According to a Gartner article on trends in data and analytics, the market share of large organizations selling or buying data from online marketplaces will increase from 25% in 2020 to 35% in 2022. The same article suggests that by 2024, 75% of businesses will start adopting AI in their operations, leading to a fivefold increase in data streaming and analytics infrastructures.
2020 was the year that pushed every business to go digital, proving to enterprises across various verticals the need for robust data analytics. Regardless of the size, nature, or domain of the business, an increasing number are clamoring for the once far-fetched technologies, such as big data, artificial intelligence, machine learning, and cloud. Advanced analytical techniques are coming into play to interpret the data and ensure unparalleled digital transformations.
As the digital currency par excellence, data analytics are critical to the growth strategies of successful businesses. Here we will review the top-five data analytics trends to watch in 2021 and beyond.
1. Cloud will continue to rule
According to Forbes, businesses will dedicate 32% of their IT budgets to the cloud by 2021. The same report also indicates that businesses increased their average cloud expenditure by 59% from 2018 to 2020. Why you ask? Let’s break it down.
Data analytics is based on six elements, namely, data sources, computing power, processing applications, data models, analytic models, and data storage. That’s a lot of information! When scattered across different sources, working on each of these elements is not only cumbersome but is a waste of time and financial resources. Cloud-based tools such as Microsoft Azure Cloud Platform, which integrate the different elements into one place, offer more feasible remote solutions.
Cloud Analytics is a highly responsive and potent alternative to on-premise analytics. On-premise analytics refers to an in-house data center, that is built and maintained by the company itself. It is not very economically viable as it necessitates a heavy investment of time and money for implementation and maintenance. Cloud Analytics, on the other hand, has numerous benefits, including real-time data, vast storage choices, and pre-built algorithms. As cloud technology grows to be swifter, smarter, and more customizable, there is a steep rise in the number of organizations moving their data from physical servers to the cloud. The Gartner study also predicts that by 2022, public cloud computing will become an essential asset for more than 90% of businesses.
2. Data and analytics will be more flexible and open
With the rise in new technologies, organizations are becoming less “siloed.” This means that IT is no longer the sole caretaker of the data, nor is analytics confined to the C-Suite. With the adaptation of story visualization boards, data is becoming accessible to marketers, business administrators, and those who work in traditionally “non-technical” roles (like public affairs).
Experts also expect a boom in the adaptation of self-service business analytics tools. This so-called “democratization of data” empowers the employees of an organization to study and evaluate data. Technical advancements have further given enterprises the ability to deploy automatic business intelligence (BI) models. Such an opportunity enables various teams within the organization to analyze the data, find context in it and then work in close coordination, employing data findings to achieve business goals.
3. AI is to become more scalable to address security loopholes
Tech giants are working towards developing smarter, scalable, more adaptable AI to enhance business performance — all while bringing down the turnaround time. These leading technology stalwarts are incorporating new techniques and algorithms, allowing enterprises to experiment with these innovations. They are implementing federal laws while safeguarding personal information and diminishing security biases that occur in the existing systems.
4. “X Analytics” is moving in
When most people visual “data,” they imagine never-ending rows and columns on a spreadsheet (i.e., conventional data in tabular form). But data comes in many formats — from video to text to audio.
Experts agree that moving ahead of the competition means businesses must utilize the various data formats available. This evaluation of non-conventional data is known as “X Analytics”; it includes text analysis, audio analysis, and video analysis. Reading and analyzing product reviews is one of the most common forms of textual analytics that businesses adopt to understand the mood, behavior, and sentiments of their customers. The same experts predict that by 2025, 75% of the existing Fortune 500 companies will be using X Analytics in a variety of forms.
5. Decision Intelligence is going to be huge
If a business wants to stand out from the competition, it needs to make smart decisions quickly.
As the world leverages more and more technologies, the integration of data science and machine learning into corporate decision-making is increasing exponentially. The activity of incorporating data science and AI into effective decision-making is called Decision Intelligence. Simply put, the decision-makers — from the top executives to the shareholders — gather insights from their data by employing machine learning algorithms. Then, they leverage this data to make business decisions that help their organizations grow.
While 2020 opened the gates of advanced technology for many conventional businesses, 2021 continues to see a paradigm shift in data-defining organizational objectives. As the dependence on AI and cloud computing increases, the need to deploy reliable AI and data analytics becomes imperative.
Consider these top data analytics trends to strategize your business operations going forward. While the pandemic has accelerated digitization, those businesses that continue to put in sustained efforts in bridging the gap between data analytics and industry needs will be the ones to succeed. With these data analytics trends likely to dominate the market, you must act proactively so as to enjoy a competitive advantage.
At Alphavima, we have an experienced team of industry experts to assist you in generating insight from data and in gaining a competitive edge — no matter what your business niche is. Contact us today to learn more!