New Global Survey Shows Data Leaders Boost Resiliency to Threats and Increase Gross Profits by Nearly 10%
Splunk Inc. (NASDAQ: SPLK), the data platform leader for security and observability, in collaboration with the Enterprise Strategy Group, today released the Economic Impact of Data Innovation 2023, a global research report that quantifies the economic benefits of mature data practices. The report reveals the most data-savvy companies are increasing profits by 9.5%, are 2.9 times more likely to beat the competition to market, and are twice as likely to exceed financial expectations.
“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 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.”
The research report defines leaders as organizations that have achieved excellence in the six key areas of data classification, aggregation, quality, analysis skills, analysis tools and monitoring. Key findings include
- Data leaders experience increased profits and innovation. With an average increase of 9.5% in gross profits, data leaders report launching nine new products per year that wouldn’t be possible without their data innovation capabilities, compared to the beginner’s average of three new products per year. They are also more likely to report that applying data innovation to sales, marketing and customer service/support has contributed to increasing customer lifetime value (49%, versus 30% of beginners). In addition, data leaders are more resilient and quicker to identify and remediate security incidents by 11%.
- Data leaders beat out their competition. Data leaders are 5.7 times as likely to say their organization almost always makes better decisions than competitors. They are 4.5 times as likely to believe their organization is in a very strong position to compete and succeed in their markets over the next few years.
- Data leaders are proactively operationalizing and monetizing their data. Leaders are also more likely to say that their data monetization streams are additive and grow faster. They have operationalized 38% more of their data assets while also deriving 2.3 times as much of their revenue via data monetization.
Virtually every organization is under pressure to keep up with the rapid rate at which data is growing. However, the organizations that feel the most pressure are also having the most success: 67% of data innovation leaders report feeling a high degree of pressure versus only 41% of intermediates and 15% of beginners.
“Data-driven innovation gives you a massive edge,” said Ammar Maraqa, Chief Strategy Officer, 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.”
Data Leaders Innovate Across Industries
Across every industry, data provides an opportunity to increase profit and improve performance, with unique challenges and outcomes. The industry-focused addendum to the report highlights these vital areas. Key findings include:
- Financial services: British organisations in this sector are most likely to adopt AI/ML, cloud analytics and observability for data innovation but 33% have reported a hard time recruiting and retaining those with the right skills needed to stimulate growth.
- Healthcare: The maturity breakdown of organisations in healthcare and life sciences includes 11% of leaders, two whole percentage points more than the average.
- Manufacturing: 51% of UK businesses see a great opportunity in fundamentally changing functional areas with data innovation.
- Retail: Data innovation has helped 71% of UK organisations optimise supply chain costs and 60% minimise supply chain disruption.
For additional insights and recommendations from the Economic Impact of Data Innovation 2023, please visit the Splunk website to download the report. Organizations can also assess their status — and potential — in their own data innovation journey by visiting the Splunk Data Maturity Calculator.
The global survey was conducted from May through June 2022 in partnership with the Enterprise Strategy Group. The 2,000 IT, security and business leaders were drawn from nine countries including Australia, France, Germany, India, Japan, New Zealand, Singapore, United Kingdom and United States.
About Splunk Inc.
Splunk Inc. (NASDAQ: SPLK) helps organizations around the world turn data into doing. Splunk technology is designed to investigate, monitor, analyze and act on data at any scale.