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December 07, 2010

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Sam Horton

"The problem with BI and analytics is that we don’t quite understand the nuances of the different ways that BI tools work and the distinct ways that they empower users."

This happens when an organization is so large that it cannot utilize a COE approach fast enough to help line managers with budget authority understand what a vendor is saying and what really is possible with BI tools overall. The result is local approvals case-by-case leading to multiple tools.

As for the CIO perspective, the pressure on reducing a top-line expense budget in total has to be reconciled with a group-level budget manager's perceived ROI of her/his current tool vs. a standard.

I was never convinced that a standard saved money due to switching costs, particularly business disruption of any expensive/risky process.

That said, the only time I have seen a company wipe out all but one tool (global metals firm, Philly) it was done using a two-pronged approach: (1) The CEO said so, and (2) all departments had a direct expense cap of $25K for any size project plus 2 years to convert.

Very nice article.

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