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Enterprises are wasting millions on unsuccessful Business Intelligence implementations
Research reveals BI is not providing enterprises with value, with 62% receiving complaints from business users
Bracknell, United Kingdom, 20 October 2009 - Research released today by Kognitio revealed that UK enterprises are wasting millions of pounds on unsuccessful business intelligence implementations. 1 in 4 companies said that they had spent over a million pounds on business intelligence implementations and more than half of those questioned had spent at least half a million. Furthermore, despite these large investments of money, the research revealed that these implementations are not providing the value companies expect, with 62% admitting they receive a barrage of complaints from their business users.
The survey also revealed that BI is taking too long to provide companies with any intelligence, with 78% stating that it takes over a year to see any meaningful results. This means by the time companies receive actionable intelligence, business needs have changed and the data is out of date.
"These results are extremely worrying. Gaining intelligence a year after starting a BI implementation is completely unacceptable - it is no wonder BI implementations so often fail and that they have such a bad reputation," commented Roger Llewellyn, CEO, Kognitio. "Companies need to start looking very closely at why Business Intelligence isn't getting them the value they expected and look back at what they expected it to achieve."
Moreover, as business intelligence is not delivering on its promise, the research revealed that 65% of companies understandably consider BI implementations to be too expensive. This is due to the manpower and time required from the IT department, the cost of hardware acquisition and deployment and the cost of software licenses and deployment, as well as the cost of outside consultancy firms.
"With the advent of on-demand technologies, companies should be investigating a project-based approach to business intelligence and analytics. By going down a project route they can benefit from the ability to run ad-hoc queries, such as 'who is my most profitable customer?' or 'how many staff do I need on the checkouts?' without needing to install large, costly BI infrastructures in-house. Instead, these can be run in an outsourced architecture, costing four rather than six figures," continued Llewellyn.
The survey went on to question how companies approach business intelligence implementations and returned some surprising results: 88% of enterprises admitted that business departments do not properly define what they want to achieve from an implementation, as they expect the IT department to do this for them. The results clearly point towards a need for better communication between IT and business divisions; clearly if businesses are not defining what they want to achieve then they will not get the results that they expect.
"The clue is in the name - for the success of an implementation it is critical to involve business users and departments from the start. When done correctly, business intelligence provides immense value to companies and is even the difference between success and failure. However, it is critical that businesses understand what they want to achieve and that they communicate this to IT, otherwise they might as well be throwing money down the drain," concluded Roger Llewellyn.
The research was carried out to understand how companies approach business intelligence implementations and their perceptions of them. The survey was undertaken by Vanson Bourne and questioned 200 IT directors at UK companies with over 1,000 employees.
About Kognitio
Kognitio is an innovative, technology-rich company, providing leading-edge solutions to business problems that require the acquisition, rationalisation and analysis of large or complex data. Kognitio's WX2 is the industry's fastest and most scalable analytical database on the market, giving firms the ability to turn their raw data into valuable business insight fast, and empowering its customers to realise comprehensive answers to critical business questions.
Globally headquartered in Bracknell, UK, with North American headquarters in Chicago and offices in New York, Kognitio delivers competitive advantage to its clients across a wide range of industries, including telecommunications, financial services and utilities. More information is available at www.kognitio.com
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