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.
As with any new tech, there is a lot of uncertainty about pricing and terms surrounding BI and analytics purchasing. Vendors will continue to try and get higher profit margins from investments as long as businesses are willing to spend aggressively for these purchases.
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.
Separate ROI from 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.
Think twice about bundling
You may be tempted to bundle services when vendors offer high discounts. Don't be fooled! These bundles probably include services you don't even need. Before you agree to a bundle deal, figure out which services you will actually need and get the cost for each. You may save money buying them individually.
Be wary of 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
Before you start the purchasing process, you need to understand completely the reasons you are buying the technology solutions, as well as what metrics you will use. All parties involved must agree on the strategy and any goals set forth. Be prepared with benchmarked pricing and vendor comparisons. By planning ahead and securing the best positioning, you should be able to save 15-20 percent from the get go.
As with any new tech, there is a lot of uncertainty about pricing and terms surrounding BI and analytics purchasing. Vendors will continue to try and get higher profit margins from investments as long as businesses are willing to spend aggressively for these purchases.
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.
Separate ROI from 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.
Think twice about bundling
You may be tempted to bundle services when vendors offer high discounts. Don't be fooled! These bundles probably include services you don't even need. Before you agree to a bundle deal, figure out which services you will actually need and get the cost for each. You may save money buying them individually.
Be wary of 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
Before you start the purchasing process, you need to understand completely the reasons you are buying the technology solutions, as well as what metrics you will use. All parties involved must agree on the strategy and any goals set forth. Be prepared with benchmarked pricing and vendor comparisons. By planning ahead and securing the best positioning, you should be able to save 15-20 percent from the get go.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI Financial to learn more about telecom cost reduction service
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