Cost-Benefit Analysis

Cost-Benefit Analysis is like the ultimate pros and cons list for businesses. It’s a process that companies use to figure out if an action or investment is worth it. They do this by comparing the total expected costs of doing something to the benefits they think they’ll get from it. If the benefits (the good stuff) add up to more than the costs (the not-so-good stuff), then it’s probably a smart move.

In business intelligence and data analytics, doing a Cost-Benefit Analysis means looking at all the numbers to make sure a business decision makes financial sense. For example, a company might look at the cost of purchasing new software and weigh it against the benefits they expect, like better productivity or more sales.

This kind of analysis is super important because it helps businesses avoid bad investments and focus on what will give them the most bang for their buck. It’s all about making informed decisions that will help a company grow and be more successful in the long run.