DECEMBER 9, 2011 – Companies can learn more about their customers’ desires and needs through market research. The way they collect and process that data can be beneficial to departments across the organization, not just the marketing division.
According to a study from Nucleus Research, enterprises that adopt analytics applications – such as performance management, business intelligence and predictive analytics – can sometimes get a return on investment equal to $10.66 for every dollar spent.
“Given returns of $10.66 for every dollar invested in analytics technologies, organizations that balk at this opportunity do so at their own peril,” said David O’Connell, a principal analyst with Nucleus Research, adding that it could give organizations a competitive advantage.
Nucleus noted that through analytics, corporations could increase the level of visibility into factors driving their gross margins, expenses and revenue, ultimately increasing their profitability. Combining three or more data sources with analytics applications also allows for a higher ROI than systems that only include one or two sources of data, the company found.
However, technology alone is not enough to derive insight from raw data. A study from EMC Corporation found that just one-third of corporations are able to apply the unprocessed information and turn it into a tool that can assist in decision making.