For most organizations, their ROI has represented the closest thing to a north star. A clean and simple number that supposedly helps them see through all the clutter. Regardless of what the analysts say, what the reports indicate, and what thousands of focus groups might indicate, at the end of the day, the ROI has been the bottom line.
If it’s net positive, things are good, and if it’s not, then the business has got problems.
But it’s no longer as simple as that in an AI-powered world where the fundamentals have shifted.
ROI is no longer determined by what a business invests in, but what it understands. In simple terms, businesses’ best bet for success is to extract meaning, patterns, and actionable intelligence from all the chaos of mountains of data.
The better the business is in doing that, i.e., extracting insights from its data, the more successful it will be.
From Data Rich To Insight Poor
It is no exaggeration to state that hardly any organization suffers from a data problem. Thanks to more volume of data being created in a month now than ever before collectively in the past, organizations soon discover they have a data utilization problem.
They have all these mountains of information and data, customer interactions, behavioral signals, product telemetry, risk indicators, and compliance data. This is all before adding the additional resources brought to the table by GenAI.
And yet, despite this abundance, two realities continue to plague organizations:
- Decision-making isn’t faster
- Risk visibility is not improving
Why?
Because data without any insights is just noise.
The traditional ROI mindset of asking which tools give the most output for the least money is incapable of solving this. What’s missing? Context, lineage, trust, and interoperability.
Insights – The Real Competitive Advantage
In the modern AI era, organizations that emerge as winners will be the ones that:
- Understand their data deeply;
- See risks before they become events;
- Operationalise intelligence across teams;
- Use AI responsibly and with confidence.
And this should reflect why traditional ROI tools have reached their limits, because the new ROI calculation requires understanding, context, and informed actions.
ROI No Longer Financial, It’s Cognitive
While traditional ROI measured efficiency, the modern Return on Insight framework aims to measure capability.
This includes the capability to:
- Move faster;
- Reduce risk;
- Innovate responsibly;
- Build future-proof AI foundations;
- Empower teams with contextual intelligence.
Organizations do not fail because they do not have the right tech stack; they fail because they lack an understanding of how their tech stack adds value.
Key Takeaways
Traditional ROI focuses on money in vs. money out. Return on Insights reframes ROI as the value created by learning what works, why it works, and acting on it. This approach emphasizes decision quality and clarity rather than isolated financial outcomes. Source: MediaPost – Return On Insight: The New ROI
Frequently Ask Questions
What does “Return on Insights” mean?
Return on Insights means measuring the impact of understanding, not just activity. It’s the value created when insights improve clarity, reduce uncertainty, and lead to better decisions. If an insight changes how leaders think or act, it has delivered ROI.
How do you prove insights are creating business value?
Insights create value when they influence decisions that matter. Magnefo focuses on showing what changed because an insight existed—priorities, timing, direction, or confidence. When leadership decisions become faster, clearer, or more aligned, insight value becomes visible.
What’s a practical way to structure measurement for insight impact?
Start with the decision. Identify what leaders need to decide, then track whether insights helped them decide faster, with more confidence, or with better alignment. At Magnefo, measurement is designed around decision outcomes, not dashboards.
What should organizations avoid when measuring insight ROI?
Avoid measuring volume, activity, or isolated metrics with no context. More reports don’t mean more value. Magnefo avoids vanity metrics and focuses on insight usefulness—if an insight doesn’t support a decision, it doesn’t deliver ROI.
How does Return on Insights differ from traditional ROI?
Traditional ROI looks backward at financial return. Return on Insights looks forward—at decision readiness, clarity, and confidence. Magnefo treats insights as a strategic asset that enables better outcomes before financial results even appear.