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Can Data Analytics Really Deliver Tangible ROI?
Can Data Analytics Really Deliver Tangible ROI?
Ganesh Subramaniam

Senior Consultant at Draup


Can Data Analytics Really Deliver Tangible ROI?

15 Oct 2019

Today analytics has deeply penetrated into varied verticals as it proved to be a great tool for increasing efficiency, cutting costs and higher productivity by leveraging resources to their optimal levels. Solutions like predictive analytics and data analytics offer better risk management and reliable results to drastically improve resource optimisation.

Analytics has become more of a need than an option across industries looking to maximise their profit. Industries ranging from mining to retail sector have imbibed analytics for maximising their profits by increasing productivity and higher efficiency.


      • Banking sector uses analytics most dominantly for risk management although, there are other uses too like branch network analytics, customer analytics and product analytics. A predictive learning model by Quantum Black detected the equivalent of $100,000 in fraudulent transactions in the first week of use itself!
      • In Insurance sector, actuarial sciences is a specific application of data analytics for measuring pricing, risks and detect fraudulent claims. Predictive and prescriptive analytics helped a leading auto insurance company to increase the rate of genuine claims and significantly reduce fraudulent claims thus increasing customer satisfaction and improving brand image.
      • In Mining data analytics reduces the cost of drilling by identifying the oil and gas reserves that will be profitable for extraction. Royal Dutch Shell used data analytics to identify profitable oil/gas reserves thus saving millions of dollars by eliminating the need of drilling a site to confirm the availability of resources.


  • Data AnalyticsService providers have the ability and expertise to develop end to end framework of analytics for enterprises looking to implement analytics. They possess the platform through which they enable the organizations with different analytics solutions. Some of the major areas of analytics that are giving tangible ROI across industries are banking, transportation, insurance and automotive sectors.
      • Elder research, service provider of analytics helped an industry leading computer technology provider with advanced analytics to evaluate a customer’s lifetime value, retention, and market share. This helped them contribute over $600 million in increased sales over 5 years and 35% increase in loyalty program enrolment.
      • Cognizant used data analytics to help a large healthcare network improve their patient satisfaction eventually increasing the CAPHS score. Data analytics lowered 56% of unnecessary patients’ footprint allowing medical help to the needy, 80% of executives have seen positive ROI from analytics and 29% said it fetches an ROI of about 70%.
      • Tech Mahindra used predictive analytics for fraud detection for P&C Insurers to detect fraud potential in a claim early in lifecycle, close claims faster with better certainty and make efficient use of investigative resources. This dramatically reduced the fraud related losses by 10% within a year of deployment.


    The need for analytics is rising and enterprises across verticals are implementing analytics but not all are getting tangible ROI. Only those who combine analytics with decision making, create more central coordination for analytics and start planning analytics strategy over time succeed. The service providers are bridging this capability gap by providing the enterprises with relevant analytics solutions. The enterprises are outsourcing analytics solutions to service providers to fetch tangible ROI from analytics.