Why Should You Care About Data Analytics Valuations?

Numerous studies have shown that information opens a brave new world and the capability to analyze the past and forecast the future will distinguish more and more the winners from the losers in the business field.

Although in many cases Data Analytics could bring huge cost savings, maximize revenue, or even uncover new sources of revenue costs could be very high and not always justified by benefits.

Even large companies have difficulties in planning and executing on Data Analytics. According to EMC 40-70% of all initial data warehousing projects fail. In 2009 Netflix paid $1 million for an algorithm to increase by 10% the accuracy of its recommendation engine. The algorithm was never used because costs were too high compared to the expected increase in performance.

Project Valuation becomes the single most important tool in planning and executing Data Analytic Projects. Without Project Valuation resources may be wasted and true value buried and ignored. Even if a project has been found unprofitable after it was fully implemented, project valuation many times can find ways to reuse parts of the project that bring value or help redesign it to bring the value justifying the expenses.

Please read ahead to find more.