Data Trends: Six Ways Data Will Change Business in 2023 and Beyond
By Kristina Scott
Data is big and getting bigger. We’ve tracked six major data-driven trends for the coming year.
Data is one of the fastest-growing and most innovative opportunities today to shape the way we work and lead. IDC predicts that by 2024, the inability to perform data- and AI-driven strategy will negatively affect 75% of the world’s largest public companies. And by 2025, 50% of those companies will promote data-informed decision-making by embedding analytics in their enterprise software (up from 33% in 2022), boosting demand for more data solutions and data-savvy employees.
Here is how data trends will shift in 2023 and beyond:
- Data Democratization Drives Data Culture
If you think data is only relevant to analysts with advanced knowledge of data science, we’ve got news for you. Data democratization is one of the most important trends in data. Gartner research forecasts that 80% of data-driven initiatives that are focused on business outcomes will become essential business functions by 2025.
Organizations are creating a data culture by attracting data-savvy talent and promoting data use and education for employees at all levels. To support data democratization, data must be exact, easily digestible, and accessible.
Research by McKinsey found that high-performing companies have a data leader in the C-suite and make data and self-service tools universally accessible to frontline employees.
2. Hyper-Automation and Real-Time Data Lower Costs
Real-time data and its automation will be the most valuable big data tools for businesses in the coming years. Gartner forecasts that by 2024, rapid hyper-automation will allow organizations to lower operational costs by 30%. And by 2025, the market for hyper-automation software will hit nearly $860 billion.
3. Artificial Intelligence and Machine Learning (AI & ML) Continue to Revolutionize Operations
The ability to implement AI and ML in operations will be a significant differentiator. Verta Insights found that industry leaders that outperform their peers financially, are more than 2x as likely to ship AI projects, products, or features, and have made AI/ML investments at a higher level than their peers.
AI and ML technologies will boost the Natural Language Processing (NLP) market. NLP enables machines to understand and communicate with us in spoken and written human languages. The NLP market size will grow from $15.7 billion in 2022 to $49.4 billion by 2027, according to research from MarketsandMarkets.
We have seen the wave of interest in OpenAI’s ChatGPT, a conversational language-generation software. This highly-scalable technology could revolutionize a range of use cases— from summarizing changes to legal documents to completely changing how we research information through dialogue-like interactions, says CNBC.
This can have implications in many industries. For example, the healthcare sector already employs AI for diagnosis and treatment recommendations, patient engagement, and administrative tasks.
4. Data Architecture Leads to Modernization
Data architecture accelerates digital transformation because it solves complex data problems through the automation of baseline data processes, increases data quality, and minimizes silos and manual errors. Companies modernize by leaning on data architecture to connect data across platforms and users. Companies will adopt new software, streamline operations, find better ways to use data, and discover new technological needs.
According to MuleSoft, organizations are ready to automate decision-making, dynamically improve data usage, and cut data management efforts by up to 70% by embedding real-time analytics in their data architecture.
5. Multi-Cloud Solutions Optimize Data Storage
Cloud use is accelerating. Companies will increasingly opt for a hybrid cloud, which combines the best aspects of private and public clouds.
Companies can access data collected by third-party cloud services, which reduces the need to build custom data collection and storage systems, which are often complex and expensive.
In the Flexera State of Cloud Report, 89% of respondents have a multi-cloud strategy, and 80% are taking a hybrid approach.
6. Enhanced Data Governance and Regulation Protect Users
Effective data governance will become the foundation for impactful and valuable data.
As more countries introduce laws to regulate the use of various types of data, data governance comes to the forefront of data practices. European GDPR, Canadian PIPEDA, and Chinese PIPL won’t be the last laws that are introduced to protect citizen data.
Gartner has predicted that by 2023, 65% of the world’s population will be covered by regulations like GDPR. In turn, users will be more likely to trust companies with their data if they know it is more regulated.
Valence works with clients to implement a governance framework, find sources of data and data risk, and activate the organization around this innovative approach to data and process governance, including education, training, and process development. Learn more.
What these data trends add up to
As we step into 2023, organizations that understand current data trends can harness data to become more innovative, strategic, and adaptable. Our team helps clients with data assessments, by designing and structuring data assets, and by building modern data management solutions. We strategically integrate data into client businesses, use machine learning and artificial intelligence to create proactive insights, and create data visualizations and dashboards to make data meaningful.
We help clients to develop a solution and create a modern data architecture that supports differentiated, cloud-enabled scalability, self-service capability, and faster time-to-market for new data products and solutions. Learn more.
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