Balance and Consistency Are the Keys to BI Budgeting Competency and Success

When operating according to the Dresner Hyper-Decisive® Maturity Model, a hyper-decisive enterprise has an advanced competency in applying available resources to maximize the value of their business intelligence (BI) investments (see the Research Insight “Introducing the Hyper-Decisive Maturity Model”). Organizations that consider their BI initiatives completely successful (the highest level of success), have increasing BI budgets and report making data-driven decisions all the time or most of the time.

This budgeting competency includes the principle that for each category of BI spending there is a “floor” or minimum level of spending on analytical and data infrastructures required for business operations. Our data also show that organizations that are completely successful exhibit a balanced approach to their BI budget allocations to meet business objectives based on specific enterprise needs.

Spending below minimum levels or in an uneven or inconsistent way will have significant negative consequences for the organization (for example, fewer services provided, less analytic data availability, or slower and less-informed business decision making). This floor-spending level is also unique to each organization. To ensure the ongoing health and well-being of a BI program, first identify and then track these floors, and ensure BI spending exceeds these levels in all categories.

Data leaders not already doing so should leverage Dresner Advisory Services’ data as benchmarks against which to compare BI budget allocations. Our data show that organizations reporting positive correlations with their BI programs—BI success, increasing budgets, more frequent and higher levels of data-driven decision making, higher rates of data literacy, and an easier time finding and leveraging analytical content—balance their BI spending fairly well across all categories. Although exceptions to this exist, for most organizations, the planned-spending data indicate that taking a more balanced approach to BI spending tends to deliver strong positive results and best positions BI programs for continued long-term success.

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