Data streaming has evolved into an essential component of vital business operations in today's digital landscape, enabling personalized consumer experiences and real-time decision-making. Confluent, Inc.'s recently released 2023 Data Streaming Report emphasizes the growing relevance of data streaming in attaining business objectives. The report highlights the critical importance of data streaming in running efficient, responsive and competitive organizations in the digital-first era, based on a comprehensive survey of 2,250 IT leaders, with over 30% of respondents from the APAC region.
Data streaming allows businesses to capture and handle massive amounts of data in real time, providing significant insights into customer behavior, market trends and operational performance. Businesses then utilize this information to improve their decision-making processes and gain a competitive advantage. E-commerce enterprises, for example, can analyze consumer browsing behaviors, track purchasing activity and provide customized recommendations quickly, resulting in improved conversion rates and satisfaction among consumers.
Advantages of Data Streaming
The 2023 Data Streaming Report incorporated the Data Streaming Maturity Curve, which maps out organizations' adoption journeys from pre-production activities at Level 1 to data streaming as a strategic enabler for all aspects of a company at Level 5.
According to the survey, the more a company invests in data streaming, the more benefits and profits it generates. In fact, 68% of organizations in Level 2 of the Data Streaming Maturity Curve have achieved or anticipate 2–5 times returns, and this increases to 75% with Level 3 companies.
Meanwhile, Asia's growing manufacturing and logistics sectors rely largely on effective supply chain management to remain competitive. Data streaming is critical for supply chain optimization because it provides real-time visibility into inventory levels, shipment monitoring and demand forecasting. Businesses can discover bottlenecks, cut lead times and increase overall operational efficiency by continuously monitoring data from sensors, RFID tags and IoT devices. This proactive strategy not only ensures easier operations but also saves money and improves customer satisfaction. The report shows that 73% of IT leaders find data streaming beneficial, particularly in terms of greater product or service profitability.
Even in the financial services sector, data streaming proves advantageous. Real-time data is used by banks and financial organizations to monitor transactions, detect fraudulent activity and make immediate judgments. Financial institutions are now able to securely share client data in real-time, stimulating innovation and enabling the development of personalized financial products and services, thanks to the introduction of Open Banking. Furthermore, data streaming enables algorithmic trading and automated risk management systems, giving traders real-time market information and improving investing methods. The 2023 Data Streaming Report revealed that 69% of IT leaders are using data streaming to power critical applications, while 57% indicate that five or more of their organization's critical systems rely on this technology.
Investing in Data Streaming
While data streaming has huge potential, it also brings significant limitations. To manage and analyze massive amounts of real-time data, a solid infrastructure, strong analytical capabilities and data governance frameworks are each required. Furthermore, when working with sensitive information, protecting data privacy and security becomes critical. Asia's governments, corporations and regulatory organizations must work together to create comprehensive data protection frameworks that balance innovation and privacy.
"In an increasingly digital APAC, data is the lifeblood to driving innovation and helping organizations stay ahead of the curve. To fully harness its potential, data streaming holds the key to unlocking real-time, data-driven business decisions. At the same time, organizations can look forward to reducing operational complexities and bolstering resource efficiency while adding value to rich and responsive customer experiences," said Kamal Brar, senior vice president, Asia Pacific and Japan, Confluent.
With the deployment of data streaming, organizations frequently encounter common obstacles.
Many of these hurdles are similar to those that precede any big technology-led transformation, such as skills shortages, legacy system limits and the need for more financing. Fragmented projects, uncoordinated teams and insufficient funds are also cited as challenges or major impediments by 74% of IT leaders, with 72% citing a lack of required skills, inconsistent usage of integration methods and standards, and legacy-related constraints.
Overcoming such challenges is essential for realizing the full potential of data streaming. And businesses are prioritizing investments in a wide range of areas to eliminate these barriers. In the coming months, 91% of IT leaders foresee as a medium to high priority the increasing awareness regarding the advantages of data streaming, as well as more of its integration and reuse. Improved visibility into streaming-related behavior, stronger governance and compliance controls, as well as system standardization, are also on the agenda.
The rise of data streaming is transforming the corporate landscape, allowing firms to quickly and effectively turn data into action. Data streaming solutions enable businesses to stay secure, agile and ahead of customer expectations by providing quick and dependable access to continuous streams of real-time data. By utilizing data streaming, companies can maximize the value of their data, improve operational efficiency and provide great customer experiences, distinguishing themselves in a highly competitive market.
