The rapid progression of digital transformation, coupled with advancements in data analytics, is redefining the business environment and fueling performance improvements. This technological revolution has paved the way for innovative business practices. These technologies are continually evolving, ushering in waves of automation, analytics, and artificial intelligence (AI).
According to a recent survey conducted by Gartner, Inc., an overwhelming majority of corporate strategists, accounting for 79% of respondents, recognize the critical role that analytics, artificial intelligence, and automation will play in their success over the next two years.
Despite the recognition of the importance of these advanced technologies, there is a significant gap between the current level of automation and the potential for increased efficiency. Currently, only 15% of strategic planning and execution activities are automated, while strategists estimate that this figure could reach an average of 50% with the adoption of analytics, AI, and automation.
Adoption of advanced tools and AI lag
The Gartner survey reveals that while descriptive and diagnostic analytics are commonly used by corporate strategists, the adoption of more advanced tools, such as predictive, prescriptive, or graph analytics, remains relatively low. Less than half of the respondents said that they are utilizing these advanced analytics tools. Similarly, only 20% of strategists reported using AI-related tools like machine learning or natural language processing.
However, a significant number of strategy leaders expressed their interest in exploring and piloting these technologies, with 51% investigating machine learning and 45% exploring predictive analytics.
Overcoming the challenges of implementing advanced technologies
As organizations strive to remain competitive in an increasingly data-driven and technologically advanced landscape, the integration of analytics, AI, and automation becomes imperative. One of the primary challenges hindering the implementation of advanced technologies is the need to establish clear use cases.
According to 52% of strategists surveyed, this is the top challenge they face while adopting advanced technologies. The unfamiliarity of the vendor market, the abundance of options available, and the lack of precedents further complicate the decision-making process.
To overcome the challenges and successfully integrate advanced technologies, Gartner recommends that strategists begin by mapping existing functionality to specific needs. By assessing the purpose, impact, and suitability of new tools, strategists can prioritize use cases and develop a robust business case for implementation.
The success of sought-after advanced technologies in various domains highlights their immense value in corporate strategy. Businesses must overcome adoption challenges and leverage analytics, AI, and automation to achieve heightened levels of efficiency, productivity, and success in their strategic pursuits.