Power BI is more widely used, and potentially by employees across different departments, each having their own way or preferences of consuming the data. Even with the tool after it has been implemented, more often than not, Power BI is underused as various users embrace the tool with an aversion towards the results it gives. They want something akin to what has been produced but different or wider in scope.
Hence, there are more time and money losses incurred by the company’s management or leadership in bringing in outside consultants to ensure the broader audience is satisfied over the long period. It is disallowed as costs become unbearable because the companies pay exorbitant hourly rates for consultants on a T&M (Time & Materials) basis, causing some to pull out of the initiative altogether as it becomes expensive.
The T&M Model: Flexibility at a Cost
The Time and Materials (T&M) model is an advantage because it allows a client to pay for the time and resources that have been genuinely utilized in completing the project. This works well on projects that have ambiguous scope or require changes often. On the other hand, the model has significant drawbacks such as:
High Costs
The bill rates for consultants are high and thus cost a lot of money.
Resource Turnover
Since the vendor provides resources, many consultants would work on the same project creating a lack of familiarity with the working environment of the client.
Tracking Challenges
Timesheets for the consultants have to be managed by the clients adding to their administrative tasks.
Inconsistent Delivery
The redeployment of consultants leads to project breakdowns and incessant delays.
The Dedicated Resources Model: Consistency and Cost-Effectiveness
In view of these difficulties, we suggest another model: providing a one-time budget resource after the implementation, at an extremely low cost. There are numerous factors why this model is very appealing to clients:
Cost Reduction
There is no need for clients to worry about T&M-based billing that in turn cuts down the total expenses.
Consistency
As the project progresses, the same consultant will be assigned, who by now knows how things work in the client’s environment.
User Convenience
When working with the same consultant, users find it easier to work together and this in turn improves their satisfaction.
Efficiency
The dedicated consultant, having worked on the client’s systems and appreciation of the client’s needs, is able to deliver very effectively and quickly.
Long-Term Engagement
Resources are assigned to clients on a long-term basis; hence clients enjoy a consistent understanding of their needs.
The Fixed Bid Project Model: Predictability and Control
The other model that can be analyzed is the Fixed Bid Project model under which all three (project scope, timelines and costs) are decided beforehand. This model gives predictability and control; however, it comes with a different set of benefits and consequences:
Advantages
Managing Costs
The clients are aware of the total cost from the beginning, enhancing cost management.
Defined Scope
The limits of the project are well established, hence there is no risk of scope creeping.
Accountability
The vendor must ensure the project is completed within the limitations and restrictions set.
Disadvantages
Inflexibility
It may be hard and expensive to restructure the project after making changes to the scope of work.
Risk of Overruns
In the absence of well-defined projects, an increase in costs and time may prevail.
Limited Collaboration
Adjustments and collaborations may be limited due to the fixed contract nature.
Factors to Consider When Choosing the Best Model
When it comes to choosing the most appropriate Power BI model for your project, these are the factors that you need to explore:
Project Scope
Where the scope of work is clearly defined and there are no expected alterations, the Fixed Bid Project model fits more naturally. When the scope of a project is not well defined or is expected to change, the T&M contract model is most suitable because it offers such a degree of adaptability.
Budget Constraints
In instances where budget management takes center stage, seeking to control costs geared towards the performance of a project, the Dedicated Resources model presents itself as the most appropriate alternative with predictable costs. The Fixed Bid Project also guarantees predictability of budgets but lacks flexibility.
Resource Consistency
For projects which demand profound understanding of your environment, the Dedicated Resources model guarantees consistency and long-term engagement. Projects under the T&M model are susceptible to frequent changes in resources which can disrupt continuity.
Administrative Overhead
Where reduction in administrative burden is a goal, the Dedicated Resources model avoids time sheet tracking and engagement of several consultants. The Fixed Bid Project also aids administration as implementation is covered in one package at the beginning.
Conclusion
To sum up, although the T&M model is adaptable, it often results in exorbitant costs and erratic distribution of available resources. The Dedicated Resources model is economical, steady and efficient, and the Fixed Bid Project model is all about manageability and estimation.
Each of the Power BI consulting models presents certain benefits and drawbacks, and which one is best suited for the company would be determined by its requirements and financial standing. We narrow the focus to the analysis of the situation encouraging you to assess your needs and the reasonable type of model to use.
For personalized advice and to discuss which Power BI consulting model is right for your business, Contact Us today.
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