Data savvy organisations reap higher profits

The most data savvy organisations are generating gross profits 9.5% ahead of their peers, according to research released by data security and observability platform provider Splunk.

The company’s new Economic Data Innovation 2023 report, prepared in collaboration with the Enterprise Strategy Group, also estimates that data leaders are 2.9 times more likely to beat the competition to market with a new product or service. They are also twice as likely to exceed financial expectations, the report suggests.

Data leaders report launching nine new products per year that wouldn’t be possible without their data innovation capabilities, the research found.

Meanwhile, data leaders are 5.7 times as likely to say their organisation almost always makes better decisions than competitors, and are driving 2.3 times as much of their revenue via data monetisation than data beginners.

Broken down by industry, 79% of financial service providers have adopted AI or machine learning for data innovation, compared to 67% across all industries. Meanwhile, 54% of manufacturers apply data innovation to supply chain and operations use cases, compared to an average of 45%.

Splunk chief strategy officer Ammar Maraqa said the results demonstrate that data-driven innovation can give organisations a major edge.

“Organisations that prioritise 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,” he said.

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