Jan 3, 2010

Roadmap to save $20 billion of BI investments

Gartner Feb 2009 based on feedback of 1,500 CEO's
- BI CAGR (compound annual growth) growth expected to be around 15.3% for the 2009-12 period
- Companies not realizing expectations from their BI investments
- BI Ranked as the #1 priority for 2009-13 period

Gartner June 2009
- in 2009 the BI market grew by 22%, Australia grew by 16.7%
- By 2020 BI Spend for Healthcare industry will be 82% of IT spend
- 2008 BI Software Sales were at $8.8 billion
- By acquiring Busines Objects SAP dominated 25% of the BI SW sales market, followed by Oracle and SAS at 14.6 %, IBM 11% and Microsoft at 7.7%

SAP reports
- SW : Implementation costs are 1:7 (Teched 2009)
- SAP Implementation customers report that 52% of them realize business value at time of Golive

Global BI Stats:
  • 50-60% of BI implementations reported realizing Business value at time of go live
  • 18% reported not attaining their business value after 12 months of go live
  • $ 8.8 billion spent on BI SW sales

So here is the computation for 2008
  • Cost ratios between SW:Implementation is 1:7 (TechEd 2009)
  • Total reported BI  investment = $61.6 billion
  • 48% of total spend (i.e. failure rate) = $29.568 billion
IMAGINE - There is a potential of saving $29 billion of wasted funds allocated to non value BI initiatives.

The aim of this book is to jointly decrease this $29 billion wasteage. $'s we spent in 2008 and reduce this by 50% by 2013.

Proactive Value enhancement
  • Save 48% of your BI investments ( we knwo the number is larger than reported)
  • Get higher User satisfaction in all your future and current BI investments
  • Deploy a BVA (Business Valeu checklist) everytime someone sells you their 'value'
  • Refer to your process to weed out non BVA ideas and suggestions




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