A key driver of technology’s latest evolution is the advent of data streaming. The Confluent 2023 Data Streaming Report sheds light on the growing significance of data streaming in today’s digital-first era. The 2023 Data Streaming Report, titled “Moving Up the Maturity Curve,” offers insights into the rising importance of data streaming for business success. This report is based on a large survey, encompassing responses from 2,250 IT leaders representing midsize to large enterprises across seven countries and spanning various industries. The findings underscore the pivotal role that data streaming plays in driving business success, efficiency, and competitiveness.
Data Streaming’s Ascension in Business Operations
Data streaming has emerged as the backbone of critical business operations, revolutionizing how companies operate. From delivering personalized customer experiences to facilitating real-time business processes, data streaming has become an indispensable technology. The Confluent report reveals that a remarkable 72% of organizations now rely on data streaming to power their most essential systems, highlighting its pervasive adoption across industries.
Furthermore, a staggering 89% of respondents in the survey consider data streaming an important or top priority for IT investments. This unequivocal endorsement underscores the pivotal role data streaming plays in modernizing IT infrastructures and ensuring organizations remain agile and responsive in the digital age.
Driving Efficiency and Business Value
One of the most compelling insights from the report is the significant impact of data streaming on driving efficiency and business value. Data streaming platforms offer quick and reliable access to continuously updated real-time data, enabling organizations to make informed decisions at the speed of business. The Data Streaming Maturity Curve, introduced in the report, maps the adoption journey of organizations from Level 1, where pre-production activities occur, to Level 5, where data streaming becomes a strategic enabler for the entire enterprise.
The report highlights that as organizations invest more in data streaming, they experience greater benefits and returns. For instance, 64% of organizations at Level 2 of the Data Streaming Maturity Curve anticipate 2x-5x returns, and this figure rises to an impressive 78% for Level 3 companies. Moreover, 73% of IT leaders report that their organizations are witnessing significant or emerging benefits from data streaming, particularly in terms of increased product or service profitability.
This takeaway underscores the holistic significance of data streaming, emphasizing its potential to align IT initiatives with broader business objectives. Business leaders should care about the findings from the Confluent 2023 Data Streaming Report because embracing data streaming for business value can:
- Boost Profitability: Organizations can achieve 2x-5x returns on investment through data streaming.
- Enhance Competitiveness: Data streaming provides a competitive edge by enabling swift responses to market changes.
- Optimize Efficiency: It drives IT and business efficiency, reducing operational costs.
- Elevate Customer Experience: Personalized real-time interactions improve customer satisfaction.
- Inform Strategic Decisions: Data streaming empowers data-driven decision-making.
- Guide Resource Allocation: Recognizing data streaming as a top IT priority helps allocate resources effectively.
In essence, data streaming impacts profitability, competitiveness, efficiency, customer satisfaction, decision-making, resource allocation, and overcoming challenges. It’s a game-changer for modern businesses.
See also: How to Select a Streaming Platform
Data Streaming as a Top Priority
Data streaming has solidified its position as a top priority for IT investments in 2023. An overwhelming 89% of survey respondents emphasize the importance of investments in data streaming, with 44% categorizing it as a top strategic priority for their IT investments. This reflects the recognition that data streaming is not just a technological advancement but a strategic imperative for staying competitive and responsive to rapidly changing market dynamics.
Moreover, 72% of IT leaders reveal that they are harnessing the power of data streaming to drive critical applications within their organizations. Remarkably, 60% of them indicate that five or more of their organization’s critical systems depend on data streaming technology. This widespread integration underscores the central role data streaming plays in ensuring the seamless operation of mission-critical processes.
Addressing Challenges in Data Streaming Adoption
While the benefits of data streaming are evident, organizations face common challenges when scaling its adoption. Two prominent obstacles highlighted in the report are the persistent skills gap and the presence of silos across teams. These challenges, however, do not deter organizations committed to harnessing the full potential of data streaming.
The report offers expert insights and recommendations on overcoming these hurdles, providing valuable guidance for organizations at various stages of their data streaming journey. Key findings include:
- Data Streaming Drives Business Value and Strong ROI: Organizations investing in data streaming are reaping significant returns. Sixty-four percent of those at Level 2 anticipate 2x-5x returns, a figure that jumps to an impressive 78% for Level 3 companies. Additionally, 73% of IT leaders acknowledge the substantial benefits of data streaming, particularly in terms of increased product or service profitability.
- Data Streaming Is a Top Priority for IT Investments: The report reaffirms that data streaming is a top priority for IT investments, with 89% of respondents emphasizing its importance. Among them, 44% consider data streaming a top strategic priority for their IT investments.
- Data Streaming’s Biggest Challenges: Silos and Skill Gaps: The report acknowledges that fragmented projects, uncoordinated teams, and budgetary silos can pose challenges for organizations. However, these challenges are being met with proactive solutions. Seventy-four percent of IT leaders recognize the need to address these issues to advance data streaming initiatives. Furthermore, 87% of respondents identify training and recruitment as high or medium priorities to bolster skills, indicating a commitment to overcoming the skills gap.
Data Streaming’s Unwavering Rise
The Confluent 2023 Data Streaming Report reaffirms the indispensable role of data streaming in modern organizations. As businesses navigate an increasingly data-driven landscape, data streaming has emerged as the linchpin. While challenges persist, organizations seem resolute in their pursuit of harnessing the full potential of data streaming, recognizing it as a transformative force that propels them forward in this digital-first era. As the technology continues to mature, the future promises even greater achievements and innovations.
Elizabeth Wallace is a Nashville-based freelance writer with a soft spot for data science and AI and a background in linguistics. She spent 13 years teaching language in higher ed and now helps startups and other organizations explain – clearly – what it is they do.