We know the potential of GenAI is undeniable, but to fully harness the power of GenAI, organizations must modernize their data stacks. This means organizations need to overcome challenges such as lack of data literacy, gaps in internal resources, and reliance on inefficient legacy systems.
According to a recent report from Hakkoda, 94% of organizations will need to modernize their data stack this year. His survey of more than 500 data leaders across industries shows that 2024 is the year of data modernization, at least for organizations that know how to do it.
Hakkoda is a cloud data consulting company specializing in Snowflake. The company has deep expertise in financial services, healthcare and the public sector. Hakkoda guides clients into a data-driven future through a wide range of services, including data modernization services.
The 2024 State of Data report by Hakkoda shows that new AI capabilities are rapidly being integrated into business IT, with 50% of organizations actively adopting AI. All organizations surveyed believe that GenAI is important, and nearly two-thirds believe that GenAI will be very or extremely important to their organization's success by 2027. I shared that there is.
This report categorizes organizations into four stages of data maturity: innovation, insight, order, and chaos. Organizations in the “chaos” category are late in their data maturity cycle and have not yet identified the strategies, tools, and services they need to optimize their data stack.
Organizations in the innovation stage, on the other hand, have a strong commitment to data maturity and have moved through data standardization and centralization to more advanced capabilities, such as automation and the introduction of AI to monetize data. I am. Unfortunately, chaotic organizations do not realize that they are in chaos.
Data-mature organizations appear to have a better understanding of their needs, recognizing that they need external support to modernize their data stacks. In contrast, the majority of organizations surveyed with the least data maturity believe they don't need external support.
Less mature organizations may have a higher self-perception of success, but their results tell a different story. Organizations that shared a data strategy were moderately or highly effective in 2023, but fell short of their goals, with only 56% achieving their strategic goals.
Several studies including recently published IBM reporthave already noted that a lack of AI skills is a major impediment to GenAI growth within organizations.
Hakkoda's report also highlights these challenges and reveals that organizations are considering acquiring external support to get the most out of their data stacks. 79% of respondents believe they need external support to achieve their data modernization goals. Also, organizations in the innovation category have a higher ROI on data technology investments (126 percent) compared to chaotic organizations (73 percent).
 According to Hakkoda's report, 42% of organizations utilized GenAI tools in 2023. This number is expected to increase as organizations become more data-mature. Key moves to achieve data modernization in 2024 include the adoption of GenAI tools (85 percent), central cloud platform adoption (74 percent), and data monetization (64 percent).
All roads lead to GenAI, but organizations must pass data quality and governance hurdles. One of the key factors in an organization's ability to overcome these challenges is leadership alignment. This report reveals a gap between strategy setters and implementers that can be a determining factor in data modernization success for these organizations.
Innovation organizations are leading the way and reaping the benefits of investments in data modernization. For the remaining companies, the window of opportunity is rapidly narrowing, and their success will largely depend on their ability to identify gaps in their data strategy and goals and make smart investments to close these gaps.
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