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.
With demand for BI solutions higher that ever before, CIOs must be vigilant about preventing overspending on these investments. Below are four ways that many businesses commonly overpay, often as much as 20% over fair market value:
1. Accepting annual cost increases.
If you never question yearly rate increases, vendors many take advantage and raise prices at an unreasonable rate. You should always dispute any rate increases that you don't understand or find to be fair.
2. Paying too much for software.
Software licenses are frequently priced well above fair market value by most vendors. But, companies continue to pay these inflated prices because they are inexperienced in BI purchasing and sourcing. Always compare prices and know the market value of all IT purchases before you buy.
3. Large project implementation.
Implementing a new BI project is a huge undertaking that can be very complicated and expensive. While they are sometimes necessary, try to keep the big implementations to a minimum or reconfigure them on a smaller scale.
4. Paying too much for system enhancements.
For BI and analytics to work effectively and generate value for your business, they must be continuously upgraded and customized to suit your ever-changing needs. Be ready to raise your budget allowances for any necessary system enhancements, but also know what products you can do without to save money.
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.
With demand for BI solutions higher that ever before, CIOs must be vigilant about preventing overspending on these investments. Below are four ways that many businesses commonly overpay, often as much as 20% over fair market value:
1. Accepting annual cost increases.
If you never question yearly rate increases, vendors many take advantage and raise prices at an unreasonable rate. You should always dispute any rate increases that you don't understand or find to be fair.
2. Paying too much for software.
Software licenses are frequently priced well above fair market value by most vendors. But, companies continue to pay these inflated prices because they are inexperienced in BI purchasing and sourcing. Always compare prices and know the market value of all IT purchases before you buy.
3. Large project implementation.
Implementing a new BI project is a huge undertaking that can be very complicated and expensive. While they are sometimes necessary, try to keep the big implementations to a minimum or reconfigure them on a smaller scale.
4. Paying too much for system enhancements.
For BI and analytics to work effectively and generate value for your business, they must be continuously upgraded and customized to suit your ever-changing needs. Be ready to raise your budget allowances for any necessary system enhancements, but also know what products you can do without to save money.
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 http://www.npifinancial.com to learn more about telecom expense management
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