Inside the datavores: the effect of data and online analytics
Big data has been touted as a vital resource for business but until now there has been little hard evidence of data’s positive impact on the bottom line. This full technical report describes the background, data, method and findings of an analysis of the link between data activity and business performance.
- Using data has a positive impact on the business bottom line
- Businesses that use their data more intensively are 8% more productive
- Businesses that perform deeper analyses of their data see a boost in profits of £3,180 per employee.
- Businesses that empower employees to act on their data benefit from this data four times as much as those that don’t
Despite numerous claims that data is a critical source of competitive advantage for firms, there is little empirical analysis of its link with firm performance. This paper uses a survey of data activity for 500 UK firms, which are commercially active online, to quantify the contribution that online data use – that is, the collection, analysis and deployment of online customer data – makes to business productivity.