In recent years, there has been a proliferation of business intelligence tools that aim to help companies make critical business decisions based on data analytics. There’s a catch. As data adoption increases at most companies, they are left with growing administration problems, said Logan Havern, co-founder and CEO of Datalogz.
“The sprawl that inevitably comes with this report proliferation is overtaking data-mature organizations and causing cost, risks and labor efforts to rise exponentially,” Havern told TechCrunch. “What if an organization reports the same KPI in 20 different dashboards with slightly different calculations? This leads to wasted computing, but more importantly, could result in major business consequences.”
To address the risks and costs of decision intelligence software, Havern set out to establish Datalogz’s mission to optimize BI environments. Off the heels of closing its $2.3 million financing round led by Squadra Ventures this February, Datalogz announced today that it has raised another $5 million led by Great Point Ventures.
Other participating investors from the latest round include Graphene Ventures, Squadra Ventures, Berkeley Skydeck, Defined VC, Mana Ventures and Trajectory Ventures.
When the founder was working at JetBlue a few years ago, he realized that as the airline invested in digital transformation, the number of reports quickly grew from a couple hundred to thousands and even tens of thousands, each tracking different key performance indicators. As a data analyst, he was constantly juggling mountains of reports on customer information, flight delays, lost baggage and other forms of data.
These piling reports, Havern argued, could lead to thousands of dashboards with duplication, unused assets, security risks, inefficiencies and consequently unwanted costs.
Leveraging his experience handling large sums of data at JetBlue, Havern is again working with large corporations and has secured the American Bureau of Shipping, Gateway Services and SSA & Company as customers. The company is targeting to reach around 10 enterprise customers early next year and currently has an eight to 12-month-long sales cycle with annual contract values ranging from $100,000 to $250,000.
Image Credits: Datalogz’s founding team
Part of Datalogz’s business is stepping into the turf of traditional consulting firms, which easily charge $1-10 million annually just to perform business intelligence audits and clean-ups, according to Havern. While the consulting firms’ BI cleaning process is mostly manual, Datalogz has an algorithm-driven automation tool that plugs into customers’ BI environments to generate insight and automation for risk reduction, security improvement, cost cuts and other performance monitoring tasks.
Datalogz also comes with a price advantage. “When you compare it head to head with the timeline to implement Datalogz, the cost, the resources required, it’s a fraction of what a traditional consulting firm would charge, like 2-5%. The ROI is 10-20x of what you’re getting out of it,” said the founder.
Based out of Long Island City, Datalogz is led by Havern and his team of co-founders. This includes Pablo Lerdo, who oversees operations and is a long-time friend of Havern from high school and college; Tina Bhatia, who heads up sales; and Tom Juntunen, whom Havern met on Reddit while discussing BI and later joined the company to lead the engineering team.