In Part 1 of our 2 part series, we documented the numerous considerations companies will face in 2020 as they review new data-driven strategies. Just in case you missed it, here is a quick recap (from Impact of Data Strategies in 2020 – Part 1):
Advanced firms will double their data strategy budget
Data literacy will be one of the major priorities of companies. They will launch data literacy programs to ensure that everyone in the organization has proper know-how of data and how it works to support the data strategy of the company. Companies will also invest more in data organizing to unlock the potentials of data related technology for the digital transformation of firms.
Advanced firms will understand the benefits of investing more to get their data strategies and organizational tools right. For this, they will not hesitate to double their data-strategy budget.
Deepfakes will cost businesses over a quarter billion dollars
With new advancements and innovations in technology, businesses are sure to go up in the market. However, this will result in three troublesome dynamics coming into play, which companies and their consumers will have to face head-on.
Privacy class-action lawsuits will increase by 300%
Know that 2020 is going to be a challenging year for third parties and marketers. Where consumers are already worried about the way their data is collected and used, news reports about the data breach, data surveillance, and corporate misconduct is ultimately leading to consumer sentiment on data strategy and usage practices.
As the increase in the private class-action lawsuit is predicted as high as 300%, marketers won’t be able to rely on third-party data as much as they currently do. Instead, they will connect with customers through targeted experiences. For this, the organizations will increase or shift 10% of their budget to influencer marketing.
Anti-automation backlash will cause a PR nightmare for at least one Fortune 500 company
Automation is going to benefit businesses significantly in the way it changes the composition of the job market. Around 1.06 million jobs will be replaced by automation, which will increase revenue for businesses, but will also create a significant global economic issue for their workforces.
There will be a significant backlash when leaders try to fold automation into their enterprises. Very few firms have invested in prepping their staff to work for and alongside the automation. We expect a major strike will cause a PR nightmare for at least one Fortune 500 company.
For the past few years, GDPR and CCPA regulations have had considerable impact on digital marketers. In 2019, marketers ensured that their campaigns complied with GDPR Regulations. If you recall, the EU made substantial efforts in May 2018 to ensure the privacy and data protection of the citizens of the European Union.
GDPR is now forcing B2B enterprises to do a forensic examination of the supply chains in the market. Regulators, like the Federal Trade Commission and UK’s ICO, will take action against the uninformed data extraction for AI in 2020.
Summary – The Importance of Data Strategy Isn’t Going Away
In 2020, privacy concerns will gain steam more than ever. The personal-class lawsuit will grow by as much as 300%. Automation of major IT tasks will eventually reshape the workforce. Data hackers, attackers, and evil organizations will demand ransom while using data access as their most powerful asset. Contact us to discuss your data strategy and ways you can get ahead of these trends.