High Returns Reported from Business Analytics Platform Investments
"Business analytics applications, including business intelligence, performance management, and predictive analytics are delivering significant return on investment, with an average benefit of $10.66 for every dollar spent, according to Nucleus Research," wrote Leonard Klie in the CRM Magazine, Feb. 2012 ed.. Nucleus Research's findings were based on a survey of small- to enterprise-size business findings; the research evaluated different types of hard and soft returns, such as cost savings, sales activity, customer service response, etc.
Business analytics platforms, such as TIBCO Spotfire Analytics Platform, routinely collect and disseminate data from various operations-related platforms within an organization. This data is then displayed in graphs and visual representations that show trends and patterns. By leveraging predictive analytics, companies are able to discover new insights into their business' operations and performance, and better understand when and how to implement next steps and strategies.
Business Analytics Platform Basics
- Users. There are two general types of users: power and interactive. Power users have comprehensive access to the analytics features and are passionate about learning and implementing advanced application of the software. Interactive users have more limited access, thereby focusing predominantly on processing information from the analytics visuals.
- Data sources. Data sources are databases that the platform uses as part of its analysis. For example, data can include customer relationship management (e.g., customer service, sales and marketing activities), in addition to enterprise resource planning, accounting and operations system data.
- Analytics. Before the system is deployed, it is important to understand the relationship between different types of data. Better understanding how activities and time impacts revenue and productivity will help with sorting and setting-up analytics components. Platforms can include ad-hoc, real-time and statistically-relevant analyses.
- Versions. Different versions are available, depending on the vendor and the info delivery types that best suit your business. During an initial information-gathering appointment a business partner can recommend the best version options for you; otherwise, check the website and/or available whitepapers for additional information.
"Despite a limited number of deployments, analytics was found to have the greatest return, primarily because these types of applications can lead to changes in decision-making that ultimately result in unexpected improvements in profitability, including higher revenue and gross margins and lower expenses," says Klie.
Image by Esther Simpson.