The state of the business intelligence (BI) marketplace?
“Super healthy and growing,” says Howard Dresner, Chief Research Officer at Dresner Advisory Services, whose firm recently released their annual “Wisdom of Crowds® Business Intelligence Market Study.”
And this is increasingly being driven by the business – globally.
“More than half of all new BI installs are driven by lines of business,” said Dresner. “They are out there mixing it up and selecting products and using them. They have become the economic buyers and their value of having perspective can’t be overstated.”
The reason? A newer generation of analytics tools and technology are being designed for business users or analysts, especially in the mid-market, which according to the study is seeing tremendous growth from last year. (Learn more about the study by joining Dresner on IBM’s upcoming TechTalk – Dec. 11.)
And these business users are much more aligned to what Dresner calls “new BI” – mobile, social media analysis, cloud, collaboration and visualization.
“Business users care about very different things than IT and finance,” said Dresner. “While IT is focused on data warehousing, it behooves IT to get aligned. We need all of these capabilities to be successful. If IT can’t get on the same page, then business users will continue to go off and do their own thing.”
While the study showed there was still a lot of investment in BI “meat and potatoes” – dashboards and data warehousing – the new BI is where the action is, especially collaboration, mobile and visualization.
“Collaboration is a great match for mobile BI,” said Dresner. “When do I want to collaborate? ‘Right now.’ Where am I? ‘Not in my office, but I need the information and I need to understand these large sets of data through better visualizations.’”
Dresner says all of these areas are converging which is very modern and different from what the industry experienced before and considered BI, but it’s also creating a lot of hype.
“Organizations need to put things into perspective and decide where they can get value and steer in that direction,” said Dresner.
When it comes to best practices, Dresner gives the following advice to customers when deploying BI solutions:
· Start with governance. “Don’t fall into a place where you have five different definitions of ‘customer.’”
· Establish a BI Competency Center (note: IBM refers to this as an Analytics Center of Excellence). “Bring together various departments, resources and skills to create an overall strategy and plan.”
· Focus on the business problem. “People always want to talk about tools but at the end of day the problem they’re trying to solve is churn or marketing optimization. This also means focusing on the projects and initiatives that will have obvious payback in the near term.”
· Garner support from the C-Suite. “BI and analytics has to be strategic to the executive team. When they view it that way, it flows through the organization and everyone becomes more data driven as a result and is more aligned with the overall strategy.”
Looking ahead to 2013, Dresner gets even more excited.
“The market is becoming much more broad-based and mainstream,” said Dresner. “There are more users out there than ever before and more eyes on the data. The requirements are also changing. We have a market segment that has been around for decades that is growing by leaps and bounds and morphing. It makes it a fun space to watch.”
For more information:
· Register for IBM’s TechTalk with Howard Dresner and go inside the numbers for the Wisdom of Crowds study.
· Learn more about the IBM Cognos family of solutions and see which best fits your business needs.
· Watch a demo of IBM Cognos Enterprise.