Splunk has released a report finding the most data-savvy companies are increasing their profits by 9.5% and are 2.9 times more likely to beat the competition to market.
“Economic Impact of Data Innovation 2023” is a global research report quantifying the economic benefits of mature data practices that Splunk conducted in partnership with the Enterprise Strategy Group. The report defines data innovation leaders as organizations that have achieved excellence in six key data maturity areas including data classification, aggregation, quality, analysis skills, analysis tools, and monitoring.
Key findings include how data leaders report increased profits and innovation and launch an average of nine new products per year thanks to their data capabilities, compared to just three new products launched by those who are beginners in their data journey. Of data leaders, 49% of those who apply data maturity principles to sales, marketing, and customer support report increased customer lifetime value compared to 30% of beginners.
The report also revealed that data leaders are 5.7 times more likely to say their organization almost always makes better decisions than competitors and are 4.5 times more likely to report occupying a very strong market position. Additionally, Splunk found that data leaders are proactive in monetizing data and have operationalized 38% more of their data assets while deriving 2.3 times as much of their revenue via data monetization.
Another insight uncovered is how businesses are feeling pressure to keep up with the explosion of data. Splunk says the organizations feeling the most pressure are also experiencing the most success, as 67% of data innovation leaders disclosed feeling a high degree of pressure compared to just 15% of beginners.
“Data-driven innovation gives you a massive edge,” said Ammar Maraqa, chief strategy officer at Splunk. “Organizations that prioritize investments in collecting and using their data have full visibility into their digital systems and business performance, which makes it easier to adapt and respond to disruptions, security threats, and changing market conditions.”
The report also features an industry-focused addendum that highlights unique challenges and outcomes. Key findings of the addendum include how 20% of organizations in the public sector spend over a quarter of their IT budgets on data solutions and professionals, which Splunk says is well above the 8% cross-industry average. In the financial services sector, 79% have adopted AI and ML tools for their data innovation projects compared to 67% overall. In healthcare, data leaders make up 11% of the most data mature organizations. Supply chain and operations are top data innovation use cases in 54% of manufacturing organizations surveyed, and 10% of retail businesses are data leaders who are more likely to report greater brand loyalty as well as other benefits of data monetization.
“A strong data foundation is essential to staying ahead of the curve–and we are proud of our proactive approach to extracting innovative value from our data,” said Mike Hughes, CISO of recreational retailer REI. “Our data visibility bolsters efficiency, competitiveness and resilience against an advanced threat landscape and macro challenges. Splunk is a critical element of our overall strategy to ensure we can scale and deliver the best experience for our customers.”
Obtain a copy of the report at this link.