Study shows use of AI and Business Analytics is growing rapidly to support data-driven decisions
An overwhelming 97% of Indian companies increased their reliance on cloud solutions as a result of the COVID-19 pandemic, according to ManageEngine’s 2021 Digital Readiness Survey. The study also revealed a significant rise in the utilization of business analytics and artificial intelligence over the last two years.
ManageEngine commissioned Dimensional Research to conduct the 2021 Digital Readiness Survey to understand the changing IT landscape and COVID-19's impact on businesses. A total of 1,210 IT executives and technology professionals from North America, the United Kingdom, Australia, New Zealand, Singapore and India were surveyed. In India, 202 respondents from businesses with more than 500 employees across 18 industry verticals completed the survey.
The study brought up the following insights about India:
- Cloud adoption is driven, primarily, by the need to continue IT operations, support remote workers and perform data-related tasks such as storage and backup.
- Security concerns remain high as cyberthreats, primarily phishing, malware and social media attacks, endanger remote employees.
- Significant trust has been placed in the tech leadership team’s ability to lead their company into the future.
- The adoption of new technology is driven by the need to improve security and reliability, besides business competitiveness.
Key Findings from the Study
- Increased adoption of cloud solutions: Enterprises have accelerated their use of cloud solutions, such as Software as a Service, Infrastructure as a Service and Platform as a Service, as a result of the pandemic. Nearly 97% of respondents stated that their organisation’s reliance on the cloud has increased. However, companies want more from cloud offerings, specifically improved performance, reliability and security.
- Businesses turning to a data-driven approach: The use of business analytics has grown over the last two years. Almost 97% of respondents agreed that the use of business analytics had increased during the aforesaid period. The main reasons cited for this are improved decision-making and profitability.
- Confidence in AI has increased in the last two years: Around 91% of respondents say their confidence in AI has increased during the past two years, with a majority of them reporting a "significant increase" in confidence. A mere 3% say their confidence has decreased. The soaring confidence can be explained by a high number of firms (89%) reporting better results due to AI.
- IT leaders make good CEO candidates: The study revealed that the tech leadership team is heavily trusted to lead their company in the future. This is reinforced by 86% of respondents believing that IT leaders are better equipped and qualified to assume the CEO mantle compared to those occupying roles in other departments like sales, marketing and finance.
- India Inc. continues to grapple with security concerns: Around 95% of Indian companies plan to stick with remote work for the next two years at least. However, 89% of respondents say implementing a work-from-home policy has led to an increase in security challenges faced by their organisation. The risk posed by shadow IT is especially high, as 89% of companies have no control over the software that employees purchase and install on their devices.
"The findings in this report reinforce that IT remains a critical business enabler, especially in times like the present. Companies are realising that dynamic, quick data-driven decision-making is key to build differentiation and deliver a great customer experience, which increases their reliance on AI and deep analytics," said Rajesh Ganesan, vice president of products at ManageEngine. "This study reiterates the strategic focus areas for business leaders and validates ManageEngine's vision in building holistic solutions for our customers.”