Missed Opportunities – Too Much BI and Analytics investment is driven by cost not innovation


Clearly most organisations globally have identified the need for investment in in a range of BI and analytics tools. For some the investment is transformational, and organisation wide with application in mobile predictive analytics platforms. For others, it involves little more than building a macro in Excel. Whilst the Excel model is typically not best practice by any stretch it does highlight the diversity in BI uptake, and the range of drivers.

There are a number of reasons why organisations invest in BI and analytics. Clearly, innovation and an increased competitive understanding and decision making process is critical. If the driver of BI and Analytics investment is innovation, it is a positive investment and one that will build capability.

Unfortunately certain economic structures such as Oligopolies, Duopolies and Monopolies have resulted in BI and Analytics investment that are focused on cost control rather than fostering organisational innovation.

This is no truer than when one examines the economic structure of Australia. With the range of domestically based Oligopolies in Banking, duopolies in Banking and monopolies in aspects of transport, whilst the incentive is there to invest in competitive advantage and innovation, the real benefit remains to be investment in cost. This is not a long term solution.

The bright spots for investment in BI, and particularly analytics comes from those industries where the principal Australian providers operate in a globally competitive marketplace. The clear examples of this include natural resources, airlines and , well, sadly it is difficult to name to many more industries that are globally competitive and engaged from Australia. The same conclusions can be drawn for other economies that exist in relative bubbles such as aspects of Canada, New Zealand, Korea and others.

Bottom line, if more innovation is going to come to the Australian and other competitively constricted markets, it has to involve a shift in investment from relatively regressive cost savings to IP based innovation.

About capioIT - Phil Hassey

capioIT is an advisory firm focused on helping organisations to understand emerging technology in emerging markets. CEO Phil Hassey established the company in 2010
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