Two conflicting reports recently came to light that involves two of the biggest research firms about the future investment of Business Intelligence (BI). This incredible contradiction proves just how easy it is for analysts to sensationalize data for their own special clients, er, interests. In this case, we’re no closer to finding out whether BI is a boon or bust.

In the great, big world of Information Technology (IT), there seems to be an endless number of vendors that sell an endless amount of solutions aimed at making businesses run smarter, faster and better. Do any of these outrageously expensive solutions really work in the way they are intended? Sometimes. Yet I’ve often wondered this same thing about BI technology. On the surface, it sounds like a great tool the way AMR Research defines it:

A set of tools, applications and processes that helps companies control and manage business and operational performance, combining goal-setting and alignment with planning, forecasting, modeling capabilities, analytics and tactical reporting.

Hey, what company out there isn’t more interested in tools that help them “control” and “manage” with “goals” and “alignment” and the like? This line of thinking plugs directly into the findings of new research from AMR (via Manufacturing.Net) that says investment in BI is nowhere near its saturation point, with North American companies predicted to spend some $23.8 billion on the technology in 2007, an increase of 9 percent.

According to John Hagerty, vice president and research fellow at AMR:

The vast majority of companies say they will expand their purchases this year. While BI tools are still the largest area of spending and could be considered the meat and potatoes of this space, analytics applications as well as dashboards and scorecards are growing at a healthy rate.

The breakdown goes something like this: business intelligence tools for gathering information and providing analysis is expected to see $6.6 billion; dashboards and scorecards should see $5.5 billion; analytics infrastructure is expected $4.3 billion in spending; planning, budgeting and forecasting will have a $4.1 billion share; and analytics applications will see $3.4 billion in spending for 2007.

On the other hand, despite ever wider acknowledgement of its importance in the successful day-to-day running and long-term health of a business, a new survey conducted at Gartner’s Business Intelligence Summit (via One Stop Click) has found that “many firms are scaling back their business intelligence plans as time and cost factors spiral out of control.”

Although 62 percent of firms questioned now factored such overruns into their business intelligence planning, according to the Teksouth survey, 68 percent admitted that recent projects had still been hit by more problems than anticipated.

Doesn’t exactly paint a rosy picture for BI, does it? And with such disparate opinions on the subject, makes it kinda hard to determine whether or not you should jump on the BI express, especially if you’ve been sitting on the fence.

The truth of the matter is that while nearly all IT projects experience problems along the way, it just so happens that BI projects, due to their complexity, are prone to a higher degree of hiccups.

A great online resource called B Eye Network (get it?) throws big percentages and revenue predictions out the window and, instead, offers real-world tips on how you can survive a BI implementation. Here’s a refreshing look:

All too often, as customers, we say we want to be in a partnership, but we remain “outside” the initiative, aloof from the day-to-day tasks, waiting to be “served.” The key is to get involved in a “real” way that reflects a real commitment.

Is BI a boon or bust?