The Oakland Athletics general manager, Billy Beane, proved the ROI of analytics and shared it in the wildly popular book and movie, Moneyball: The Art of Winning an Unfair Game. Nucleus Research has proved that analytics delivers for business as well; the firm found that analytics pays back $10.66 for every dollar spent.
In a research note on the findings, Nucleus cites two significant reasons for the high ROI of analytics:
- It is easy to integrate data sources with analytics applications; and
- Once deployed, analytics tools provide insight, leading to “changes to decision making that result in unexpected improvements in profitability.”
Nucleus notes, “For example, when Concept One adopted IBM Cognos Express, granular cost analyses of the company’s licensing agreements enablefoundd the organization to become more selective about license renewals and increase its gross margin.”
In addition to analyzing the ROI of IBM Business Analytics, Nucleus also performed ROI case audits on customers using analytics technologies from Microsoft, Oracle, SAS, Tibco Spotfire and Information Builders. This combined analysis led to the finding of an overall ROI of $10.66 per dollar spent on analytics.
As Nucleus concludes, “Given the returns of $10.66 for every dollar invested in analytics, these technologies represent one of the richest investment opportunities available to organizations.”
Read the full Nucleus Research note, “Analytics Pays Back $10.66 for Every Dollar Spent ” to learn how and why analytics technologies deliver a significant ROI.