daten-power-für die-industrie

1. © 2019 SPLUNK INC.
How to Justify the
Economic Value of Your
Data Investment?
Methods to calculate ROI, Break even point and other
Ingrid Jeannot, Sr. Business Value Consultant
June 23,2020

2. During the course of this presentation, we may make forward-looking statements
regarding future events or the expected performance of the company. We caution you
that such statements reflect our current expectations and estimates based on factors
currently known to us and that actual events or results could differ materially. For
important factors that may cause actual results to differ from those contained in our
forward-looking statements, please review our filings with the SEC.
The forward-looking statements made in this presentation are being made as of the
time and date of its live presentation. If reviewed after its live presentation, this
presentation may not contain current or accurate information. We do not assume any
obligation to update any forward-looking statements we may make. In addition, any
information about our roadmap outlines our general product direction and is subject to
change at any time without notice. It is for informational purposes only and shall not be
incorporated into any contract or other commitment. Splunk undertakes no obligation
either to develop the features or functionality described or to include any such feature or
functionality in a future release.
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. © 2019 Splunk Inc. All rights reserved.
Forward-
Looking
Statements
© 2019 SPLUNK INC.

3. © 2019 SPLUNK INC.
Who am I?
Ingrid Colette Jeannot
MSEE (Dipl Ing.) | MBA
Software Development | IT Operations |
Agile
Manufacturing | Automotive
South Africa | Switzerland | United
States
Traveling | Group Exercise & Fitness
Some ”fun” facts about your presenter today

4. © 2019 SPLUNK INC.
Business Value Consulting @ Splunk
… are part of an independent department in
Splunk belonging to the Industry and
Specialist organization
… 26 worldwide, 11 EMEA, 2 DACH
… have a background in technology and
business
Business Value
Consultants Business Value Consulting
Facts and Figures
... helps customers to document the
projected and already realized business
value of making machine data accessible,
usable and valuable.
… delivers CFO ready business case,
adoption roadmaps and maturity
assessment, customer and use case
benchmarks.
… performed 3,000+ engagements since
2013

5. © 2019 SPLUNK INC.
How can we help?
• IT Operations
• IT Security
• OT Security
• Financial Services
Prescriptive
Value Path
Interactive
Value
Assessment
Total Cost Of
Ownership
Success
Stories
Supporting our customers to create, understand and show the value
• IT Operations
• IT Security
• Manufacturing
• Splunk Cloud vs.
• Public Cloud vs.
• On-premise

6. © 2019 SPLUNK INC.
“Data is the lifeblood of any
organization. It’s what drives
customer engagement, boosts
employee productivity, streamlines
operations and, in some cases,
even transforms age-old companies
into digital powerhouses. “
https://www.splunk.com/pdfs/data-maturity/what-is-your-data-really-worth.pdf

7. © 2019 SPLUNK INC.
Agility and Resilience are of Great Value
The Value of Tapping All Your Data
91%
“Of organizations believe that
given the right data, their
organization is in a strong
position to compete and
succeed in its markets over the
next few years.”
*Research conducted by the Enterprise Strategy Group (ESG), 1,350 respondents
Key Findings*
Organizations that place strong strategic emphasis on data
see the following achievements
- Increase in annual gross profit by + 12.5% (through
revenue increase and operation cost decrease)
- 20% of new offerings contribute to revenue growth
- 93% feel they tend to make better, faster decisions than
competitors using data

8. © 2019 SPLUNK INC.
Importance of Data - cont’d
Driving Profit Better utilizing
more data
Improving
operations
Maintain a
competitive
edge
In Summary….
13% of their gross profit
comes from smarter
use of data
78% have improved
product/service quality by
uncovering and better
utilizing dark data
88% use data to support
most/all activities and
processes associated with
manufacturing operations
61% believe their
organization is ahead of
the competition when
developing and launching
new products and services

9. © 2019 SPLUNK INC.
How can the Economic Value be Calculated?
Interactive Value Assessment
Quantify the business value currently being realized with your Splunk deployment and /
or to be realized with further adoption of Splunk with your environment.
Revenue added
over 12-month
period due to
improved data
utilization
Assumed gross
margin
percentage
Costs reduced
over 12-month
period due to
improved data
utilization
Approximate
economic value
created per 12-
month period due
to improved data
utilization
Calculation Economic Value

10. © 2019 SPLUNK INC.
Deep Dive Economic Value with OEE
Top Value Drivers for Manufacturing
Key Value Drivers of Splunk
✔ Reduce business impact with Shorter and Fewer Production
Outages
✔ Fast Time to Value by being highly flexible and therefore minimize
the risk
✔ Better detection using your correlated production environment data &
machine learning capabilities
✔ Faster investigation (MTTI), Resolution & Improved MTBF through
rapid log search and correlated investigation conducted side-by-side
by different teams (everyone looks at the same data)
✔ Faster and more comprehensive root cause analysis to prevent
incident from recurring through a permanent fix or better alerting and
better triage dashboards made available to relevant staff
✔ Reduce Labor Cost and Increase Output Productivity improves
through increased production time leading to reduction in labor cost to
improvements in QA process through automation

11. © 2019 SPLUNK INC.
Translating Value Drivers
Anticipated Improvements: Splunk Customer Success Benchmark
50% to 75% Reduction of costs of unplanned
production outages and failures
10% to 30% Reduction of planned outages
30% to 50% Reduce costs from faulty units
10% to 30% Reduce cost related to process
quality
30% to 50% Reduction in business impact
Availability Performance Quality

12. © 2019 SPLUNK INC.
Sample Use Case

13. © 2019 SPLUNK INC.
Interactive Value Assesment
Customer / BVC BVC Customer / BVC
Compute Present results
Gather
information
How does it work?

14. © 2019 SPLUNK INC.
Gather Information and Compute.
60 – 90 minutes Interview.
incidents /
week
investigated =
14
incidents
affecting
production /
week = 3
downtime a
year =
200hours
Units
produced /
day = 23,000
Faulty units =
3%
Maintenance
cycles / year =
3,000
Time per cycle
= 30 min
Platform Cost
Cost per unit +
€3
Business
impact / hour
downtime -
€10,000
Implementation
Time

15. © 2019 SPLUNK INC.
Results
Cost Benefit Ratio Payback Analysis
Cost-Benefit Ratio and Payback Analysis

16. © 2019 SPLUNK INC.
Summary
✔ The trend is going towards flexibility, agility and innovation and the value behind
✔ We can support you to present a “Management Ready” business case that helps you
“justifying” investing in the Future of Data
✔ Efficient proofed and tested framework for business case analysis delivers
✔ Value assessments are one part of a bigger picture:
✔ Build / Create a data strategy as part of your investment into the future
✔ Prescriptive Value Path (Maturity Assessment / Roadmap creation) etc.

17. © 2019 SPLUNK INC.
Thank You!
Ingrid Jeannot
ijeannot@splunk.com