So often when companies are considering purchasing a business intelligence project or software, the question arises as to what happens to everyone involved.
“Where is the ROI in this project?”
This question has put the Business Intelligence Project on track. This may have been asked by the CFO or CEO. It may have been offered in a meeting with a vendor or consultant. The sad fact is that if you can’t answer this question with difficult numbers in certain areas, then maybe the ROI isn’t there.
IRACIS is a simple acronym that can be used to calculate the value of a business intelligence project. It stands for the following:
Increase Revenue – How will this application and functionality sell more to new or existing customers, shorten sales, and / or reduce sales costs?
Avoid costs – BI focuses on this area as the most important part of the project. How will this application help us improve performance, put more information in the hands of our business people, and eliminate waste?
Improve service – will this application significantly affect our client? Will we be able to provide as much timely and valuable information as possible to our customers, prospects and suppliers?
Many times in business intelligence efforts, results are found that are considered desirable. Good things like ad hoc reporting, informed operations staff, and short breaks in financial reporting are good. But they will not justify investing in a business intelligence solution from a standard software vendor in the above areas without the amount of direct and secondary benefits.
Let’s face it – business intelligence solutions are not cheap. There are many scalable solutions on the market today, ranging from the implementation of traditional software to SaaS (software as a service), and even open source solutions. Large companies have long embraced the benefits of business intelligence, and now small and medium-sized companies are benefiting from these diverse offerings. However, any business intelligence plan is just as good as the planning, effort and data that goes into whatever software platform you are using. That’s why we often hear in other BI projects, “Getting into the garbage, getting out of the garbage.”
By using the IRACIS model to validate the value of the solution to the company, you provide everyone with a clear roadmap that is considered a successful project. From the executive sponsor in the company, to the vendor you are working with, there is no ambiguity as to what the final results are expected to be. I would challenge any company that is considering a business intelligence project of any kind, if you can’t find a solution to find at least one of the three areas mentioned above, if all three No, this plan is probably not worth doing. All in all, if the solution or software product is unable to scale in the long run to identify these three areas, then this is probably not the best product for you. This may sound like a strict standard, but in an age where most large companies own 3 or 4 separate business intelligence tools, it is clear that more critical thinking is needed before buying solutions or platforms.
Not only is this a shortcut to a valuable amount of a project for a company, but it can also be a mind boggling tool for applications like yours. Above I noted that this abbreviation avoids costs. The business segment is by far the most focused on business intelligence projects. why like this? Is business intelligence just to get rid of waste and make an organization more efficient? It’s good? Can’t you use valuable information to increase revenue by exposing yourself to possibilities that you haven’t yet reached?
I will discuss some of the best and most successful business intelligence information applications I know of, focusing on the first category of growing revenue. Business intelligence is about getting the right information at the right time. For some companies that may be an internal business analyst. But for many others, it can put information in front of your customers, prospects and partners to provide new insights into your purchasing decision. When companies are selling complex products and services, sometimes you have to find a customer wherever you live. You need to reach out to them with a strong message about your product or price suggestion and give them a reason to act on that information.
If you receive an email from a major car insurance provider, which estimates your current car insurance provider and your value, and then a graph showing the rates for the same coverage over the course of a year. The comparison will show a saving of $ 700, so it will be a compelling email to receive. It will probably encourage you to pick up the phone or visit a website.
This will result in improved service and cost savings. Being able to present this type of accurate and timely information to a prospective user indicates that you have the system in place to save money and provide the best possible service. This reduces the sales cycle and the cost of sales, which increases margins and profits. It builds trust in the company from a customer perspective and also helps people talk about your product or service.
In the information age we live in, the data and information companies have is their most valuable asset. Communicating this information to the right audience in a usable format can be the role of business intelligence in any company. This should be a goal considering what business intelligence can do for the company. Don’t limit yourself to just wasting time and automating internal processes. I definitely focus on projects that are valuable and valuable to a business. But when you expand your thinking and want to remember that using the Internet to provide information in a variety of formats is the cheapest way to reach a critical gathering of people, then you need a business intelligence solution. Realize your full ROI on purchases. .
So the next time you start discussing a business intelligence project or initiative, consider the IRACIS model as a way to discuss and evaluate your company’s worthwhile projects. You may be wondering what you can do when your thinking is focused on generating revenue and improving services. Just remember, after creating a new line of your business or adding an existing one, ask your boss for a commission.