Customer Experience
20 December 2024
In the world of data, there’s an often-cited rule: 80% of the time and effort in any project is spent obtaining and preparing data, while only 20% goes to analysis, visualization, and insight generation. It may not sound exciting—but it’s the foundation of everything. And in the context of the Data Maturity Model, it’s the first crucial step toward becoming a truly data-driven organization to be ready for AI.
Data preparation may not be the most glamorous stage of the data journey, but it’s absolutely vital. It’s the phase where raw, chaotic information is transformed into trusted, usable insights. It’s also where most companies stall on their path toward maturity—not because they don’t have data, but because they haven’t prepared it properly.
So, what is data preparation, why is it so important, and how does it fit into the broader data maturity roadmap? Let’s dive in.
In today’s digital age, data is growing at an exponential rate—fueled by mobile apps, IoT devices, social media, e-commerce, and more. But volume alone doesn’t equal value. As organizations mature in their use of data, they must move from simply collecting it (Level 1: Data Aware) to effectively managing and leveraging it (Level 2 and beyond: Data Proficient, Data Managed, and eventually Data Driven).
At the early stages of maturity, raw data is often siloed, inconsistent, incomplete, or duplicated. Data preparation addresses this. It involves cleaning, organizing, and transforming data into formats that are ready for analysis—essential work that ensures quality, consistency, and reliability.
Without this foundation, no dashboard, predictive model, or AI system can deliver meaningful or trustworthy results.
High-quality data is the prerequisite for sound decision-making. At the Data Proficient stage, businesses begin to understand the risks of poor-quality data and invest in processes to validate and cleanse it. This is where data preparation becomes formalized—no longer an ad-hoc task, but a standardized practice embedded in data workflows.
Here’s how data preparation supports your maturity journey:
Think of data preparation as laying the foundation for a building. If the ground is unstable, it doesn’t matter how sophisticated your architecture is—it will eventually collapse. Companies that skip this step often struggle with data trust issues, inconsistent results, and stalled AI or analytics initiatives.
By contrast, those that invest in a solid data foundation move more quickly toward higher levels of maturity, where data becomes a strategic asset—powering innovation, customer personalization, automation, and competitive advantage.
Data preparation isn’t just about tidying up spreadsheets—it’s a strategic lever in your journey toward data maturity. It helps organizations move from reactive data usage to proactive, insight-driven decision-making. Without it, even the most advanced analytics initiatives are built on shaky ground.
If your organization wants to move beyond gut feel and into the realm of smart, data-driven strategy, data preparation is your first milestone on the road to maturity.
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