Research Shows U.S. Businesses are Not Prepared for Machine Learning & Decision Automation
Saturday, February 10, 2018
Posted by: Gary Hotze
Sean Naismith, Head of Analytics Services, Enova Decisions
A recent study has revealed surprising information about business' preparedness for emerging technologies like machine learning and artificial intelligence. U.S. business decision makers want to capitalize on these technologies to help automate and continually improve decisions made across the business. However, challenges with their legacy technology tools may prevent them from doing so.
Results of the commissioned study, which was conducted by Forrester Consulting on behalf of Enova Decisions, show that businesses have big plans for emerging technologies. In fact, adoption is already underway and increasing rapidly, as companies look to leverage them for operational decision automation. Between 31 and 48 percent of respondents are already using AI, machine learning, real-time event processing or constraint-based programming in some capacity. By 2020, between 78 and 90 percent of companies expect to be using one or more of those technologies.
Unfortunately, legacy technology tools present significant roadblocks. Most concerning is the fact that 42 percent of business leaders say their current decisioning software is incapable of integrating with today's emerging decision automation technologies. Also, only 22 percent of decision makers are very satisfied with the fundamental tools they rely on to automate decisions today; they cite issues with high cost and complexity - which are bound to worsen as companies rapidly adopt newer technologies.
Clearly this is a problem, especially since three-fourths of respondents note that the automation of operational decisions is vital to executing on digital strategy; about half of businesses have already experienced improved business performance due to automating at least a portion of their operational decision making - and that's despite legacy technology challenges. Imagine the impact automated decisioning could have on the bottom line if those challenges were resolved.
Fortunately, businesses are seeking solutions that are capable of integrating emerging and existing technologies and automating decisions across the customer lifecycle. One solution is platforms that work in real-time to optimize decision-to-action cycles. The study notes that these platforms "are of high value because they will alleviate integration challenges." Furthermore, 81 percent of respondents say such a platform would be valuable to their digital transformation goals.
The great news is that real-time digital decisioning platforms like Enova Decisions' ColossusTM have applications beyond simply providing a solution for integrating old and new technology. Such platforms can help businesses achieve their top objectives for automated operational decision making, including improving the customer experience; optimizing operations for improved speed, efficiency and agility of business execution; improving interactions with customers through mobile apps and other digital channels, and improving key performance indicators. Business leaders can leverage the platform's real-time predictive analytics capabilities to deliver results now, while at the same time setting the business up to reap the full benefits of the technologies of the future.
A report with the full study findings and methodology can be found on the Enova Decisions website.
Also check out our upcoming ITA Tech Talk: Stay Competitive Through a Decision-First Approach to Analytics, March 15th at Technexus.