Buying BI

Buy vs. DIY: 3 Ways Embedding Analytics Pays Off in ROI

By Ardeshir Ghanbarzadeh
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The analytics solution you choose makes all the difference to your application, your end users, and your bottom line. Recently Enterprise Strategy Group (ESG)—an IT analyst, research, validation, and strategy firm—examined the cost benefit savings that embedded analytics offer. ESG found that, compared to alternative analytics options, embedding analytics outperforms in time to market, product capabilities, and cost savings. See how ESG validated the economic value of embedding analytics and found a return on investment (ROI) of 973 percent with the Logi Analytics solution.

Faster time to market

According to ESG findings, organizations reduced development time up to 75 percent by embedding analytics. This reduction is rooted in their ability to:

  • Save on time and resources. When software teams use out-of-the-box capabilities to embed their analytics, they release their products and updates much sooner.
  • Connect to all of your data. Customers connect to almost any data source as-is through an extensive library of Smart Data Connectors.
  • Standardize workflows. End users access their data right in the existing application’s workflow, making it faster to analyze their data and turn insights into action.

As a result, organizations achieved a faster time to market, added value, and increased revenue.

Improved product capabilities

Through customer interviews, ESG discovered that organizations increased their average selling price as much as 25 percent after embedding analytics. This increase is based on their ability to:

  • Increase user adoption. Embedding analytics keeps users inside the application, increasing its stickiness and adoption rate. And customizable self-service empowers them to interact with dashboards, discover insights, share information, and collaborate.
  • Stay competitive. Customized and white-labeled analytics that seamlessly integrate with an application preserve the brand for a unique look and feel. Extensibility enables development teams to add functionality for a richer, more compelling analytics experience.
  • Tighten data and application security. Organizations use their existing security framework, data sources, and server environment, eliminating redundant technology investments and on-going maintenance efforts by their development team.

As a result of improving their product capabilities with embedded analytics, organizations experienced greater user adoption and customer satisfaction rates.

Cost savings

In ESG’s interviews, organizations that embedded analytics capabilities reported saving 50 percent in operations over building their own analytics solution in house. This savings is founded on their ability to:

  • Buy a solution. Organizations avoid considerable up-front costs in hardware, staff, and licensing that are associated with building an in-house analytics solution.
  • Reduce support cases. The self-service capabilities enable software teams to configure the embedded solution to match the skill level of their end users, making it easier for them to modify and share their own visualizations.
  • Reduce licensing. Organizations choose from flexible, scalable licensing options that suit their end users and business needs, not their hardware or number of users.

ESG found that purchasing an embedded analytics solution has significant economic benefits over building and supporting one in house.

The big payoff

Based on their research, ESG took their findings one step further by creating a predictive model. Their model compared the costs of embedding analytics with the costs of building an in-house analytics solution over a span of three years. The model was based on an organization with 200 employees that supported three commercial software products.

According to ESG’s model, embedded analytics in building and maintaining analytics capabilities over build-your-own solutions. The biggest finding was that, over three years, the Logi Analytics solution can produce an ROI of 973 percent. That’s a major payoff for organizations that embed analytics from Logi Analytics.

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Cost over three years of embedding an analytics solution versus building one in house

The model also predicted additional revenue opportunities. Because embedding analytics shortens development times over DIY approaches, organizations achieve a faster time to market. Over the course three years of using the Logi Analytics solution, ESG predicted an additional revenue of $1 million due to earlier application release. And because the Logi Analytics solution brings greater capabilities through access to new analytics sources and visualization, for example, it increases customer satisfaction and product differentiation. ESG predicted the added value of these capabilities to yield a 1 percent or $951,000 gain in revenue.

Learn more about ESG’s methods, findings, and conclusions in their full report: The Economic Benefits of the Logi Analytics Embedded Analytics Platform. Then, see how Logi Analytics can bring your data and applications to life.

Download the Report

Originally published February 3, 2021; updated on August 12th, 2021

About the Author

Ardeshir Ghanbarzadeh is the Director of Product Marketing at Logi Analytics. He has over 20 years of experience in product marketing, product management and customer success and has held positions at Epitiro, Spirent Communications, Metrico Wireless and VoIP Logic where he created products and services for companies such as Panasonic, AT&T and QUALCOMM.