Data debt emerges as core business issue

Author: Simon Rowley

HFS Research, a global research and analysis firm, in partnership with Syniti, a global leader in enterprise data management, recently released a report titled Don’t drown in data debt; champion your Data First culture, which reveals that Global 2000 enterprises are hindered by data debt, lack comprehensive data strategies, and realise the need for specialised talent to meet business goals.

The report interviewed over 300 Global 2000 business leaders (49% from the US) across industries to study how organisations are navigating a complex landscape of data management challenges and how those hurdles could impede their ability to fully leverage operational efficiency and drive business growth. It recommends that enterprises adopt a ‘Data First’ culture, implement comprehensive data management strategies, and shift towards outcome-driven partnerships with service providers to prevail.

The report specifically recommends five strategic principles that will enable meaningful progress in addressing data debt and championing a Data First culture:

1. Data isn’t just IT’s problem; it’s a core business issue. The strategic goal for data management is to facilitate seamless end-to-end business processes, supporting the ‘OneOffice’ experience, where people, intelligence, processes, and infrastructure come together as one integrated unit, with one set of unified business outcomes.
2. Data and AI have a chicken-and-egg relationship. You need to address both together. Better data management emerges as the number one initiative to leverage AI capabilities better.
3. Measure the impact of bad data; it’s critical to reducing your data debt. Less than 40% of organisations interviewed have methods and metrics in place to quantify the impact of bad data on their organisations.
4. Data is a huge people issue. The shortage of specialised talent is one of the top three challenges in data management.
5. Professional services need to be reframed as business data services—with a focus on outcomes, not effort. Nearly 90% of enterprises rely on third-party providers for data initiatives. However, focusing on effort rather than results leads to inefficiencies. Enterprises must demand providers prioritise meaningful results to drive true value.

Kevin Campbell, CEO, Syniti, says, “This research proves what we have believed for some time – that the fundamental problem with past data approaches is in the skills needed and applied. We are now at an inflection point in the evolution from generalists to specialists; data work is unique and complex and requires 100% dedicated focus to build specialised skills, training and needed career paths.

“To achieve real, tangible business benefits from your data, you need skilled data specialists who understand data in context – not business generalists or developers. It’s also gratifying to see this research validate that our Data First approach is crucial to driving successful transformations, whether that’s achieving the benefits of applying GenAI or transforming the underlying business functions and systems.”

Phil Fersht, CEO and Chief Analyst, HFS Research, adds, “Our research proves that a Data First culture means data isn’t just IT’s problem; it’s a core business issue. Many business leaders still take a backseat when setting key data objectives, causing data to remain siloed across departments, and resulting in misaligned expectations across IT and business professionals. The focus for enterprise leaders must be on developing strategic talent that understands the business context behind the data.”

To read the full report, click here.

For more from Syniti, click here.