Analytics return $10.66 for every $1 spent

Business analytics applications, including business intelligence, performance management, and predictive analytics are delivering significant return on investment (ROI), with an average benefit of $10.66 returned for every dollar spent, according to a Nucleus Research analysis, notes EON.

Once deployed, analytics tools are capable of changes to decision making that result in unexpected improvements in profitability, leading to higher ROI.

“Given returns of $10.66 for every dollar invested in analytics technologies, organisations that balk at this opportunity do so at their own peril,” says David O'Connell, principal analyst, Nucleus Research.

Nucleus found that analytics lead to improved visibility for revenue, gross margins and expenses, says Market Watch.

The analytics deployments with the highest ROI made data more available to decision makers and enabled them to find ways to increase revenue and reduce costs.

It also discovered that analytics lead to greater profitability as well with the ability to eliminate manual processes for report builders and accelerate analytical processes for decisions makers in a variety of roles across the organisation.

Companies that integrated their analytics applications with three or more data sources tended to achieve higher returns than organisations that integrated only one or two data sources, writes Telecom Reseller.

Several vendors have provided new approaches and technologies that make it easy to integrate data sources with analytics applications, typically the most complex part of a deployment.