Reading Time: 4 minutesThe modern data space has evolved by leaps and bounds altering the very fabric of business analytics and data management. The mass adoption of cloud data warehouses and cloud-based tools has changed how we acquire, store, access, transform, and interact with data. However, business leaders often struggle to get the data they need or are limited in their ability to effectively translate insights into outcomes that drive real value.
Organizations that can unlock the power of data are at the forefront of economic success. From customer behavior to operational efficiency, data holds the key to unlocking a multitude of opportunities.
However, the sheer volume and complexity of data overwhelms traditional decision-making processes, leading to missed opportunities and inefficiencies. This is where the modern decision stack comes into play, providing enterprises with a comprehensive framework to harness the power of data and drive informed decision-making.
The modern decision stack is an evolutionary concept in the modern data stack world where the focus shifts from operationalizing AI and ML technology to making it work for strategic business outcomes. The modern data stack is a set of tools built around your data to simplify data integration. Like an industrial value chain, the modern data stack follows a logic of ingesting, transforming, storing, and productizing data. The inherent prerogative of a modern data stack is to save the time of data engineers and data analysts. A modern decision stack on the other hand, is focused on empowering not only the data engineers but most importantly the business leaders to make informed decisions at the right time using the right data. The modern decision stack provides businesses with the tools and capabilities to effectively monetize data at speed and scale. With the right tool, businesses can streamline the process of data transformation and leverage the power of data to make more informed decisions that drive success. The modern decision stack empowers businesses to harness the full potential of their data, ultimately leading to enhanced productivity and profitability.
The evolution of decision-making
Gone are the days when business decisions were made based on gut instincts or limited data sets. The modern decision stack represents a paradigm shift in the way organizations approach data-driven decision-making.
The burgeoning growth of the Decision Intelligence market, valued at USD 12.88 billion in 2022 and is projected to grow from USD 14.66 billion in 2023 to USD 44.63 billion by 2030, exhibiting a CAGR of 17.2% during the forecast period 2023-2030 (according to a report by Fortune Business Insights), emphasizes the sustained relevance and adoption of this technology. This growth trajectory reflects the realization among enterprises that investing in a modern decision stack is not just a trend but a strategic imperative to secure future success.
Decision intelligence encompasses a wide range of technologies, tools, and processes designed to collect, analyze, and derive actionable insights from data at scale. The evolution of big data, machine learning, and artificial intelligence has enabled the perfect ecosystem for the Modern Decision Stack to be born. This new technology is powerful and can soon prove to be an indispensable asset for enterprises seeking to stay ahead in today’s data-driven economy.
The core components of the Modern Decision Stack
The modern data stack changed the way companies manage their data for analytics: from the traditional ETL (Extract, Transform, Load) to the ELT (Extract, Load, Transform). Additionally, the rise of cloud data warehouses provided the foundation required to create scalable enterprise data infrastructure at speed and scale. A modern decision stack is layering the existing modern data stack with capabilities that help tune the various technology sub-components to convert data into actionable business outcomes.
The modern decision stack is built using four core layers:
- Infrastructure layer – This is the core data foundation layer that offers robust computing, storage, and networking capabilities essential for managing, processing, and analyzing vast amounts of data efficiently.
- Application layer – This plays a pivotal role in streamlining and optimizing various aspects of business operation using software such as Salesforce, ServiceNow and SAP and generates valuable data that is further used to perform various analytical operations. The data is plugged in to various data integration platforms and cloud data warehouses via connectors to allow further processing of information.
- Data Cloud layer – This layer provides the speed, scale, connectivity and accessibility of various data sources to multiple personas in the data value chain all having the same picture at the same time. With the use of AI and ML technologies, the data cloud layer transforms the data inside the warehouse and presents well-modeled data to support business intelligence.
- Decision Cloud layer – This last layer is where the actual magic happens. The processed data goes to the business intelligence layer where business context and domain intelligence is applied to it to convert it into actual usable insights that can power business outcomes. These could be to increase cost efficiencies, improve customer experience or enhance revenue growth across multiple industries and use cases. This layer also ensures that the insights derived from data processing are effectively communicated and comprehended across the organization, fostering a culture of data-driven decision-making.
Together, these core components form a cohesive and comprehensive modern decision stack, empowering modern organizations to navigate the intricacies of the contemporary business landscape with agility and precision.
Why do enterprises need a Modern Decision Stack?
Large enterprises find themselves grappling with immense datasets that hold the key to valuable insights. To remain relevant and competitive, organizations must harness the power of the modern decision stack to transform this influx of data into actionable intelligence.
Embracing this framework enables enterprises to gain a distinctive competitive edge.
The modern decision stack empowers organizations to make decisions more swiftly and accurately by leveraging real-time data insights. Additionally, the incorporation of assisted decision-making tools augments human capabilities, ensuring a more comprehensive and informed decision-making process. This not only enhances operational efficiency but also positions organizations to adapt swiftly to dynamic market conditions and emerging trends.
The goal of the modern decision stack is to greatly simplify decision making and solve the difficulty of managing data, ultimately enabling users to care more about the data than the software. The shift in focus from data driven to decision driven is what makes a modern decision stack the easiest way for enterprises to get the most out of their data investments.
Conclusion
The modern decision stack is reshaping the way enterprises operate in the digital era. By adopting this comprehensive framework, businesses can navigate the complexities of data and turn them into strategic advantages. As we look to the future, the modern decision stack will continue to be a driving force behind innovation, agility, and success for enterprises across all industries.
With the Fosfor Decision Cloud, businesses can unlock the full potential of theirdata stack investments and harness the power of democratized data across their entire organization.
