In 2016, Dell Technologies commissioned our first Digital Transformation Index (DT Index) study to assess the digital maturity of businesses around the globe. We have since commissioned the study every two years to track businesses’ digital maturity.
Our third installment of the DT Index, launched in 2020 (the year of the pandemic), revealed that “data overload/unable to extract insights from data” was the third highest-ranking barrier to transformation, up from 11th place in 2016. That is a huge jump from the bottom to close to the top of the ranking of barriers to digital transformation.
These findings point to a curious paradox—data has the potential to become businesses’ number one barrier to transformation while also being their greatest asset. To learn more about why this paradox exists and where businesses need the most help, we commissioned a study with Forrester Consulting to dig deeper.
The resulting study, based on a survey with 4,036 senior decision-makers with responsibility for their companies’ data strategy, titled: Unveiling Data Challenges Afflicting Businesses Around the World, is available to read now.
Candidly, the study confirms our concerns: in this data decade, data has become both a burden and an advantage for many businesses—which one depends on how data-ready the business might be.
While Forrester identifies several data paradoxes hindering businesses today, three major contradictions stood out for me.
1. The perception paradox
Two-thirds of respondents would say their business is data-driven and state “data is the lifeblood of their organization.” But only 21% say they treat data as capital and prioritize its use across the business today.
Clearly, there’s a disconnect here. To provide some clarity, Forrester created an objective measure of businesses’ data readiness (see figure).
The results showed that 88% of businesses are yet to progress either their data technology and processes and/or their data culture and skills. In fact, only 12% of businesses are defined as Data Champions: companies that are actively engaged in both areas (technology/process and culture/skills).
2. The “want more than they can handle” paradox
The research also shows that businesses need more data, but they have too much data to handle right now: 70% say they are gathering data faster than they can analyze and use, yet 67% say they constantly need more data than their current capabilities provide.
While this is a paradox, it’s not all that surprising when you consider the research holistically, such as the proportion of companies that are yet to secure data advocacy at a Boardroom level and fall back to an IT strategy that can’t scale (i.e., bolting on more data lakes).
The implications of this paradox are profound and far-reaching. Six in 10 businesses are battling with data silos; 64% of respondents complain they have such a glut of data they can’t meet security and compliance requirements, and 61% say their teams are already overwhelmed by the data they have.
3. The “seeing without doing” paradox
While economies have suffered during the pandemic, the on-demand sector has expanded rapidly, igniting a new wave of data-first, data-anywhere businesses that pay for what they use and only use what they need—determined by the data that they generate and analyze.
Although these businesses are emerging, and doing very well, they’re still relatively small in number. Only 20% of businesses have moved the majority of their applications and infrastructure to an as-a-service model—even though more than 6 in 10 believe an as-a-service model would enable firms to be more agile, scale, and provision applications without complexity.
Achieving breakthrough together
The research is sobering,but there is hope on the horizon. Businesses are looking to revise their data strategies with a multi-cloud environment, by moving to a data-as-a-service model and automating data processes with machine learning.
Granted, they have a lot to do to prime the pumps for a proliferation of data. Still, there is a path forward, by firstly modernizing their IT infrastructure so they can meet data where it lives, at the edge. This incorporates bringing businesses’ infrastructure and applications closer to where data needs to be captured, analyzed and acted on–while avoiding data sprawl, by maintaining a consistent multi-cloud operating model.
Secondly, by optimizing data pipelines, so data can flow freely and securely while being augmented by AI/ML; and thirdly, by developing software to deliver the personalized, integrated experiences customers crave.
The staggering volume, variety and velocity of data may seem overpowering but with the right technology, processes and culture, businesses can tame the data beast, innovate with it, and create new value.
To learn more about the study, visit www.delltechnologies.com/dataparadox.
This content was produced by Dell Technologies. It was not written by MIT Technology Review’s editorial staff.
VR is as good as psychedelics at helping people reach transcendence
As we inched nearer, I worried about infringing upon the other participants’ personal space. Then I remembered that oceans and thousands of miles separated me from them—and wasn’t ditching the notion of personal space the whole point? So I tried to settle into the intimacy.
“What happens in VR is that sense of completely forgetting about the existence of the external world,” says Agnieszka Sekula, a PhD candidate at the Centre for Human Psychopharmacology in Australia and a cofounder of a company that uses VR to enhance psychedelic therapy. “So there is definitely similarity there to this sense of experiencing an alternate reality under psychedelics that feels more real than what’s actually out there.”
But, she adds, “there’s definitely differences between what a psychedelic experience feels like and what virtual reality feels like.” Because of this, she appreciates that Isness-D charts a new path to transcendence instead of just mimicking one that existed already.
More research is needed on the enduring effects of an Isness-D experience and whether virtual reality, in general, can induce benefits similar to psychedelics. The dominant theory on how psychedelics improve clinical outcomes (a debate far from settled) is that their effect is driven by both the subjective experience of a trip and the drug’s neurochemical effect on the brain. Since VR only mirrors the subjective experience, its clinical benefit, which has yet to be rigorously tested, may not be as strong.
Jacob Aday, a psychiatry researcher at the University of California, San Francisco, says he wishes the study had measured participants’ mental wellness. He thinks VR likely can downregulate the default mode network—a brain network that’s active when our thoughts aren’t directed at a specific task, and which psychedelics can suppress (scientists theorize that this is what causes ego death). People shown awe-inspiring videos have diminished activity in this network. VR is better at inducing awe than regular video, so Isness-D might similarly dial it down.
Already, a startup called aNUma that spun out of Glowacki’s lab allows anyone with a VR headset to sign up for Isness sessions weekly. The startup sells a shortened version of Isness-D to companies for virtual wellness retreats, and provides a similar experience called Ripple to help patients, their families, and their caregivers cope with terminal illness. A coauthor of the paper describing Isness-D is even piloting it in couples and family therapy.
“What we’ve found is that representing people as pure luminosity really releases them from a lot of judgments and projections,” Glowacki says. That includes negative thoughts about their body and prejudices. He has personally facilitated aNUma sessions for cancer patients and their loved ones. One, a woman with pancreatic cancer, died days later. The last time she and her friends gathered was as mingling balls of light.
For one phase of my Isness-D experience, moving created a brief electric trail that marked where I’d just been. After a few moments of this, the narration prodded: “What does it feel like to see the past?” I started to think of people from my past who I missed or had hurt. In sloppy cursive, I used my finger to write their names in the air. Just as quickly as I scribbled them, I watched them vanish.
Corruption is sending shock waves through China’s chipmaking industry
It remains unclear whether the failure of Unigroup directly triggered the anticorruption earthquake within Big Fund. However, the strategy that the latter has taken—throwing massive investments against the wall and seeing what sticks—can fail miserably. According to longtime observers, that strategy is also the perfect breeding ground for corruption.
“This is the least surprising corruption investigation I’ve heard of for a while,” says Matt Sheehan, a fellow at the US think tank the Carnegie Endowment for International Peace. “Not because I know Ding Wenwu is personally corrupt, but when you have that amount of money sloshing around in an industry, it’d be way more surprising if there isn’t a major corruption scandal.”
A significant part of the problem was a lack of precision, says Sheehan. China knew it needed to invest in semiconductors but didn’t know what exact sub-industry or company to prioritize. The country has been forced to learn by trial and error, feeling its way through issues like the bankruptcy of Unigroup and the expanding technology blockade by the US. The next step should be more targeted investments into specific companies, Sheehan says.
That might mean a new boss for the Big Fund—someone who’s better versed in getting financial returns, says Paul Triolo, a senior VP at the business strategy firm Albright Stonebridge, which advises companies operating in China. Many of the Big Fund’s managers came from government backgrounds and may simply have lacked the relevant experience. Ding, who’s under investigation now, used to be a department director at China’s Ministry of Industry and Information Technology.
“You need competent people to run this [Big Fund] that understand the industry, finance, and are not going to fund projects that don’t have a sound commercial basis,” Triolo says.
Ultimately, these investigations may end up being positive for China’s semiconductor industry because they highlight the limitation of politically driven funding and may push the Big Fund to be managed on a more market-based basis. Beijing’s appetite for experiments is waning as its worries about self-sufficiency intensify. “They can’t afford to squander $5 billion on fabs that aren’t going to be viable,” says Triolo.
The Download: experimental embryos and the US monkeypox emergency
In a search for novel forms of longevity medicine, a biotech company based in Israel says it intends to create embryo-stage versions of people in order to harvest tissues for use in transplant treatments.
The company, Renewal Bio, is pursuing recent advances in stem-cell technology and artificial wombs, demonstrated by Jacob Hanna, a biologist at the Weizmann Institute of Science in Rehovot. Earlier this week, Hanna showed that starting with mouse stem cells, his lab could form highly realistic-looking mouse embryos and keep them growing in a mechanical womb for several days until they developed beating hearts, flowing blood, and cranial folds.
It’s the first time such an advanced embryo has been mimicked without sperm, eggs, or even a uterus. Now Hanna has set his sights on extending the technology to humans—he’s already experimenting with human cells and hopes to eventually produce artificial models of human embryos. “We view the embryo as the best 3D bio printer,” he says. Read the full story.
Automated techniques could make it easier to develop AI
Machine-learning researchers have to make many decisions when designing new models, meaning that complex models end up being designed by human intuition, rather than systematically. A growing field called automated machine learning, or autoML, aims to eliminate that guesswork, allowing algorithms to take over the decision making, which could both simplify the process and make machine learning more accessible.
Big Tech is paying attention. Companies like Amazon and Google already offer low-code machine-learning tools that take advantage of autoML techniques, and computer scientists are excited by the notion of being able to simply specify a problem, before tasking the computer with figuring it out. But researchers have a lot of work to do before autoML can be deployed more widely. Read the full story.
I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.
1 The US has declared monkeypox a public health emergency
It has surpassed 7,100 cases, more than any other country. (WSJ $)
+ Many queer men have been unable to get vaccinated. (Vox)
+ Some people will be at risk of contracting both monkeypox and covid. (The Atlantic $)
+ There’s still no evidence to suggest that monkeypox has become more virulent. (Slate)
+ Everything you need to know about the monkeypox vaccines. (MIT Technology Review)
2 Alex Jones must pay $4 million to the parents of a Sandy Hook victim
The conspiracy theorist is finally facing consequences for calling the massacre a hoax. (BBC)
+ The jury could choose to award further damages, too. (Buzzfeed News)
3 Elon Musk has accused Twitter of fraud
He also claims he was “hoodwinked” into signing the purchase agreement. (Bloomberg $)
+ A tool used to assess Twitter bots reportedly flagged Musk’s own account as one. (FT $)
+ Twitter’s lawyers aren’t holding back. (The Verge)
+ Meanwhile, Musk predicts the US will weather a “mild recession” for 18 months. (Insider)
4 The UK’s cost of living crisis has birthed a wave of scams
Which feels particularly cruel, if sadly inevitable. (FT $)
5 Your brain appears to unlock new realities when you die 🧠
The new dimensions of reality some dying people experience are not the same as hallucinating. (Neo.Life)
6 We’re buying fewer video games than we used to
With less disposable income, shoppers are cutting down on non-essentials. (WP $)
7 The animals we know least about are most at risk of extinction
Many are already believed to have died out before we could discover them. (Motherboard)
+ Machine learning could help identify the species most at risk. (The Verge)
+ Understanding how species mate is crucial to ensuring their future safety. (Knowable Magazine)
8 The internet is obsessed with tracking the celebrities’ flights
Aviation enthusiasts are revealing the data that the rich and famous would rather keep secret. (The Guardian)
9 Hollywood is getting better at portraying young, online lives
Being Extremely Online is no longer the preserve of the loner. (The Atlantic $)
+ How the next generation is reshaping political discourse. (MIT Technology Review)