Organizations are continuing to make investments in analytics to meet the growing demands of the user community for more robust and usable analytic solutions. In analyzing Nucleus ROI case studies on analytics, we found the average returns form analytics have been increasing, reaching $13.01 for every dollar spent in 2014 from just $10.66 in 2011
Organizations are choosing analytic applications to improve the effectiveness of business processes, to increase visibility, to drive greater business profitability, and drive greater productivity and results. The past three years have seen waves of organic growth and acquisitions as vendors make a concerted effort to deliver more ROI to customers in areas such as cloud deployment, collaboration, security, and mobility.
In 2011, Nucleus conducted an analysis of its existing published ROI case studies on analytic deployments and found that analytics returned $10.66 for every dollar spent (Nucleus Research l122 – Analytics pays back $10.66 for every dollar spent.
Organizations are being driven to analytic solutions by the need to have more data transparency and improved decision-making processes. Many organizations are facing challenges maintaining data quality. They are also facing time constraints for meeting business demand in rapid decision-making in competitive and crowded markets. As a result, they can no longer afford to wait weeks for reports on profitability, revenue, budgeting, and forecasting, and they can no longer afford to delay marketing campaigns. Many companies have seen the gains made in different parts of their organizations through analytics, and are looking to complement existing implementations with additional tools.
COMPETION IS TOUGH
The analytics market has seen a significant increase in vendors that has brought about changes in technology and an increase in the availability and volume of data. Both the cloud and big data have significantly influenced the decision-making for new analytics initiatives while impacting the ROI that many companies have achieved from their deployments.
New vendors have also entered the market in the past 3 years, with both niche and smaller vendors offering high levels of usability, integration into other systems, competitive pricing strategies, and ease-of-deployments that reduce the need for hardware, IT resources, as well as the overall cost of software. Larger vendors are following suit to remain competitive, and many have adjusted packaging, pricing, and product capabilities to match those of the up and coming new vendors. Customers now have a much greater choice of vendors and deployment types, enabling them to reduce IT dependency via the cloud while sourcing the lowest cost, most functional options for solution deployments.