3 Challenges Enterprises Building Data-driven Services will Face in 2020

Enterprises, GDPR, data, data-driven, healthcare, financial markets, 2020, funding, VC,

Data is driving innovation across industries. But how simple is it to simplify the process in the next decade.

2020 would be the year of opportunities for organizations that are looking to push the envelope, as the data market touches 111 billion as per a report from the European Data Market study. But companies will need to develop a strategy if they are to succeed in 2020.

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While GDPR is having an impact on how firms collect and utilize data in Europe, there also is a noticeable impact on how firms collect data from other sources. GDPR and other soon to be applicable privacy laws are forcing companies to reassess if they need to collect this data in the first place. This could also make them reassess data sharing between companies through exchanges. A couple of high-profile cases and imposed fines will have an impact on the companies. However, recently, there have been a few rulings in several European courts that have hinted that the GDPR and related legislation could apply to businesses across the US too. In addition, the CCPA is soon to be applicable for companies doing business in California as well.

A changing policy landscape

The policymakers in the US and Europe are going against the growing technological market owing to more stringent legislation. Regulators had to break companies like Standard Oil in 1911 and AT&T in 1984 for being too dominant in their markets. Similarly, there could be a possibility where tech giants like Google and Facebook could face the music from the policymakers if they are growing stronger.

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Volatile Financial Markets and Fundings

Companies like Uber and Lyft have struggled with high-profile tech IPOs as their shares have taken a nose-dive from their launch prices. One of the reasons for the fall in the share prices is weaker data-driven platform strategies. VC fundings are still on a roll as owners of capital seek to find returns in financial markets that are not high performing. The digital healthcare sector, for instance, will continue to garner funds even in case of a slow market trend. As per a report from CB Insights, investment in the healthcare sector has reached over $37.5 billion in 2019, with AI-related funding being one of the fastest-growing areas of activity.

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