With organizations globally embracing digital transformation in a bid to unlock new market and revenue opportunities, reduce costs, improve efficiencies and gain competitive edge, the focus is shifting to the underlying factor driving it all – data.
In fact, digital transformation would not be possible without data. Much of the digital technologies at the center of organizations’ transformation journey – whether IoT, Artificial Intelligence (AI)/Machine Learning (ML) or predictive analytics – are all built upon data.
As a result, there is a growing realization among enterprises around the unprecedented value that data brings to their business by uncovering new insights, driving better decisions and accelerating innovation. According to ‘The 2018 Data Value Report’, a study conducted by SnapLogic in association with Vanson Bourne, enterprises expect to generate a 547% return on their data investments, increasing revenue by an average $5.2 million as a result of more effective data use.
Thus, leveraging data better is becoming high priority. According to the same study, for almost 9 in 10 (90%) organizations, leveraging data better is an increasingly high priority and enterprise budgets allocated to operationalizing data are set to grow massively.
The average business plans to double their investments and allocate more than $1.7 million to preparing, analyzing and operationalizing data to establish data-driven processes organization-wide in five years’ time.
Most Valuable Data
With the enterprises focusing on customer centricity, it’s no surprise that customer data tops the list with 69% respondents highlighting it as the most valuable data in their organization, followed by IT data (50%) and internal financial (40%) data. Customer data is particularly most valued in sectors such as financial services, retail & distribution, manufacturing & production and business & professional services.
However, customer data isn’t ranked as highly in all industries. For sectors such as construction, energy, oil/gas & utilities and IT/telecom, IT data is most valued, while employee data ranks high in value in the energy, oil/gas & utilities market and sales data makes a strong appearance across retail and manufacturing.
Needless to say, data represents a massive opportunity and going forward many a battle will be fought over it. With the value of data growing exponentially, today more than ever, the ability to manage torrents of data and effectively leverage data assets will be foundational to enterprises’ growth and competitive strategy.
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