Will You Overpay For Business Intelligence This Year?
Business Intelligence and Analytics are IT resources that today's organizations must have if they are to have any hope of keeping up with and benefiting from the Big Data boom. This has made BI and analytics two of the fastest growing IT sectors in the marketplace, prompting IDC to estimate that $200 billion will be spent on these products between 2013 and 2016.
Unfortunately, this growth makes prices unpredictable and puts many businesses at risk to pay over fair market value. Save yourself a much as 20 percent by avoiding these four common mistakes:
1. Accepting annual cost increases.
Support, maintenance and subscription renewal costs are typically increased every year. Know your rates, as well as fair market rates, and challenge any increases that are not justified.
2. Paying too much for software.
BI and analytics are fairly new products for most organizations so they lack the knowledge to source and price them effectively. Vendors know this and often inflate the prices for these types of offerings. Do your research before investing in any new products or services, and avoid paying over market value.
3. Large project implementation.
Large BI projects can quickly become very expensive, complicated and unmanageable if you aren't careful. Implementing projects on a smaller scale will help keep costs in check and yield more favorable results.
4. Paying too much for system enhancements.
As businesses change and grow, their BI and analytics functions will need to evolve as well to keep up. System upgrades and enhancements are crucial so you must be prepared to spend the money when necessary. Just make sure you avoid paying over market value by knowing what upgrades you need and when.
BI and analytics are powerful tools that can generate value and revenue when optimized. The best way to avoid paying too much for this technology over the next few years is to plan ahead and have a sound strategy in place.
Unfortunately, this growth makes prices unpredictable and puts many businesses at risk to pay over fair market value. Save yourself a much as 20 percent by avoiding these four common mistakes:
1. Accepting annual cost increases.
Support, maintenance and subscription renewal costs are typically increased every year. Know your rates, as well as fair market rates, and challenge any increases that are not justified.
2. Paying too much for software.
BI and analytics are fairly new products for most organizations so they lack the knowledge to source and price them effectively. Vendors know this and often inflate the prices for these types of offerings. Do your research before investing in any new products or services, and avoid paying over market value.
3. Large project implementation.
Large BI projects can quickly become very expensive, complicated and unmanageable if you aren't careful. Implementing projects on a smaller scale will help keep costs in check and yield more favorable results.
4. Paying too much for system enhancements.
As businesses change and grow, their BI and analytics functions will need to evolve as well to keep up. System upgrades and enhancements are crucial so you must be prepared to spend the money when necessary. Just make sure you avoid paying over market value by knowing what upgrades you need and when.
BI and analytics are powerful tools that can generate value and revenue when optimized. The best way to avoid paying too much for this technology over the next few years is to plan ahead and have a sound strategy in place.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction service consulting
posted by Vittoria @ November 07, 2013
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