What Is the Data Divide?

The ability to effectively manage and analyze data is crucial for businesses, organizations, and individuals alike.

However, not everyone has equal access to the tools and resources needed to harness the power of data, leading to what is known as the "Data Divide."

The Data Divide refers to the gap between those who can effectively leverage new data technologies, and those who cannot. This divide disproportionately impacts underserved communities and smaller organizations, limiting their ability to compete, innovate, and create positive change.

In this article, we will delve deeper into what the Data Divide is, why it matters, and what can be done to bridge this gap and create a more equitable data future for all.

Going Digital: The 90s Tech Revolution

In the 1990s, a gap began to emerge between those who had access to digital technology, such as the internet, computers, and mobile devices, and those who did not.

This gap was referred to as the "Digital Divide".

During this period, organizations with access to these new digital technologies gained a significant advantage over their competitors. They were able to leverage these technologies to streamline their operations, enhance their communication, reach wider audiences, and tap into new markets.

As analog gave way to digital, entire industries were made obsolete, and exciting new products, business models, and industries took their place. Companies that failed to adapt, such as Blockbuster, Kodak, and Nokia were left behind, while digital-first companies like Netflix, Amazon, and Uber rose to dominance in their place.

The age of digital transformation is now over. The organizations that eagerly adopted digital technologies won, while everyone else missed opportunities to innovate, made costly mistakes, and failed to survive.

Unfortunately, many more organizations will fail to survive the next great shift that’s already happening in our world.

Getting Smart: The Big Data Revolution

If the last great shift was about "going digital”, the next great shift is about “getting smart”.

Humans now generate trillions of gigabytes of information every single day.

Organizations are now able to collect data on nearly every aspect of their operations, from customer behavior, to employee performance, to supply chain management. This data can empower organizations to gain valuable insights, make informed decisions, improve operational efficiency, and innovate faster.

When you combine this data with emerging "smart technologies", such as machine learning and artificial intelligence, the potential for innovation and growth is even greater. With the ability to analyze vast amounts of data quickly and accurately, organizations can now identify patterns, make predictions, and automate processes in ways that were previously impossible.

Despite the tremendous potential of data to drive innovation and growth, we are starting to see history repeat itself. As with the Digital Divide of the 90s, a new gap is emerging between those who are able to effectively manage and analyze their data, and those who are not.

The Data Divide is Now Upon Us

While collecting large amounts of data is easier than ever, consolidating, processing, analyzing, and generating business value from all that data remains a daunting task. Success requires a significant investment in strategy, technology, expertise, and infrastructure.

Unfortunately, this means that it's often only the largest corporations that are able to reap the full benefits of their data, while smaller organizations continue to fall further and further behind.

What's Causing the Data Divide?

The 5 primary causes of the Data Divide today are very similar to the causes of the Digital Divide that happened in the 1990s:

1. Complex Technology Ecosystems: The number of tools and technologies a company must acquire and manage continues to grow, making it increasingly difficult for smaller organizations to keep up with the constantly evolving landscape.

2. Skill Shortages: Because these technologies are complex and evolve rapidly, there is a growing shortage of professionals that have the necessary skills and expertise to manage them. Larger companies attract most of the top candidates, while smaller organizations face increasing challenges with hiring and retention.

3. Burnout: The constant pressure to keep up with business demands and rapidly evolving technologies often leads to burnout among professionals, further exacerbating skill shortages.

4. Communication Barriers: Literacy training and education around these new technologies are often lacking, resulting in communication barriers and misunderstandings between teams, departments, and stakeholders.

5. Security and Compliance Risks: These complex technology ecosystems also bring greater security and compliance concerns, with organizations needing to ensure privacy and confidentiality, while also complying with an ever-growing list of regulations and standards.

Left unaddressed, these issues can cause slowdowns and frustration, inhibit growth and innovation, and weaken your ability to compete in the market long-term.

If you were late to the digital transformation game, you will likely miss out again, unless you start taking immediate action to bridge the Data Divide for your own organization.

Bridging the Data Divide