Business Intelligence & Return on Investment (ROI):
Business Intelligence enables us to take some action based on the intelligence acquired using BI strategy. If this knowledge or information is not utilized properly in the right direction, there is no point in analyzing and finding the intelligence.
For example, lets assume a company has implemented a BI system to analyze the customer interests and requirements enabling them to promote a particular product in the near future. All the analysis and knowledge management will be pointless and a waste of investment if they don’t have a proper plan to approach the right customer at the right time. So Business Intelligence is all about strategies in increasing business efficiency while vastly cutting down the operating costs.
Implementing a Business Intelligence system in an organization requires a significant amount of money to be invested in order to build and implement a BI system and its applications. It requires more skilled top level managers to build a ROI (Return on Investment) model to analyze the costs involved in implementing and maintaining these BI models and methods to get the return on investment sooner.
A proper business action should be taken based on the strategies derived with the help of these intelligence models. Often an erroneous model and wrong assumptions can bring a loss much greater than building the entire Business Intelligence system itself. Once everything is done more properly in a way an organisation want them to be, then the benefit that comes out of it is priceless.