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Service-oriented Cost Allocation for Business Intelligence and Analytics: Who pays for BI&A?

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Title: Service-oriented Cost Allocation for Business Intelligence and Analytics: Who pays for BI&A?
Authors: Grytz, Raphael
Krohn-Grimberghe, Artus
Keywords: Business Intelligence and Analytics
Cost Evaluation
Decision Support Systems
Service-oriented Cost Allocation
Issue Date: 04 Jan 2017
Abstract: Quantifying and designing the cost pool generated by Business Intelligence and Analytics (BI&A) would improve cost transparency and invoicing processes, allowing a fairer, more exact allocation of costs to service consumers. Yet there is still no method for determining BI&A costs to provide a base for allocation purposes. While literature describes several methods for BI&A cost estimation on an ROI or resource-consumption level, none of these methods considers an overall approach for BI&A. To tackle this problem, we propose a service-oriented cost allocation model which calculates BI&A applications based on defined services, enabling a cost transfer to service consumers. This new approach specifies steps towards deriving a usable pricing scheme for an entire BI&A service portfolio – both for allocation purposes as well as improving cost evaluation of BI&A projects. Moreover, it prevents BI&A departments from being considered as the sole cost driver, increasing customer understanding and cost awareness.
Pages/Duration: 10 pages
ISBN: 978-0-9981331-0-2
DOI: 10.24251/HICSS.2017.123
Rights: Attribution-NonCommercial-NoDerivatives 4.0 International
Appears in Collections:Big Data and Analytics: Concepts, Methods, Techniques and Applications Minitrack

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