The ROI of Business Analytics: Calculating Financial Return
summary
Explains a concrete ROI method using Net Present Value and a cost of capital hurdle, with Excel/NPV functions and discount examples (3% vs 10%) to show how projected $500k benefits shrink to $389k or $175k when discounted. Describes a Cognos deployment that automates police reporting (saves months of staff time), Recology routing analytics that cuts landfill tonnage ~50% over 10 years, and UC risk analytics that lowers cost‑of‑risk from $18/1000 to $13.43 and returns ~$35M to campuses.
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chapters (17)
- 0:00ROI of business analytics
- 1:01Defining ROI importance
- 4:08Costs vs benefits in analytics
- 6:18ROI calculation science
- 9:08ROI formula and time value
- 12:36Cost of capital in ROI
- 15:52Net Present Value impact
- 17:20Budgeting analytics projects
- 21:16Creativity in ROI calculations
- 25:32UC analytics case study
- 29:26Recology analytics case study
- 35:14Westfield BI transformation
- 37:22Analytics projects ROI types
- 40:11Economic impact measurement
- 45:07ROI analysis best practices
- 47:57Q&A cloud project ROI
- 49:20Q&A cost of capital
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