Report: Data-savvy Organizations Are More Profitable, Resilient and Innovative
Splunk Inc. presents the Economic Impact of Data Innovation 2023 report, revealing that companies excelling in data practices see an average 9.5% increase in gross profits. Data leaders are 2.9 times more likely to outperform competitors and twice as likely to meet financial expectations. The study involved 2,000 IT and business leaders across nine countries, highlighting a strong correlation between data innovation and market competitiveness. The report underscores the necessity of a robust data foundation for organizational resilience and decision-making.
- Data leaders achieve a 9.5% average increase in gross profits.
- Data leaders launch nine new products annually, significantly outpacing beginners.
- Data leaders report 49% increased customer lifetime value contributions from data innovation.
- Data leaders are 5.7 times more likely to make superior decisions than competitors.
- None.
New Global Survey Shows Data Leaders Boost Resiliency to Threats and Increase Gross Profits by Nearly
“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
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:
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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% , versus30% of beginners). In addition, data leaders are more resilient and quicker to identify and remediate security incidents by11% .
- 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.
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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:
“Data-driven innovation gives you a massive edge,” said
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:
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Public sector:
20% spend more than a quarter of their IT budgets on solutions and staff that investigate, monitor, analyze and act on data — well above the8% cross-industry average. -
Financial services:
79% have adopted AI/ML for data innovation, versus67% overall. -
Healthcare: While
9% of surveyed organizations are among the most mature group of data innovators,11% of healthcare and life sciences organizations achieved leader status. -
Manufacturing:
54% apply data innovation to supply chain and operations use cases, compared to45% of organizations across all industries. -
Retail: An above-average
10% are data innovation leaders, and retail organizations are more likely to report greater brand loyalty, customer lifetime value, revenue from data monetization, product innovation and a multitude of other data innovation-fueled outcomes.
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.
Methodology
The global survey was conducted from May through
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