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For so much of the COVID-19 pandemic, tech companies demonstrated their agility as they pivoted to new circumstances. While rapid digital transformation and cloud deployment efforts were prioritized, massive amounts of data were amassed. A recent KPMG report found that 73 percent of technology, media, and telecommunications (TMT) enterprises agree that most did not have time to think through the treasure trove of data they were creating for themselves.
As we enter the next phase of digital transformation – looking beyond short-term survival to longer-term strategies – TMT organizations should use this regained breathing space to engage in thinking about their data strategies once again.
Many companies are on the cusp of a make-or-break point: either take advantage of their data or be left behind. A shift to world-class standards affords many advantages. KPMG’s survey notes that only 29 percent of TMT companies have adopted a comprehensive data strategy at scale, even though more than 70 percent of TMT companies believe it is likely that effective and widespread data usage will radically change the business model.
So how can this gap be addressed? Here are three ways to get your organization’s data strategy from early stage to world class.
Data strategy is core strategy
Don’t make the mistake of letting your data strategy fall to the wayside. It should be treated as a foundational enterprise capability and prioritized as a core business strategy.
Data is an enterprise’s gateway to understanding customers, and catering to them is critical in a world where customization is the rule, not the exception. Using your data to know your customers better will help you engage and retain them. Having a solid approach to data can help identify new go-to-market strategies and revenue streams, as well as capture market share from competitors.
Target new products and services
Fewer than 10 percent of our respondents rate their organizations’ level of maturity as world class for data monetization, data management and architecture, and data quality and governance. Now is the time to move into that 10 percent.
Set clear goals when it comes to your strategy outcomes. Do you know how you can leverage your data? Target at least 10 percent of overall revenue from the monetization of data through new products and services. This is another way for your data to help boost your focus on customer retention and stickiness.
Engage data across sectors
Drive transformation that has both breadth and depth: homing in on customer centricity connects your data strategy to the core business. And when you effectively engage customer, operational, compliance, and security data, you’ll begin to build a connected ecosystem that expands far beyond four walls.
This is also the time to rethink the steps toward achieving a cloud-based data architecture. Leverage cloud hyperscalers globally, with a focus on data access and accessibility across the ecosystem.
TMT companies are at the forefront of data creation, and therefore have access to a wealth of it. Moving to world-class data maturity is the next frontier in the digital transformation journey that can help organizations realize new growth opportunities.
About the authors:
Mark Gibson, KPMG U.S. Technology, Media and Telecommunications Leader
Alex Holt, KPMG Global Head of Technology, Media and Telecommunications