This review is based on Jeff Kelly's article published on Searchdatamanagement.com in July 2009.
The author opens the review with an amusing statement that no phrase strikes more fear in the hearts of IT managers than "over budget." The review then focuses on presenting the findings of a report published by David Hatch, an analyst at Aberdeen Group, which states that going over budget is not a one-time event in BI projects but an existing reality. Hatch notes that the fear of hidden costs drives many organizations away from entering or continuing to invest in BI projects. According to him, companies struggle to complete projects within the defined time and budget. Still, they systematically underestimate the costs associated with maintaining and expanding BI projects after they have gone live. 58% of the 191 companies that responded to the survey reported that the report indicated a month or more timeframe, and 17% reported a period lasting over six months for project implementation. It's hard to say how long a BI project implementation should take, but most analysts agree that managers are looking for quick gains where implementation takes weeks, not months. 67% of organizations also stated that they exceeded the budget defined for the project, and almost a quarter of responding organizations reported an overrun of more than 10%. The data leaves us with only about 40% of companies completing projects on time and about 33% completing the project within a given budget.
Analysis of the organizations' responses led the researcher to identify five key variables whose implementation helps the project stay within time and budget:
Realistic assessment of project duration
Most BI vendors claim that their solution can be implemented within days or, at most, weeks, indeed not quarters. While this claim is technically correct, companies where the project is being carried out must have transparent processes for identifying, cleaning, and integrating data to achieve such rapid implementation times. If this is not the case, the processes can take weeks, months, or even longer, a fact we need to consider at the beginning of the project.
Connection with end users
To ensure that BI projects are within their defined time and budget, companies must understand the needs of end users. To do this, companies need to bring together all stakeholders in the system - IT people, management, and end users - to discuss the implementation of the system. The author suggests doing this in the form of BI Competency Centers, which he elaborates on in another article. The necessary conclusion is that in a large organization where BI systems are supposed to support a large number of departments, the unique needs of additional departments beyond the initiating one should also be characterized to avoid alienation from the system of user subgroups in the future.
Implementation of standardized training programs
Training is required to ensure optimal project implementation and end users adopt the solution. Companies need to institutionalize the existence of training programs. The problem, as presented by the author, is that the cost of training is usually not factored into the equation at the beginning of the project despite its critical impact. The author recommends taking these costs into account as well.
Understanding the implications for IT architecture
Companies need to decide in advance how the system will be implemented. In some cases, the implementation will stand alone; in other cases, it will be integrated with CRM or ERP systems. Regardless of the case, companies need to consider the implications of their IT architecture and allocate money and resources to avoid surprises down the road.
Ongoing costs
Many companies forget to consider the changes required in the system over time because of evolving requirements. As business needs change, you need to change your reports accordingly. You should also consider the costs of ongoing maintenance. As a result, the recommendation is to invest in systems that are easy to change, as we will certainly need them later in the project's life.
Based on the survey results, companies that adhere to the above guidelines succeeded in their project while staying within the budget and timeline set in advance.
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