The Business Intelligence Market Outlook: Key drivers, market challenges and vendor strategies for future growth

Published: February 2010
No. of Pages: 124
  

IT majors need a new rallying cry to get big businesses and wider user communities excited about new types of IT systems, driving IT spend across the wider economy. There is a sense of agreement among the leading IT vendors that Business Intelligence (BI) is that rallying cry. Key IT vendors such as IBM, SAP, Oracle, Microsoft and SAS have made a series of acquisitions in the space, and the centrality of Business Intelligence in their overall marketing messages is testimony to the emergence of Business Intelligence as the ‘next big application of the future’.

This report closely examines the Business Intelligence supply side, looking at how BI vendors are performing in the context of helping organizations to understand their past state, comprehend their present state and predict what to expect in the future.
Beyond the BI supply side, this report assesses the state of the global BI market from the demand side perspective. Demand side analysis investigates the uptake of BI globally, investments on current BI use and planned future use, and usage of BI in key verticals such as banking and insurance, healthcare and  pharmaceuticals, government, retail and telecom.

Key features of this report

  •  Definitions of key terms
  •  Provides Business Intelligence market sizing and forecast to 2013.
  •  Analysis of proprietary data related to Business Intelligence usage gathered from surveys of CIOs across a wide variety of vertical sectors and geographic regions, and of leading BI vendors.
  •  In-depth examination of key vendor offerings and strategies.
  •  Case studies of organizations that have adopted Business Intelligence.
  •  Analysis of key technological and market issues affecting Business Intelligence market growth.
  • Scope of this report
  •  Establish the size of the BI market and identify growth drivers and patterns.
  •  Understand the challenges that still stand in the way of BI market development.
  •  Identify the types of organization that are adopting BI by size and vertical industry.
  •  Identify the buy-side priorities in the context of BI usage.
  •  Gain insight into future BI usage by enterprise functions and components  
  •  Gain insight into the offerings and strategies of key and emerging vendors in the BI space.
  •  Gain insight into the direction in which the BI market is heading and what it could offer in the future.


Key Market Issues

  • BI is increasingly becoming a central theme in most major IT offerings. Key IT vendors such as IBM, SAP, Oracle, Microsoft and SAS have made a series of acquisitions in the space, and the centrality of Business Intelligence in their overall marketing messages is testimony to the emergence of Business Intelligence as the ‘next big application of the future’
  • Growth of the BI market has been phenomenal. BI is probably one of the very few segments of the IT market which has seen double digit growth in this difficult economic climate.
  • Mega-acquisitions have had a far-reaching effect on BI market development. The impact of IBM, SAP and Oracle’s entry into the BI market through their recent BI pure play acquisitions is propelling these IT majors to position themselves further away from being fixated with a particular type of data format, towards enhanced understanding and capabilities of managing diverse data types and formats.


Key findings from this report

  •  The global Business Intelligence market was worth around $8.4bn in 2008, and is forecasted to grow to $13bn by 2013.
  •  Market growth will be driven by factors including acquisition synergies resulting from data management providers acquiring pure play BI vendors, leading to new types of business analytics services and therefore new market opportunities. Other key drivers include increasing uptake of BI and business optimization, an overarching need for business transparency, better corporate governance and the need comply with stricter regulations.
  •  Of those organizations which do not currently use BI tools, the biggest barriers to uptake are cost and complexity.
  •  A lack of mining capabilities for unstructured data such as text, incompatibility of BI solutions with inter-vendor ERP/CRM systems, and lack of understanding of available BI services among the mid-market users are major stumbling blocks for wider adoption of BI.
  •  The vendor landscape is heavily dominated by the big five: IBM Cognos, SAP BusinessObjects, Oracle Hyperion, SAS and Microsoft.SAP. BusinessObjects and IBM Cognos lead the global BI market followed by SAS, Oracle Hyperion and Microsoft.


Key questions answered

  • How big is the global BI market?
  • What is driving BI market growth?
  • What types of organizations use BI? In which enterprise functions? For what purposes?
  • What are the main priorities for organizations, and how does that relate to their usage of BI?
  • Who are the leading players in the BI vendor space? What are their growth strategies?
  • What does the future hold for BI?
  • How can BI deliver real value to the end user?

The Business Intelligence Market Outlook: Key drivers, market challenges and vendor strategies for future growth

Table of Contents

The Business Intelligence Market Outlook
Executive summary 
The Business Intelligence market 
The Business Intelligence demand side 
The vendor landscape 
The future of the Business Intelligence market 
Chapter 1 Introduction 
Introduction 
Who is this report for? 
Research methodology 
Definitions 
Business Intelligence 
Analytics 
OLAP 
Enterprise Performance Management 
SG&A 
Chapter 2 The Business Intelligence market 
Summary 
Introduction 
Market growth and drivers 
Market size and forecast 
Market drivers 
Acquisition synergies from IT majors acquiring BI pure plays 
Need for greater business transparency, corporate governance and compliance 
Complexity of products, services, channels and customer base 
Rise of emerging markets 
Market challenges 
Client difficulties in acquiring and retaining customers 
Incompatibility of BI solutions with existing systems 
Changing customer demands and competitive offerings 
Extract, Transform and Load (ETL) issues arising out of new acquisitions 
Penetrating the mid-market 
Business Intelligence uptake 
Current usage 
Uptake by organization size 
Uptake by vertical market 
BI component buying propensity by non-users 
Short-term BI drivers among current non-users 
Short-term BI drivers among current users 
Longer-term BI drivers among current users 
BI usage forecast by components 
Short-term BI usage forecast by enterprise functions 
Planned increases in spending on Business Intelligence 
Plans to increase usage: case for persuasion 
Chapter 3 The Business Intelligence demand side 
Summary 
Introduction 
Organizational priorities 
Cost reduction: which areas to target? 
Reducing SG&A costs 
Cost reduction priorities 
Business Intelligence users – case studies 
Amenities Inc. – managing sales, cost of sales and profitability 
Dr Pepper Snapple Group – cost analysis, capital budgeting and order fulfillment decisions 
Chapter 4 The vendor landscape 
Summary 
Introduction 
The big five 
SAP BusinessObjects 
Background, offering and performance 
Clients 
Partners 
Competitors 
Strategy 
IBM Business Intelligence: Cognos, SPSS, ILOG and IBM BAO 
Background, offering and performance 
Clients 
Partners 
Competitors 
Strategy 
Microsoft Business Intelligence 
Background, offering and performance 
Clients 
Partners 
Competitors 
Strategy 
SAS 
Background, offering and performance 
Clients 
Partners 
Competitors 
Strategy 
Oracle 
Background, offering and performance 
Clients 
Partners 
Competitors
Strategy 
The big five – summary 
Mid-size and niche players 
TIBCO Spotfire 
Background, offering and performance 
Clients 
Partners 
Competitors 
Strategy
MicroStrategy 
Background, offering and performance 
Clients 
Partners 
Competitors 
Strategy 
Information Builders 
Chapter 5 The future of the Business Intelligence market 
Summary 
Introduction 
Future capabilities 
The rise of social network analytics 
Simplified exploratory search to drive BI market growth 
BI applications increasingly capable of delivering recommendations at the point of impact 
Trends in the BI market 
Consolidation 
Faster BI with richer visuals 
Pervasive Analytic Applications 
Expanding role of Business Intelligence 
Chapter 6 Appendix 
Index 

List of Figures

Figure 2.1: Business Intelligence global market size ($bn), 2008-2013 
Figure 2.2: BI usage by organizations (% CIO respondents, 2009) 
Figure 2.3: BI users by organization size (% CIO respondents, 2009) 
Figure 2.4: Current BI users by vertical market (% CIO respondents using BI), 2009 
Figure 2.5: Propensity of current BI non-users to buy key BI components in 2010 
Figure 2.6: Short-term factors most likely to drive BI uptake among current non-users 
Figure 2.7: Short-term factors most likely to drive BI uptake among current users 
Figure 2.8: Longer-term factors likely to drive BI uptake among current users 
Figure 2.9: Forecast of BI usage by components (% respondents) 
Figure 2.10: Forecast of BI usage by enterprise functions (% respondents) 
Figure 2.11: Current user plans to change spending on BI in 2010 
Figure 2.12: Case for persuasion: current BI user indecisiveness by enterprise functions 
Figure 3.13: Organizational Priorities 
Figure 3.14: Is reducing SG&A costs a high priority for CIOs in 2010? 
Figure 3.15: Cost reduction priorities by enterprise function 
Figure 4.16: SAP BusinessObjects BI offerings 
Figure 4.17: IBM Cognos BI offerings
Figure 4.18: IBM Cognos Analytic Applications 
Figure 4.19: The big five – summary 
Figure 4.20: TIBCO Spotfire’s BI offerings – platform overview 

List of Tables

Table 2.1: Business Intelligence global market size ($bn), 2008-2013 
Table 2.2: BI usage by organizations (% CIO respondents), 2009 
Table 2.3: BI users by organization size (% CIO respondents, 2009) 
Table 2.4: Current BI users by vertical market (% CIO respondents using BI, 2009) 
Table 2.5: Propensity of current BI non-users to buy key BI components in 2010 
Table 2.6: Short-term factors most likely to drive BI uptake among current non-users 
Table 2.7: Short-term factors most likely to drive BI uptake among current users 
Table 2.8: Longer-term factors likely to drive BI uptake among current users (% CIO respondents currently using BI) 
Table 2.9: Forecast of BI usage by components (% respondents currently using BI) 
Table 2.10: Forecast of BI usage by enterprise functions (% respondents currently using BI) 
Table 2.11: Current user plans to change spending on BI in 2010 (% CIO respondents) 
Table 2.12: Case for persuasion: current BI user indecisiveness by enterprise functions (% CIO respondents) 
Table 3.13: Is reducing SG&A costs a high priority for CIOs in 2010?

Published By: Business Insights
Product Code: Business Insights1117


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