Hakkōda State of Data 2024 Report: 94% of Organizations Need to Modernize Data Stack This Year

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Feb 15, 2024, 08:30 ET

Half of companies surveyed are already using generative AI

NEW YORK, Feb. 15, 2024 /PRNewswire/ -- Hakkoda, a cloud data engineering consultancy specializing in Snowflake, today announced the release of its State of Data 2024 report. The findings indicate new AI capabilities are quickly being integrated into business IT, with a substantial 50% of organizations actively implementing AI for limited use cases such as automation. Additionally, every organization surveyed views generative AI as important, and nearly two in three organizations reported that generative AI will be very or critically important to their success by 2027.

Hakkoda's 2024 State of Data Report found that most organizations have the necessary AI skills and expertise to support the use of GenAI. 42% of respondents agreed strongly and 44% agreed moderately.

The State of Data 2024 report surveyed 500 data leaders from large organizations across major industries. Respondents hold director-level or higher positions in IT and analytics roles at US companies with 1,000 or more employees in the following sectors: Distribution/Supply Chain, Education, Entertainment, Financial Services, Government, Healthcare, Manufacturing, Retail, and Telecommunications.

Among the survey highlights:

94% of all organizations polled say they need to upgrade their data systems this year
70% of organizations have already deployed some of their data in the cloud
64% of organizations intend to monetize their data in 2024
45% of C-level are extremely confident their data team can build the generative AI capabilities they need, while only 28% of their VP-level counterparts feel the same

To gauge how companies utilize their current data stack and prepare for the future in their respective industries, the State of Data 2024 report also differentiates organizational data maturity. Best-practice-based evidence of harnessing and optimizing data systems is used to classify four stages of sophistication in a company's data journey moving from Chaos to Order to Insight to Innovation. Those stages of maturity produced notable variance in survey responses.

Stark Contrasts:

Those in Chaos Don't Know They're in Chaos - Nearly all organizations say they need to modernize (94%), and nearly half of all organizations (48%) say they need to modernize their data systems "a great deal" in 2024. Only 24% of Chaos organizations report needing to modernize their data systems "a great deal" in 2024, while 66% of Innovation organizations make that determination, indicating vastly different perceptions of capability challenges.
Maturity Affords ROI Bump - On average, organizations reported achieving 126% return on investment (ROI) for their 2023 outlay in data technologies and tools. Chaos organizations reported averaging only 73% ROI. Innovation organizations reported an average ROI of 164%.
Companies with High ROI Data Strategies Leverage Outside Expertise - Innovation organizations outsource 63% of data management on average. Chaos organizations outsource 39%.
Perception vs. Reality in Data Strategy - While 83% of organizations rated their data strategy as effective in 2023, only 56% actually reported achieving their strategic goals. This gap is most pronounced among Chaos organizations, where the achievement rate falls to 43%.

"The State of Data 2024 report underscores the imperative need for modernizing data strategies and a growing focus on AI integration," said Erik Duffield, CEO of Hakkoda. "It also highlights a chasm between organizations that are leading in innovation and those playing catch up in chaos. Those who use managed services move further and faster. At Hakkoda, we are focused on bridging this gap."

A detailed executive summary and the State of Data 2024 report is available here.

The study was conducted by Lawless Research in December 2023 as a blind survey. 20% of respondents came from organizations with less than $500M annual revenue; 29% with $500M to $999.9M annual revenue; 37% with $1B to $9.9B annual revenue; 14% with $10B or more annual revenue.

About Hakkōda
Hakkoda is a cloud data engineering consultancy specializing in Snowflake. We work with our clients to deliver powerful business outcomes across industries, with deep domain expertise in healthcare, financial services, and the public sector. We supply the talent and managed services organizations need to build strategic data architecture that streamlines the journey to data-driven innovation. To learn more, visit hakkoda.io.

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SOURCE Hakkoda, Inc.