Defining Business Value For BI And Analytics Initiatives

Words: 2146
Pages: 9
Open Document
Research
Publication Date: 26 September 2011

ID Number: G00218934

Examples of Defining Business Value for BI and
Analytics Initiatives
Bill Hostmann

There are different ways of measuring the business value of business intelligence (BI) and analytics initiatives. The definition of "business value" depends on whether it is being evaluated by IT or the business organizations. The business values cited by the top 10 finalists in the 2011 Gartner BI Excellence Award program are used to provide examples of a model defining the dimensions and categories of business value.
Key Findings
The measures of business value for BI investments must be defined from an IT and a business perspective. The measures of business value are …show more content…
To the business organizations, information and technology are contributors to delivering business value. They are necessary, but they are not the end measure of value. The measure of BI and IM value is stated in business terms, such as contributing to agility, efficiency and scale, or the level of business transformation enabled.
As shown in Figure 1, organizations realize value from BI investments the following ways:
Directly. IT directly enables the following values, which are the easiest to quantify in terms of costs and number of users:
Lower total cost of ownership (TCO) comes from the more-efficient use of technology. Consolidating the technology and skills and removing technical and operational obstacles lower the TCO.
Economies of scale result from making information and analysis available to more users. There are higher levels of quality and support in the use of information and analysis in making decisions. This means measuring how relevant, accurate, consistent and timely information and analysis is from a user's perspective, as well as how skillful the users are in using the analysis provided.
Indirectly. IT indirectly contributes to the following values, which should be defined by the business sponsor of the initiatives:
Higher business agility and scale come from business process optimization.
Analytic capabilities are embedded in products, services and operations.

Publication
Show More

Related Documents: Defining Business Value For BI And Analytics Initiatives

Melnyk et al.2014 Essay

This article was downloaded by: [BI Norwegian Business School] On: 27 May 2014, At: 03:37 Publisher: Taylor & Francis Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK International Journal of Production Research Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/tprs20 Supply chain design: issues, challenges, frameworks and…

Words 6142 - Pages 25

Managing Information Technology (7th Edition) Essay

CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5…

Words 239873 - Pages 960

Essay on Procurement in Oil and Gas Industry in Developing Countries Nigeria Agip

in the worldwide price of oil. The Nigerian economy is based on two major segments, agriculture and upstream oil business. Agriculture financial records for more than 36% (1998) of the GDP, for the most part composed of subsistence agriculturalist with only a minor number of profitable farms and domestic consumption. There is, though, a large export of cocoa. The upstream oil business financial records for just about 37% of the GDP and make available 80% of the Federal Government income. Manufacturing…

Words 12230 - Pages 49

Mobile Payments Essay

Architect White Paper Contents Introduction Mobile Commerce – Business Context Mobile Commerce Strategy Mobile Channel Strategy Mobile Marketing Mobile Sales Mobile Service Mobile Payment Mobile Wallets Mobile Commerce Transaction Mobile Banking and Mobile Money Mobile Commerce Transformation Roadmap Mobile Commerce – Payment Business Scenarios Card based Mobile User to Business – Payments (CM2B) Mobile – Wallet – User to Business – Payments (M2B) Mobile – Wallet Mobile Users to Mobile User – Payments…

Words 13772 - Pages 56

Project Report On Employee Performance

PROJECT REPORT - A STUDY ON ENHANCED EMPLOYEE PERFORMANCE THROUGH SOFT SKILLS AT DZINE-HUB CREATIONS PVT.LTD. TABLE OF CONTENTS S.no TITLE Page No 1. Acknowledgement 10 2. Executive Summary 11-12 3. List of Tables 13-14 4. List of Figures 15-16 Chapters 1. Introduction 17-48 1.1 Definition of Soft Skills 17 1.2 Hard Facts About Soft Skills 19 1.3 Top 60 Soft Skills 21 1.4 Soft Skills Gap – Do You Have One? 23 1.5 Distinction Between Hard Skills & Soft Skills 25…

Words 20716 - Pages 83

Impact of Organizational Structure and Culture on Job Satisfaction, Job Stress and Employee Motivation: a Survey of Existing Litreature Essay

IMPACT OF ORGANIZATIONAL STRUCTURE AND CULTURE ON JOB SATISFACTION, JOB STRESS AND EMPLOYEE MOTIVATION: A SURVEY OF EXISTING LITREATURE ABSTRACT Effectively managing human resources in the organizations is a big concern both for HR managers and the policy makers of the organization. To have a satisfied, motivated, less stressed performing workforce an organization must have consistency amongst its structure, system, people, culture and good fit with the strategy. In this paper an attempt has been…

Words 15091 - Pages 61

Evaluation Research Design Literature Essay

253 Chapter 6 Evaluation Research Design: Literature Reviews & Synthesis Frequently a research question or hypothesis can be answered through secondary research, i.e., a literature review or synthesis. Both strategies requires the researcher to mine existing data sources; ―pull out‖ relevant data or information; summarize it; logically analyze and/or statistically treat it; and report results. In many instances, the issue, problem, question, etc. which prompted the idea for an evaluation study is…

Words 19309 - Pages 78