Splunk research unveils economic value of data for businesses worldwide
Research found that a more advanced data strategy was tied to improved outcomes including revenue growth and faster decision making across all countries.
The study by Splunk (NASDAQ: SPLK) looked at the economic impact and value of data across organisations, and found that by making better use of data, organisations surveyed had materially increased revenue and reduced operational costs, boosting profitability by an average of 12.5% of their total gross profit.
The joint research study between Splunk and Enterprise Strategy Group (ESG) surveyed 1,350 senior business and IT decision-makers across eight industries in Australia, China, France, Germany, Japan, the UK and the US.
The study also assessed respondents’ different stages of data-maturity based on criteria such as the prevalence of modern analytics tools and skillsets and the effectiveness of the organisation at operationalising its data.
Respondents were grouped into three data maturity categories:
- Stage 1: Data Deliberator- Organisations that are in the early phase of their data strategy implementation.
- Stage 2: Data Adopter- Organisations that are making good use of their data, but still have room for improvement.
- Stage 3: Data Innovator- Organisations, which place the strongest strategic emphasis on data and have an advanced strategy in place to extract business value.
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The study found that an organisation’s stage of data use impacts its ability to not only glean insights from its data, but to convert these insights into concrete, data-driven decision-making and real-time action.
All organisations reported benefits from better data use, but Data Innovators achieved considerably higher key business and economic benefits.
“Until now, it has been difficult for business leaders to put hard numbers around the monetary value of data,” said Doug Merritt, President and CEO, Splunk.
“This first-of-its-kind study proves that a holistic and sophisticated approach to data can help any organisation become a Data Innovator, outpace their competition and become business and market leaders.
“Splunk is proud to help our 19,000+ customers bring data to everything and re-imagine business outcomes with the data that’s already at their fingertips.”
The study also found that 97% of Data Innovators meet or exceed their customer retention targets, with the majority (60%) having actually outstripped their goals.
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