Customer Engagement, Big Data and Mobile BI to drive spending on Business Intelligence solutions

12. 06. 2013 | Komentáre čitateľov [0]

Business Intelligence has consistently been one of the biggest growth markets in IT for over a decade. According to the leading European research and consultancy firm Pierre Audoin Consultants (PAC), it is also one of the largest at over € 50 bn in software and services today. The strongest growth over the next four years will be seen in advanced analysis such as predictive analytics, in industry specific analytics, and in applications related to Big Data. CIOs should look for SI partners with a good knowledge and experience base in the newer BI areas.

As firms continue to seek more value from data about their own business and from their customers. The global BI market is seeing significant interest at present in exploiting “Big Data” although the impact on market size and growth is currently still small. In its latest report “Business Intelligence – Markets, Trends, Challenges and Opportunities” PAC analysts identify the top drivers of the global BI market and analyze their impact on the market development.

Despite 20-30 years of evolution, the BI market has never seen so much rapid development as it is seeing today.

According to PAC’s recent market forecast, the global BI market for IT software and services was worth over €54bn ($76bn) in 2012, and will grow at a CAGR of some 7% worldwide for the coming years. Of that total, around 2/3 is investment on the IT services component, and the strongest growth will be seen in Asia-Pacific.

Figure: BI market (software & services) – segment growth to 2016

In PAC’s opinion the major growth drivers are the need for improved corporate performance management of organizations by getting better information from their operational systems, the increased use of predictive analysis for better planning of demand, both for products and services (e.g. predictive maintenance), and the desire to exploit ‘Big Data’ sources, such as social media, website logs, smart meters and sensors. In addition in-memory computing is driving new BI applications landscapes as it allows higher speed, near-realtime analysis.

Traditionally, BI tools are used in large enterprises. However, the mid-market is increasingly looking to exploit such products, especially as prices have been pushed down due to increased standardization and commoditization and as the “information discovery” tool vendors provide better ease of use. This ensures expanding opportunities for vendors in this area.

Companies have to gain insights into the performance of their business and they need a solid basis for decisions. “The major investments in large-scale operational systems – ERP, CRM and SCM – over the past decades have given major benefits in terms of process efficiency, but they have not alleviated the need for better management information to steer the business: rather the reverse in fact.”, says Philip Carnelley, Research Director at PAC.

A key area for many organizations today is ‘customer engagement’ and this is affecting the BI market as well as others. Thus hot areas for analytics include sentiment analysis, customer churn analysis (and prediction), eg. in telecoms or retail stock requirement planning.

At the technology level, the two biggest trends are interlinked: visualization – for easier, more self-service, more intuitive analysis through data discovery – and mobile BI, allowing managers and mobile staff easier access to reporting and analysis with tablets and even smartphones.

“However, major obstacles can be seen among rapidly evolving technologies, requiring big efforts to keep pace and to acquire and maintain competency”, warns Mr. Carnelley. “IT users need to move from one-stop shopping with ERP vendors to best of breed to get state of the art solutions. New technologies may require significant product upgrades or architecture overhaul before they can be deployed.”

“Despite decades of development, BI technology is still evolving: solutions architectures (and providers) will continue to change and need to be monitored,” adds Mr. Carnelley. “CIOs in IT user companies should look for SI partners with a good knowledge and experience base to guide them on the road, especially in the newer areas. Keep a watching brief on the emergence of both Big Data technologies and in-memory computing. These are developing fast but still immature and will require new skills and investment. Finally, look to the emerging ‘as-a-service’ solutions providers as these will give the easiest onramp to big data solutions provision – but think carefully about exit strategies in the event you wish to change service providers.”


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