Evaluating A Business Intelligence Solution. Feasibility Analysis Based On Monte Carlo Method

Muntean, Mihaela and Muntean, Cornelia (2012): Evaluating A Business Intelligence Solution. Feasibility Analysis Based On Monte Carlo Method. Published in: ECECSR Journal No. 2/2013 (18 June 2013): pp. 85-102.

Abstract

Business Intelligence (BI) initiatives are challenging tasks, implying significant costs in their implementation. Therefore, organizations have adopted prudent policies requiring a financial justification. A business-driven methodology is recommended in any BI project initiative, project scoping and planning being vital for the project success. A business-driven approach of a BI project implementation starts with a feasibility study. The decision-making process for large projects is very complicated, and will not be subject of this paper. Having in mind a middle-sized BI project, a feasibility study based on the Monte Carlo simulation method will be conducted. A SaaS BI initiative versus a traditional one will be taken into consideration.

• Item Type: MPRA Paper
• Language: English
• Keywords: Business Intelligence (BI), Software as a Service (SaaS), Monte Carlo method, BI project feasibility, Total Cost of Ownership (TCO), Return on Investment (ROI), Internal Rate of Return (IRR)
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C88 - Other Computer Software; G - Financial Economics > G1 - General Financial Markets > G17 - Financial Forecasting and Simulation; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm; L - Industrial Organization > L8 - Industry Studies: Services > L86 - Information and Internet Services ; Computer Software; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M15 - IT Management

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