{"id":49154,"date":"2009-06-01T05:46:33","date_gmt":"2009-06-01T02:46:33","guid":{"rendered":"https:\/\/www.altoros.com\/blog\/?p=49154"},"modified":"2021-10-23T23:32:55","modified_gmt":"2021-10-23T20:32:55","slug":"avoiding-4-potential-bi-cost-factors","status":"publish","type":"post","link":"https:\/\/www.altoros.com\/blog\/avoiding-4-potential-bi-cost-factors\/","title":{"rendered":"Aberdeen Group Outlines Four Hidden BI Cost Factors to Avoid"},"content":{"rendered":"<p><center><\/p>\n<p><small>(<a href=\"https:\/\/www.redbooks.ibm.com\/redbooks\/pdfs\/sg247138.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Featured image credit<\/a>)<\/small><\/center><\/p>\n<p>&nbsp;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.altoros.com\/blog\/avoiding-4-potential-bi-cost-factors\/#Bugdets_beyond_license_costs\" >Bugdets beyond license costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.altoros.com\/blog\/avoiding-4-potential-bi-cost-factors\/#Ways_to_optimize_the_budgets\" >Ways to optimize the budgets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.altoros.com\/blog\/avoiding-4-potential-bi-cost-factors\/#Further_reading\" >Further reading<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Bugdets_beyond_license_costs\"><\/span>Bugdets beyond license costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Business_intelligence\" rel=\"noopener noreferrer\" target=\"_blank\">Business intelligence<\/a> is considered to be the helping hand for organizations wishing to do more with less. However, <a href=\"https:\/\/www.linkedin.com\/in\/davehatch\/\" rel=\"noopener noreferrer\" target=\"_blank\">David Hatch<\/a>, an Aberdeen Group analyst, <a href=\"https:\/\/www.destinationcrm.com\/Articles\/CRM-News\/CRM-Featured-Articles\/The-4-Hidden-Costs-of-Business-Intelligence-53941.aspx\" rel=\"noopener noreferrer\" target=\"_blank\">has outlined<\/a> four hidden cost factors likely to arise in a BI initiative.<\/p>\n<p>According to David, the total cost of ownership is not only about the price of purchasing the software, there are also indirect and hidden factors that affect the real BI budget. Very often, the resources the company needs to acquire to properly implement, deploy, support, and maintain a BI solution are far more greater than it was assumed at the beginning.<\/p>\n<p>Here are those factors, as David describes them in <a href=\"https:\/\/web.archive.org\/web\/20090820190617\/http:\/\/aberdeen.com\/summary\/report\/benchmark\/5863-RA-business-intelligence-cost-tco.asp\" rel=\"noopener noreferrer\" target=\"_blank\">a recent report<\/a> from Aberdeen:<\/p>\n<div id=\"attachment_63609\" style=\"width: 160px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/06\/David-Hatch.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-63609\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/06\/David-Hatch-150x150.jpg\" width=\"150\" height=\"150\" class=\"size-thumbnail wp-image-63609\" \/><\/a><p id=\"caption-attachment-63609\" class=\"wp-caption-text\"><small>David Hatch<\/small><\/p><\/div>\n<blockquote>\n<ol>\n<li style=\"margin-bottom: 6px;\"><b>The year-after-year budget increases.<\/b> A typical best-in-class company sees a drop in year-after-year BI budgetary costs. Average and laggard companies, however, can witness increases in BI expenses that range from 2% to 9%.<\/li>\n<li style=\"margin-bottom: 6px;\"><b>Cost per user.<\/b> Best-in-class companies lower per-user costs by 4.3%, whereas average performers and laggards often see increases ranging from 1% to 7%.<\/li>\n<li style=\"margin-bottom: 6px;\"><b>Time to complete projects.<\/b> Best-in-class achievers complete BI projects, on average, within 14 days. Average performers take nearly 3 times as long (approximately 39 days) to complete a project, and the typical laggard company takes more than 12 times as long (177 days).<\/li>\n<li><b>Modifications to BI software.<\/b> Altering a BI program takes less than a day for best-in-class companies; 3 days for average performers; and up to 8 days for laggard organizations.<\/li>\n<\/ol>\n<\/blockquote>\n<p>At the same time, the importance of TCO has always been one of the most important criteria when choosing a BI platform, according to <a href=\"http:\/\/graphics.eiu.com\/files\/ad_pdfs\/eiu_intel_sap_business_intelligence_.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">studies<\/a> by other researchers.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/06\/factors-critical-when-acquiring-business-intelligence-tools-2006.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/06\/factors-critical-when-acquiring-business-intelligence-tools-2006-1024x552.png\" width=720\" class=\"aligncenter size-large wp-image-64384\" \/><\/a><small>The most critical factors when acquiring BI tools (<a href=\"http:\/\/graphics.eiu.com\/files\/ad_pdfs\/eiu_intel_sap_business_intelligence_.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">image credit<\/a>)<\/small><\/center><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ways_to_optimize_the_budgets\"><\/span>Ways to optimize the budgets<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>How can a company avoid additional costs of ownership and achieve higher returns from BI initiatives? David suggests that investments in the following areas will maximize the results:<\/p>\n<blockquote>\n<ul>\n<li style=\"margin-bottom: 6px;\"><strong>Data integration and cleansing.<\/strong> \u201cCompanies are finding it difficult to bring data together from multiple, disparate sources,\u201d Hatch says. Investing in tools for <a href=\"https:\/\/www.altoros.com\/blog\/the-role-of-data-stewards-in-data-integration\/\">data management<\/a> can be of help in this regard. Best-in-class companies are twice as likely as their counterparts are to institute data integration and cleansing capabilities.<\/li>\n<li style=\"margin-bottom: 6px;\"><strong>End-user requirements.<\/strong> \u201cYou really have to stop and think about why\u2026so many companies have deployed tools that so many aren\u2019t able to use,\u201d Hatch says. Companies must understand that end-users\u2014especially nontechnical, non-data-guru types\u2014may need different approaches. Hatch advises companies to focus on end-user needs before deploying a solution.<\/li>\n<li style=\"margin-bottom: 6px;\"><strong>Training.<\/strong> Top performers are 37% more likely to invest in extensive user training on BI solutions and 40% are more likely to have formed formal user committees to encourage adoption. Additionally, best-in-class companies are twice as likely as laggards and average performers are to sign up for vendor-provided services.<\/li>\n<li><strong>Operational BI.<\/strong> Successful adopters of BI use the technology on an everyday basis rather than merely getting a summarized spreadsheet version of performance and high-level trends. Hatch says that operational BI seems to be gaining traction as companies look to make comparisons over shorter time spans rather than just examine large-scale trends.<\/li>\n<\/ul>\n<\/blockquote>\n<p>David also noted that <a href=\"https:\/\/www.altoros.com\/blog\/guide-to-reducing-etl-and-data-integration-costs-by-80-percent\/\">open-source applications<\/a> have become a new trend. According to him, 83% of best-in-class organizations have already adopted these tools for <a href=\"https:\/\/www.altoros.com\/blog\/wrong-approach-to-data-quality-right-approach-to-data-quality\/\">data cleansing<\/a> and <a href=\"https:\/\/www.altoros.com\/blog\/data-quality-upstream-or-downstream\/\">data quality<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Further_reading\"><\/span>Further reading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/transparency-at-organizations-linking-business-intelligence-and-decision-making\/\">Gartner Says Most Companies Fail to Link BI to Decision-Making<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/accelerating-business-intelligence-with-data-integration-and-data-quality\/\" >Corporate Analysis and Business Intelligence Lack Data Quality<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/bi-has-no-future-what-do-surveys-say\/\">BI Has No Future? What Do Surveys Say?<\/a><\/li>\n<\/ul>\n<hr\/>\n<p><center><small>The post is written by <a href=\"https:\/\/www.altoros.com\/blog\/author\/olga\/\">Olga Belokurskaya<\/a> with contributions from <a href=\"https:\/\/www.altoros.com\/blog\/author\/alex\/\">Alex Khizhniak<\/a>.<\/small><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<\/p>\n<p>(Featured image credit)<\/p>\n<p>&nbsp;<\/p>\n<p>Bugdets beyond license costs<\/p>\n<p>Business intelligence is considered to be the helping hand for organizations wishing to do more with less. However, David Hatch, an Aberdeen Group analyst, has outlined four hidden cost factors likely to arise in a BI initiative.<\/p>\n<p>According to David, the total cost of ownership is [&#8230;]<\/p>\n","protected":false},"author":81,"featured_media":62830,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[960,895],"class_list":["post-49154","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-opinion","tag-data-integration","tag-research-and-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Aberdeen Group Outlines Four Hidden BI Cost Factors to Avoid | Altoros<\/title>\n<meta name=\"description\" content=\"A recent report reveals what adds to an enterprise&#039;s TCO year after year, as well as how data integration and focus on the user can help minimize the expenditures.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.altoros.com\/blog\/avoiding-4-potential-bi-cost-factors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Aberdeen Group Outlines Four Hidden BI Cost Factors to Avoid | Altoros\" \/>\n<meta property=\"og:description\" content=\"(Featured image credit) &nbsp; Bugdets beyond license costs Business intelligence is considered to be the helping hand for organizations wishing to do more with less. 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She has broad expertise in writing news and articles on cloud computing, data integration, and software product development. Olga is adept at holding interviews with business owners and representatives. 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