Data Analytics: Expectations for 2023
The use of data analytics will become more common in workplaces of all sizes as businesses strive to make better decisions faster. As a result, data and analytics will play an integral role in driving success for businesses worldwide.
Companies embracing data-driven decision-making and leveraging data sources will be well-positioned for the future. We pulled some facts from recent research and asked members of the Freya Systems team how they believed they would manifest in 2023.
Data analytics accelerates rational decision-making 5x for organizations.
Data analytics allow organizations to make decisions more informedly with assured accuracy. Plus, it helps them build reliable forecasting models for future results by considering past performance. This helps businesses stay ahead of their competitors and act rapidly when necessary. Data analytics also provide invaluable insights into customer behavior, enabling companies to customize services and products according to their preferences. As such, data analytics is essential for any organization looking to stay competitive in today’s competitive environment.
Earlier this year, Freya Systems developed an algorithm for a regional water authority in Pennsylvania to help inform their decision-making and avoid costly scenarios. For example, the algorithm predicts when all blowers will turn on to quickly boost dissolved oxygen levels in aeration tanks for wastewater. This gives operators at least 30 minutes to react and find other ways of allowing oxygen into the tanks through more passive means avoiding costly scenarios and saving on energy.
According to 63% of businesses surveyed by Business Wire, data analytics helped increase productivity, and 57% said it helped increase decision-making effectiveness. As a result, tools that allow companies to make better decisions, faster and reduce expenses will undoubtedly continue to expand in 2023.
70% of firms consider data visualization as a critical future asset.
Data visualization is a trend companies are turning to as data-driven decision-making becomes the standard. With infographics, graphs, charts, and maps, businesses can easily understand complex data and draw correlations between behavior patterns that help inform decisions. “Seeing is believing.” Often, you can tell a story better using the data with a visualization tool. It allows more people to see the data and make educated decisions.
Data visualization gives organizations the ability to extract value from previously hidden information. It puts valuable information into a format everyone can access and use quickly and efficiently. Creating quality dashboards gives decision-makers confidence to believe what the data are saying. Without intuitively seeing the data, businesses rely on “gut feels” over data, which is why data visualizations and dashboards will be a focus in 2023.
According to a report by DOMO, it’s taken very seriously by 3/4 of business owners. This is because data visualization makes it easy to discover data correlations, trends, patterns, and other information critical for decision-making.
2/3 of decision maker executives rely on their intuition over data when making business decisions.
According to a recent Accenture report, about half of all employees say they would rather rely on instinct than follow statistics when making decisions.
This is a bit disturbing, as data-driven decision-making is the foundation of any successful business intelligence strategy. It could be partly due to a need for more data dashboards and visualization tools. For businesses to get the most out of their analytics, it’s important that everyone in the organization be comfortable and skilled in working with data.
It’s also crucial to ensure that data analysis is an enjoyable process. AI-based tools are becoming increasingly popular as they help companies streamline data analysis processes and make them more user-friendly. By investing in such solutions, companies can reduce the time spent on analyzing data while still getting accurate insights – ultimately leading to better decisions.
Overall, organizations must have reliable business intelligence strategies in place and promote a culture of data-driven decision-making if they want to stay competitive in today’s market. By investing in the right business intelligence solutions and equipping employees with the skills needed to analyze data effectively, companies can make intelligent decisions based on facts rather than intuition.
Bad data and quality issues cost the US economy $3.1 trillion annually. (Fortune Business Insights)
Data quality matters when it comes to business operations. Data errors can significantly impact a company’s bottom line and reputation. Garbage in – garbage out can also apply to predictive algorithms. On the other hand, clean data sets help automate processes, optimize operations, and make informed decisions.
At Freya Systems, we’ve dealt with bad data quality working with military aviation maintenance data. Several projects have been abandoned due to poor data quality, or programs are assigned reliability and maintainability engineers who attempt to clean data manually by hand. Unfortunately, the manual process is often associated with high costs, and the return on investment can be challenging to justify.
While data cleaning may be an arduous process for manual entry, organizations can use automated data cleansing tools to reduce data errors and streamline the data management process. These tools also help identify data inconsistencies that could lead to inaccurate reporting or wrong decisions in the future. The number one focus for improving algorithm performance is to clean or somehow manipulate data to get better performance as the algorithm learns. Improvements can be made through data cleaning, data augmentation, or a more precise labeling process.
Investing in data quality improvements upfront allows businesses to focus on more productive activities instead of spending valuable time fixing poor-quality data.
From 2010 to 2020, data usage increased by 5000%. (Forbes)
This data-driven trend has enabled businesses to reduce their operating costs. Data is at the heart of decision-making processes, and data accessibility has become the norm.
In addition to data production, data sharing and data consumption have also grown in leaps and bounds in the past decade. With the rise of cloud computing, data is now being stored remotely with ease, making it easier for companies to access information from any location. Businesses are using this newfound flexibility to stay competitive by tapping into a broader range of resources and data sources.
The data revolution of the past decade has changed data consumption from an occasional event to a near-constant experience. This trend is expected to continue as businesses look for new ways to leverage data for competitive advantage. As data continues to grow, so will its value and importance for businesses worldwide. Companies that embrace data-driven decision-making and leveraging data sources will have their finger on the pulse of emerging trends and be well-positioned for success in the years ahead.
Many businesses believe their main issue is integrating both structured and unstructured data into their data management solutions.
Data-driven organizations know they must understand and leverage data insights. This data can come from various sources, including customer feedback, website analytics, social media conversations, and more. By analyzing trends in both structured and unstructured data, businesses can gain valuable business intelligence that can be used to help guide decisions and refine strategies. As the percentage of data created continues to increase, organizations must recognize the need for data-driven decision-making. By leveraging data intelligently, businesses can gain a competitive edge and succeed in the digital age.
We should note that drawing insights from unstructured textual data can be a challenge. This data remains difficult to score and categorize without a lot of human intervention. However, important business intelligence can be gleaned from the data if appropriately cleaned and fed into dashboards.
Businesses must be proactive with their data management practices to ensure they take advantage of all available data insights. By recognizing the importance of data analysis and trends, businesses can stay ahead of the competition and maximize their data-driven initiatives. With data playing an increasingly important role in business success, it’s essential that organizations take advantage of the data they have to make informed decisions and improve their strategies. 17. Business managers report that 27% of their big data initiatives have paid off.
AI software will advance; however, humans will still be vital.
To remain competitive, businesses must examine how they integrate their traditional processes with these new technologies. Ultimately, leveraging both human skills and AI capabilities is imperative if businesses are to take advantage of the full potential of Artificial Intelligence. The challenge will be figuring out how they can scale the technology effectively and efficiently, as this has been a difficult task. Nevertheless, businesses must continue to invest in AI-powered solutions that maximize efficiency and accuracy while providing interpretability. By doing so, they will gain the competitive edge they seek in today’s ever-evolving marketplace.
Businesses should view AI as a tool rather than a replacement for human skills, enabling them to gain deeper insights into existing patterns while remaining agile in response to changing conditions. In 2023, this trend of augmenting analytics with AI will become even more prevalent. AI is far from replacing humans at all. A great example of a case where humans and AI come together for a common benefit is the World Cup. New analytical technology has been utilized in identifying offsides and quickly alerts humans to a missed offside call which gives human officials time to review the data manually and determine if an offside call needs to be made.
Companies will strive to bridge the gap between humans and artificial intelligence as they seek to empower their personnel with data-driven insights that enable fast decision-making. With the help of AI, businesses can gain deeper insights into existing patterns while leveraging human analysis to uncover potential risks or anomalies.
By leveraging their combined strengths, companies will be able to make informed decisions with confidence. By combining the power of humans and machines, companies can unlock the full potential of data analytics and gain greater insights into their customers. With the right approach, Artificial Intelligence and Augmented Analytics can help businesses stay ahead in an ever-changing world.
In conclusion, data analytics is here to stay as a key driver of business growth over the next five years. Therefore, businesses should invest in data-driven initiatives that utilize human skills and AI capabilities to remain competitive. Learn more about our data analytics techniques.