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.
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 vendor inflated software prices.
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. Implementing big projects.
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.
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.
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.
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.
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 vendor inflated software prices.
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. Implementing big projects.
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.
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.
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 NPI to learn more about IT cost reduction consulting solution service
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