Justifying the cost of Business Analytics with Analytics…
Richie Palma, Arbor Solutions Inc. (3/31/2014)
When businesses are weighing the benefits of Business Analytics software they focus so much on cost or in most cases perceived costs instead of the return they will receive on their investment. Most individuals when investing in anything whether it’s the stock market or a new home look at the value it will bring to their lives and when it will pay itself off.
So my goal when helping customers through the initial review of our Business Analytics software is to justify a time savings of 1 hr/wk for C-Level & Directors, 2 hrs/wk for manager level, and 4 hrs/wk for all other users. By focusing on this as our main objective we accomplish a high level ROI in less than 6 months. This focus changes the mindset of the BI investment from what are the features and how much does it cost to can I see this product saving us 1 hr/wk for C-Level & Directors, 2 hrs/wk for manager level, and 4 hrs/wk for all other users?
I understand that this view of ROI does not include many of the other key metrics usually included in the calculation of ROI and we should touch on them.
- Self service reporting (Eases the burden on IT by saving report writer’s time)
- Single version of the truth (Imagine the time spent comparing spreadsheet data because the sales department is showing different numbers then the operations team)
- Consolidate siloed data into a single reporting platform (Report off data from your ERP systems, CRM system, Quality database, and forecasting spreadsheet)
- Empowering business users (Giving them the tools to ask the write questions)
- Drill through capabilities (Monitor the business or your team and drill down to find your own answers)
- Full mobile device compatibility (Consume your data anywhere at any time)
- Interactive visualizations (Allows users to rapidly change the way they view data. Accountant can view the numbers, VP of Operations can view the data in a line graph, and the salesman can look at it in a bar chart)
The above list of benefits can help companies and individuals justify the savings Cognos Business Analyitics can bring to their organization.
Think about this. What if this tool could save 3 hrs/wk for C-Level & Directors, 6 hrs/wk for manager level, and 12 hrs/week for all other users? Two month ROI with the ability to make faster more informed decisions, reducing the burden on IT, gaining insight from all corners of the business, and doing it from the airport, assembly line, conference room, or easy chair.