According to the just-released findings of IDC’s study, The Financial Impact of Business Analytics, analytics projects positively impact an organization’s bottom line. Investments in analytics are providing enormous benefits to companies in a wide range of industries and geographies.
Business analytics implementations generated an average 5 year ROI of 431%. Over half (63%) of those studied had a payback period of two years or less. * The best results are achieved when analytics goes hand-in-hand with business process change. Each case had a strong business process focus, in one of these 3 areas: -Operations/production analytics (related to the production or delivery of a product or service) showed the highest return with a median ROI of 277% -Financial/business performance management analytics had a median ROI of 139% -Customer relationship management analytics had a median ROI of 55%. * “Buy” projects (implementing a packaged analytic application) yielded a median ROI of 140%, while “Build” projects (custom development) yielded a median ROI of 104%. The approach adopted depends on the problem addressed, the level of skill within the organization, and the availability of packaged solutions.