Solutions Review’s Expert Insights Series is a collection of contributed articles written by industry experts in enterprise software categories.
Market uncertainty is pushing more business leaders than ever to rethink their strategies for 2023 – with companies increasingly turning to their data to make the decisions needed to mitigate challenges and take advantage of industry opportunities and trends. In fact, research shows that nearly 79 percent of businesses report data will be more important to their strategic decision-making over the next 12 months. But to drive more confident business decisions, organizations ultimately need to be able to rely upon trustworthy data to fuel them. Below I explore the top three industry trends driving data-driven decision-making in 2023, and why a foundation of consistent, accurate, and contextual data is the key to success.
Data Integrity Process
During economic uncertainty, businesses need to prioritize investment in digital transformation to help reduce costs and drive revenue. Automation technologies can help businesses become more efficient and reduce spend by taking existing processes that may be human-based, inefficient, or running across multiple pieces of infrastructure and redesigning them with automation. Many organizations are also struggling to find enough employees to deliver their service offerings or great customer experiences. In today’s macro-environment, it’s not hard to see why digital transformation is increasingly becoming a top priority for businesses. In fact, a recent Gartner survey showed that 78 percent of CEOs are furthering their own digital transformation strategies – with 85 percent investing in digital capabilities and 77 percent increasing investments in IT in order to achieve digital transformation aims. IT spend is expected to increase by 5 percent in 2023 to fund these initiatives, including cloud acceleration, despite cutbacks in other areas.
To be successful in achieving digital transformation aims, companies must redesign their processes with automation built-in, using machine learning or artificial intelligence. The challenge is that technologies such as these require high volumes of data in order to run properly, but crucially, they also rely on that data being trustworthy. A data integrity strategy helps businesses to put a foundation of trusted data in place, ensuring that it’s accurate, consistent, and contextual – and, ultimately, fueling automation in the best way possible to achieve optimum results.
Environmental, social, and governance (ESG) initiatives have risen to the top of the strategic agenda as a business imperative. While stellar products and services was formerly enough for companies to attract new customers, investors, and employees – and win their loyalty over time – expectations are now changing. Stakeholders increasingly want to dive deeper and understand how the companies that they’re engaged with support sustainable ESG initiatives. Ultimately, people make decisions on where they are going to spend money, where they want to work, and where they want to invest based on how commercial enterprises conduct business. On top of this, ESG’s already fast-evolving regulatory landscape is putting extra pressure on companies to know where they are on their sustainability journeys. This pressure will only increase in 2023.
In a recent report published by EY, 84 percent of executives confirmed that their corporate stakeholders expect ESG-driven growth – but those who did take steps to invest in ESG also reported significant improvements in revenue generation and customer satisfaction. This shows the opportunity available to organizations that can successfully navigate increasing ESG reporting requirements and leverage ESG-related insights for business success.
Data is one of the most important factors for gaining insight, measuring metrics, and filling in the gaps when it comes to ESG practices. Although many companies already have a data infrastructure in place, many find it is not detailed or trustworthy enough to properly report on these initiatives. Companies will find they need to establish a foundation of data integrity to make strategic decisions based on trustworthy ESG data. As part of this, more companies will invest in technology that combines data integration, data governance and quality, location intelligence, and data enrichment capabilities.
Supply Chain Resiliency
The pandemic, the war with Russia, Hurricane Ian – these are just some of the major disruptors we’ve seen upend our global supply chain and impact our commercial enterprises in recent years. As a result, companies are investing in digital supply chain technologies to improve supply chain visibility and effective scenario planning. According to a study by McKinsey, more than 90 percent of supply chain leaders invested in digital supply chain technologies last year.
Businesses need to understand their supply chain better by having access to information on suppliers, their suppliers’ suppliers, modes of transportation, and a variety of other complexities. Location attributes are also essential, such as the location of the warehouse in relation to the destination, the level of risk for a natural disaster, and visibility into the hierarchy of suppliers.
Ultimately, supply chain resilience relies upon a programmatic approach for improving end-to-end process visibility and risk monitoring. To be successful, supply chains must become both digital and autonomous to keep pace with disruptive global events and changing consumer expectations in 2023 and beyond. Process automation is critical, but the success of digitized processes and workflows will also rely upon the accuracy, consistency, and context of the data feeding them. Supply chain transformation, fuelled by data integrity, will be the key to supply chain resiliency against a backdrop of disruptive world events.
Businesses continue to face a variety of external challenges, from macroeconomic headwinds, to complex regulations and supply chain risks. In order to successfully navigate market turbulency, and drive business transformation, it seems clear that organizations will increasingly need to rely on data-driven decision-making. Companies that first ensure a foundation of trusted data to fuel strategic decision-making processes will be the ones who succeed in 2023 and beyond.