Table of Contents
Business Intelligence Market Overview
The global business intelligence market is expected to reach $22.8 billion by 2020 while growing at a steady CAGR of 7.6 percent. Regions such as North America and Europe have high market maturity, and APAC is anticipated to experience a high market growth. Big data analysis, demand for data-as-a-service, and a desire for personalized and self-service business intelligence industry capabilities are some of the major drivers for the market. The business intelligence market is expanding in countries like U.S., UK, and Japan, due to the advent of mobile, cloud, and social business intelligence solutions. The penetration of business intelligence is relatively moderate in regions such as the LATAM, APAC, and MEA.
The platform for business intelligence and market research is undergoing a significant technological shift that includes data analysis for free-form text exploration, content authoring, and a greater adoption of cloud technologies. The report also discusses the global industry trends in business intelligence, followed by drivers and constraints. It also provides the market outlook of business intelligence in regions such as North America, Europe, MEA, APAC, and LATAM. The report also performs Porter’s five forces analysis on supplier and buyer power, barriers to new entrants, an intensity of rivalry, and a threat of substitutes.
Business Intelligence Market Trends
Category Intelligence on Business Intelligence covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Business Intelligence Global Market Outlook:
- The worldwide BI market is forecasted to grow at a CAGR of 7.6 percent and it is estimated to reach $22.8 billion by 2020
- Regions, such as Europe and North America, have high market maturity, while APAC is expected to experience high market growth
- Key drivers for BI include big data analytics, demand for data-as-a-service, and desire for personalized and self-service BI capabilities. However, implementation cost is a major constraint for the market but the emergence of cloud deployments is expected to mitigate this
BREXIT – Impact on Business Intelligence
Impact Area: IT Service Providers and Buyers
- Talent crunch in specific skills for application development and maintenance, can have an impact on external consultants’ billing rates
- The UK technology startups have a significant workforce from EU member states. The UK does not have sufficient math and science graduates to fill positions in application development and engineering
Impact Area: SaaS Service Providers
- The UK remains one of the key destinations for datacenters serving EU clients. Despite the exit from EU, UK companies have to abide by EU General Data Protection Regulations(GDPR) which is set to become law in May 2018
- In addition to local regulations, UK companies managing EU data need to adhere to more stringent GDPR regulations which is expected drive compliance costs
Business intelligence Market Analysis Overview
Business intelligence is an approach that enables access and analysis of information based on data, to improve and optimize business decisions and performance using a fact-based support system. The major components of business intelligence solutions are as follows:
- Data mining
- Statistical analysis and visualization
- Data warehouse/data Mart
- Data sources
BI Implementation
Requirement Analysis
● Requirement analysis from all stakeholders, including business and system users
● Source and system analysis
Infrastructure Evaluation
● Evaluates technology architecture, such as data architecture, SLAs, workload modeling
● ETL architecture and database design
Design
● BI/OLAP report design
● Metadata solution design
● ETL and data quality management
● Logical and physical database design
Development
● Backup & recovery, failover and maintenance scripts
● Develop report, delivery mechanism, user interfaces
Testing and Deployment
● Create test environment and conduct integration/system/UAT testing
● Training and beta testing and final & complete deployment
Global BI – Industry Trends
● Mobile BI, data visualization and advanced analytics are top drivers of BI market
● More than 50 percent of large enterprises will have access to self-service BI tools for real-time data and better analysis
There is a significant technology shift in BI and analytics platforms as observed below:
● Data analysis has extended to free-form text exploration, rather than being restricted to structured ad hoc reporting and analysis, based on a predefined model
● Content authoring is more business-user driven
● Emergence of cloud has led to greater adoption led by line of business managers as opposed to IT
● Dashboards, data visualization, analytics databases/platforms and BI/OLAP tools are the major functionalities in a BI solution, with maximum utilization in an enterprise. Actionable insights are being delivered as intuitive dashboards through a seamless sharing and collaboration environment
● Self-service BI capabilities driven by global search and guided navigation have facilitated faster turnaround times for line of business managers
● IoT and BYOD have increased the data volume exponentially and are emerging trends in BI solution
● It is expected that by 2020, there will be 45 billion connected devices and a 42-percent increase in data volume every year, which poses a huge business opportunity for the BI market
Global BI – Drivers and Constraints
Drivers
Increasing need for Big data analytics
- Every day, the volume of big data creation amounts to 2.4 Quintillion bytes. By 2020, the amount of data generated is expected to reach 40 ZB (Zettabyte, i.e., 270 bytes). The exponential growth of data (volume, veracity, velocity) and needs mastering analytics to derive meaningful insights
Predictive/Prescriptive Analytics Tools
- BI analysis has been enhanced through the use of predictive and prescriptive analytics tools. Forecasting, graph analysis, and complex event processing techniques are used to improve the decision-making process
Data Storytelling
● Enterprises have adopted data storytelling capabilities to improve data interpretation and business decision making from key data insights
Automated Data Science
● BI technologies are leveraging automated data science technologies to assist enterprises with improved data categorization, segregation, sorting, analysis and
reporting
Visual Analytics
- Advanced visual data discovery tools have assisted enterprises in creating interactive dashboards for high volume of critical data
Natural Language Processing boost to self-service
- NLP based search extended to text and voice analytics is starting to gain prominence facilitating topline managers to quickly input analytical queries
Constraints
Digital Ethics
Data security breaches and issues result in a significant loss for enterprises. Cloud BI tools and integration with third-party applications with lack of secure framework may increase potential data breach opportunities
Data Governance
- With the emergence of cloud, there would be increasing cases of fragmented analytics deployments (smaller scale) driven by LOB managers as opposed to centralized IT. This can create challenges in maintaining data governance. Hence suppliers also need to focus on enhancing data audit features
High implementation cost
- Rising demand, complex programming, data integration and growing implementation costs result in price increase, which acts as a constraint in this market. Enterprise BI deployment and associated TCO are one of the barriers in adoption of BI technology by enterprises though this is being mitigated by the emergence of cloud deployments
