How can you measure the value of your BI system to the organization?

1 Define your goals and objectives

Before you can measure the value of your BI system, you need to define what you want to achieve with it. What are your strategic and operational goals and objectives? How do they align with your organization's vision and mission? How do they relate to your key performance indicators (KPIs) and business processes? By clarifying your goals and objectives, you can establish a clear direction and purpose for your BI system, and identify the relevant data sources, analytics, and reports that you need to support them.

2 Choose your evaluation methods and metrics

In order to measure the value of your BI system, you can use various methods and metrics that depend on your goals, data availability, and analytical capabilities. Cost-benefit analysis is one such method which evaluates the costs of implementing and maintaining the BI system against the benefits it generates. Financial metrics, such as NPV, IRR, or payback period can be used to calculate the ROI of your BI system. The balanced scorecard approach evaluates performance from four perspectives - financial, customer, internal process, and learning and growth - by using a combination of financial and non-financial metrics. Critical success factors (CSFs) and key performance indicators (KPIs) focus on specific factors and indicators that are essential for success. These can be measured using quantitative and qualitative metrics such as accuracy, timeliness, usability, relevance, or impact, to determine if your BI system meets expectations and needs of stakeholders and users.

3 Collect and analyze your data

Once you have chosen your evaluation methods and metrics, you need to collect and analyze your data to measure the value of your BI system. You can use various data sources, such as surveys, interviews, observations, or system logs, to gather feedback and insights from your stakeholders and users. You can also use your BI system itself to generate reports and dashboards that show the results and outcomes of your BI initiatives. You should use appropriate statistical and analytical techniques, such as descriptive, inferential, or predictive analytics, to process and interpret your data, and identify the strengths, weaknesses, opportunities, and challenges of your BI system.

4 Communicate and act on your findings

The final step in measuring the value of your BI system is to communicate and act on your findings. You should present and share your findings with your stakeholders and users, using clear and compelling visualizations, narratives, and recommendations. You should also use your findings to improve and optimize your BI system, by addressing any issues or gaps, enhancing any features or functions, or adding any new capabilities or functionalities. By communicating and acting on your findings, you can demonstrate the value of your BI system to the organization, and increase the adoption and satisfaction of your BI system.