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

NEW YORK, Nov. 4, 2010 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

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

http://www.reportlinker.com/p0185301/The-Business-Intelligence-Market-Outlook-Key-drivers-market-challenges-and-vendor-strategies-for-future-growth.html

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?

Companies mentioned

Table of Contents

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 14

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 20

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 50

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 62

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 114

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 123

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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