Analytics investments often fail to deliver measurable returns. This guide helps CFOs evaluate, prioritize, and measure analytics initiatives that actually move the needle.
Why Most Analytics Projects Disappoint
I've seen it dozens of times: a company invests six figures in a BI platform, spends months on implementation, and ends up with... dashboards. Pretty dashboards that nobody uses.
The problem isn't the technology. It's the approach.
The ROI-First Framework
Before approving any analytics investment, CFOs should demand answers to three questions:
1. What decision will this improve?
Not 'what data will this provide'—what actual business decision gets better? If the answer is vague, the ROI will be too.
2. How will we measure success?
Define the metric upfront. Revenue increase? Cost reduction? Time savings? Get specific.
3. What's the payback period?
Enterprise analytics projects often promise 3-year ROI. For mid-market budgets, demand 6-12 month payback.
Where CFOs Should Focus First
Based on hundreds of projects, here are the highest-ROI analytics investments:
Red Flags to Watch For
- Projects without clear business sponsors
- Timelines exceeding 6 months to first value
- Heavy customization of off-the-shelf tools
- Promises of 'transformational' change
The Pilot Approach
Never bet the farm. Start with a focused pilot. Prove ROI on a contained problem. Then scale what works.
The best analytics investments aren't the biggest—they're the most focused.