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

Date: February 22, 2010
Pages: 124
Price:
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Hard Copy Mail Delivery, CD-ROM Mail Delivery
ID: B036D30AE46EN
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The Business Intelligence Market Outlook: Key drivers, market challenges and vendor strategies for future growth
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
    Executive summary 10
    The Business Intelligence market 10
    The Business Intelligence demand side 11
    The vendor landscape 11
    The future of the Business Intelligence market 12

    CHAPTER 1 INTRODUCTION

    Introduction 14
    Who is this report for? 16
    Research methodology 16
    Definitions 17
    Business Intelligence 17
    Analytics 17
    OLAP 17
    Enterprise Performance Management 17
    SG&A 17

    CHAPTER 2 THE BUSINESS INTELLIGENCE MARKET

    Summary 20
    Introduction 21
    Market growth and drivers 21
    Market size and forecast 22
    Market drivers 23
    Acquisition synergies from IT majors acquiring BI pure plays 23
    Need for greater business transparency, corporate governance and compliance 24
    Complexity of products, services, channels and customer base 25
    Rise of emerging markets 26
    Market challenges 26
    Client difficulties in acquiring and retaining customers 27
    Incompatibility of BI solutions with existing systems 27
    Changing customer demands and competitive offerings 27
    Extract, Transform and Load (ETL) issues arising out of new acquisitions 28
    Penetrating the mid-market 28
    Business Intelligence uptake 29
    Current usage 29
    Uptake by organization size 31
    Uptake by vertical market 33
    BI component buying propensity by non-users 35
    Short-term BI drivers among current non-users 36
    Short-term BI drivers among current users 38
    Longer-term BI drivers among current users 39
    BI usage forecast by components 40
    Short-term BI usage forecast by enterprise functions 42
    Planned increases in spending on Business Intelligence 43
    Plans to increase usage: case for persuasion 45

    CHAPTER 3 THE BUSINESS INTELLIGENCE DEMAND SIDE

    Summary 50
    Introduction 50
    Organizational priorities 51
    Cost reduction: which areas to target? 52
    Reducing SG&A costs 52
    Cost reduction priorities 54
    Business Intelligence users – case studies 57
    Amenities Inc. – managing sales, cost of sales and profitability 57
    Dr Pepper Snapple Group – cost analysis, capital budgeting and order fulfillment decisions 58

    CHAPTER 4 THE VENDOR LANDSCAPE

    Summary 62
    Introduction 62
    The big five 63
    SAP BusinessObjects 63
    Background, offering and performance 63
    Clients 67
    Partners 70
    Competitors 71
    Strategy 72
    IBM Business Intelligence: Cognos, SPSS, ILOG and IBM BAO 75
    Background, offering and performance 75
    Clients 80
    Partners 82
    Competitors 82
    Strategy 83
    Microsoft Business Intelligence 86
    Background, offering and performance 86
    Clients 86
    Partners 87
    Competitors 87
    Strategy 88
    SAS 88
    Background, offering and performance 88
    Clients 90
    Partners 93
    Competitors 94
    Strategy 94
    Oracle 95
    Background, offering and performance 95
    Clients 97
    Partners 99
    Competitors 99
    Strategy 99
    The big five – summary 101
    Mid-size and niche players 102
    TIBCO Spotfire 102
    Background, offering and performance 102
    Clients 103
    Partners 104
    Competitors 105
    Strategy 105
    MicroStrategy 106
    Background, offering and performance 106
    Clients 107
    Partners 108
    Competitors 109
    Strategy 109
    Information Builders 110

    CHAPTER 5 THE FUTURE OF THE BUSINESS INTELLIGENCE MARKET

    Summary 114
    Introduction 114
    Future capabilities 115
    The rise of social network analytics 115
    Simplified exploratory search to drive BI market growth 115
    BI applications increasingly capable of delivering recommendations at the point of impact 116
    Trends in the BI market 119
    Consolidation 119
    Faster BI with richer visuals 120
    Pervasive Analytic Applications 120
    Expanding role of Business Intelligence 121

    CHAPTER 6 APPENDIX

    Index 123

    LIST OF FIGURES

    Figure 2.1: Business Intelligence global market size ($bn), 2008-2013 22
    Figure 2.2: BI usage by organizations (% CIO respondents, 2009) 30
    Figure 2.3: BI users by organization size (% CIO respondents, 2009) 31
    Figure 2.4: Current BI users by vertical market (% CIO respondents using BI), 2009 33
    Figure 2.5: Propensity of current BI non-users to buy key BI components in 2010 35
    Figure 2.6: Short-term factors most likely to drive BI uptake among current non-users 37
    Figure 2.7: Short-term factors most likely to drive BI uptake among current users 38
    Figure 2.8: Longer-term factors likely to drive BI uptake among current users 40
    Figure 2.9: Forecast of BI usage by components (% respondents) 41
    Figure 2.10: Forecast of BI usage by enterprise functions (% respondents) 42
    Figure 2.11: Current user plans to change spending on BI in 2010 44
    Figure 2.12: Case for persuasion: current BI user indecisiveness by enterprise functions 46
    Figure 3.13: Organizational Priorities 51
    Figure 3.14: Is reducing SG&A costs a high priority for CIOs in 2010? 53
    Figure 3.15: Cost reduction priorities by enterprise function 54
    Figure 4.16: SAP BusinessObjects BI offerings 66
    Figure 4.17: IBM Cognos BI offerings 76
    Figure 4.18: IBM Cognos Analytic Applications 78
    Figure 4.19: The big five – summary 101
    Figure 4.20: TIBCO Spotfire’s BI offerings – platform overview 103

    LIST OF TABLES

    Table 2.1: Business Intelligence global market size ($bn), 2008-2013 22
    Table 2.2: BI usage by organizations (% CIO respondents), 2009 30
    Table 2.3: BI users by organization size (% CIO respondents, 2009) 31
    Table 2.4: Current BI users by vertical market (% CIO respondents using BI, 2009) 34
    Table 2.5: Propensity of current BI non-users to buy key BI components in 2010 36
    Table 2.6: Short-term factors most likely to drive BI uptake among current non-users 37
    Table 2.7: Short-term factors most likely to drive BI uptake among current users 39
    Table 2.8: Longer-term factors likely to drive BI uptake among current users (% CIO respondents currently using BI) 40
    Table 2.9: Forecast of BI usage by components (% respondents currently using BI) 41
    Table 2.10: Forecast of BI usage by enterprise functions (% respondents currently using BI) 43
    Table 2.11: Current user plans to change spending on BI in 2010 (% CIO respondents) 45
    Table 2.12: Case for persuasion: current BI user indecisiveness by enterprise functions (% CIO respondents) 46
    Table 3.13: Is reducing SG&A costs a high priority for CIOs in 2010? 53

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