ROI is the be-all, end-all for finance and information technology professionals, and it can be difficult to predict ROI when it comes to spend analysis. Pierre Mitchell (Chief Research Officer, Spend Matters) probed this tricky Catch-22 in this downloadable paper.
"How to Justify Spend Analysis to Finance/IT When There’s No Clear ROI" identifies the correlation between analytics, spend analysis, and accruing investment when there is only “option value.” Here’s a taste:
“Analytics are all the rage. And spend analysis is Procurement 101. So, getting some reasonable investment shouldn't be a problem, right? Wrong. The problem with analytics is that the identified value is all ‘option value.’ You don't know how much value opportunity you will uncover with the analytics until you actually perform them (and implement the identified opportunities)! This article is designed to help you overcome this Catch 22 problem.”
Originally published on Spend Matters PRO, the downloadable version of this paper contains 10 ways to overcome this issue and can be had here. However, it will only be available for free for a limited time. Become a PRO member and access this and other premium research at any time!