle are:  

• Establishing clear data leadership and ownership  
• Having a holistic data strategy 
• Systematically leading and measuring benefits of data 
• Leveraging and collaborating within the ecosystem 

Data is here to stay and the ability of leveraging data differentiates organisations in becoming market leaders or laggards. Successful organizations establish a culture of data ownership and sharing, to support their decision-making and equip them for a future with new data possibilities, supported by the latest technology.  

It is not an exaggeration to ask: do you want to succeed and be a leader? We are happy to help you to accelerate your journey to a data-driven organization.