- Splunk Inc., the market-leading data platform for security and visibility, and the Enterprise Strategy Group have released the Economic Impact of Data Innovation 2023.
- The study report defines leaders as firms that have achieved excellence in the six main areas of data categorization, aggregation, quality, analysis skills, analysis tools, and monitoring.
Splunk Inc, a data platform pioneer for security and visibility, and the Enterprise Strategy Group have launched the Economic Impact of Data Innovation 2023, a worldwide research report quantifying the economic advantages of mature data practices. The report found that the most data-savvy businesses increase their earnings by 9.5%, are 2.9 times more likely to beat the competition to market, and are twice as likely to surpass financial projections.
Mike Hughes, CISO of REI, said, “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. 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.”
The study report defines leaders as firms that have achieved excellence in the six main areas of data categorization, aggregation, quality, analysis skills, analysis tools, and monitoring. Important results include:
Data leaders witness enhanced profits and innovation: With an average rise of 9.5% in gross profits, data leaders estimate creating nine new products each year that would not be conceivable without their data innovation capabilities, compared to the average of three new products launched by novices. In addition, they are more likely to indicate that using data innovation in sales, marketing, and customer service/support has increased customer lifetime value (49% versus 30% of novices). In addition, data leaders are 11% more resilient and faster at identifying and resolving security breaches.
Data leaders outperform their rivals: Data leaders are 5.7 times as likely to state that their organization nearly always makes superior judgments than rivals. They are 4.5 times more likely to consider that their company is in a very good position to compete and flourish in their respective marketplaces during the following years.
Data leaders operationalize and monetize their data proactively: Leaders are more likely to claim that their data monetization streams are additive and accelerating in growth. They have operationalized 38% more data assets and generated 2.3 times as much income through data monetization.
Almost every business is under pressure to keep up with the exponential growth of data. However, the most successful companies are also the ones that experience the most pressure: Sixty-seven percent of data innovation leaders report feeling intense pressure, compared to 41% of intermediates and 15% of novices.
Ammar Maraqa, Chief Strategy Officer Splunk, said, “Data-driven innovation gives you a massive edge. 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.”
Data Leaders Innovate Across Industries
Across industries, data offers the chance to raise profits and enhance performance, but with distinct problems and consequences. The report’s industry-specific appendix addresses these crucial topics. Important results include:
- Twenty percent of public sector organizations spend more than a quarter of their IT expenditures on solutions and personnel that investigate, monitor, analyze, and act on data, which is much higher than the industry-wide average of eight percent.
- Seventy-nine percent of the financial sector has utilized AI/ML for data innovation, compared to 67% overall.
- Healthcare: While just nine percent of firms examined are among the most advanced data innovators, eleven percent of healthcare and life sciences organizations have attained leader rank.
- Manufacturing: 54% of firms employ data innovation for supply chain and operational use cases, compared to 45% across all industries.
- Retail: An above-average 10% of firms are data innovation leaders, and retail organizations are more likely to report increased brand loyalty, customer lifetime value, income from data monetization, product innovation, and a variety of other data innovation-driven results.