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Understanding our prospect’s needs takes more than just a demonstration and conversation about our product offerings. No matter how enthusiastic we are about our software and services, it isn’t enough to give the prospect a reason to buy. As I meet people through various VDG promotional events, I have found that their concerns and needs are all different and require a one-on-one meeting. And for the most part, I believe an introduction conversation is never enough, primarily because their concerns are structured around the perceived financial value of a software purchase to their organization: any purchase must address the return on investment (ROI).
It has been said that it is very difficult to determine ROI for Business Intelligence software. In a blog entry on B-Eye-Network by Wayne Eckerson,
How to Measure BI Success, he mentions many types of measurements. It is always important to measure the performance of your Business Intelligence software to make sure that there is continuous value. What about those organizations who avoid a BI software purchase due to cost concerns and the expectation that the software will not fulfill its promises.
Why not try before you buy?
This is when I recommend a proof-of-concept pilot project. Typically the purpose is to prove to the prospect that the product offering will perform as promised, using their data in their environment. But performance alone will not be the only requirement to make a purchase decision, there are other factors to consider, such as:
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Is this software really appropriate for the organization’s industry?
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Does it address all of the customer’s requirements?
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Can the data be easily configured, manipulated and analyzed?
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Is there a large amount of unstructured data that cannot be addressed during the pilot?
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Will the hands-on experience of the IT personnel and end-users during the pilot be enough to perform advanced tasks using the new software? And finally and most importantly,
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Can the anticipated return on investment at the end of the pilot project sufficiently calculate its value?
To begin analyzing the financial benefits of implementing business intelligence, it is important to have established a deployment cost that will include the software as well as hardware, services and training. Project assumptions such as ongoing support and employee resources need to be considered. A simple but effective example of this analysis is illustrated in a post by Jonathan Wu,
Calculating the ROI for Business Intelligence Projects. Along with the calculations, a sensitivity analysis must be performed to determine success versus failure based on the savings outcome or its likelihood.
There is no doubt that a thorough evaluation of ROI for a business intelligence project is challenging. It takes an investment of both money and time from both parties. The process will be well worth the effort if approached as a team. At the end of the pilot, all parties can move ahead with their prospective duties knowing what needs to be achieved to make the deployment a success.
Do you know where the big data is in your own life? Or even the life of your ancestors? They are gone, but not forgotten, at Ancestry.com, which serves as an example of what big data really is, and how important concepts like accurate data enter the picture and our world.
