What have you found most effective in securing financing for your data and analytics function?
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Simple: you demonstrate the business benefits, which have been quantified using a financial model that is approved by your CFO for the evaluation of new technology investments. For some, this may be ROI, but for others, it could be something else.
The most effective approach I've found in securing financing for the data and analytics function involves demonstrating clear value and ROI. By presenting compelling use cases and success stories that highlight how data initiatives have led to significant business improvements, I can make a strong case for investment. Additionally, aligning data projects with strategic business goals and showing how they address specific pain points or opportunities resonates well with stakeholders. Providing detailed cost-benefit analyses and leveraging pilot projects to showcase potential outcomes also helps in securing the necessary funding.
In this day and age, data should be table stakes but I may be biased. As to the question - for small to medium-sized organizations or government agencies, a general metric like ROI is often sufficient. However, for larger, more established, and publicly traded companies, ROI alone is not enough. You must demonstrate how it aligns with and drives enterprise-level KPIs in the right direction. An initiatives that generates benefits in a prioritized area will be recognized as adding value to shareholders. Not all high-ROI projects are—or should be—resourced.