Data modernization investments are among the hardest to evaluate and approve. Here's a framework for CFOs who need to make or assess these decisions.
Building the ROI Case
The most effective approach is to start with specific, high-value use cases rather than general infrastructure. What specific decisions would be made better with better data? Build the financial case from specific use cases, then show that the infrastructure investment enables multiple use cases simultaneously.
The Risk of Underinvestment
Data modernization investments also have a defensive case: the risk of competitive disadvantage from data infrastructure that can't support the analytics and AI capabilities that competitors are developing. In industries where data-driven decision making is becoming a meaningful source of competitive advantage, the cost of underinvestment compounds over time.