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Economic recession tops the list of hurdles facing enterprises right now, but data management investments don’t seem to be slowing down. This has emerged from a study by Wakefield Research and data support center Informatica, which see data governance as the number one priority among chief data officers (CDOs). In fact, their investments in data management are on track to increase.
Executed by the end of 2022, the survey brings to light the perspective of 600 business data leaders across the US, Europe, and the Asia-Pacific regions. It finds that despite the looming macroeconomic crisis, more than 2 in 3 data leaders (68%) look forward to an increase in investment in data management in 2023.
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Alignment of business and data management investments
The move is expected in response to a growing network of data sources: 55% of respondents already manage more than 1,000 data sources. The research further shows that those about to move are more likely to align business and data interests within their organization.
The study found that 73% of leaders with highly aligned business and data strategies predicted higher investments in data management, compared to 53% who were not or partially aligned. It further notes that the alignment of teams is also very crucial to effectively achieve the key goals of the data strategy.
“By driving organizational alignment and making the right data governance investments to support it, they will differentiate their organizations, drive clear business outcomes and enable success in 2023 and beyond,” said Jitesh Ghai, chief product officer at Informatica .
According to the survey, the most sought after data management capability is data quality, with 42% of leaders willing to invest in it. This is followed by data protection (40%), data marketplaces (39%), master data (35%), and data discovery and cataloging (31%).
In terms of data strategy, 52% of respondents cited improving data and process management as their top priority for 2023, ahead of data-driven culture and literacy (46%) and gaining a holistic view of customers (45%).
Both aspects — implementing the right strategies and using the right tools — will be key to getting more out of investments and setting the company up for success, the report said.
Broader IT investments are also likely to grow
The importance of data to today’s business initiatives may provide a safer haven for investments in data management and some other IT endeavors, even as economic headwinds threaten the consumer economy. According to a separate study by Gartner, global IT spending is expected to increase by 2.4% during the economic downturn Reach $4.5 trillion in 2023. But it’s worth noting that this estimate is lower than the previous quarter’s forecast of 5.1% growth.
“A turbulent economy has changed the context of business decisions and can cause CIOs to hesitate, delay decisions or adjust priorities,” John-David Lovelock, distinguished VP analyst at Gartner, said in a statement.
“We’ve seen this in action with the realignment taking place at some B2B companies, especially those that overinvested in growth. However, IT budgets are not driving these shifts and IT spending remains recession-proof,” he said.
Major players that have grown in numbers in recent years are already witnessing the impact of the recession. Among the giants that have moved to cutting staff are Meta, Alphabet, Amazon, Goldman Sachs, Salesforce, IBM, Microsoft and Twitter.
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