In 2025, Australian CEOs are grappling with a business environment characterised by a strained economy, political uncertainty on a global stage, looming elections at home, technological advancements on a scale never seen before, regulatory shifts, and changing consumer expectations.
I will also add that most of the challenges CEOs faced in 2024 will indubitably continue this year. As they say, there is no rest for the wicked.
Drawing from over two decades as a data practitioner, strategist, and leader, I’ve observed that organisations leveraging data strategically not only adapt to challenges but also thrive. However, many Australian business leaders still perceive data strategy as a technical concern, best left to IT departments, a perspective that is a critical oversight.
While CEOs need not become data engineers or scientists, they must champion robust data strategies. This is not optional; it is now a must. Data transcends technology; it’s integral to business value, operational efficiency, and long-term sustainability. Overlooking data strategy isn’t just a missed opportunity; it poses a direct threat to growth and survival.
Here are 11 reasons why Australian CEOs must prioritise data strategy in 2025:
Data Strategy helps fuel the growth of business
We reside in a data-driven economy. Intuition alone is insufficient. Companies with robust data strategies consistently outperform competitors in revenue, profitability, and market share. Data enables smarter decision-making, allowing businesses to identify trends, optimise operations, and uncover new opportunities.
For instance, Newcastle-based health insurer NIB saved $22 million through its AI-driven digital assistant, Nibby, reducing human customer service support by 60% and decreasing phone calls with agents by 15%. CEOs who embrace data as a core business driver position their companies for sustained growth.
Competitive advantage now relies heavily on data
Australia’s leading companies treat data as a strategic asset. They embed data into every layer of decision-making, be it in customer engagement, product development, risk management, or operational efficiency. Few would argue that the market is moving fast. In a market that moves fast, speed to insights determines speed to market. Without a data-centric approach, organisations are left guessing while competitors are executing with precision. In an environment where margins are thin and disruption is constant, data-driven agility becomes the defining edge.
Companies like Woolworths and Qantas are using advanced analytics to anticipate customer needs, optimise supply chains, and increase loyalty. The Commonwealth Bank of Australia has heavily invested in AI to enhance business banking services, resulting in a 40% reduction in call centre wait times and a 50% decrease in scam losses. Without a well-defined data strategy, this would not have been possible. Organisations risk falling behind more data-savvy competitors if they ignore data strategy.
Poor data quality leads to rather expensive errors
Inaccurate data leads to flawed decisions. Whether it’s incorrect customer insights, erroneous forecasting, or misleading reporting, poor data quality can erode trust and incur significant costs. A CEO who prioritises data strategy ensures robust governance frameworks, data accuracy, and compliance, thereby preventing expensive errors. Notably, only 7% of Australian organisations rate themselves as ‘very effective’ at meeting their data and analytics objectives, highlighting a widespread challenge in data quality management.
In 2009, Storm Financial’s unreliable and inaccurate data, coupled with the Commonwealth Bank’s failure to issue margin call notices, led to significant financial losses for clients. The lack of accurate data prevented clients from making informed decisions, ultimately resulting in the company’s downfall.
Data is key to personalisation and CX
Australian consumers increasingly demand personalised experience, real-time engagement, and seamless interactions. Companies that leverage data effectively can tailor offerings to individual customers, enhancing loyalty and lifetime value. For example, REA Group, a digital real estate company, utilises advanced AI to personalise customer experiences, contributing to its record-breaking performance. CEOs who fail to invest in data risk losing relevance in a customer-centric market.
Bankwest’s “Just Enough Bank” campaign is a great example of the importance of data in personalisation and customer experience. This initiative aims to attract Australians in their 30s and 40s seeking uncomplicated banking services by focusing on simplicity and customer-centricity. Following the closure of its physical branches and the launch of a new banking app, Bankwest intends to double its customer base to 2 million, emphasising how simplified banking can free up time for more enjoyable activities. The integrated campaign includes out-of-home, TV, and digital channels to maximize reach and engagement. This approach demonstrates how leveraging data to understand customer preferences can lead to tailored services that enhance customer satisfaction and loyalty.
AI and Automation depend on strong data foundations
Artificial intelligence (AI) and automation are transforming industries, but their success relies on high-quality, well-structured data. If a company’s data is siloed, inconsistent, or unreliable, AI initiatives will falter. Telstra’s partnership with Accenture to form a $700 million joint venture aims to incorporate AI across its operations more rapidly, enhancing process efficiency and data utilisation. A CEO who prioritises data strategy ensures that AI investments deliver tangible business value.
Regulatory compliance and Data security are CEO-level Issues
Data privacy regulations, such as Australia’s Privacy Act, represent significant business risks. Data breaches and compliance failures can lead to reputational damage, legal penalties, and loss of customer trust. CEOs must take ownership of data governance to ensure security and compliance are embedded in their company’s operations.
An example highlighting the critical importance of regulatory compliance and data security at the executive level is the significant fine imposed on Origin Energy for breaches of Victorian energy regulations. Between December 2021 and May 2023, Origin failed to provide “best offer” notifications to over 655,000 customers, inadequately supported 6,806 customers facing payment difficulties, overcharged 78 customers, and mishandled life support information for 10 customers. These lapses led to a $17.6 million fine by the Victorian Essential Services Commission. Origin attributed many of these issues to human error and outdated systems, underscoring the necessity for robust data governance and compliance frameworks to prevent such costly errors.
Data monetisation unlocks new revenue streams
Data isn’t just a tool for internal efficiency. It can be a revenue generator. Many organisations monetise their data by offering insights-as-a-service, developing data-driven products, or partnering with third parties.
For instance, Australian-born business management platform MYOB has helped small and medium-sized businesses transition to more data-driven and digital operations, demonstrating the potential for data monetisation. CEOs who recognise data as an asset can unlock entirely new business models.
A Data-driven culture starts at the top
Organisational culture is pivotal. If a CEO doesn’t actively promote a data-driven mindset, employees won’t prioritise data in their daily decisions. Data strategy isn’t just about technology, it’s about fostering a culture where data is valued, understood, and utilised effectively at every organisational level. According to a survey, there has been a 44% year-on-year increase in stakeholders relying on accurate dashboards and data insights to drive decisions, highlighting the growing importance of a data-driven culture.
A notable example of a CEO fostering a data-driven culture is Robin Khuda, founder and CEO of AirTrunk. After facing near-bankruptcy in 2016, Khuda rebuilt AirTrunk into a datacentre giant valued at $2.45 billion, eventually selling it to Blackstone for $24 billion. Under his leadership, AirTrunk has become a key partner for tech giants like Apple and Google, emphasising the critical role of data in modern business operations. Khuda’s commitment to data-driven decision-making has been integral to AirTrunk’s success, demonstrating how top-level advocacy for data-centric strategies can transform and elevate an organisation within the competitive tech industry.
Siloed data impedes innovation
Many Australian organisations struggle with fragmented data across departments. Departments such as marketing, sales, finance, and operations often operate in isolation. This fragmentation prevents holistic decision-making and stifles innovation. A CEO-driven data strategy ensures that data is unified, accessible, and actionable across the entire business.
A notable example illustrating how siloed data impedes innovation is found within the Australian energy sector. A survey by Appian revealed that 76% of Australian energy companies struggle with data accessibility, with data silos being a primary concern for 42% of respondents. This fragmentation hinders real-time decision-making and strategic planning, thereby stifling innovation within these organisations.
The future of work relies on data-driven decision-making
Workforce dynamics are evolving, with remote work, digital transformation, and agile decision-making becoming standard. Data enables leaders to measure productivity, optimise workflows, and enhance employee experiences. For instance, Telstra’s integration of Microsoft’s Copilot AI platform has led to significant productivity gains, saving employees approximately 20 hours per month. CEOs who integrate data into workforce strategies will build more resilient and adaptive organisations.
Investors and stakeholders expect data maturity
Investors and stakeholders increasingly demand transparency, accountability, and data-driven insights. Organisations with well-defined data strategies are more attractive to investors, as they demonstrate a clear understanding of risk, opportunity, and performance. For example, Goodman Group’s strategic focus on datacentres has positioned it as a leading performer in the Australian real estate market, attracting significant investor attention. CEOs who embrace data gain a stronger position in negotiations, partnerships, and market valuation.
The CEO’s Responsibility in a Data-Driven Australia
Data strategy is no longer an IT function, it’s a business imperative.
Australian CEOs cannot afford to treat data as a secondary concern. It must be embedded in our corporate strategy, culture, and decision-making processes.
The organisations that will lead in the coming decade are those whose leaders understand and leverage data effectively. Those that ignore data will find themselves outpaced by more agile, insight-driven competitors.
The question is no longer if CEOs should prioritise data strategy. It is more about how swiftly can they implement it.
Embarking on your data strategy journey
If you’re an Australian CEO aiming to strengthen your company’s data strategy, consider the following actions:
- Appoint a Chief Data Officer (CDO) or a Data Champion: Ensure an executive is accountable for data governance, strategy, and execution.
- Invest in Data Infrastructure and Literacy: Build scalable data architectures and equip employees with the skills to interpret and leverage data effectively.
- Make Data Strategy a Board-Level Priority: Elevate data discussions to the boardroom to ensure alignment with business objectives and risk management.
At Datalynk, we specialise in guiding Australian organisations through designing and implementing data strategies that drive tangible business outcomes. If you’re ready to harness data as a competitive advantage, let’s start a conversation.
