Business Intelligence (BI) and Business Analytics are transforming the way today's companies operate and compete in the marketplace. IDC estimates that businesses will spend over $200 billion on these types of purchases alone between 2013 and 2016 - and vendors are chomping at the bit to make sure they get their share of the revenue.
IT vendors will be eager to cash in on their share of these billions, so it is no surprise that many organizations are at risk for overpaying as much as 20 percent on these products. Double check these four areas to make sure you are getting the best prices:
1. Accepting annual cost increases.
Vendors will often increase prices for support and maintenance every year, without justification. Be aware of any increases and dispute any that cannot be rationally explained.
2. Overpaying for software.
BI purchasing is an area in which many organizations lack experience and knowledge. Because of this, they often pay above market value, which in turn leads to inflated vendor pricing. Make sure to compare prices from different vendors and educate yourself on these products.
3. Implementing big projects.
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. Overpaying for solution upgrades and enhancements.
BI and analytics will need to be upgraded and enhanced as your business grows and evolves. Prepare to increase your budget for this area of IT and commit your organization to providing the resources it needs to be successful.
When used properly, BI and analytics are invaluable tools that will grow your business. They can also cause much confusion and wasteful spending if you are unprepared for this type of commitment. Avoid any headaches and financial catastrophes by planning ahead with a sound pricing strategy and clear objectives.
IT vendors will be eager to cash in on their share of these billions, so it is no surprise that many organizations are at risk for overpaying as much as 20 percent on these products. Double check these four areas to make sure you are getting the best prices:
1. Accepting annual cost increases.
Vendors will often increase prices for support and maintenance every year, without justification. Be aware of any increases and dispute any that cannot be rationally explained.
2. Overpaying for software.
BI purchasing is an area in which many organizations lack experience and knowledge. Because of this, they often pay above market value, which in turn leads to inflated vendor pricing. Make sure to compare prices from different vendors and educate yourself on these products.
3. Implementing big projects.
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. Overpaying for solution upgrades and enhancements.
BI and analytics will need to be upgraded and enhanced as your business grows and evolves. Prepare to increase your budget for this area of IT and commit your organization to providing the resources it needs to be successful.
When used properly, BI and analytics are invaluable tools that will grow your business. They can also cause much confusion and wasteful spending if you are unprepared for this type of commitment. Avoid any headaches and financial catastrophes by planning ahead with a sound pricing strategy and clear objectives.
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 solution service consulting
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