"In 2019, VentureBeat reported that an alarming 87% of data and analytics (D&A) projects failed to reach production. By 2022, Gartner found that only 20% of insights derived from analytics managed to turn into meaningful business outcomes."
"To effectively showcase the business benefits of D&A projects, firms can utilize foundational concepts such as Net Present Value (NPV), Internal Rate of Return (IRR), and Weighted Average Cost of Capital (WACC). Each of these metrics serves to clarify the financial impact and viability of investments in data and analytics initiatives."
"The NPV reflects the present value of cash inflows from an investment, indicating a dollar today is worth more than a dollar tomorrow, thus emphasizing the importance of assessing potential returns from D&A projects."
"The Internal Rate of Return (IRR) signifies the expected compound annual rate of return on an investment, whereas the Weighted Average Cost of Capital (WACC) indicates the minimum acceptable return that firms should seek from their D&A investments."
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