Four data & analytics trends to watch in 2020

The buzz around headline-grabbing topics like machine learning (ML) and artificial intelligence (AI) is ever-growing. But for data and analytics leaders, these trends have practical implications for everything from technology and processes to people and culture.

A recent research of 640 global leaders delivers a snapshot into where the real issues and priorities lie, anchored back to four strategic pillars that are relevant to any organisation.

The themes themselves are long-lasting: placing the customer first, making evidence-based decisions, automating and optimising processes with algorithms and reaping the benefits of strong data security. More broadly, there are vital questions emerging around what the right balance of human versus computational power is and the role strategy plays in driving ROI from longer term tech investments.

Trend 1

Achieving Customer Centricity with Data

Improving the customer experience (CX) with data is a key part of many organisations’ digital and data strategies. It should come as no surprise that 98% of the data leaders surveyed plan to use data for CX optimisation going forwards, and 77% already are.

Data is seen as a key tool for providing personalisation, measuring what’s working, refining pricing strategies and more.

Securing consent from customers to use data for CX optimisation is a key challenge data leaders face, in addition to ensuring the data they gather is the right quality to generate meaningful insights

Trend 2

The Rise of Enterprise-Wide AI Adoption

AI and ML are two of this year’s hottest technology trends. IT leaders are increasingly looking to these technologies to increase efficiency, uncover useful insights, cut costs and inform business decisions.

ML algorithms are the most widely used type of AI, with 80% of the data leaders saying their organisations are already using them. Deep learning algorithms and chatbots are also popular, with 50% and 35% of respondents using these technologies, respectively.

Many data leaders will need to secure management buy-in, educate the wider organisation and upgrade existing IT systems in order to realise those returns – but most clearly believe these investments will be worth it.

Trend 3

Using Data to Justify Internal Change

The sheer volume of data and tools available to inform business decisionmaking has soared in recent years. Companies that aren’t on the road to becoming truly data-driven are now in the minority.

Sixty of respondents say their businesses have been able to use data to justify organisational changes. Of those that have taken this crucial step on the road to becoming data-driven, 61% have restructured teams or departments, 60% have switched operating models, 54% have redistributed job responsibilities and 51% have changed IT applications. A further 38% have been able to justify a change of IT infrastructure, while 31% have made the case for reducing headcounts and 26% have convinced their organizations to adopt new ways of working.

Trend 4

Fostering Loyalty with Data Security

With the threat of cyber-attacks, data breaches and fines looming large, enterprises of all types are taking steps to fortify their data. The value many customers place on these features means good security is increasingly seen as a value creator, rather than a purely defensive investment.

Improving customer loyalty is the most frequently cited benefit of using data privacy and security tools, with 64% of data leaders reporting that their organizations use them for this purpose. What’s more, 52% of respondents report using these features to acquire new customers by promoting them as key selling points.

Overall, these findings reveal a substantial opportunity for organisations that can effectively implement secure, customer-centric data strategies.

Reference: The research was conducted by Lynchpin. A key contributor includes Christopher Boone, VP, Global Medical Epidemiology and Big Data Analysis Lead, Pfizer

You may also like Rise of the machines; will AI replace doctors?

Register FREE to access Health Industry Hub’s e-news bulletin; the only one-stop-hub connecting Australia’s Pharma, MedTech and Biotech industry professionals.