Published on
November 19, 2024
-
4
min read

The 6 levels of data maturity explained

The 6 levels of data maturity explained
authors
Elien Averhals
Elien Averhals
Head of Marketing

A company that truly operates in a data-driven way demonstrates a high level of data maturity. Data maturity reflects the extent to which data genuinely guides decision-making processes. In the initial stages, human interpretation is often still needed to extract the right insights from the data. However, as the organisation advances and its data processes become more refined, the need for human intervention gradually decreases, allowing decisions to be increasingly guided autonomously by data. The ultimate aim? For data to direct decisions independently. To take off on this journey successfully, it is essential first to understand how mature your organisation already is in terms of data.


Measuring how data-driven your company already is

First, let's clarify how we at Madison.Partners defined six data maturity levels for data- driven organizations. Depending on the answers given, you will get your company’s data maturity score.  

To quickly gain insight into your organisation's data maturity, we’ve developed the QuickScan – a free tool. With just a few straightforward questions, you’ll receive a preliminary indication of how your organisation performs in terms of data. This is of course just the starting point. Looking to delve deeper? Our Data Maturity Assessment, conducted through in-depth interviews, provides a well-founded evaluation, considering data & technology, business processes and human factors. This assessment gives you a clear view of your organisation's strengths, as well as identifying areas with potential for growth. The ultimate goal is to leverage data as a strategic asset within your organisation.

To make progress in maturing your way of working data-driven, we believe that every organization must develop in each of these 6 foundations:

  • Data
  • Tools & technology  
  • Data Governance
  • Skills & capacity  
  • Organization  
  • Communication & change
“Achieving a high level of data maturity is a journey that transforms standalone data into a strategic asset, driving more confident, informed and autonomous decision-making within your organisation.”

From level 1 to 6: discover your company's data & AI maturity

Data & AI Maturity level 1: in the dark  

Around 15% of organizations are still at the very beginning of their data-driven transformation. But... many opportunities ogle for these organizations. What we typically observe at this level, is that the use of data is limited to basic reporting and data & AI isn't considered as a priority by the senior leadership. That's why data and technology projects (if any) often fail or last forever!  


Data & AI Maturity level 2: catching up  

Around 25% of organizations have the objective to leverage their data to catch up on their competitors. Although steering indicators and objectives are financial, generally speaking, the company is using data to analyse business performance (think about sales, operations, services, etc). In level 2 companies, we often see that analytics is executed on an ad-hoc basis and typically 'offline/after the fact’ reporting is in place. Insufficient governance is hindering successful project delivery, analytics and reporting. However, awareness is growing and sometimes a CDO role is suggested.  


Data & AI Maturity level 3: first pilots  

When a company achieves level 3, then they are in the group that has the firmest representation from our experience. The fact is that around 30% of organizations already execute data initiatives, typically considered as first pilots. But it also means that there is still a lot of maturity to be gained. Objectives and KPIs include a first level of customer and operational related targets. Typically as well, is a multitude of tools and technology creating the need for a transversal approach on architecture & governance. Hiring strategy includes data analysts to build dedicated data teams. While ownership of most of the data related projects remain with the CDO, data literacy and data ownership are introduced throughout the organization.  


Data & AI Maturity level 4: tactical value  

Around 15% of organizations have already discovered the added value of being data-driven and realized few successful use cases. Typically for companies situating in this level is that they have multiple large data initiatives across silos, generating a clear added value. Measurable through KPIs and objectives that cover multiple levels and include forward looking targets. From our experience, we also often see that sales and digital channels are the key drivers of the data roadmap. A transversal approach results in companywide communication and change programs. Also major steps are taken regarding the implementation of data literacy, data governance and data ownership across departments.  


Data & AI Maturity level 5: strategic leverage  

Around 10% of organizations are categorized into this level which means they are able to generate strategic value from data. Typically for this high level of data maturity is that the objectives of these companies are clear on all levels. Their monitoring is completely supported (in real time) by data, being the key driver of all department’s KPIs, whether the focus is on revenue, new products or cost efficiency. Data is used to predict future challenges and influences the corporate strategy. The first data-driven products are launched. It is also often the case that their architectures are future-proof and data definitions & governance are available as well to keep all projects streamlined. In many cases the ownership of data initiatives of level 5 mature companies is with the business teams.  


Data & AI Maturity level 6: optimize & extend  

As true pioneers, these companies take all decisions heavily supported by data. Most likely the company’s strategy includes expansion towards its ecosystems. Typically for this high level of data maturity is that the structure and architecture of those companies are adequate to tap into this ecosystem, resulting into swift operational execution of partnerships and M&A. Data literacy is high at all levels throughout the organization. It is also the case that every C-level executive has a clear strategy to leverage on data & AI.

Enhancing decision-making with data maturity by building a stronger foundation

Achieving a high level of data maturity is a journey that transforms standalone data into a strategic asset, driving more confident, informed and autonomous decision-making within your organisation. No matter where your company currently stands on the data maturity scale, each level presents unique opportunities to strengthen your data foundation across areas like governance, technology, skills, and data-driven leadership.

At Madison.Partners, we offer the expertise and strategic guidance needed to help your organisation move from one maturity level to the next. Our tailored QuickScan and in-depth Data Maturity Assessments provide a clear, actionable roadmap to elevate your data & AI strategy.  

Ready to make your company more resilient, competitive and future-ready?
Fill out our free Data Maturity QuickScan today.

No items found.
Date
November 19, 2024

Other News & Insights

Contact Us

Ready to push your business into the next Digital League?

Contact us