Data Powers Business – What Quantifiable Results are Possible?
What quantifiable results are possible with a data-centric approach?
“Data has changed everything around us. It is the strategic disruptor that is transforming businesses, governments and every one of us across the globe. We have moved from a world where it was an outcome of automating transactions, to a second wave where databases, apps and analytics helped deliver competitive advantage.
However, in the third wave, the modern era of Data 3.0, data is fundamentally driving new business models. Today companies that use data to deliver exceptional customer experiences, build great products and drive operational efficiency are the winners in this new digital economy”, said Amit Walia our Chief Product Officer on this blog. During his keynote at Informatica World, he explained the disruptions data itself is going through. You should watch the video.
Five years back, I issued a global research on the return on product information.
Over 400 retailers and manufacturers from 14 countries point out that product information management (PIM) has direct impact on their business model, revenue growth and costs savings. The research summary comes with more than 30 pages measurable results and demonstrated the benchmarks for how international retailers and manufacturers can optimize their business model, revenue figures and costs with a Product Information Management (PIM) solution. Informatica customers reported results like
- 75% faster product introduction
- 33% increase in average order size
- New products are entered 300% times faster
The full report can be downloaded here. This research even, was quoted in the Gartner Magic Quadrant for Product Data Solutions. In their 2015 market reports Gartner writes that the ROI of customer MDM is $153m on the lower end average, while the ROI of product MDM on the lower end average is at $86m. (Source)
Data Powers Business: Demand for ROI has reached new heights
In the mean time, knowledge about relationships are able to generate more value compared to a 360 view of the customer or a 360 view of the product. Relationships matter. Big Data are adding new dimensions to better predict supply chain risks, understand why marketing campaigns fail and predict the next logical buy of customer, before he even knows about the need. And the request for quantifyable business outcomes hase reached a peak. I am seeing more request for this, then ever before, so I thought I summarize some examples for you.
Examples of data powered business outcomes
The Informatica team is decidated to measurable business outcomes, powered by data. I thought I summarize some great examples for you in this blog:
- “Trusted data has helped EMC identify opportunity costs of over $40 million a year,” said Barbara Latulippe, Chief Data Governance Officer at EMC, during the Informatica World Tour. You may read the full article here.
- In this webinar, Murdoch’s Ranch and Home Supply reported about a YOY largest traffic growth for inbound marketing channels (+200%) and 31% increase in online revenue.
- “Now, with product information centrally managed, that customer quotes can be prepared in 20 minutes, saving 40 minutes of time”, said Ron Kessels, Director of E-Business, Saint Gobain.
- Elkjop reduced time to market by up to 60% by decreasing time to onboard new online product information from several hours to only a few minutes
- A large electronics manufacturer grew online sales from 25 to 1100 digital channels in North America. Sell-out difference went up by 82% in UK
- A marquee luxury retail warehouse save several 100k USD with fueling electronic shelf labels with the right information
- “Citrix Boosts Lead Conversion Rates by 20% with Better Customer Information”, said Dagmar Garcia, senior manager of marketing data management at Citrix.
- “Informatica is a centerpiece of FASTWEB’s digital transformation strategy. By placing customers at the heart of the business, Informatica will help FASTWEB meet its commitment to reducing churn by 80% within three years”, said Nicola Salvemini, IT Architect, FASTWEB. (Full story about the telco use case here.)
- Informatica helped cut energy consumption across JLL’s facilities by approximately 15 percent
- Post NL has transformed a SMB customer spending only 200 USD per year, into a customer spending several millions USD with a new disrupted value chain by IoT and ecommerce
- Supply chain savings: CHRISTUS Health realized over $500,000 in savings within a few months of the system going live.
- Find more stories here.
Enterprise Data Competency Model and Business Value Assessment
In order to leverage information for quantifiable business outcomes, at Informatica World 2016 our CMO, Jim Davis, introduced the Enterprise Data Competency Model. This way companies can assess where they stand, identify the mechanisms (leadership, culture, infrastrcture, people, process) to leverage Data 3.0 for measurable business outcomes. You should definitely watch the video.
And there is more, the Informatica MDM Business Value Assessment (BVA) is a process to help your organization quantify the financial benefits of Informatica’s Master Data Management(MDM) software solution. The purpose of the BVA is to advance your key MDM priorities by understanding, clearly documenting and communicating the expected ROI of defined initiative. Informatica offers the BVA as service to companies and organizations considering Embarking and deploying a MDM solution.
Are you ready for your powering your business with data?
Tips on establishing business goals, using key metrics and benchmarking your progress can be found on this white paper “How to Get C-Level Buy-In for Your Trusted Data Initiatives”.