Jan 19, 2010

Help save $ 3.39 billion in BI Wastage

Companies have a potential to save $3.39 billion annually on BI investments alone. 
i.e. this is

- Can accomplish an Appolo moon launch in 7 years
- Can build 3 tallest buildings in the world at Dubai costing
- Can build the eitire Dubai downtown in 6 years
- Can launch 3 dreamliners size new projects in aerospace technology

And we do this every year and will continue to do this for the following years if we dont stop and listen...


Background:
Reference 1
1966 total cost of the Appolo mission = $24 billion. This represents the largest commitment of resources made by any nation during peace time for peaceful purposes.
Reference 2
2009: total cost of building the Boeing dreamliner US$ 1billion
Reference 3
2010: total cost of building the worlds tallest building, Burj Dubai, UAE $1.0 billion.
For the entire Dubai downtown US$ 20 billion


Basis of above statements:
Global DW Costs2008: total spend on BI                         = $8.8 billion (Source Gartner June 2010)
        total spend on BI Implementation  = $7.54 billion (source SAP, teched, 1:7 ratio)
         total spend on BI  SW                  = $1.26 billion  (1:7 ratio)
2006: only 52 % of ERP projects achieve success at go live (source ASUG Benchmark)
               40% of IT projects fail at $        (source Gartner)
         Average failure rate = 45%               (random computation of above)

                45% of $7.54 billion computes to a cool $3.39 billion.

Kicker: It costs 4 times more to fix a BI issues than it does the first time around.
            Our tactical saving is $3.39 billion, the strategic saving might be $13.5 billion. That is how much it will cost you to fix these $3.39 billion errors (1:4)


when did you last check your BI expenses, i.e. your initial investments v/s total fixing spend.
Not from a financial Cost and resource allocation... but from a 'Business Value Attainment' view

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