Analytics Applications Return $10.66 for Every Dollar Invested, Nucleus Research Finds

Business Intelligence, Performance Management and Predictive Analytics yield high returns

BOSTON – December 6, 2011 – Business analytics applications, including business intelligence (BI), performance management (PM), 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.

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, organizations that balk at this opportunity do so at their own peril. This translates into competitive advantage. With so many organizations opting not to invest in analytics, those companies that leverage this technology to learn more about their customers, products, and costs will be in a strong position to cost effectively grow their business at the expense of rivals” said David O’Connell, Principal Analyst, Nucleus Research.

Visibility and Productivity

Nucleus found analytics lead to improved visibility for revenue, gross margins and expenses. 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.

Nucleus found 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 organization.

Companies that integrated their analytics applications with three or more data sources tended to achieve higher returns than organizations that integrated only one or two data sources. 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.

The full research note is available at NucleusResearch.com

About Nucleus Research

Nucleus Research is a global provider of investigative, case-based technology research and advisory services that provide real-world insight into maximizing technology value. For more information, visit NucleusResearch.com.