DUBLIN, Calif.--(BUSINESS WIRE)--Sybase, Inc., an SAP company (NYSE:SAP) and industry leader in enterprise and mobile software, today revealed the results of a new Report – ‘Measuring the Business Impacts of Effective Data’ – an extensive study benchmarking some of the world’s leading enterprises across a wide range of industries by measuring the direct correlation between a company’s IT investments and overall business performance. The study also reveals which vertical industries would be the largest benefactors of improvements to effective data, and these include retail, consulting services, financial services, telecommunications and energy/gas services.
Conducted by researchers from the McCombs School of Business at the University of Texas, in conjunction with the Indian School of Business, the study looks at five distinct attributes of data—quality, usability, intelligence, remote accessibility and sales mobility—and examines how a 10 percent improvement in any one or two of these attributes affects the metrics commonly reported for assessing the financial performance of businesses. Unlike previous studies in this area which have failed to correlate specific financial impacts to the amount businesses spent on IT, this first-of-its-kind research holistically quantifies the impact of improving data’s effectiveness on financial metrics that are key indicators of an enterprise’s competitiveness, health and profitability.
“Despite decades of IT investment in information technology, the direct correlation between those investments and the financial performance of the business has eluded senior decision-makers,” said Anitesh Barua, distinguished teaching professor and lead researcher, University of Texas at Austin. “This is the first study that quantifies the relationship between incremental improvements in data and key performance metrics of businesses today. Previous studies tell us neither the magnitude of the effect on performance nor what it takes to improve the attributes of data. We are encouraged by our findings and expect the business community to take notice.”
According to Part One of the study that looks at ‘Financial Impacts of Effective Data,’ even the most incremental investments put towards improving the versatility of data deliver dramatic impacts on the following key business performance metrics:
“For over 25 years, making data more effective for business has been the singular focus for Sybase, and the results of this study – particularly in today’s highly challenging and competitive business environment – underscores the importance of making data effectiveness a business priority,” said Dr Raj Nathan, senior vice president & CMO, Sybase. “As the volume of data continues to grow, organizations of all sizes must confront the challenges around managing, analyzing and mobilizing data in new ways. This study deductively shows that even the most pragmatic improvements in data efficiency can lead to measurable financial gain.”
The second and third parts of the study (to be released later this month) will apply the same data attributes to examine customer-focused impacts on the ability to innovate to derive revenue from new products and services, and the operational impacts of effective data with a focus on improving the accuracy of planning and forecasting.
Click here to download a free copy of this first report.
About the Study
The referenced study was commissioned by Sybase and conducted by the McCombs School of Business at the University of Texas, in conjunction with the Indian School of Business. The methodology of the study involved three steps – 1) operationalization of data attributes, survey design and testing, 2) data collection, and 3) analysis. The objective was to collect data from a variety of industries and functions. The questionnaire was tested for clarity and face validity and refined with the help of inputs from Fortune 1000 employees in functions who need accurate and timely information to make decisions or take actions (e.g., sales, forecasting, etc.). The final survey instrument was completed by over 150 respondents from Fortune 1000 firms. Financial and some operational performance data on the firms represented by the survey respondents was collected from archived sources. The empirical analysis involved two steps: Factor analysis to determine distinct attributes of data, and multiple regression analysis to test the relationships between data attributes, controls and performance measures.
Sybase, an SAP® company, is an industry leader in delivering enterprise and mobile software to manage, analyze and mobilize information. We are recognized globally as a performance leader, proven in the most data-intensive industries and across all major systems, networks and devices. Our information management, analytics and enterprise mobility solutions have powered the world’s most mission-critical systems in financial services, telecommunications, manufacturing and government. For more information: www.sybase.com. Read Sybase® blogs: blogs.sybase.com. Follow us on Twitter at @Sybase.
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