Analytics goes hand-in-hand with strategy
A new study from International Data Corp. (IDC) reveals that investments in analytics as a supplement to business-process change leads to gainful return on investment. “The Financial Impact of Business Analytics” finds that business analytics implementations generated an average five-year ROI of 431 percent, and 63 percent of those studied generated ROI in two years or less.
But it isn’t enough just to implement analytics technologies. By combining analytics with customer strategy, businesses can drive results by crunching numbers that center on a specific goal. Customer-based analytics had a median ROI of 55 percent, IDC reports. “The study demonstrates that companies can derive significant ROI from analytics when they maintain a focus on a pressing business problem,” says Henry Morris, group VP of Applications and Information Access for IDC. The study included 43 interviews in North America and Europe with IS managers, business managers, department managers and system users spanning a range of industries.