New Research Shows Analytics Outpaces Other Software Spending In Next 12-18 Months

Rhea-AI Summary

Alteryx, Inc. (NYSE: AYX) released findings from IDC research highlighting a significant gap in analytics utilization. Despite 73% of organizations expecting to increase analytics spending, under half make data-driven decisions. Only 30% utilize AI and machine learning effectively, with 93% not fully leveraging employee analytics skills. Key strategies identified for maximizing ROI include adopting easy-to-use analytics technology, fostering a data culture, and aligning IT with business goals. This research reflects a critical need for upskilling to enhance analytics maturity.

Positive

• 73% of organizations plan to increase analytics expenditures over the next 12-18 months.
• Companies that implement easy-to-use analytics platforms see improved financial, customer, and operational metrics.

Negative

• Less than 30% of decisions are informed by AI and machine learning.
• 93% of organizations fail to fully utilize the analytics skills of their employees.
• Enterprise-wide analytics solutions are not deployed in over half of the necessary departments.

Firms face significant gap in return on their investment, as more than 90% fail to utilize their employees' analytics skills

IRVINE, Calif., Sept. 12, 2022 /PRNewswire/ -- Alteryx, Inc. (NYSE: AYX), the Analytics Automation company, issued findings from Alteryx-commissioned IDC research, "4 Ways to Unlock Transformative Business Outcomes from Analytic Investments," revealing that 73 percent of organizations expect analytics spend will outpace other software investments in the next 12-18 months. As organizations increase their spending on analytics, the global survey finds less than half of business decisions are based on analytics.

Further, even fewer are maximizing advanced analytics, as less than 30 percent of decisions are informed by artificial intelligence and machine learning for most organizations. To help businesses maximize their analytics investments, the global IDC survey uncovered the impacts of people, data, and analytics automation on return on investment (ROI).

Gap between analytics and upskilling spending hinders digital progress

Ninety-three percent of organizations are not fully using the analytics skills of their employees. This is in part due to only one out of five organizations reporting commensurate investment in upskilling for analytics and data literacy. IDC further uncovered:

• 9 out of 10 respondents say that less than half of their knowledge workers are active users of analytics software other than spreadsheets
• 63 percent of organizations are not using the full breadth of data types available
• 82 percent of organizations indicate data access policies are only moderately effective or worse
• Enterprise-wide analytics solutions have been deployed in less than half of the departments that need them

Key strategies to maximize analytics investments and drive transformative business outcomes

Many business processes in today's digital economy are still manually running on paper and outdated spreadsheets, creating a widening analytics gap. When respondents invested in a low-code/no-code analytics automation platform and followed specific strategies, IDC found organizations improved their financial, customer, and operational metrics. These strategies included:

• Deploying easy-to-use cloud-based or hybrid AI-infused analytics technology to support cross-functional use cases
• Breaking down data and analytics silos by emphasizing enterprise-wide analytics
• Developing a data culture that aligns technology spend with upskilling on data literacy
• Ensuring alignment on analytics initiatives between IT and line of business to eliminate shadow IT

"It's no surprise that so few organizations are ahead of the curve when it comes to analytic maturity considering they leave out a key component: people," said Dan Vesset, group vice president, Analytics and Information Management, IDC. "What we're seeing is that organizations that provide analytics tools that are easy to use and easy to access, while upskilling their talent, achieve more ROI from their respective analytics investment than organizations who do not."

One of the key organizations using Alteryx to enable a culture of analytics is United Kingdom-based financial services company Brookson. "Alteryx has transformed the careers of so many individuals at our company," said Brian Millrine, CIO and strategy director at Brookson. "I believe they have one of the most exciting roles in the organization delivering high-velocity digital transformation, and what they do is recognized as golden at all levels of our organization. Alteryx will be a fundamental solution for them to use going forward and they will become rockstars of business." 

Take the Alteryx Democratization of Analytics Maturity Assessment and receive a complimentary report of your organization's performance with insights into how to maximize your analytics ROI. 

Methodology:

The IDC Infobrief titled "4 Ways to Unlock Transformative Business Outcomes from Analytics Investments" is based on a comprehensive sample of 1,501 respondents across three regions of: North America; Europe, Middle East, and Africa; and Asia/Pacific. The full IDC Infobrief can be viewed and downloaded here.

About Alteryx

Alteryx (NYSE: AYX) powers analytics for all by providing our leading Analytics Automation Platform. Alteryx delivers easy end-to-end automation of data engineering, analytics, reporting, machine learning, and data science processes, enabling enterprises everywhere to democratize data analytics across their organizations for a broad range of use cases. More than 8,000 customers globally rely on Alteryx to deliver high-impact business outcomes. To learn more, visit www.alteryx.com.

Alteryx is a registered trademark of Alteryx, Inc. All other product and brand names may be trademarks or registered trademarks of their respective owners.

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SOURCE Alteryx, Inc.

FAQ

What were the key findings of the Alteryx IDC research on analytics spending?

The research found that 73% of organizations expect analytics spending to grow, yet under half base decisions on analytics.

How does Alteryx suggest organizations improve their analytics ROI?

Alteryx recommends investing in user-friendly analytics technology, fostering a data culture, and aligning IT with business objectives.

What percentage of decisions are influenced by AI according to the Alteryx research?

The research indicates that less than 30% of business decisions are informed by AI and machine learning.

What is the impact of underutilizing analytics skills in organizations?

Underutilization leads to a significant gap in analytics maturity, hindering a company's ability to leverage data for decision-making.

How can companies maximize their analytics investments?

Companies can maximize ROI by adopting analytics technology, promoting data literacy, and ensuring alignment between IT and business strategies.