Companies that use data to improve their operations generate more profit and reduce operational costs. This is shown by a recent study by Splunk and the Enterprise Strategy Group (ESG).
The global study by the data specialist and consultants examined the relationship between the use of data within business operations and the economic value that this data use provided. With this they wanted to investigate the economic value of data.
Three types of companies were investigated: companies that are taking the first steps in the use of data for their business operations, companies that are already using data within their business operations, but still have room for improvement and – finally – companies that have a strong focus on data and an advanced strategy to extract real business added value from this data.
Data usage delivers concrete benefits
The results of the study show, according to the researchers, that a better use of data within business operations enables companies to increase their profits and at the same time reduce their operational costs. They were even able to increase their profitability by an average of 12.5 percent, according to the study.
In addition, it turned out that the better the data strategy used, the noticeable improvements in business operations were realised. Not only did this lead to more profit and lower operational costs, but also to more innovation, for example. Other areas for improvement that the researchers discovered were faster time-to-market, better customer satisfaction and retention, and quicker decisions.
Furthermore, it appeared that the more a company used data as a strategy, the more insight into processes could be gained, but data could also be converted into concrete data-driven policies and real-time action.
Free Data Maturity Calculator
As a data specialist, Splunk is of course keen to respond to these results. It has therefore developed the Data Maturity Calculator. This online free tool is intended to help companies discover at what level they are at when using data for business operations. With the tool, companies can discover how well their organization can use the value of their business data for certain business goals. The Data Maturity Calculator is available via the website of the data specialist.