Tie Your Investments to Pre-defined Use Cases & Clearly Articulated Financial Analysis
The lack of pre-defined use cases and a clearly articulated financial analysis are two impediments to investing in identity graphs. Both items represent critical pre-purchase deliverables used to substantiate investment decisions.
According to a recent Winterberry Group report, less than 20% of the organizations considering an identity graph purchase can accurately identify their target audience. Unfortunately, it’s impossible to develop a reliable use case for an identity graph without an understanding of the prospective audience.
Identity Graphs Involve Material Investments
Identity graphs typically involve 6-7 figure investments. Relative to other classifications of investment, large investments in data are unique and infrequent for most organizations. Because of this many decision-makers need help formulating a return on investment analysis supporting their investment rationale. Furthermore, the executive team often requires a clear cost justification before authorizing the purchase – even if the project in the annual budget.
The acquisition of an identity graph may also require technical adjustments to ingest new data or to access third-party application program interfaces. Modifications to work processes, staffing, and decision-making authority are likely to occur. These human modifications impact the efficacy of the solution and should be incorporated into the analysis.
Well Documented Use Cases and ROI’s Are Valuable
In our experience, a well-documented use case and supporting investment analysis are concise, quantitative and time-bound. Here is a framework for this documentation:
Situational Assessment – Answers the question, “What is that that we are
attempting to accomplish?”
- Audience / Data Assessment
- Technical Assessment
- Organizational Assessment
- Match testing results
- Business Outcomes
- Systems, Technology, New Schemas & Diagrams
- Organizational Gap Analysis
- Financial Proformas – including assumptions
Serious Solution Providers Should Be Skillful Collaborators
Firms investing in identity graphs should request assistance from their prospective data suppliers. Collaborating on a pre-purchase analysis is an excellent qualifier and will serve as a precursor to a longer-term partnership.
Serious identity graph solutions providers should welcome the opportunity to align with their clients’ outcomes. It is in the suppliers’ interest to anticipate and overcome challenges and to help clients achieve short and long-term success.
Audience Acuity provides a Situational Assessment, Audience Profile Report, match test and ROI with every engagement.