登录查看更多内容

How do you calculate business intelligence ROI?

由人工智能和领英社区提供技术支持

Business intelligence (BI) is the process of collecting, analyzing, and presenting data to support decision making and improve performance. But how do you measure the value of your BI investments? How do you calculate the return on investment (ROI) of your BI projects and tools? In this article, we will explain what BI ROI is, why it is important, and how you can estimate it using a simple formula and some best practices.

此文章中的业界达人

由社区从 3 条内容中精选。了解更多

1 What is BI ROI?

BI ROI is the ratio of the benefits or savings that your BI initiatives generate to the costs or investments that they require. It is a way of quantifying the impact of your BI solutions on your business goals and outcomes. For example, if you spend $10,000 on a BI platform that helps you increase your sales by $50,000, your BI ROI is 400%. This means that for every dollar you invest in BI, you get four dollars back.

添加您的观点

2 Why is BI ROI important?

BI ROI is important because it helps you justify your BI spending and prioritize your BI projects. By calculating the BI ROI, you can show the value of your BI solutions to your stakeholders and align them with your strategic objectives. You can also compare different BI options and choose the ones that offer the best return for your budget. Moreover, you can track and evaluate the performance of your BI initiatives over time and identify areas for improvement or optimization.

添加您的观点

3 How to estimate BI ROI?

To estimate the BI ROI, you need to identify and quantify the benefits and costs of your BI initiatives. The benefits are the positive outcomes or results that your BI solutions enable or enhance, such as increased revenue, reduced expenses, improved efficiency, or better customer satisfaction. The costs are the negative outcomes or expenses that your BI solutions incur or entail, such as software licenses, hardware, maintenance, training, or implementation. The basic formula for BI ROI is:

BI ROI = (Benefits - Costs) / Costs * 100%

添加您的观点

4 How to measure benefits?

Measuring the benefits of your BI initiatives can be challenging, as they may not be directly observable or attributable to your BI solutions. You may need to use proxies or estimates to capture the value of your BI outcomes. For example, you can use metrics such as revenue per customer, customer retention rate, or conversion rate to measure the impact of your BI solutions on your sales and marketing goals. You can also use surveys, feedback, or testimonials to measure the impact of your BI solutions on your customer satisfaction and loyalty.

添加您的观点

Mauricio M.

Master of Mathematics & Industrial Computing. Big Data, Business Intelligence & Analytics.
举报内容
The key aspect of this process is to assess benefits that can be attributed to the BI tool. - Define specific metrics expected to be influenced by the adoption of BI tool, to ensure that unrelated metrics are not evaluated. Revisit the initial objectives and goals you had in mind during development and identify corresponding metrics. - Collect data both before and after BI tool in question implementation. Limit this to the metrics you've defined. - Analyze collected data by comparing them before and after the implementation. Look for trends, changes, and improvements. This will enable you to identify correlations and quantify the impact of these tools effectively. Of course, use your existing reporting suit to keep track of it!

已翻译

赞

5 How to measure costs?

Measuring the costs of your BI initiatives can be easier, as they are usually more tangible and traceable than the benefits. You can use accounting records, invoices, or contracts to measure the costs of your BI solutions. However, you should also consider the hidden or indirect costs that may not be obvious or explicit, such as opportunity costs, risk costs, or switching costs. For example, you may lose some customers or revenue if you switch from one BI platform to another, or you may face some security or compliance issues if you use a cloud-based BI solution.

添加您的观点

Ericka Norman

Technical Product Manager | TBMA | Creatively driving data-based insights and solutions for complex problems in IT, Finance, and End-user tools.
(已编辑)
举报内容
People costs such as; development time, support, maintenance, management, access should be considered. Also internal or external services, consulting, licensing, upgrade, audit, and backup costs. Hardware and networking costs should also be included depending on the solution. The data transfer costs between environments can be extremely expensive and often surprising depending on how it’s architected (especially in cloud environments) also known as egress costs. Transfer costs are important when working with global end users as they may need the data moved to many regions for speed. Training costs are important to consider as well, you may have tool provider training passes, development training time, end user training time and licensing.

已翻译

赞

6 How to improve BI ROI?

Enhancing the return on investment of your business intelligence projects is not only about increasing the benefits or cutting costs, but also about making sure they match your business objectives. To do this, you should adhere to some best practices, such as establishing clear and achievable goals and metrics for your BI initiatives, involving end-users and stakeholders in the planning and implementation of BI projects, selecting the appropriate BI tools and platforms for your data and analysis needs, providing training and support for BI users and staff to maximize their usage, and monitoring and assessing the results of your BI projects regularly, allowing you to adjust your strategy accordingly.

添加您的观点

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Mauricio M.

Master of Mathematics & Industrial Computing. Big Data, Business Intelligence & Analytics.
举报内容
Consider that the BI tool can be rolled-out incrementally for user blocks, or as a pilot test for a specific user group, instead of a global launch. This not only helps mitigate risks but also provides the opportunity to establish a control group of users who have not yet adopted the new tool, alongside the group of early adopters. This approach is superior to conducting before-and-after assessments because it allows you to identify the portion of benefits directly attributable to the BI tool. It prevents mistakenly attributing benefits due to other unrelated factors. Keep in mind that the expanded rollout window can incur costs and should be long enough for the benefits to reflect, as the impact and effects of the tool are not immediate.

已翻译

赞

Business Intelligence

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How do you calculate business intelligence ROI?

1

2

3

4

5

6

7

1 What is BI ROI?

2 Why is BI ROI important?

3 How to estimate BI ROI?

4 How to measure benefits?

5 How to measure costs?

6 How to improve BI ROI?

7 Here’s what else to consider

Business Intelligence

给文章评分

感谢您的反馈

更多Business Intelligence相关文章

更多相关阅读内容

How do you calculate business intelligence ROI?

1

2

3

4

5

6

7

1 What is BI ROI?

2 Why is BI ROI important?

3 How to estimate BI ROI?

4 How to measure benefits?

5 How to measure costs?

6 How to improve BI ROI?

7 Here’s what else to consider

Business Intelligence

给文章评分

感谢您的反馈

查看其他技能