Predictive Analytics ROI and TCO Experience

April, 2011


Business intelligence (BI) solutions are moving beyond monitoring business activity to making predictions about customers, products, and markets. The ultimate objective is to make predictions in real-time so decisions can be automated to increase customer value, reduce fraud, improve operations, or achieve other purposes. This study examines adoption trends for predictive analytics, providing data on how many organizations have the technology in place, how many are implementing it, and how many are expanding implementations. We examine return on investment (ROI) experience, and total cost of ownership (TCO) risk, measured by the percentage of organizations that exceed TCO budgets. We conclude with recommendations on implementing the technology. (13 pp., 7 figs.)
[Research Byte]