Data analytics has revolutionized business decision-making, unleashing a storm of new opportunities impacting every part of the business, from identifying customers to minimizing churn. With vast streams of information now to be mined, businesses are ready to reap the rewards that come with this tidal wave of change.
According to a joint report by Informatica and Capgemini, 27% of business executives say that their company’s big data initiatives are profitable.
Despite the massive growth and impact of big data, business leaders still have concerns when it comes to effectively integrating data into decision-making, lack of technical expertise, and proliferation of data silos.
As we move into the new year, it’s time to start thinking about actionable trade tips to make data more accessible and scalable for enterprises in 2023 and beyond.
1. The Growth of AI and Machine Learning
AI and machine learning is already significantly impacting the world of data. But as these technologies continue to evolve, their impact is only going to grow.
According to Gartner, AI systems will “drive growth and innovation while coping with fluctuations in global markets.”
We’ll see more AI-powered analytics tools and applications that make it easier for businesses to make sense of their data. We’ll also see more machine-learning models that are able to identify patterns and correlations that humans would never be able to find on their own.
With the increasing availability of data and computing power, more businesses are turning to AI to help them make sense of it all. We can expect to see more AI-powered applications and services, as well as an increase in the use of machine learning.
2. Data-Driven Business Decisions Across Industries
Business leaders are already applying data science to minimize operational risks and waste with products. This trend is quickly gaining traction as more industries incorporate data science to minimize risks and costs.
Here are some ways data science is being used across industries:
- Increasing revenue by improving coverage models and improving the identification of prospective buyers
- Increasing conversion rates by identifying the order of the most effective communications and identifying the buying criteria of prospective buyers
- Minimizing the likelihood of lawsuits and privacy concerns
- Minimizing the likelihood of defaults
- Minimizing the time it takes to revolve an issue
3. Every Company is a Data Company
Soon, data itself will become a primary product for nearly every business, and data analytics and data science will form the core of every company’s business model.
According to Wall Street Journal,
“There was a time when the primary role of leaders at most companies was management. The technology required to do the work of a company could be bought or siloed in an IT department, treated more as a cost center than a source of competitive advantage. But now we’ve entered a period of upheaval driven by connectivity, artificial intelligence, and automation. The changes affect the world of business so profoundly that every company is a [data] company.”
Today, the idea of a technology executive becoming CEO of an apparel company is relatively novel, but that won’t be the case for long. As businesses become more reliant on data, analytics, AI, automation, and IoT technology, we’ll begin to see more technology-savvy executives infiltrating top leadership positions outside of the tech industry. This shift is taking place because, increasingly, every company is a data and analytics company.
4. The Piling Costs of Data Security
As data becomes increasingly valuable, so does data security. In 2023, we can expect to see more companies invest in security measures to protect their data from cyber-attacks. We can also expect more regulation around data privacy as governments attempt to keep pace with the ever-changing digital information landscape.
- 4.35 million USD was lost in 2022 due to data breaches – Due to the neglect of data strategies by businesses, organizations must ask more questions about data security.
- Data needs to be stored securely to protect it from unauthorized access and ensure that it can be used effectively.
5. Predict Customer Behavior with Data
Big data is only going to get bigger in 2023. With more and more businesses collecting data, the opportunity to predict customer behavior is stronger than ever before. This means that we can expect to see more investment in big data infrastructure and more companies turning to cloud-based solutions.
Many companies have already taken the plunge and use data-based decision-making as a primary driver of their business.
- USAA SafePilot is one of many insurance programs that offer participants insurance premium rebates for safe driving, as determined by mobile telematics.
- Netflix’s recommendation engine filters thousands of titles using recommendation clusters based on user preferences. 80% of Netflix viewer activity is driven by personalized recommendations, contributing to a 93% retention rate. Amazon Prime Video uses similar technologies.
- Airbnb leverages A/B testing, image recognition and analysis, and natural language processing to determine which photos work best, test ranking algorithms, and understand users’ feelings behind reviews.
These are just a few of the data trends that we’ll be seeing in 2023. As we move into the new year, it’s important to stay ahead of the curve and keep an eye on these trends so you can make sure your business is prepared for what’s ahead.
Leverage Data for Business Decisions
Data Science for Business Leaders is designed for business leaders to partner with data professionals, learn what problems to solve with data, and how to leverage the findings to make better decisions.
- Focus on data projects that drive business impact
- Gain better outcomes through stronger partnerships
- Identify the fastest path to actionable insights
- Champion data-driven decision making