Healthcare Leads in Data Innovation, Lags in Talent Retention

What You Should Know:

Splunk Inc., 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.

Data-driven Trends in Healthcare Economics

Splunk Inc. helps organizations around the world turn data into doing. Splunk technology is designed to investigate, monitor, analyze and act on data at any scale. 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.

“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:

1. 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%.

2. 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.

3. 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.

Additionally, the industry-focused addendum to the report highlights these vital areas. Key findings include:

1. 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 the 8% cross-industry average.

2. Financial services: 79% have adopted AI/ML for data innovation, versus 67% overall.

3. 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.

4. Manufacturing: 54% apply data innovation to supply chain and operations use cases, compared to 45% of organizations across all industries.

5. 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-fuelled outcomes.