The enterprise Business Intelligence and Data Analytics market, while previously thought of as a mature vertical, is undergoing a tremendous evolution. This shift has seen legacy tools and best practices get challenged by new and emerging trends, solution providers, and ways of doing business. As a result, it can be difficult keeping up with all the most relevant news and best practices. Decision-makers need to allocate resources for new initiatives based on cold hard facts.
By assessing current market statistics and those which predict future performance, stakeholders can gain a better understanding to the factors that have the biggest impact on their specific segments. We’ve put together a compilation of the most recent statistics which we feel best highlight where the BI and analytics market is headed. These statistics have been plucked from the leading market research studies, surveys and reports.
Let’s start with user adoption and how executives view BI and analytics. Although not numerical, according to Gartner’s 2016 CIO Agenda Report, Business Intelligence and Data Analytics are the top trending priority for global CIOs this year, marking the fifth-straight year BI and analytics has topped the list. This may be troubling for some however:
- Nearly 70 percent of new Business Intelligence initiatives fail to meet enterprise objectives, according to Gartner.
Perhaps one of the biggest reasons why companies fail with BI is because stakeholders are skeptical about the insights they generate:
- Only 33 percent of CEOs have a high-level of trust in the accuracy of their Data Analytics, according to KPMG.
The KPMG study also dove into the specific ways enterprise companies are using Data Analytics inside their organizations, finding:
- 51 percent use Data Analytics to develop new products and services.
- Half of CEOs polled said that analytics were used in their organization to drive process and cost efficiency.
- 49 percent use Data Analytics to find new customers, 48 percent to drive strategy and change, and 46 percent to manage risk.
- 44 percent of those polled use data and analytics to analyze existing customer needs, value, profitability, and likelihood to defect.
Coupled with distrust of analytics, the same study also discovered that 77 percent of those same executives had real concerns about internal data quality.
Traditionally, Business Intelligence has been a market dominated by tools that offers legacy reporting capabilities. However, the market is undergoing a substantive evolution, as organizations are looking for more forward-thinking tools to analyze larger stores of unstructured data. As a result, adoption of analytics tools will dramatically change in the years ahead:
- Advanced Analytics will soon be the fastest-growing segment in the analytics market, representing more than 40 percent of new investments by 2020, according to Gartner.
According to Gartner, the Advanced Analytics industry was the fastest-growing of the analytics segment in 2014, showing 12.4 percent growth, showing that companies continue to move well beyond descriptive and diagnostic analytics into predictive and prescriptive analytics.
On the same front, research firm Research and Markets recently unveiled a new study which outlines the current state of Advanced Analytics:
- The Advanced Analytics market totaled more than $207 billion dollars in revenue in 2015.
- By 2020, the market revenue will expand to $219.3 billion.
As enterprise organizations move away from IT-centric BI and analytics tools, they aim to deploy solutions that enable data democratization and self-service. Forbes Insight and BI vendor Qlik polled 449 senior IT and business unit executives to measure the impact of self-service analytics:
- 63 percent of executives believe that distributed self-service allows end-users to create analysis that is more visually compelling.
- 57 percent have immediate plans to expand investments in self-service BI tools. In the future, organizations will focus mainly on enabling more business users to interact with many more types of vital data, expanding executive training, and allocating the resources for additional mobile and cloud access.
The fervor for self-service analytics in which more users are granted access to vital business data in order to produce insights has been one of the key factors in the emergence of Analytics as a Service. Research firm MarketsandMarkets recently wrote that this specific SaaS sector would be worth more than $23B by 2021.
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