The U.S. monitors terrorist activities and other threats to the nation through the Central Intelligence Agency or CIA. They hire highly specialized investigators, spies and analysts to gather information or more popularly known as "intel". In the business world, there is what we call business intelligence and it is responsible for researching and analyzing customer purchases. This sector is responsible for gathering important intel for companies.
Business intelligence and analytics are very important in businesses. This is used to research information as well as analyze the behavior of consumers. As a result, this helps the business know more about their target market and how to improve their products or services. The huge importance of business intelligence and analytics is shown through how much companies are willing to spend on it this 2013. This sector of technology will earn $50 billion by 2016.
Chief Intelligence Officers (CIO) are really not baffled with this information. Business intelligence and analytics is not cheap. To fund the resources needed, a good deal of money will be involved. CIOs know that to gather business data as well as consumer data, companies must be prepared to spend a lot. However, what's surprising here is that companies will overspend for business intelligence and analytics.
The estimate of the increase is 20 percent which is around $40 billion. This amount is simply for business intelligence and analytics. To be more specific, here are the areas companies will be overpaying for:
* There will be overspending on software licenses as companies will pay higher than market prices. With the demand, vendor prices are inflated.
* Business intelligence project implementation will become more complex. Hence, implementation will need more funding.
* Companies will overspend on annual costs such as maintenance, support and subscription renewal costs. Every year, these rates go higher and higher.
* Companies need an upgraded business intelligence system and such system continuously evolves. The technology needs to be enhanced which is quite expensive.
This begs the question, will companies be willing to overspend on business intelligence and analytics? Most likely, they are. BI and analytics are very powerful tools for any company and it's a worthwhile investment. However, to optimize its benefits, companies must be prepared to pay or shall I say, overpay.
On the other hand, a wise company can always develop a strategy to prevent overspending. Before paying for renewals and improvements, companies can always do some research on the fair market prices. After all, their current BI and analytics should help them gain insight to save on projects and expenditures.
Business intelligence and analytics are very important in businesses. This is used to research information as well as analyze the behavior of consumers. As a result, this helps the business know more about their target market and how to improve their products or services. The huge importance of business intelligence and analytics is shown through how much companies are willing to spend on it this 2013. This sector of technology will earn $50 billion by 2016.
Chief Intelligence Officers (CIO) are really not baffled with this information. Business intelligence and analytics is not cheap. To fund the resources needed, a good deal of money will be involved. CIOs know that to gather business data as well as consumer data, companies must be prepared to spend a lot. However, what's surprising here is that companies will overspend for business intelligence and analytics.
The estimate of the increase is 20 percent which is around $40 billion. This amount is simply for business intelligence and analytics. To be more specific, here are the areas companies will be overpaying for:
* There will be overspending on software licenses as companies will pay higher than market prices. With the demand, vendor prices are inflated.
* Business intelligence project implementation will become more complex. Hence, implementation will need more funding.
* Companies will overspend on annual costs such as maintenance, support and subscription renewal costs. Every year, these rates go higher and higher.
* Companies need an upgraded business intelligence system and such system continuously evolves. The technology needs to be enhanced which is quite expensive.
This begs the question, will companies be willing to overspend on business intelligence and analytics? Most likely, they are. BI and analytics are very powerful tools for any company and it's a worthwhile investment. However, to optimize its benefits, companies must be prepared to pay or shall I say, overpay.
On the other hand, a wise company can always develop a strategy to prevent overspending. Before paying for renewals and improvements, companies can always do some research on the fair market prices. After all, their current BI and analytics should help them gain insight to save on projects and expenditures.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI Financial to learn more about telecom cost reduction service
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