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By 2025, smart workflows and “seamless” interactions among
humans and machines will likely be as standard as the corporate balance sheet,
and most employees will use data to optimize nearly every aspect of their work.
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Wait — that’s less than three years away. Is your business
anywhere near becoming data-driven?
Analysts at McKinsey have created a guide the
forecaster thinks that most, if not all companies — including telcos and
broadcasters — should be implementing.
Notable technologies include AI and cloud computing to speed
data processing and analytics.
Companies already seeing 20% of their earnings before
interest and taxes (EBIT) contributed by AI, for example, are far more likely
to engage in data practices that underpin these characteristics, it finds.
By 2025, data will be embedded in every decision,
interaction, and process, McKinsey predicts.
“Organizations are [in 2025] capable of better decision
making as well as automating basic day-to-day activities and regularly
occurring decisions. Employees are free to focus on more ‘human’ domains, such
as innovation, collaboration, and communication.”
The data-driven culture fosters “continuous performance
improvement” to create what the analyst calls “truly differentiated customer
and employee experiences,” as well as enabling the growth of sophisticated new
applications that aren’t widely available today.
Right now, only a fraction of data from connected devices is
ingested, processed and analyzed in real time due to the limits of legacy
technology and the high computational demands of intensive, real-time
processing.
Three years from now, vast networks of connected devices
will gather and transmit data and insights, often in real time. It’s not
spelled out, but presumably this is dependent on the rollout of 5G networks and
wider deployment of cloud infrastructure.
“Even the most sophisticated advanced analytics are
reasonably available to all organizations as the cost of cloud computing
continues to decline.”
We can also look forward to leveraging more flexible ways of
organizing data, particularly unstructured and semi-structured data. This
accelerates the discovery of new relationships in the data to drive innovation,
McKinsey says. “This enables sophisticated simulations and what-if scenarios
using traditional ML capabilities or more-advanced techniques such as
reinforcement learning.”
There will be a bigger role for the chief data officer in
organizations. Their responsibilities will widen from tracking compliance to a
fully fledged Profit & Loss division.
“The unit is responsible for ideating new ways to use data,
developing a holistic enterprise data strategy (and embedding it as part of a
business strategy), and incubating new sources of revenue by monetizing data
services and data sharing.”
None of this can happen if data remains siloed and
inaccessible to sharing. By 2025, data-driven companies will actively
participate in a data economy that facilitates the pooling of data to create
more valuable insights for all members
“Data marketplaces
enable the exchange, sharing, and supplementation of data. Altogether, barriers
to the exchange and combining of data are greatly reduced, bringing together
various data sources in such a way that the value generated is much greater
than the sum of its parts.”
McKinsey’s final note is around data protection. It
forecasts that organizations will have fully shifted toward treating data
privacy, ethics, and security as areas of required competency (driven by
legislation such as GDPR, and California Consumer Privacy Act (CCPA).
Automated, near-constant backup procedures ensure data
resiliency; faster recovery procedures rapidly establish and recover the “last
good copy” of data in minutes, rather than days or weeks, thus minimizing risks
when technological glitches occur.
Also, AI tools will become more effective at data management
— for example, by automating the identification, correction, and remediation of
data-quality issues.
“Altogether, these efforts enable organizations to build
greater trust in both the data and how it’s managed, ultimately accelerating
adoption of new data-driven services.”
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