Every business has data, but is the data driving the key decisions about staffing, profitability, distribution, etc.? Data analytics is rising in popularity and will continue to be gaining more traction in 2023. Let’s see what trends are being forecasted for next year!
This data term is being used more frequently as businesses begin to establish a critically important data culture becomes the norm. This term means that data moves from the data scientists and analysts working in their silos to the people that should be using it in their everyday work. Coupled with efforts to help establish a data-literate workforce, data democratization helps employees at all levels to clearly understand what the enterprise values and how it can be used effectively, no matter what role you have in the organization. It also allows staff to be proactive in interacting with their own data in ways that are meaningful and can drive strategic planning within departments.
As more data is being utilized within an organization, AI will play a larger role in the use of that data. It is beneficial for businesses of all sizes. Data analysis becomes quicker than when done manually, and AI enables more accurate predictions with better algorithms in place, especially with machine learning. It will also help with data processing and determining what large quantities of data mean and how to best apply data findings to new applications. Enhanced automation and predictive analysis available with machine learning and AI, will also help with real-time data and thus, real-time strategic planning and decision-making, making your business more efficient and effective. A good system that adapts, is secure, and speeds up data analysis will yield a higher return on your investment.
Data as a Service (DaaS)
Many businesses are developing a sound data culture and, as a result, they are moving towards outsourcing the analytics of their data. Cloud-based tools, business intelligence, and data warehousing are appealing to those companies. They provide access from anywhere at any time, making data analysis, and enhancing convenience. If the data is more accessible it can be utilized more efficiently and effectively, leading to better decisions and better business outcomes. These enhancements, especially with Artificial Intelligence and Machine Learning, also help process data at high speeds, making it more relevant in real time and improving data sharing across and within departments. This also helps reduce or even eliminate data silos.
However, this also leads to some considerations. With additional data comes the need for additional security, especially for cloud-based platforms and data requiring rigorous privacy standards. So, businesses must look ahead at how to manage and safeguard company data.
Additionally, data governance must also be considered. Businesses must provide oversight in what data is shared and how data is used and shared. It is vital to have policies and procedures in place to ensure that data is shared securely over protected channels, is compliant with any relevant regulatory standards, and of the highest quality. This will facilitate better decision-making, higher levels of trust from data consumers, and improved brand value.
Data Clean Rooms
With increased sharing of data and data analytics outsourcing, businesses need safe sites that will keep their shared data secure. These data “clean rooms” are a location where data can be housed and shared while remaining compliant with regulatory standards and privacy. This gives companies a competitive advantage when they can have a secure means of this type of collaboration. This is of particular benefit for industries like healthcare, energy, financial services, and the legal field. Encryption and anonymization of data on both sending and receiving ends is a vital part of the work done in these “clean rooms”.
Consumers around the world are concerned about doing business in a way that is sustainable and environmentally responsible. As a result, this focus is going to play a role in the world of data analysis as well. To improve sustainability, it will become desirable, maybe even required, to incorporate ESG data (environmental, social, and governance) or other metrics around sustainability into their business structures and stakeholder reporting.
We will be watching as we move into the 2023 year to see how these trends play out and the impact they will have on business practices in the future.
If you are interested in looking at ways to maximize your data potential and see where your data can take you, reach out to Klik Analytics for more information. Your data can take you places. What’s your destination?