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.
It is possible to stay within budget on your next purchase -- start with a clear plan and these considerations:
Consider third-party providers
Odds are that a third-party provider will give you better service at a better price. Make sure to weigh all your options carefully before signing on the dotted line.
Don't allow ROI to affect price
Vendors might try to tie the price of your purchase to ROI. Not only are vendor ROI claims usually inflated, they also have nothing to do with price.
Bundles aren't always best
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.
Beware of fixed fees
Don't be misled by fixed-fee implementation costs. This is a terrible misnomer as the fees are rarely, if ever, "fixed. Always ask vendors to calculate costs based on time and materials. This is the only way to really know true cost-to-serve.
Positioning is key
The way you position your next BI/analytics purchase could make all the difference. If done properly, you could save 15-20 percent on the entire purchase. You must have a sound strategy complete with a clear understanding of any goals you wish to achieve with your purchase and how you plan to measure effectiveness. Entering negotiations with these in mind, as well as carefully benchmarked pricing will give you the leverage you need to make a smart purchase.
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.
It is possible to stay within budget on your next purchase -- start with a clear plan and these considerations:
Consider third-party providers
Odds are that a third-party provider will give you better service at a better price. Make sure to weigh all your options carefully before signing on the dotted line.
Don't allow ROI to affect price
Vendors might try to tie the price of your purchase to ROI. Not only are vendor ROI claims usually inflated, they also have nothing to do with price.
Bundles aren't always best
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.
Beware of fixed fees
Don't be misled by fixed-fee implementation costs. This is a terrible misnomer as the fees are rarely, if ever, "fixed. Always ask vendors to calculate costs based on time and materials. This is the only way to really know true cost-to-serve.
Positioning is key
The way you position your next BI/analytics purchase could make all the difference. If done properly, you could save 15-20 percent on the entire purchase. You must have a sound strategy complete with a clear understanding of any goals you wish to achieve with your purchase and how you plan to measure effectiveness. Entering negotiations with these in mind, as well as carefully benchmarked pricing will give you the leverage you need to make a smart purchase.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction solution
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