Business Intelligence Return on Investment
If you want to calculate business intelligence return on investment, it is important that you know how these things work. Business intelligence is no longer new but it can be hard to link it with ROI.
Find the right BI system and you can do this with ease.
Many analysts claim that calculating for the business intelligence return on investment is a frustrating task but it is not impossible. When BI was still in its early stages, companies measured the value through quantifiable criteria and are more IT-centric. However, with the maturity of BI deployments, most businesses are focused in optimizing their business processes and since the metrics are changed, it is really harder to interpret.
Some Issues with BI
BI programs are now calculating return on investment more often. This is because companies are aware that business intelligence can improve their standing through reduced expenses ad increased income. Some say that the success actually the ROI or it can be a by-product resulting from the focus on the return on investment. In some situations, BI doesn’t always calculate the ROI. There are many business intelligence programs in the market and with varying features.
When you are looking into business intelligence ROI, it involves various business activities like product movement that uses BI. The expenses and benefits that are associated with such activity belong in one ROI. Still, the strategy on product movement is not always beneficial because it tends to have negative effects. If you really believe that BI ROI is the answer, you have to make sure that the program state several contingencies, alternative projections, and assumptions.
Calculating BI ROI
You should be aware that business intelligence is not the same with return on investment. The BI system is intended to provide specific information and the assessment is usually IT-based. If you want to take advantage of BI quality, there is a need to asses the integrity or accuracy of data, data translation, format or speed of delivery, and how info meets the criteria or business requirements.
ROI is of tangible value and incorporating it on the BI can be hard. It is vital that you use well-constructed and formal patterns or metrics. Calculation can begin with the ownership cost. The value derived can be very accurate although there is a need to determine what needs to be included in such cost. You may also want to take a look at the tech-support resources, tools, software, data gathering, info delivery, data warehouse, etc.
Everything will depend on your interpretation when it comes to BI investment costs, and the latter can be identified, calculated, and estimated. Take your time in conducting a thorough research so that you can find the most suitable BI program that can meet your needs. Since there are concerns regarding the calculation of ROI with the use of BI, you have to make the right choice.