Corporate Investments in Analytics Deliver ROI of Over 1000%

Organizations earn an average of $10.66 for every dollar they spend on analytics apps including business intelligence and predictive analytics,according to Nucleus Research.

That’s over a 1000% return!

Because organizations can make so much money from analytics, management teams should consider this technology to be one of the most attractive investment opportunities available to the CFO, according to Nucleus.

But even though analytics technologies are well understood and widely available, they’re not being adopted as much as enterprise applications like ERP (enterprise resource management) and CRM (customer relationship management), according to the report.

After examining 60 analytics-related ROI case studies, Nucleus discovered the return on analytics can be significant for two reasons.

For one thing, certain vendors provide users with new approaches and technologies so they can more easily integrate data sources with analytics applications, which is usually the most difficult part of the deployment.

Then once the analytics tools are deployed, organizations can use the analytics data to make better decisions and, as a result, increase their profits.

Software buyers may think that vendors overhype visibility as one of the benefits of analytics, but Nucleus discovered that the highest-ROI analytics deployments give decision makers more data that they can use to find ways to boost revenues or cut costs.

According to Nucleus, analytics lets managers increase revenue by giving them better insights into what customers are purchasing and why, so they can speed up sales cycles, cross sell and maximize pricing.

And analytics also gives managers information about their operating costs, so they can reduce or eliminate unnecessary spending or spending that generates low returns.

“Although skepticism can be warranted for technologies that are new or unproven, managers who continue to balk at investing in analytics technologies are doing their organizations a disservice,” according to the report.

Not only is the ROI value proposition a big deal, but analytics can make companies more competitive.

“The companies that use analytics to learn more about their customers, products, and costs will be in a position to cost effectively grow their business at the expense of rivals,” according to the report.

Next Steps:

• Listen to our webcast with Forrester Senior Analyst James Kobielus (@jameskobielus) and Spotfire Product Marketing Manager Syed Mahmood, as we explore how leading-edge organizations everywhere are integrating advanced analytics into multichannel CRM.
• Listen to our webcast with Boris Evelson (@bevelson), Vice President and Principal Analyst, Forrester Research Inc., as he explains how you can enable agile business intelligence through self-service and collaboration.
• Download this complimentary “5-Minute Guide to HR Analytics,” and learn the three critical capabilities a modern analytic environment must provide to the entire spectrum of HR staff so they can adequately support the enterprise.
• Subscribe to our blog to keep up to date on data analytics trends and technology.

Linda Rosencrance
Spotfire Blogging Team

(Source :  Trends and Outliers, TIBCO Spotfire's Business Intelligence Blog - http://spotfireblog.tibco.com/)