The biggest myth in data analytics and why it’s costing you millions

You’ve probably heard: “Data is the new oil.” It sounds convincing, even empowering. But here’s the uncomfortable truth: many leaders still believe the main point of data analytics is to deliver useful insights.

That’s the biggest myth in the industry.

Insights matter. But they don’t create business value on their own. If they aren’t built into decisions and actions, most data analytics and AI-led initiatives end up as expensive noise –  interesting, but not useful.

The myth of “actionable insights”

From early in your career, you’ve likely been told that winning in business depends on extracting the right insights from data. Dashboards, machine learning models, and predictive reports became the buzzwords. But here’s the thing: insights alone don’t drive impact.

In South Africa, we know the best way to cook meat is over an open fire. A proper braai (rhymes with “fry”) is both an art and a ritual. Lighting the fire? That’s easy. Cooking the meat just right? That takes experience, timing, and skill.

The same goes for data analytics. Lighting the fire – building models, reports, and dashboards – is only the start. The real skill lies in how you apply it.

Over the past 20 years, I’ve seen business leaders assume that having the tools in place would naturally lead to growth. But like a fire that’s never used to cook, dashboards and AI models won’t deliver results unless they’re used in the moment to drive real action while the value window is still open.

The value doesn’t lie in the insight itself. It lies in applying the insight into a process that delivers a real business result. That’s where the return happens.

Why 80% of data initiatives fail

Gartner once estimated that only one in five data analytics projects deliver measurable results. Whether or not that number still holds, the bigger issue is this: too many missed opportunities are making leaders cautious. And when caution turns into inaction, innovation grinds to a halt.

Spuddling: Working hard, achieving nothing

Ever heard of the word “spuddle”? It’s an old English term for working hard but getting nowhere.

When I was 18, I dove into a shallow pool and hit my head. The doctor who saw me at first said everything was fine, just some painkillers and rest. A few days later, my nose collapsed. A specialist spotted the fracture right away. He knew exactly what to do, and even fixed a lifelong issue I didn’t know could be solved.

So why didn’t I question the first diagnosis? I lacked the confidence to challenge it.

This is what I see in many businesses today. Data teams work long hours but don’t focus on value. Leaders don’t feel confident enough to challenge them. And because of that, millions are spent on projects that don’t shift the bottom line.

On the other hand, some data professionals do understand value but can’t get buy-in. Their stakeholders don’t yet have the data-confidence needed to invest with clarity. This lack of confidence on both sides leads to misalignment, missed funding, and wasted investment.

And here’s the kicker: when responsibility for data is handed off to junior staff or parked in IT, data gets reduced to a back-office task instead of becoming the business enabler it’s meant to be.

It’s no different from accepting a “dashboard” diagnosis without asking, “What does this mean for our revenue or margin?”

The shift to value-driven analytics

When Zjaén Coetzee and I wrote Drive RAPPID Results From Data, we had one goal: to help leaders go beyond data noise and start achieving measurable results.

For years, businesses were told to be “data-driven.” Teams built dashboards. Models were rolled out. Yet the value rarely followed.

That’s because insight alone does nothing. Value is only created when data is used in daily decision-making, where business happens.

Top-performing companies don’t treat analytics as a reporting function. They treat it as an execution engine. That shift in mindset is critical: from knowing to doing, from insight to impact.

In these companies, data is used to shape pricing, stock levels, staffing, and promotions. Actions are tracked. Results are visible. Margins improve. Costs drop. Revenue grows.

How? These businesses align analytics with what matters most — their strategic goals. They ask: what are we trying to achieve, and how can data help? Projects are selected based on value. Results are measured. And teams are empowered not just to report, but to act.

It starts with data-confident leadership

This shift won’t happen by accident. It takes bold, informed leadership.

We call it data-confident leadership. It means you ask tough questions. You challenge your team to link every insight to business value. And you bring departments together (finance, ops, marketing, IT) to deliver clear outcomes.

Data doesn’t create value. Decisions do. And leaders must be accountable for making sure those decisions drive real results.

Data-confident leaders stop hiding behind buzzwords and start demanding business outcomes. They push from experimentation into execution. From noise to action. In today’s tight markets, that’s not optional. It’s essential.

Introducing the RAPPID value cycle

If you’re overwhelmed by the jargon on your LinkedIn feed, we’ve been there too.

That’s why Zjaén and I built the RAPPID Value Cycle. It’s a clear, proven way to ensure every data initiative leads to measurable value.

We laid it out fully in our book, Drive RAPPID Results From Data. It’s not another model or buzzword. It’s a practical playbook for turning data into profit. Whether your goal is to boost EBITDA, cut costs, or gain a competitive edge, the RAPPID Cycle helps you connect insight to action and track the results.

Each step is designed to help you avoid the traps that cause 80% of projects to fail. It’s your roadmap from “interesting” to “impactful.”

And here’s where investment really matters. Data-confident leaders know they can’t wait for perfection before investing. But they also don’t go all in without proof. They use small, focused initiatives to deliver early wins, show real business value, and then leverage those results to secure the investment needed to scale.

It’s not about building the biggest data platform. It’s about starting with value, showing your hand, and earning the right to invest in more.

Final thought

It’s time to stop lighting fires and calling it progress.

If your business is tired of dashboards that don’t deliver and analytics that don’t move the needle, there’s a better way. One that starts with leadership, ties insights to business outcomes, and puts action at the centre of the process.

Let’s not only light the fire. You need to cook the meat before you can eat it.

Start with the RAPPID Value Cycle. Use your data to deliver measurable results.

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