As I considered how to promote my new book on driving data projects, I wanted to include myths and misconceptions that reinforce their value. I have experienced many of these in teams I’ve worked on or with. Data projects are not a static set of routines. It's a constantly evolving, open-to-innovation process.

Only 54 percent of organizations fully understand the value of project management, according to PMI's Pulse of the Profession™ report. That might explain, in part, why project success rates are so low: Less than two-thirds meet their original business intents.

Here are six common myths and misconceptions that many organizations succumb:

MYTH #1: DATA PROJECTS ARE JUST ABOUT TECHNOLOGY AND TOOLS.

Thinking that data projects (and data transformation) are all about purchasing expensive technology and tools is a popular myth. Certainly, these efforts involve the purchase and implementation of technology, but they should only be in service of the business strategy and operations of the organization. When taken into the larger view, data projects, data strategy, and overall data transformation involve:

Scoping the Project. Focus on the right projects. Identify the things that are important to your project and are a good match for your organization’s data management efforts.
Determining the Resources. Confirm the right resources. Locate and partner with data providers and consumers (internal and external).
Managing the Work. Ruthlessly prioritize. Don't boil the ocean. Select the things that will make a meaningful and documented impact.
Tuning the Change. Leverage your work by sustaining what you have built so that data as a service becomes an impactful tool in your toolkit and is fully integrated across your organization.

MYTH #2: DATA PROJECTS HAVE NO TANGIBLE VALUE.

Data projects reap benefits across almost every business component, including financial, operational, and sustainable benefits. Organizations are leveraging digital technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Automation, blockchain, etc., to achieve higher efficiency, productivity, and sustainability.

PTC provides a framework to identify value in data projects and digital transformation initiatives and processes (see figure below).

MYTH #3: GOING BIG IS BETTER.

Data projects do not necessarily require a large scope to succeed. Instead, a more effective approach is to approach them as a process of small, achievable objectives.

Initiating large-case and high-risk data projects will not necessarily return big value. They can also result in failure and substantial losses. Business stakeholders and data teams must understand what creates value for them and then design their joint data strategy based on achievable objectives contributing to collaborative, long-term goals.

MYTH #4: ONE SIZE FITS ALL.

Thinking that there’s a single formula for a data project or strategy that is appropriate for all organizations is another misconception. Business leaders must understand that a DX framework that works for one organization will not work for all. Every organization must ask these three questions (below) before creating its data project (or strategy).

What is my:

Business strategy: What is my overall focus for my business?
Business Model: How will I configure the business to enable overall business strategy?
Operating model: What capabilities do we need to execute against our business strategy and business model?

Strategy + Business Model + Operating model = [Digital Capabilities]

What are the target maturity levels and priorities across the dimensions?
What broader business changes need to be considered when planning digital transformation?

MYTH #5: DATA PROJECTS ARE A QUICK FIX.

While off-the-shelf digital packages and solutions can be purchased to elevate an organization’s digital capabilities, they are just a part of the never-ending DX journey. This process will have many hurdles and moments of success, and since technology is always changing and upgrading, companies will have to keep improving their digital strength.

MYTH #6: DATA PROJECTS ARE OPTIONAL.

Data projects are optional—until they aren’t. But data executive leaders can’t hold off much longer on the data transformations needed to survive in a post-pandemic world. According to a recent PwC study, 60% of business executives consider data transformation a top growth driver for 2022 and beyond (see figure below).