5 Data Predictions For 2023 and What They Mean For Your Business
Here are our predictions for how data will impact the business landscape in 2023.
Data is the key to unlocking new revenue streams, identifying necessary business changes and decisions, and fostering environments for improved efficiency. It helps you better understand the landscape of your respective market, predict future trends, and stay one step ahead. That’s why we’re excited about what lies ahead for data in business this year. Last year was a huge year in terms of how data elevated enterprise operations and we expect this trend to continue.
Prediction #1: Increased adoption of cloud-native applications.
One of the most significant predictions for data in 2023 is increased adoption of cloud-native applications. This trend has been happening for years and will continue to accelerate. Cloud-native applications are built for the cloud, making them more resilient and capable than traditional on-premises applications. They’re also easier to maintain, scalable, and less expensive to run than traditional systems that require physical infrastructure.
These advantages are making it easier for organizations to realize the benefits of moving their workloads from on-premises servers into public clouds such as Amazon Web Services (AWS) or Microsoft Azure. According to a study by Forrester Consulting and B2X Partners, 52% of enterprises surveyed had already migrated at least some workloads onto public clouds or planned do so over the next two years; another 37% said they would migrate some apps within five years.
As cloud-native applications become more popular and common, it’s important for organizations to consider how they can take advantage of them.
Prediction #2: Data analytics will become a core competency in business leadership roles.
Data analytics is becoming a core competency in business leadership roles. As data becomes more valuable, it’s important for organizations to leverage the insights it provides and make decisions based on the data. Those that can do this will be successful; those who don’t will miss out on opportunities.
Leadership backed by data will become a core competency in business leadership roles because it’s a key component of digital transformation—the process by which businesses transition from an offline or traditional mindset to an online/digital one. Digital transformation gives organizations access to new sources of revenue and customers, but it also allows them to use technology—and therefore data—to make better decisions about everything from product development and marketing campaigns to employee performance management systems (ERP).
Organizations that are, or are looking to become, data-driven leaders need to know how to extract value from data. It’s not enough to have access to information; instead, business leaders need to leverage that data so they can make decisions based on insights from analytics.
Prediction #3: Rise of data mesh.
Data mesh is a new technology that enables data from multiple sources to be connected and analyzed together. For example, it could help you track your website visitors across multiple channels, such as email, social media and search engines. It will be a key part of the data governance process as we create more sophisticated systems to track and analyze our data. This can help organizations think about what they’re doing with their customers’ personal information in a holistic way—for example, when they get permission to use certain information for marketing purposes on one platform but not another. It will also play an important role in analytics: companies can use it to combine insights from different types of data sources so that they have richer insights into customer behaviors across all touchpoints with the organization (email marketing vs direct mail).
Data mesh is the new hot thing in the world of data and analytics. We are just beginning to see the benefits of this model of enterprise data. Businesses need to keep an eye out for the data mesh and if the opportunities it presents apply to their operations.
Prediction #4: Data analytics will accelerate dramatic change in business models.
Business models will evolve rapidly. Organizations that become data-driven will be able to leverage new insights and uncover opportunities for increased efficiency, reduced costs and improved customer engagement. This is especially true for industries like healthcare where the volume of data has exploded, with 90% of all healthcare spending coming from private payers, who demand better value for their dollars by using predictive analytics to make better purchasing decisions.
In an increasingly complex business landscape, organizations should adapt their business strategies in order to thrive. Data analytics can help guide these strategies by revealing new opportunities while avoiding failure points that could otherwise cause disruption or loss of revenue.
Prediction #5: Organizations will adopt a heavy focus on data protection.
You should plan to prioritize data protection in the year ahead. As we’ve seen over the last year, organizations are still struggling to develop and implement effectivedata protection strategies. In fact, a recent study revealed that almost half of all companies do not have an accurate view of their sensitive information assets, meaning they can’t provide adequate control over them or understand what risks they pose.
As the rules for compliance become increasingly complicated, it’s imperative that organizations adopt a heavy focus on data protection. This isn’t just about avoiding fines from regulators like GDPR and HIPAA: it’s also about avoiding business risk and protecting sensitive information. And while some companies may be able to avoid regulatory penalties by demonstrating compliance with standard frameworks (e.g., ISO 27001), this is only one aspect of what many consider “good governance.” The broader goal should be ensuring that your organization is able to proactively protect its most valuable assets—regardless of whether those assets happen to fall under any specific jurisdiction’s definition of sensitive information.
Organizations that leverage their data properly can predict success.
The predictions we’ve discussed here are some of the critical changes that we can expect to see this year and are highly important for businesses to keep an eye on. Each of these changes represent an opportunity for your business to take advantage of the evolving field that is data analytics in 2023. We understand that leveraging data to elevate your business operations can seem confusing. That’s why Alex purpose-built our metadata management platform to be technologically agnostic to evolve with the times and your organization’s scaling needs.
More than simply keeping up with the trends of business and technology, Alex equips your enterprise with the best-in-class data governance tools on the market, thus maximizing your relationship with your data. To get ahead of the trends, reach out to us today and request a free personalized demo of how Alex can help you achieve your data goals: