If you’re just getting started on the journey of bringing business intelligence to your company, you’ve likely got questions. Most likely, near the top of that list of questions is, “What is the cost of implementing business intelligence?”
In this, the first of our blog series, Building a Data-Driven Business, we’re going to help answer that question and uncover the real costs of implementing business intelligence.
Business Intelligence Pricing Models
The future (and broadly speaking, the present) of data analytics is in the cloud. As is true across business management solutions like ERP, CRM, expense management, and business productivity, most of the leading BI solutions, including Domo, are cloud based.
Cloud-based applications are typically priced using a subscription model. The monthly subscription rate for business intelligence applications is based on numerous factors, including the number of users, the amount of data being analyzed, and the number of connections. Pricing may also vary based on the user type, with power user licenses costing more than licenses to simply view the results, for example.
Can we Come up With a Range of BI Implementation Costs?
Capterra performed a survey of 11 business intelligence software providers and found that the average cost of business intelligence software is $3,000 per year. They are careful to point out that they used each BI vendor’s most basic, least expensive plan for their calculations, and that cost does not include implementation services. In reality, most mid-sized and enterprise companies should expect to pay more (possibly significantly more) than $3,000 annually for business intelligence software.
For example, Domo pricing is based on several components related to the usage of the platform, including data storage, data refresh rates, volume of data queries, and the number of users. Domo offers packages designed to meet the specific needs of companies in different stages of their digital transformations — at different price points. A “typical” Domo customer (if there is such a thing) might pay closer to $12,000 annually to get the functionality they need.
Implementing Versus Installing
When cloud-based applications first began flooding the marketplace, many users were under the false assumption that cloud-based meant plug-and-play. It there’s nothing to install, the assumption went, there’s nothing to do. Today, we all know that sophisticated business applications like business intelligence software must be professionally implemented. Your business intelligence implementation strategy must include a partner. There’s simply too much at stake, and too much value to be gained, to not involve the pros. We point this out here, since professional services will add to the cost of implementing business intelligence software.
When choosing a BI partner, look for a recognized industry leader that has experience working with companies in your industry. An experienced partner is worth their fees, as their knowledge and experience in your industry can make recommendations for the most useful data views and KPIs and can ultimately save you money.
Performing a Cost/Benefit Analysis
As with any business investment, it makes sense to perform a cost/benefit analysis before implementing a business intelligence solution. Factors to consider in the benefit side of your analysis can include:
- Faster, more accurate reporting
- Better data quality
- Increased employee satisfaction and accountability
- Improved operational efficiency
- Increased competitive advantage
- Headcount savings
- Value of a scalable solution
When you’re choosing a partner, ask them to provide a business intelligence implementation proof of concept to give you a better idea of the software’s ability to handle your existing needs and scale, see how well the tool can integrate with your existing data sources, and understand how easy to use (or not) the application is.
So, what is the Cost of Implementing Business Intelligence?
The answer to this question is: it depends. A 2018 report on business intelligence software* by the tech research giant Gartner said, “cost should be a secondary consideration to the achievement of business benefits.”
We understand that every company has to consider costs and perform cost/benefit analyses before embarking on an initiative like a business intelligence implementation. BT Partners is here to help formulate your business intelligence implementation strategy and to ensure you get the functionality you need without paying for features and functions you don’t. Ready to talk about your business intelligence initiative? Give us a call at 847-205-5015 or Schedule a Free Consultation.
*Gartner (2018). Retrieved from: Magic Quadrant for Analytics and Business Intelligence Platforms (https://www.gartner.com/account/signin?method=initialize&TARGET=http%253A%252F%252Fwww.gartner.com%252Fdocument%252F3327017 on 9/2020) (gated content).
