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. 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. 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. Overpaying for ongoing upgrades.
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.
Now is the time to begin planning your BI and analytics strategy and to figure out how you will decide what fair pricing for these investments should be. You can avoid wasting valuable resources if you plan ahead and develop a clear strategy.
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. 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. 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. Overpaying for ongoing upgrades.
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.
Now is the time to begin planning your BI and analytics strategy and to figure out how you will decide what fair pricing for these investments should be. You can avoid wasting valuable resources if you plan ahead and develop a clear strategy.
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
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