Does the ROI Justify the Cost of BI?

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Does the ROI Justify the Cost of BI?

March 19, 2008 2:25 PM

Is business intelligence (BI) worth the cost? The answer may be "yes," but how can you determine the ROI? Since it is difficult to quantify how certain information improves decision-making capabilities, Bill Hostmann, vice president and analyst at Gartner Inc., suggests conducting a survey to measure user satisfaction, based on predetermined BI goals, 18 to 24 months after BI implementation. Another approach is to consider the loss from not implementing BI. "You've got a peer over there that has better information for making decisions," Hostmann said. "What's the risk of your not making similar investments [in BI]? The risk is that your competitors are making these kinds of investments and are able to react more quickly, manage their business better or respond to changes in the market better and, as a result, perhaps have better earnings than you."