Part 1 of our BI ROI series examined key questions to consider when evaluating the potential ROI of a new business intelligence project. As a company that’s implemented our solutions thousands of times and gone through just as many ROI justifications, we’ve come to think of ourselves as experts in this area…and not just with regard to what pays off, but also what doesn’t. And never will. Below are the top 5 BI projects that never actually produce a tangible financial return on investment. That doesn’t mean you shouldn’t tackle them ever – in fact, you may be forced to at some point. Read on:
- ‘Rip and replace’ your business intelligence platform.
Replacing your existing platform as quickly as the wind changes poses a tremendous strain on resources to get to the exact place to where you are today. Don’t switch platforms just for the sake of switching. Your new BI project or platform should address a pressing issue or solve a problem. You may hear complaints like “the interface is too difficult” or “it takes too long to run reports” and think that a platform switch is the answer, but there are other investments you can make – like implementing a different front-end, or trying overnight batch processing – that will relieve your pains without costing a fortune (and taking years off your life).
- Regulatory/ legal requirements for reporting.
Reporting standards, such as Sarbanes-Oxley (SOX), International Financial Reporting Standards (IFRS) and HIPPA for example, are mandatory regulatory requirements. A solution that helps make compliance more convenient is nice to have, but in reality these regulatory reports can be summed up as the cost of doing business. If you’re forced to implement BI to meet reporting requirements, you’re unfortunately just going to have to suck it up – this rarely pays off financially.