Organisations that invest in data-to-insights capabilities benefit from 21 per cent increase in revenue.
A study by research firm IDC sponsored by Qlik, showed companies with a higher ability to identify, gather, transform, and analyse data to glean insights benefited from higher quality decision making and better business outcomes, including improved operational efficiencies, increased revenue and increased profits.
Organisations are inundated with data, and many are struggling to maximise the value of that data since it’s flowing through unintegrated and leaky data pipelines, said Dan Vesset group vice president, Analytics and Information Management at IDC.
The research shows a direct relationship between creating stronger data-to-insights capabilities through data pipeline investments – ones that successfully deploy data management and analytics solutions to close pipeline gaps – to decision making that drives business outcomes.
According to IDC:
- 86 per cent of organisations in the top half of those surveyed with the best data analytics pipelines also get the highest decision-making scores
- 67 per cent of organisations in the top half of those surveyed with the highest decision-making scores had the highest business outcomes scores
“Even in these challenging economic times, CEOs at major enterprises are continuing to invest in their data pipelines to close the gaps and enable their organisations with more high quality and valuable data for decisions,” said Vesset. “These leaders are increasing their enterprise intelligence quotient by automating the data preparation cycle through technology, giving employees the vital tools and time needed to analyse data for insights that create real business value.”
Companies in the survey with the highest demonstrable data-to-insights capabilities, resulting in strong data pipelines that drive better decisions, see significant bottom line impact.
- 76 per cent said operational efficiency improved by an average of 21 per cent
- 75 per cent said revenue increased by an average of 21 per cent
- 74 per cent said profit increased by an average of 22 per cent
The challenges to deploying data pipelines that drive better decisions and business outcomes are significant. Organisations are dealing with complex and varied data types and sources, which can leak through data and analytics pipeline gaps. Of those surveyed, over 60 per cent experienced significant challenges in assessing the value of data and identifying valuable data sources, often due to a lack of a data catalogue.
Over 42 per cent surveyed identified assuring data correctness as a main challenge when processing or transforming data for analysis.
“So even as organisations invest in techniques like machine learning and AI to enhance insight generation and analysis, it’s clear that the success of these investments is highly dependent on having an agile, automated and agnostic data pipeline that closes the gaps by working across any cloud, system and data source in real-time,” said Vesset. “Only by closing these gaps to eliminate data leaks can organisations transform their data pipelines to provide continuous and reliable enterprise-ready data that drives action and outcomes.”