7.4. Investment justificationAccord

7.4. Investment justificationAccording to Accenture (2016), the actual use of big data analytics is limited. Despite the touted bene-fits of big data, firms face difficulties in proving the value of big data investments. A majority of surveyed executives (67%) expressed concerns about the large investmentrequired to implement and use analytics. Many big data projects have unclear problem definitions and use emerging technologies, thus causing a higher risk of project failure and higher irreversibility of investments than traditional technology projects.In addition,if tangible costs significantly outweigh tangible benefits–—despite potentially large intangible benefits–—it will be hard to justify investment to senior management due to the calculated negative financial returns. When a project is highly risky and irreversible, a real option approach may be appropriate (Lee & Lee, 2015). In a real option approach, options such as postponement, expansion, shrinkage, and scrapping of a project are viable, and there is not an obligation to move forward with a big data plan as-is.