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Splunk is a Data Analysis software primarily used for IT Systems' log review.One can define rules based on keyword searches or certain events such as login to system using admin account and configure automated alerts or regular reporting.

Splunk is an analytics tool. It's used as an SIEM tool by Security Analysts in SOC.
In SOC, our job is to monitor, detect, isolate security incidents to maintain CIA (Confidentiality, Integrity, Availability). We get millions of events for the bad things happening on tons of our systems in the network. It is very difficult to monitor and analyze huge amounts of data. So there should be a structured way to prosecute and correlate events. There comes the SIEM.

Most common use cases for Splunk

Splunk enables you to derive knowledge and actionable information by indexing and searching machine data. It can easily index data from these sources

Files and directories
Network events
Windows sources
Other sources

Splunk Enterprise to facilitate IT administrators to make sense of large volumes of log files and recently have ventured into Cyber Security Analytics. There are a lot of apps that are built as add ons for the core product and they do enhance core functionality. The most common use cases would be Log Management, IT operations, Cyber Security.

Splunk features

User monitoring, monitoring user activity and privileged accounts, which can often be used in advanced attacks or for insider threats based attacks.
Security and fraud, such as enabling the adminitrator to detect and investigate a malware, Splunk is able to shoot tasks to detect infected hosts and determine the spread of malware, it also helps to initiate potential remedial activities using domain-specific dashboards, correlation searches and reports.
Control and monitoring, it is possible to mold splunk to do basically anything with the data it collects, such as creating a NOC dashboard and monitor all the equipments and services in a big datacenter.
Detect and stop data exfiltration, such as isolating events that require attention, and monitoring transactions to determine data exfiltration.
Detect account takeovers, detecting fraudsters performing online account takeovers with the intent of then misusing these accounts for financial gain or information theft.
Detect when a critical system stops working, detecting when they stop sending logs to Splunk, as this often is a violation of regulatory compliance requirements.