What goes into analytics ROI
Three buckets, in order of credibility with finance teams:
- Hard savings: analyst hours redeployed, retired tool licenses, fewer manual reports. Easy to defend.
- Decision speedup: incremental revenue or saved cost from making the same decision faster. Defensible only with a backing metric.
- Avoided losses: fewer stockouts, lower fraud, less RTO. Hardest to attribute, biggest in magnitude.
Why payback > ROI %
ROI % can be misleading because it expands quadratically with savings. Payback months (a real cash measure) is what most Indian CFOs will actually use. A 4–9 month payback is healthy for a modern BI tool; under 3 months suggests inflated decision-speedup; over 12 months suggests the use case is under-scoped.
From a calculator to a business case
Hand this number to your CFO with confidence: pair the conservative scenario (hard savings only) with the realistic scenario (hard + decision speedup). Skip the avoided-loss line unless you have a documented incident behind it. Book a demo for a personalised model on your actual data.
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