become a data thriver: best practices for data-driven ...€¦ · deploy hybrid or multi-cloud...

Become a Data Thriver:Best Practices for Data-Driven Transformation

Research by Ashish Nadkarni | Group Vice President, Infrastructure Systems, Platforms and Technologies

An IDC InfoBrief, Sponsored by NetApp | April 2019

Sponsored by

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IDC InfoBrief - Become a Data Thriver: Best Practices for Data-Driven Transformation

• IDC recently completed a global research study, sponsored by NetApp. The study had three goals: - Understand organizations’ data-related challenges - Determine the maturity stage of organizations undergoing digital transformation (DX) - Identify strategies and solutions that organizations can employ to embrace and accelerate DX

• This report is a guide for organizations to map their progress along the DX journey as they manage and leverage data. The study identifies best practices and common behaviors that “Data Survivors” can embrace to become “Data Thrivers.”

• Data Survivors may realize the need to develop a DX-driven business strategy, but execution is still on a project basis, and progress is not predictable or repeatable.

• Data Thrivers are aggressively using digital technologies to disrupt new markets. Feedback from the ecosystem and lessons learned are constant inputs to business innovation.

• Successful digital transformation relies on converting data into actionable insights, and on using a closed-loop process to maximize the usefulness of data in decision making. Leveraging data is part of the new digital era, where cloud, social, mobile, and big data technologies underpin DX efforts worldwide. At the same time, artificial intelligence is steadily transforming next-generation IT and business processes.

Executive SummaryIntroduction

Source: Become a Data Thriver Study, Sponsored by NetApp, Nov 2017

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The recent study conducted by IDC and sponsored by NetApp found that more than half of businesses are at stages 1 and 2 of maturity on a 5-stage data-driven DX maturity model.

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5

Data-driven digital transformation drives superior business outcomes. Compared to Data Survivors, Data Thrivers have achieved the following over the past 3 years:

Executive SummaryKey Conclusions

Data ResistersStage 1 18%

3X

6X2X

34%

22%

15%

11%

Data SurvivorsStage 2

Data RespondersStage 3

Data Synergizers Stage 4

Data Thrivers Stage 5

improvement in operational efficiency

top-line revenue growth, customer satisfaction improvement, and

ability to drive incremental revenue from new product innovations and/

or business transformation

increased profitability, new customer acquisition, and

employee productivity


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Executive SummaryData-Driven Transformation

New Roles New Investments

• Chief Data Officer

• Chief Transformation Officer

• Data Management Executive

• Data Scientist

New Staffing Models

• DX cross-functional team, including IT

• Dedicated IT DX team

• IT staff for LOB DX projects

• All-flash arrays with NVMe and SCM

• Data services for hybrid cloud

• Hyperconverged and container optimized storage

• Intelligent infrastructure

Data Thrivers develop a data-driven DX roadmap of new roles, staffing models, and investments to innovate and remain competitive in today’s business climate.


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Data Thrivers’ StrategyBusiness Objectives

Data Thrivers balance their business objectives between tactical and strategic priorities. Here are their top four business objectives for DX projects:


43% 36% 31%22%

of Data Thrivers(vs. 24% of Data Survivors)

of Data Thrivers(vs. 34% of Data Survivors) of Data Thrivers

(vs. 30% of Data Survivors)of Data Thrivers(vs. 18% of Data Survivors)

Create or improve customer experienceA well-executed customer experience strategy can help increase customer satisfaction, reduce churn, and grow revenue.

Improve operational efficienciesAlign strategy with customers’ needs.

Improve employee productivityEngaged employees show up more often, stay longer, and are more productive overall, which leads to higher profits.

Launch new digital revenue streamCreate new revenue based on digital content and/or digital user experience.

10%

20%

30%

40%

50%

0%

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Data Thrivers’ StrategyBusiness Performance Measurements

Customers are the highest priority for Data Thrivers. They look to thrive by accelerating innovation and improving profitability. Their top four business performance measurements for DX projects are:


41%30% 25%of Data Thrivers

(vs. 30% of Data Survivors)

of Data Thrivers(vs. 28% of Data Survivors) of Data Thrivers


Customer satisfactionThe core of the company’s focus is on customers, which improves the company’s competitive differentiation while retaining current customers and attracting new ones.

Profit marginThe company conducts business in a healthier manner, using the profits to increase shareholder value and invest back into the business.

Time to market for new products and servicesThe company generates more sales and greater profitability because products get to market on time.

Percent of time spent on customer-centric activitiesThe company spends more time on customer-centric activities, using data to provide great service, quickly resolve issues, improve customer touchpoints, and institute rewards programs. Customer satisfaction increases.

10%

20%

30%

40%

50%

0%

24%of Data Thrivers(vs. 21% of Data Survivors)

Data Thrivers’ Execution to Support Strategy

Data Thrivers are investing in talent, technology, and process changes that support effective DX strategies and drive superior outcomes.



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The changing nature of DX means that companies constantly face new challenges. To work effectively they have to implement new approaches that rely on cross-functional teams that include IT.

Data Thrivers are staffing DX projects under a separate innovation team.

Architecting the platform on which apps are developed, and ensuring that the logistics and integration are in place, requires new skills to provide the data and app development platform (on-premises or public cloud) quickly and reliably.

Data Thrivers’ Execution to Support StrategyPeople Investments

Data Thrivers are setting up new data-driven roles. They are training staff for agile development and aligning them for DX either as a special team or for superior cross-org collaboration.


Additional DevOps skills for DX initiatives


Implement a DX cross-functional team including IT


A chief data officer (CDO) is responsible for enterprise-wide governance and using information as an asset via data processing, analysis, mining, information trading, and other means. Data engineering executives sponsor and/or execute key data integration initiatives focused on improving the quality of insight gained from data.

Data Engineering Executive


DX projects under a separate innovation team


NEW ROLES SKILLS & STAFFING

Chief Data Officer


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Data Thrivers’ Execution to Support StrategyTechnology Investments


Data Thrivers have a CXO mandate to invest in the public cloud. This mandate includes exploring new technologies and the deployment of a hybrid multi-cloud infrastructure environment.

Investing in IaaS

35% of Data Thrivers(vs. 27% of Data Survivors)

Investing in SaaS


Investing in PaaS


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Deploy hybrid or multi-cloud

Implement organization-wide big data and analytics

Invest in high-performance infrastructure

Evaluate emerging technologies


Deploy multi-cloud based on the nature of your application environment. Use one cloud (public or private) for production and the other for test/dev, backup, or analytics.


Implement organization-wide AI-enabled big data and analytics environments that combine NoSQL database and data lakes with semistructured and unstructured data.


Systems such as all-flash arrays offer speed, performance, and agility for business applications.


Technologies such as NVMe, storage-class memory, and accelerated computing are disruptive. They can have a major impact on what businesses can do with data and how fast compute and data access is delivered for applications.

36%43% 32%38%of Data Thriversof Data Thrivers of Data Thriversof Data Thrivers

IDC infoBrief - Become a Data Thriver: Best Practices for Data-Driven Transformation

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Data location optimization


Data replication


Cloud-native approaches


Data location optimization techniques enable organization-wide enforcement of service quality and can be implemented and automated by using SLA profiles.

Data replication or migration tools provide portability across different cloud deployments.

Newer approaches to application re-platforming—such as containers, which are much more lightweight and use far fewer resources than virtual machines—help software run reliably in a hybrid cloud environment.

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Data Thrivers’ Execution to Support StrategyProcess Changes

Data Thrivers are instituting new and closed-loop processes to ensure timely and corrective actions.


Establish centralized security

Align workloads to business outcomes

Organize data ownership

Simplify data management operations


Establish centralized security and process, and tools for governance, visibility, and control to help improve compliance and meet GDPR obligations.


Establish a balance of obligations between roles and functions that helps move your team from “storming” to “norming,” and in the process aligns to business outcomes. This helps “performing” teams that have lost their way to get back on track.


Set up data ownership policies that define and provide information about the rightful owner of data assets and the acquisition, use, and distribution policy implemented by the data owner.


Consolidate data management and operations to keep expenditure budgets in check and reduce overall costs.

75% 73% 72% 68%of Data Thrivers of Data Thrivers of Data Thrivers of Data Thrivers

Conclusion


Digital disruption is real. The average company lifespan on the S&P 500 index in the 21st century is 18 years, down from 25 years toward the end of the last century. To survive, companies must adopt and accelerate the transformative use of data to drive competitiveness. No industry is exempt from the impact of digital transformation. Organizations that embrace data-driven DX are attracting new customers and developing new revenue streams faster than their competitors.

Becoming a Data Thriver is an ongoing process, requiring investments in new technologies, processes, and people to drive greater value for both the business and its customers. Aligning efforts with business outcomes is crucial to remaining competitive.

• This IDC study is based on a global survey of 800 LOB executives, IT leaders, and technology-savvy workers conducted in September 2017. Respondents were from seven countries—the United States, Canada, the United Kingdom, France, Germany, Japan, and China—with data weighted according to regional GDP. The sample consisted of large and medium-sized companies (those with 1,000+ employees in the United States and 500+ employees in other countries). Respondents were decision makers with budget control or ability to influence budget for DX projects, were involved in DX projects for their company, and were responsible for evaluating or architecting at least two data services for hybrid cloud. Job titles included chief data officers, analytics professionals, and DevOps and cloud architects.

• This IDC study also draws on two focus groups run in the United States across industries and three sets of job titles (LOB, IT, and DevOps), as well as in-depth interviews conducted with dozens of U.S. customers using data services for hybrid cloud and leveraging big data and analytics technology to deliver better business outcomes.


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Thrive With Digital Transformation

Are you a Data Thriver? Take the assessment

Learn how Data Thrivers beat the competition

and drive better business outcomes in this

global study of 800 companies



https://datavisionary.netapp.com/us/assets/US42988017-Become-a-Data-Thriver-Realize-Data-Driven-Transformation.pdf

https://dxassessment.netapp.com

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