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Cloud use and embedded analytics will drive business data in 2022

By Charles Caldwell, vice president of product management, Logi Analytics

The close of 2021 sees enterprise businesses are eager to adopt cloud technology, having recognized the cost-savings that come with off-premise data storage. Yet, their concern over security and notification has not eased. Security compliance limits the extent to which they're comfortable relying entirely upon cloud vendors for this service. This significantly affects regulated industries like healthcare and finance.

Greater Cloud Acceptance

Still, the cloud has become the primary location for software vendors to store their data over the last few years. Many have even moved their applications to cloud platforms. The current trend I recognize and believe will continue in 2022 is investment in multi-cloud deployments by software vendors. Organizations will not want to be locked into a single cloud vendor due to regulations like Europe's GDPR. They will also want localized data for their own convenience and for their customers.

Data management during this same period will also transition. That's because the business intelligence industry has given up on predictive analytics.

Augmented Analytics Replacing Predictive

In its current state, predictive analytics puts numbers in front of analysts and decision-makers without telling them what the data means. Simply put, it's just a prediction about the future. Instead, BI analysts today want to gather as much context around that number as possible.

They're saying, "These are our business goals for the next quarter, next year, five years down the road," and want tools that reveal, "How did we arrive at these numbers? How did our past action affect this current result? Where were our strengths or weaknesses exhibited that underpin these figures?"

With prescriptive and augmented analytics, you start with a prescription or a takeaway before diving into the numbers rather than commencing with the results first to try and figure everything out. In 2022, businesses will realize the high value of augmented analytics and how they outweigh what predictive analytics deliver.

UX Must Serve All Skill Levels

Identifying and hiring talent is paramount now. Organizations are selecting the best candidates available to them, while candidates are more selective than ever at choosing employers that address their needs best. This means the chances are good that the perfect fit won't fall into data analysis and management vacancies with an overabundance of technological skills to be an instant wizard using BI tools. For business success in 2022 and beyond, organizations must implement analytics that allow users to apply their business analysis acumen to intelligent analytics regardless of their skill level on the specific analytical tool the company uses.

We keep seeing a push for more open-ended modes within applications, but this does not equate to a good user experience for those who exhibit all data fluency levels. Instead of expanding an application solely geared towards DevOps or IT teams, applications must be configured to have greater accessibility for all. In 2022, we will see better user designs within dashboards. This will allow for greater adoption among executives and managers and empower them to make well-informed business decisions backed by data.

Ultimately, businesses in 2022 will be conducting all their assessment, planning, forecasting and critical decision-making from within their analytics tool. Organizations recognize that the time savings and efficiencies realized by working within a single instrument are more cost-effective and result in better decision-making at the speed of business.

Embedded Analytics Eclipses BI

Well-built applications become the problem-solving mechanism in both the pattern and the process. The feedback loop is constant whether it understands the data behind a campaign, diagnoses an issue, or takes action. The application has now become more than a tool. It's the way you task. Look for this in 2022 and beyond.

Organizations next year will distance themselves from static tools that force them to transition between platforms to perform the data responsibilities.

In the conversation of embedded analytics versus traditional BI, many organizations are phasing out traditional BI because embedded analytics provide for more efficient tasking. Those with features that allow users to remain in the application lead the way.

Embedded analytics creates a streamlined experience, unlike traditional BI. This is not a trend that will ebb anytime soon. Quite the contrary, we can expect to see further widespread adoption of embedded analytics as traditional BI ages.

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ABOUT THE AUTHOR

Charles Caldwell is vice president of product management at Logi Analytics, with more than 20 years of experience in the analytics market, including a decade of direct customer implementation guidance. He writes and speaks extensively on analytics, emphasizing in-app embedding, optimizing user experience and utilizing modern data sources. Caldwell earned his MBA from George Washington University. On LinkedIn and Twitter.