A New Quantitative Indicator to Measure Return on Investment of Business Intelligence Systems

Abstract:

The need for competitiveness determines organizations in all sectors to implement business intelligence (BI) systems with the aim of optimizing decision-making processes. Conceptually, organizations understand the benefits of using BIS, but literature still shows a lack of indicator models for calculating the return on investment (ROI) for investments in BI systems (BIS). In practice, calculating the ROI of BIS still seems a complicated procedure: there is no standard for measuring the net benefits of exploiting a BI system. This paper proposes a model for evaluating benefits resulted from exploiting a BIS by using the ROI approach. The model was built based on an industry survey conducted in 43 organizations. The salient features of the ROI model are the dimension as status indicator of the BI performance evolution and the statistical quantification of net benefits associated to BI solutions.