73% of business leaders in Asia Pacific & Japan believe data reduces uncertainty and drives better decisions but why aren’t they using It?

A new survey of 4,295 business leaders in Asia Pacific & Japan (APJ) reveals that while they know using data is important to their business, the vast majority aren’t harnessing its power for better decision-making and business results.

According to Salesforce’s Untapped Data Research, business leaders are struggling to put data into practice to quickly make strategic business decisions and navigate economic uncertainties because they can’t make sense of it.

With the proper training on data skills, data can help business leaders make better decisions, earn trust, and reduce uncertainty — even amid challenging times.

Companies aren’t tapping their data’s potential

Companies in APJ see value in using data to drive business decisions, especially in times of uncertainty:

    • Today, 81% of business leaders in the region say data is critical in decision-making at their organisation.
    • Seventy-three percent agree that data helps reduce uncertainty and make more accurate decisions in business conversations.

While companies agree about the advantages of using data, there’s a clear disconnect from how they’re actually using it in practice. For example, a majority of companies aren’t actually using their data to make critical business decisions:

    • Nearly 7 in 10 (69%) business leaders are not using data to decide on pricing in line with economic conditions, such as inflation.
    • Only 30% are using data to inform their strategy when launching in new markets.

There are also missed opportunities for companies to use their data to drive company values:

    • More than three-quarters (77%) of business leaders are not using data to inform their organisation’s diversity and inclusion policies.
    • Only 18% of business leaders are using data to help guide their climate targets.

Data creates efficiency and trust amid uncertainty

When integrated and leveraged correctly, data has huge potential to build efficiency and trust among both customers and employees:

    • Seventy-one percent of business leaders think data keeps people focused on the things that matter and that are relevant to the business.
    • Three-quarters (75%) agree data helps accelerate decision-making.
    • Seventy-two percent believe that data builds trust in business conversations.
    • Sixty-seven percent think that data helps minimise the influence of personal opinions or egos in a business conversation.

Companies need to close the digital skills gap to realise data value

Business leaders in APJ report being paralysed by the influx of data, their knowledge of how to best operationalise it, and how to use it to invest strategically going forward:

    • Forty-one percent of business leaders cite a lack of understanding of data because it is too complex or not accessible enough.
    • More than a third (36%) of business leaders cite the lack of ability to generate insights from data.
    • Almost one-third (29%) are overwhelmed by the amount of data, which is expected to more than double in size by 2026.

To address these concerns, 74% of companies in the region are planning to continue or increase spending on data skills development and training for employees.

Data literacy training for employees can establish a data culture that supports business goals and improves resilience during the tough economic climate.

“Good decisions start with data. As inflation and growing challenges in the external environment cast a dark shadow over markets, our research has shown how data-driven organisations are in a better position to drive smarter, faster decisions to solve today’s most pressing challenges,” said JY Pook, Senior Vice President and General Manager, Asia Pacific, Tableau at Salesforce.

“Business leaders already acknowledge that data provides critical business advantages, and they need to match this with action for a data-driven culture to permeate. The onus is on leaders to operationalise company-wide data skills training across every role and rank to build a knowledgeable workforce that can uncover new opportunities while ensuring the business’s competitive advantage.”