Analytics is now the foremost activity in every company's corporate and strategic planning. There are a host of analytical tools available in the market which aid in developing these strategies and are specific to different business needs. However, picking a right tool can be a demanding, time-consuming and expensive affair and often companies end up paying huge sums for these tools. Avinash Kaushik, the analytics crusader at Google had proposed a 10/90 rule in an effort to make web analytics work. The key principle behind this rule is to divide the allocated budget into two parts, 10% for the analytics tool and 90% for the people who work on these analytical tools. In brief, a company which is spending $100 on Analytical tools has to spend $900 on hiring Analysts who work on these tools. The 10/90 rule is also a censure to companies which spend too much on their analytics service, when the same metrics can be applied with free …show more content…
A comfort level should be achieved where different parameters and trends can be compared using these two tools. Once the companies achieve a sense of familiarity they should cancel the contracts with the tool vendors and instead spend those millions of dollars in hiring smart Data Analysts. The 10/90 rule is now being encouraged by the vendors who sell such expensive tools to the companies; many vendors have made public statements suggesting companies to hire Analysts for their business development. Elaborating on the concept, the 10% should not be spent on a wrong affordable tool; a company which focuses on reporting does not have to spend millions on an Analytics tool. Moreover, companies should not invest in an expensive tool with inexperienced staff, overtime this increases the over head costs and in turn increases the vendor