What are accepted methods for quantifying ROI data?

Question

Background: The main products of the data warehouse are business solutions that are produced using a warehouse. Presumably, a valuable warehouse allows a business to make decisions that are more profitable than it could have done without a warehouse.

Context: Say, for example, you are trying to convey your company an essentially more comprehensive data management and analysis strategy, that is, a data warehouse. Either you are an ASP or consultant trying to sell a business to create a new system or expand your current system. You are trying to sell decision-makers - either your managers or potential customers - that it is worth investing in a data warehouse and all the analytical and reporting tools and skills that come with it.

Question: What methods are used to quantify this increased profitability?

Answer 1

You must define these parameters during the first phase prior to blueprinting ....

• How often is the data downloaded? Are
• loads full load or delta.
• Archival strategy How many users?
• Hours of work with historical data?
• Mostly reports on detailed or aggregated data?
• Information requirements?

A few questions below

• Organization goals, units?
• Top KPIs - What KPI Views Do You Need?
• How often do you need them?
• What scan sequence do you need?
• How information is displayed; distributed, sold
• Does everyone see everything?
• What success factors should change in information systems?

Thanks.

Answer 2

Good question. This is the biggest scarecrow for BI solutions I've come across.

BI / DW focuses on key performance indicators (KPIs), as well as how measuring / monitoring / analyzing the same can lead to better management decisions that “optimize” these KPIs. (KPIs - e.g. Turn around Time, number of sales, etc. Etc.)

The sad part is that until you complete it, you don’t know the average rate of return on investment in these key performance indicators. The solutions we used at the beginning are to specify industry reports for DW / BI (industry) implementations when you first turn them on. We hope that if you then launch your product, the DW tool itself measures its ROI over time, tracking the progress of these KPIs.

Keep this in mind when you design a DW, you need to get these measurements next time! Nothing is being sold for your next sale, like ROIs measured from your previous DW implementations :)

ps -

There are other soft sales - pointers listed by @openingbrace.

Answer 3

Good question @Emre.

We are always asked to come with our clients when it is already decided to continue working with DWH; therefore, an excuse is not necessary, although we were asked to study ROI after sometimes justifying the project!

Following @Jai's comment, even if the KPI toolkit / toolbar is well selected / designed, if there is no business culture that can take / implement actions from key performance indicators, the ROI will be obvious. I’m not sure that, unfortunately, there will be an average percentage of ROI for a particular KPI, since it too depends on the industry / country / culture / economic conditions.

The easiest way to show ROI in DWH projects is through procedural improvement. This is mainly due to the effectiveness of reporting.

• Find out about the current man-hours for running reports - some of our customers have had reports that run through excel related books that produce several man-days (!) To create.
• play reports in DWH
• See which saved man hours

This is the simplest material (£) benefit that can be obtained, and some of our DWH projects were fully paid for at the expense of the salary saved when creating the report.

I also like @OpeningBrace lists, but it will be difficult for them to get heavy% ROI from them.