I’m thrilled to sit down with Dominic Jainy, an IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain has positioned him as a thought leader in leveraging cutting-edge technologies for business innovation. Today, we’re diving into a critical topic that affects many organizations: the sunk cost fallacy and its impact on enterprise reporting and analytics. In our conversation, Dominic sheds light on why businesses cling to outdated systems, the hidden costs of inaction, and how modern tools can transform decision-making. We also explore real-world challenges, the importance of speed, and strategies to overcome resistance to change.
How would you explain the sunk cost fallacy to someone unfamiliar with the term, and why does it matter so much in business contexts like reporting and analytics?
The sunk cost fallacy is this trap we fall into where we keep investing in something—whether it’s time, money, or effort—just because we’ve already put so much into it, even if it’s not working anymore. Think of it like holding onto a car that’s always breaking down just because you’ve spent a fortune on repairs. In business, especially with reporting and analytics, this shows up when companies stick to outdated systems they’ve invested in for years. It matters because these tools often slow down decision-making, waste resources, and keep teams from focusing on what’s truly strategic. The cost isn’t just financial—it’s opportunity lost.
What do you think drives business leaders to hold onto legacy reporting tools, even when they’re clearly underperforming?
A big driver is familiarity. Leaders often think, “We know this system, flaws and all, so why risk the unknown?” There’s also the justification of past investments—admitting a system no longer works feels like admitting a mistake. I’ve seen teams say, “We’ve spent years customizing this,” or “Switching now would waste all that money.” But the reality is, the money’s already gone. What they’re really doing is piling on more losses by not adapting to better solutions that could save time and improve insights.
From your perspective, what are some of the most significant drawbacks of sticking with outdated reporting systems?
The drawbacks are huge. First, there’s the time sink—teams spend hours on manual tasks like fixing broken data links or reconciling numbers, which kills productivity. Then there’s the impact on decisions. If your system can’t deliver timely data, you’re always a step behind, reacting instead of planning. And don’t get me started on data inconsistency. When different departments have conflicting reports, trust in the numbers erodes, and meetings turn into debates over whose data is right instead of focusing on strategy. It’s a mess that compounds over time.
I’ve come across data showing that a significant portion of finance professionals spend a large chunk of their time on manual tasks. Have you observed this in your own experience, and what’s the impact?
Absolutely, I’ve seen it firsthand. A lot of professionals are stuck doing repetitive stuff—think manually pulling data from multiple sources, formatting spreadsheets, or chasing down errors. It’s not just frustrating; it’s a massive waste of talent. These folks could be analyzing trends or building forecasts, but instead, they’re bogged down in grunt work. The impact is slower processes and missed opportunities to add real value to the business. Automation could free them up to focus on the big picture.
Can you share a story from your career where clinging to an old system created real challenges for a business?
Sure, I worked with a mid-sized company a few years back that relied on an ancient reporting tool. It was clunky, slow, and couldn’t handle real-time data. Month-end closings were a nightmare—reports took days, and errors were constant. The finance team was exhausted, and leadership couldn’t get a clear picture of performance until it was too late to act. Eventually, a major forecasting mistake cost them a key opportunity. That was the wake-up call. They switched to a cloud-based solution, and the difference was night and day—faster insights and a lot less stress.
What do you think holds companies back from adopting modern reporting tools, even when the benefits seem obvious?
Fear of disruption is a big one. Companies worry that switching will mess up their workflows or that they’ll lose critical functionality. There’s also the time factor—everyone’s already swamped, so “we’ll deal with it later” becomes the default. But later never comes. I think it’s also about mindset. Letting go of something you’ve invested in feels like a loss, even if staying with it is costing more. Overcoming that requires leadership to focus on future gains, not past expenses, and to see change as an investment, not a risk.
How critical is speed in today’s business landscape when it comes to reporting and analytics, and why?
Speed is everything now. Markets move fast, customer expectations shift overnight, and competitors don’t wait. If your reporting takes days or even hours to compile, you’re making decisions based on yesterday’s reality. I’ve seen companies lose ground because they couldn’t pivot quickly due to slow data. Modern tools that deliver real-time insights aren’t just nice-to-have—they’re a survival mechanism. Speed lets you spot trends, address issues, and seize opportunities before they slip away.
What’s your forecast for the future of business reporting and analytics, especially with emerging technologies like AI and blockchain?
I’m really optimistic about where this is heading. AI is already transforming reporting by automating data analysis and predicting trends with incredible accuracy—think less time crunching numbers and more time strategizing. Blockchain, on the other hand, could revolutionize data integrity, ensuring reports are tamper-proof and trustworthy across organizations. I see a future where manual tasks are nearly extinct, and reporting becomes a seamless, real-time process. Businesses that embrace these technologies will pull ahead, while those stuck in the past will struggle to keep up.