Your Next Bi/analytics Purchase - Will You Overpay? - Buznew.com

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Your Next Bi/analytics Purchase - Will You Overpay?

By Joseph B. Kappernick


The latest and greatest BI and analytics technologies are at the top of many companies' must-have lists. And it is easy to see why-- these tools allow businesses, such as retailers, to gather huge amounts of valuable information to predict customer behavior and increase revenue.

The bad news is that vendors know that businesses will continue to spend money on these technologies, as long as they promise increased revenues. They will take advantage of the high demand, as well as the lack of knowledge companies may have in regards to this trending tech.

Before your next BI/analytics purchase, consider the following to help avoid overpaying:

Don't forget about third-party options

The only way to ensure a good deal is to carefully weigh all of your provider options. Always include several third-party alternatives since this is probably where you will find the best price and terms available.

Don't allow ROI to affect price

Don't be convinced by vendor ROI claims when it comes to the price of your purchase. Most ROI claims are exaggerated and should not be tied to price in any way.

Think twice about bundling

Vendors love to offer bundles with seemingly high discounts. However, the problem with bundles is that you probably don't need all of the services/products that come with the bundle so you end up paying for things you don't even need or want. You will often save money if you skip the bundle and its "discounts" in favor of purchasing the services and products individually.

Stay away from fixed-fee implementation

To understand true cost-to-serve, you need to know vendor implementation costs on a time and material basis. The problem with fixed fees is that they are really never truly fixed. There are always hidden costs and fees that arise and implementation gets underway.

Position the purchase to your advantage

Make sure that everyone involved, including potential vendors, understand what you are trying to accomplish with the BI and analytics and how you plan to measure any results. Positioning yourself properly can save you up to 20 percent on your purchase. Always benchmark pricing and compare prices and terms from several different vendors to ensure you get the most value from your new purchase.




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