IT practices have a measurable impact on business. Looking for evidence? Recently the McCombs School of Business at the University of Texas teamed up with Sybase, an SAP company, to examine how data management best practices impact bottom-line business metrics. Unsurprisingly, when researchers measured data management against some very real business results, they found a big correlation. Researchers looked at five data attributes: quality, usability, intelligence, remote accessibility and sales mobility and measured how a how a 10 percent improvement in any one or two of these attributes affected the metrics used to assess financial performance of a business. The study examined the impact to metrics on Fortune 1000 businesses. Channel partners would do well to examine these correlations. They could prove useful in the next sales pitch they make, particularly when CFOs are involved in the conversation.
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Employee Productivity
Traditionally measured by sales per employee, employee productivity is boosted 14.4 percent by a 10 percent increase in data usability.
Employee Productivity
The median sales per employee of those organizations studied by UT researchers was $388,000. Improving the way employees are able to use data stands to increase this number by $55,900 per employee each year.
Return on Equity (ROE)
An indication of the business' ability to grow, ROE tends to increase by 16 percent with a 10 percent jump in data quality and sales mobility.
Return on Equity (ROE)
An organization with the study's median net income of $410.47 million can make an additional $65.67 million in net income each year through better data management.
Return on Invested Capital (ROIC)
This metric measures the efficiency in allocating capital to profitable investments. Researchers say it stands to edge up by 1.4 percent with a 10 percent increase in sales mobility.
Return on Invested Capital (ROIC)
If it held its capital constant at $2.144 billion, an average Fortune 1000 business would increase its net income by $5.4 million every year through improvements to data sales mobility.
Return on Assets
This measures a company's ability to efficiently use its resources to generate income and increases by 0.7 percent as a result of a 10 percent improvement in intelligence and remote accessibility.
Return on Assets
An improvement in data management allows the average Fortune 1000 company to squeeze out an extra $2.87 million of additional income out of the business' assets.
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