We are trying to identify a way be able to measure (find an ROI) on our data and analytics initiatives and growth - any successful suggestions?

Data & Analytics
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Senior Data Scientist in Services (non-Government)2 years ago

Hi,
As the D&A initiatives are supposed to be related to business, ... how did a particular D&A initiative change / improve / enable business outcomes. This is not supposed to be just financial. Also risk mitigation, situation awareness, availability and/or completeness of data for making decisions can be provided in a before-after way.

Lead Cloud Transformation Architect2 years ago

Measuring ROI is not stright forward but possible. I suggest the following based on experience: 
- Define Business Outcomes: What goals and objectives Oare you trying to achieve? Examplw: improve decision-making, increase operational efficiency, reduce costs, or increase revenue growth.
- Develop relevant key performance indicators (KPIs): Identify specific metrics that align with your outcomes. For example, you could track metrics like cost savings, revenue increase, customer retention,etc.
- Establish a baseline assessment before implementing your data and analytics initiatives. This will provide a snapshot of Begore vs. After
- Track and analyse relevant data to collect  data. This could coukd be done using data visualisation tools, dashboards, and analytics platforms to monitor the progress and impact of your initiatives.
- Map your your initiatives to financial impact. Fir example increase by 15% in sales due to initiative A.
- Compare total cost of initiative to the financial impact. For example, increase of 15% in sales which equates to $3.5m over 18 month at cost of $1.5m (simplified example).
The above is a general approach for measuring ROI.

Head of ISG in Finance (non-banking)2 years ago

ROI calculations for data and analytics initiatives may not always be straightforward, as some benefits might be challenging to quantify directly. In such cases, you can rely on estimates, benchmarks, or industry standards to provide a reasonable approximation. Additionally, it's important to regularly review and reassess your KPIs, baselines, and measurement methodologies to ensure they align with changing business objectives and priorities.

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