Part 2: the FAQs we hear most often about Self-service Business Intelligence
This time we will address only one Frequently Asked Question. But it is a big and important one.
How will the investment in a Self-service BI/Analytics tool give me a Return on Investment?
It matters not just because you, obviously, do not want to pay for something that is of no use, but, perhaps, even more importantly, because playing around with data with no goal in mind might be fun (for the tech geeks at least) but it is not very useful. Any investment in tech has to bring a clear ROI to the business. We are going to be cheeky and quote ourselves here,
TAt the end of the day, technology is just the "how" of solving a need, the underlying business objectives are the much more important "whyThe KMS team
Even though data is the golden child of the day, when it comes to investing in a tool, business users sometimes tend to be quite attached to Excel, which is a great tool. However, like we mentioned in a previous post, does not have the capabilities of a Self-service BI or an Analytics tool. Hence below we have given some real life examples of how BI brings real value to organizations from a non-exhaustive list of industries
Texas Children’s Hospital monitored the readmission of pediatric asthma patients by reviewing ER outcomes to determine how effective the treatment was. As a result, staff reduced the number of chest x-rays ordered by approximately 30%.
A wealth management company - BT Financial Group -, part of one of Australia’s largest banks, could increase sales productivity by 96% in a single year by transforming the analysis available in their distribution division.
Robinsons Group improved profitability with smarter merchandising, pricing, inventory, stocking, and other retail store decisions and decreased reliance on paper reports with 80% more detailed, streamlined electronic reports.
Sony experienced improvements in a number of metrics, from sales and market share to site visits and stock rotations. Sony were quoted saying that the return on investment has been manifold and that they have improved anticipation of risks in terms of stock management.
Spokane, a large state school in Washington with nearly 30,000 students and higher poverty than the state average, used BI to take advantage of a research they conducted that looked at what the school can do to prevent students from dropping out. Then, using a BI system, they analyzed early warning signs and delivered updates to teachers on daily basis, improving drop our rates.
GlobalFoundries used BI to find additional value-add by analyzing years of past data to make future forecasts. The decision making process has become faster, more efficient and easier due to management being able to access any data from anywhere and anytime.
Oil & Energy
Using self-service BI, AREVA Group which offers a portfolio of renewable energy, could see the entire scope of trends within the company and, based on the information, choose the most optimal time and location for building additional windmill plants.
Gatorade needed better visibility into its sales teams and processes in order to respond faster to market challenges. But even basic sales reports took around 40 minutes each to produce with the time needed increasing to hours for more complex ones. Using BI, Gatorade reduced reporting time from 1 - 4 hours to 3 minutes, which meant that they are saving up to $273 in employee time for each report generated.