DS-301h · Module 3

Measuring Anomaly Detection Value

3 min read

The value of anomaly detection is measured in prevented losses and captured opportunities. For each true positive alert, estimate the cost if the anomaly had not been detected until the next scheduled review. A churn risk detected two weeks early that resulted in a saved account: value equals the annual contract value. A pipeline issue detected a week early that resulted in corrective action: value equals the recovered pipeline. A data quality issue detected before it corrupted the board presentation: value equals the credibility preserved. Sum the prevented costs and captured opportunities across all true positive alerts. Compare against the cost of the detection system. The ROI is typically 10-50x because the cost of detection is infrastructure while the cost of missed anomalies is revenue, reputation, and decisions.