New Research Finds Investment from Outside IT Is Key to Digital Transformation Success
May 11 2017 - 3:01AM
Business Wire
Machine Data Cited as Critical Enabler in
Cross-Functional Collaboration
Splunk Inc. (NASDAQ:SPLK), provider of the leading software
platform for real-time Operational Intelligence, today announced
the results of new research that shows digital transformation
initiatives are more successful when they have buy-in from across
the business, in a report titled “Digital Transformation
Trailblazing: A Data-Driven Approach.”
Findings from a survey of 400 senior IT executives across the
U.S., U.K. and Germany show that adoption of digital transformation
initiatives is widespread. When asked where they are in the
journey, 55 percent believe they are moving with the masses, while
36 percent believe they are ahead of the curve. Respondents on
average reported 29 percent of their IT budget is dedicated to
digital transformation projects, but the research reveals these
initiatives are more likely to succeed when funded from outside IT.
The organizations that are most mature when it comes to
digital-first strategies are more likely to indicate that funding
comes from departments such as product development, customer
service, sales and marketing.
“Having a digital transformation strategy and executing on it no
longer means you have an edge. If the majority of organizations are
‘moving with the masses’ or believe they are ‘ahead of the curve’
then no one is really standing out,” said Doug Merritt, president
and CEO, Splunk. “Organizations that rely on machine data to make
better decisions gain a strategic advantage over their competitors.
It is not surprising that those organizations with the most success
are the ones collaborating – and funding – cross-functionally. Data
is a key driver in enabling that collaboration and can help
companies drive real-time business insights to move faster to
differentiate, innovate, raise revenues, reduce costs and mitigate
risks.”
Key findings from the report include:
- Funding for digital transformation
initiatives is on the rise: 67 percent of respondents expect
digital transformation budgets to increase, while only 8 percent
expect a decrease.
- IT funding is only one of many
sources for these initiatives: 69 percent of respondents cite
this as a key funding source. Outside the IT department, product
development is funding initiatives for a third (34 percent) of
respondents, followed by customer service (30 percent), sales (30
percent) and marketing (27 percent).
- Only 36 percent say security is
funding digital transformation, although this is the top driver for
these programs: 77 percent of respondents say security was a
critical or very important driver, with the top three rounded out
by improving customer acquisition and retention (72 percent) and
reducing costs through automation and improved efficiency (72
percent).
- Insight into machine data is key to
success: When asked about the ability to derive real-time
insights and business value from machine data to achieve their
digital business goals, more than two-thirds (68 percent) of
respondents say this is a critical or very important priority.
For more information, visit the Splunk website or read the
“Digital Transformation Trailblazing: A Data-Driven Approach” white
paper for insight into how organizations are leveraging machine
data to drive business-critical insights.
Methodology
IDG surveyed more than 400 organizations in the U.S., U.K. and
Germany. All of the respondents hold director-level or above IT or
business titles, and their companies have revenues of $500 million
or more (or at least 1,000 employees for public sector
organizations).
About Splunk Inc.
Splunk Inc. (NASDAQ: SPLK) is the market leader in analyzing
machine data to deliver Operational Intelligence for security, IT
and the business. Splunk® software provides the enterprise machine
data fabric that drives digital transformation. More than 13,000
customers in over 110 countries use Splunk solutions in the cloud
and on-premises. Join millions of passionate users by trying Splunk
software for free: http://www.splunk.com/free-trials.
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Splunk, Splunk>, Listen to Your Data, The Engine for Machine
Data, Splunk Cloud, Splunk Light and SPL are trademarks and
registered trademarks of Splunk Inc. in the United States and other
countries. All other brand names, product names, or trademarks
belong to their respective owners. © 2017 Splunk Inc. All rights
reserved.
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Splunk Inc.Media ContactAlice Crook, +44 (0)20 3204
4353acrook@splunk.comorJacinda Mein,
415-266-3990Jacinda@splunk.comorInvestor ContactKen Tinsley,
415-848-8476ktinsley@splunk.com
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