Which Functions Expect the Highest Big Data ROI?
In addition to asking IT and analytics managers to estimate their company’s total returns on Big Data in 2012, we asked managers of business functions to calculate the big data ROI they expected in 2012 within their functional area.
Since sales and marketing had, by far, the largest shares of the Big Data pie, it would be logical to expect them to get the largest returns. However, that is not necessarily the case. In fact, two of the functions with the smallest pieces of the big data pie – logistics and finance – expected the highest Big Data ROI in 2012. Logistics managers expected Big Data to generate a 78% return, while finance managers expected a return of 69%. Both ROIs were far higher than the average Big Data ROI predicted by marketing executives (41%). (See Exhibit IV-2)
Exhibit IV-2: Which Functions Expect the Biggest ROI?
Q17-b: Mean Percentage of Expected Returns on Big Data Investments by Function in 2012
We must note that the overall Big Data ROI average across all eight business functions that we surveyed was eight points higher than what the IT/analytics managers estimated across the company (54% versus 46%). We noted a similar pattern in the percentage of respondents who expected negative returns: Only about half the functional managers expected a negative return of 4.5% for 2012, compared to 8% for the IT/analytics managers. Therefore, depending on how you look at it, there may have been a “halo” effect among functional managers in projecting big Data ROI for the last year. Conversely, they may have had a more accurate estimate because of their greater knowledge of how their function used Big Data than the managers in a central IT or analytics group. In that case, the 46% Big Data ROI expected by the IT/analytics managers may have been understated.
« Previous Post
Cutting the Big Data Pie by Business Function