Data-Ready Retailers Stand Out: Five Times Higher Growth

Digital transformation is accelerating in the retail sector, but the success of this transformation largely depends on companies' data readiness levels. Research conducted by PYMTS and Caret from Fiserv between June 12 and August 7, 2024 covered 390 food and non-food retail executives at companies with annual revenues exceeding $500 million in 2023. The findings show that data-ready companies are achieving five times higher revenue growth compared to competitors lagging in data management.

Data-ready is defined as "the ability to access data that is correct, timely, secure, and formatted to support decision-making". Companies with this capability demonstrate superior performance not only financially, but also in operational areas such as agility, insight generation, and supply chain management. In particular, retailers with company-wide analytics teams have delivered nearly twice as much revenue growth compared to those without such teams.

According to the research, more than 50% of companies operate within silo structures. This situation complicates data sharing between departments, preventing holistic performance evaluation. Additionally, 65% of companies lack access to real-time data, yet 70% of participants state that this is "mission-critical" for their decision-making processes.

The fundamental causes of these data integrity gaps are identified as fragmented operations, lack of real-time data, and legacy systems. These three factors prevent companies from gaining momentum in innovation, customer acquisition, and supply chain efficiency.

Another important finding of the report is that data is actually the backbone of the business ecosystem. All operations depend on data flowing through software systems. If data is incorrect, incomplete, or comes from unreliable sources, this undermines the reliability of the software system and reduces the ability to generate actionable insight.

Therefore, businesses must first focus on data quality and access. Otherwise, analysis conducted with incorrect or fragmented data weakens strategic decision-making processes. In this context, the "data first, results later" approach becomes not a choice but a necessity for modern enterprises.

Data readiness is not merely a technological infrastructure issue; it is also a transformation that requires organizational culture and leadership vision. When companies free their data strategies from silo structures and consolidate them on a common platform, they strengthen not only insight generation, but also customer experience and supply chain visibility.

In conclusion, the research demonstrates that companies with high data readiness grow faster, make more agile decisions, and adapt more easily to market changes. Businesses that fail to build a data-equipped structure fall behind in terms of innovation and competitive advantage.

Key Takeaways:

• Data-ready companies increase their revenue by an average of 5 times higher.

• Firms with company-wide analytics teams achieve nearly 100% additional growth compared to others.

• 50% of companies operate in silo structures, which limits data sharing and insight generation.

• 65% lack real-time data access; yet 70% of companies view this as critical.

• Legacy systems are identified as one of the biggest obstacles to data integrity and operational agility.

• Companies with low data readiness suffer disadvantages in innovation, customer acquisition, and supply chain management.

• Reliable and timely data form the foundation of actionable insight and sustainable growth.

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News Link: https://www.scmr.com/article/are-you-data-ready-or-in-data-despair

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