Tuesday, November 29, 2022

Four Challenges When Driving ROI from Business Analytics

By Vishal Muktewar - May 24, 2022 3 mins read

Most business executives expect their BI programs to start delivering on ROI promises. But, they often fail to craft strategies that will yield the desired results.

Most C-suite executives agree that business intelligence is essential for strategic, data-first decision-making. Forward-thinking organizations across the industries are successfully advancing their initiatives by capitalizing on the capabilities of innovative new business intelligence (BI) solutions. Yet, many organizations still struggle to measure and quantify the performance of BI efforts. Most IT leaders still find it difficult to understand why their investment in technology systems, as well as employees, has not yielded them the performance boost they predicted.

Most executives want insights into their BI programs. They want to know it is making a real impact and a way to concentrate on their most critical objectives. Like any other function, it is crucial to have business analytics that is accountable and demonstrates ROI. Yet, there are a few major obstacles that may come into play to business intelligence performance:

No alignment between analytics and strategy

Most BI initiatives fail due to a lack of alignment between strategies and business outcomes. Even those that achieve some degree of success are not aware of the full potential value due to factors such as the organizational culture, IT infrastructure, or both being responsible for hindering the development of holistic, trustworthy insights. However, when putting it into action, it can transform organizations.

Also Read: Four Strategies Businesses Can Adopt to Maximize the Value of Data Analytics

Not asking questions

Not having an alignment between strategy and analytics can force organizations to begin their work with data directly instead of the questions they should answer to enable their process. For instance, most organizations have been increasingly shifting toward big data analytics, which has consumed resources. It has made organizations look inward instead of being market-oriented and distracted most organizations from what is essential to them. Instead of heavily relying on data to drive their decisions, organizations should start asking big questions.

When businesses begin with the question they should answer, they often realize that they do not have the relevant data at their disposal. Obtaining such high-value data requires them first to produce or acquire it, which requires more effort.

Having Silos 

Having analytics tools at their disposal, most organizations want to begin their analytics initiatives as soon as possible to achieve their expected goals. But, executing data with business analytics requires IT organizations to be prepared. They should assess the readiness of their organization, identify gaps and close or bridge them before investing in massive resources.

Also Read: 7 Crucial Attributes Businesses Must Look for While Selecting Big Data Analytics Tool

Organizations are slow to adapt

Sometimes the slowness of the organization with their business analytics is not due to the limitation or urgency but rather due to the inability to develop a business intelligence process that cannot be repeated. Factors such as not being able to improve analytical models and being not flexible hinder adjusting or refining strategy in real-time. Also, there are times organizations fail to comprehend the dynamic nature as well as the lifespan of their BI strategies.

Tackling the challenges of driving ROI with business analytics requires the organization to assess BI initiatives in the context of a strategic business vision. They should analyze initiatives that are executed against their strategic vision that must leverage data to succeed.

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AUTHOR

Vishal Muktewar

Vishal Muktewar is a Senior Correspondent at On Dot Media. He reports news that focuses on the latest trends and innovations happening in the B2B industry. An IT engineer by profession, Vishal has worked at Insights Success before joining Ondot. His love for stories has driven him to take up a career in enterprise journalism. He effectively uses his knowledge of technology and flair for writing, for crafting features, articles and interactions for technology enterprise media platforms.

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