Business and data analytics cemented its position as a top priority for organizations, with adoption rates and investment levels reaching an all-time high. While data analytics has always been a major part of the IT landscape, it has likely taken another leap forward due to real-time analytics, generative and agentic AI, automation, and other data-hungry technologies. We expect this round of investment to continue as AI moves from the proof-of-concept stage to full implementation.
Figure 2 from our full report, Business and Data Analytics Adoption and Customer Experience, shows increasing adoption and investment in business and data analytics over five years. The adoption rate steadily climbed to 82% in 2024 from 65% in 2020, indicating a growing recognition of the value of data-driven decision-making. Investment in data analytics also mirrored this trend, rising from 68% in 2020 to 72% in 2024. This suggests a strong commitment to leveraging data analytics for business growth and improvement.
Business and data analytics refer to a broad range of tools used to collect, store, integrate, analyze, and present information that supports decision-making. Our definition of this technology includes data warehouses, data marts, business intelligence, predictive analytics, data mining, dashboards, online analytical processing, end-user report writers, AI and machine learning for analyzing data, sensors, and big data.
“Data has become the lifeblood of modern business,” said Asif Cassim, principal analyst at Avasant, based in Los Angeles. “By embracing data-driven strategies and fostering a culture of insights, organizations can unlock higher levels of efficiency, innovation, and competitive advantage.”
The surge underscores the critical role of IT departments in enabling this transformation. The demand for robust data pipelines, scalable cloud infrastructure, and advanced AI/ML technologies is intensifying, requiring IT leaders to prioritize investments that ensure the organization possesses the necessary technological foundation to support data-driven decision-making at all levels.
However, with increasing volume and sensitivity, data privacy and security remain paramount. Organizations must implement robust data governance frameworks that adhere to relevant regulations while safeguarding sensitive information. These include measures such as data anonymization, encryption, and access control. Regular audits are also essential to identify and address potential vulnerabilities, ensuring the integrity and confidentiality of data.
Our full report examines the adoption trends for business and data analytics technology of all types, providing insight into how many organizations have the technology in place, how many are implementing it, and how many are expanding investments in new capabilities. We also recommend steps for successful implementation.
To provide additional insights, we look at the economic experience of those who have adopted the technology. We examine the ROI experience in terms of the percentage of organizations that report positive and break-even ROI within a two-year period. We also balance the potential ROI against the risks measured in terms of the percentage of organizations that exceed budgets for TCO.
This Research Byte is a brief overview of our study, Business and Data Analytics Adoption and Customer Experience 2024. The full report is available at no charge for subscribers, or it may be purchased by non-clients directly from our website (click for pricing).
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