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Quantifying BI Benefits

One of the questions I am usually asked is: "How do you quantify a successful BI Solution?"

Computing ROI becomes a challenge for most because a BI solution brings both quantifiable and qualitative benefits. The key to calculating ROI is being able to define, measure and quantify specific benefits in terms of dollars and cents and then compare that monetary value to the cost of your investment to achieve those results. Calculating ROI is easier said than done because the challenge lies in putting monetary value to some of intangible benefits of the BI solution e.g. performance improvement, time savings, etc.

In a TDWI Report Series: Smart Companies in the 21st Century: The Secrets of Creating Successful Business Intelligence Solutions by Wayne Eckerson, the diagram below shows that BI solutions have more intangible benefits than tangible ones.
BI Tangible and Intangle Benefits
Click to view original size

The value of a BI solution increases with the number of subject areas it supports as well as the number of happy users. The BI solutions must support the business requirements. In our experience, successful BI projects are incremental. We start small but add value exponentially by adding new subject areas and users. Incremental implementation makes it easier for the users and project sponsors to see the value of the BI solution right away. It helps builds the trust and confidence hence, is able to pick up momentum and funding for the next increments of the implementation. Over time, it matures and becomes a valuable enterprise resource.

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1 comment

Comment from: Dan
Dan

Quite interesting info to read. Your site was really useful for me but are u planning more updates?

07/17/06 @ 05:09
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This blog contains thoughts that range from non-technical to technical. Its name is derived from "Yakity Blah Blah" a column I once had that discussed a cornucopia of ideas. Who am I? I'm Clarise Z. Doval Santos, providing Project Management and Technical Leadership for data management and analytic, data science, IoT and sensor analytics ecosystems 37.652951177164 -122.490877706959

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