Assessing your Return on Investment in Business Intelligence

Ways to Calculate Value and to Improve your Returns

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A quick article on how and why returns on investment (ROI) in BI is an important metric for any business. 

Why it's so important to measure ROI in BI

You'll get more budget

If your findings demonstrate the investment in business intelligence at your firm is paying off, you’ll have a solid business case for further BI projects. 

It may be that you’ve saved time spent across departments on report writing. 

Or improved data access has contributed to service improvements that make more money. 

Either way, demonstrating a return on an investment in business intelligence is going to improve your chances of getting budget for more BI projects.

It's about Continuous Improvement

If you can’t measure it, you can’t improve it. 

This is why reviewing the results of a software implementation are always important – but especially so with BI. Business Intelligence is, after all, fundamentally about improving business performance. 

Take a look at your original objectives when implementing analytics. 

If you haven’t achieved improvements yet, see what can be done to get your BI system aligned with those objectives. 

It may be as simple as some touch-up training for users, or minor customizations.

You'll earn Respect

Everyone respects anyone that will take the time to thoroughly review what’s been achieved by a change in the business.

If you’re not seeing users adopting your BI solution, it’s better to address the matter rather than ignore it.

You’ll probably find small adjustments to the interface, or useability that will suddenly pump up the value the business and your users are receiving from your BI installation. 

You'll Stop any Wastage

No one likes wasting time or money.

So, unless you take a look, how do you know if it’s worth spending any more time or effort on your BI application?

It’s important to look out for hidden, or unexpected costs so they can be addressed.

Before you renew your BI software, or managed services agreement, look out for time and expenses such as: 

  • Unexpected training fees
  • Unreasonable administration investments
  • Unused licenses
  • Hosting, Managed Services or Support Fees

How To: Calculate Returns

Quick ways to Assess ROI

Every 12 months after your original BI implementation, you should assess returns on your investment.

Within 12 months you should be able to assess how the solution is performing according to objectives. At the 12-month mark, you should hope to see some returns. 

Here are some quick and easy ways to assess the value your business is receiving from your investment in analytics.

Threats to Value

Some of the best evidence that you’re not getting your returns is easily observable, like:

Ways to Boost Value

No matter how long you’ve had your BI system in, these approaches will always work to improve useability, patronage of your BI system and value to the business!

Our ROI Calculator