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Posted by Boris Evelson on January 23, 2010
How much does it cost to produce a single BI report? Just like typical answers to most other typical questions, the only real answer is “it depends”. But let’s build a few scenarios:
Scenario 1: Services only. Bottom up, ABC approach.
Cost of 1 BI report: $1,840 if done by 2 FTEs or $2,520if done by 1 FTE (end user) and 1 outside contractor (developer). Sounds inexpensive? Wait.
Scenario 2. Top down. BI software and services:
Cost of 1 BI report is $8,250. Still sounds inexpensive? Let's keep going.
Scenario 3. Top down. Information management software and services.
Cost of 1 BI report also comes out to $8,250 since we are now using economies of scale for ETL and DW accross several departments. But that's not the end of it.
Scenario 4. Top down. Fully loaded:
Cost of 1 BI report is now $15,250. Still waiting to collect more data on the 4th bullet point above, but I can easily see how the truly fully loaded cost might grow to $20,000.
Of course this is only one side of a complete picture, cost/benefit equation, since the cost of producing a BI report cannot be looked without referencing the value it provides. After all, if that one report produces $100,000K in cost savings or in additional revenues, then even $20,000 becomes very attractive.
Suggestions for bringing the cost of BI down?
I welcome and encourage comments and will update this blog with all relevant and useful suggestions.
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