As big data and analytics continue to become integral parts of business operations in a growing number of industries, companies understand that the data they collect can lead to significant advantages. However, many organizations recognize that internal data is only a small segment of the available information, making certain efforts feel incomplete since external data isn’t part of the analysis. However, integrating internal and external data is a complex undertaking, leaving most businesses to favor using their own information when performing complex analysis.
But why is it so challenging to overcome data inequality in the workplace? Here are just a few of the reasons that integrating internal and external sources is such a big undertaking.
At a fundamental level, internal data is essentially free to use; all of the information is already collected and stored, making it ready for use at any time. External data comes with a price tag, including an upfront cost and an ongoing investment. Add to that the fact that the data is typically subject to a range of restrictions regarding its use and the value added by the information may not compensate for the financial burden.
To make the matter more complex, not all business intelligence systems are capable of integrating external data. That means many companies would have to purchase in a secondary solution which can be a significant investment as well.
Even at the individual business level, internal data can be stored in a number of separate locations. This traditional silo-oriented or containerized approach automatically adds complexity to projects focused on data analytics. Now, add to that the numerous warehouses involved when external data is brought into the equation, and the level of systemic complexity only increases. Multiple systems must connect, even when different structures are in play, to create usable results and this burden can be especially heavy for business intelligence teams, ultimately leading them to favor internal data.
The majority of business have preferences regarding their software and system solutions. Often, the desire is to access external data through the mechanisms the company already has in place, which isn’t always possible. Even though certain data marketplaces have created APIs designed to make their information accessible across multiple platforms, not all business intelligence solutions or commonly used databases have opened their systems to support these connections. Until these systems become more open to integration, many organizations are going to find using external data is particularly challenging based on their current operating norms.
Over time, some of the barriers covered above may be lifted, making data inequality a thing of the past. However, you can start making headway today by bringing on the right business intelligence professionals and data analysts to join your team. If you would like to find the ideal candidates to make bridging the gap between internal and external data a reality, the professionals at The Armada Group can locate top job seekers in the field. Contact us to begin your search today.