BI software drives value: The next wave of customers’ business strategies

TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

TBR’s BI Software Customer

Research Highlights and Outlook

The next wave of customers’ business strategies Technology Business Research (TBR) Quarterly Webinar Series

Oct. 1, 2014

TBR

2 TBR Quarterly Webinar Series | 10.1.14 | www.tbri.com | ©2014 Technology Business Research Inc.

TBR BI Software Customer Research Highlights and Outlook: Webinar Presenters

Jen Hamel

Professional Services Analyst Email: [email protected]

Twitter: @jenhameltbr

Matt Healey Principal Analyst Email: [email protected] Twitter: @Mhealey_TBR

Elizabeth Hedstrom Henlin Senior Analyst, Software and Applications Email: [email protected] Twitter: @EAHHTBR

mailto:[email protected]



TBR


TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

TBR Business Intelligence (BI) Program

Business Intelligence Software Customer ResearchSeptember 2014

Authors: Elizabeth Hedstrom Henlin, Senior Analyst ([email protected]); Jennifer Hamel, Analyst

Content Editors: Lindy Hanson, Vice President, Services;Stuart Williams, Vice President, Research

• How TBR’s Business Intelligence program is used:

o Identify opportunity.

o Adjust messaging to align with customer needs and broader purchasing criteria.

o Improve competitive positioning.

• Insight to advance clients’ business intelligence (BI) software and services businesses:

o Understand segment customers’ current and evolving behaviors.

o Realize market opportunity based on customers’ perception and assessment of BI vendors.

o Profit from insights around exemplary vendor strategies, customer trends and results.

Clients gain advantages and a better understanding of revenue opportunities through our reports and their personal relationships with TBR.

TBR BI Software Customer Research Highlights and Outlook: Webinar Overview

TBR’s Business Intelligence program delivers insights to vendor and customer behavior that improve clients’ market opportunity

Covered in today’s webinar: TBR’s Business Intelligence

Software Customer Research report

Additional BI products: • Business Intelligence Services

Vendor Benchmark • Business Intelligence Professional

Services Customer Research • Business Intelligence Software

Vendor Benchmark

TBR


TBR BI Software Customer Research Highlights and Outlook: Key Trends

With the BI software market set to exceed $45 billion by 2018, vendors will adapt portfolio offerings to attract near-term spend and set up for cross-sales over time.

The various approaches to capitalizing on a maturing BI market opportunity are dictated by vendor product portfolios.

To win in this market, vendors need to link technologist portfolios to customers’ business value needs, which will be a critical step to engage IT and LOB buyers.

BI software vendors that can stay agile while solving business problems of diverse buyers will sustain revenue growth in a maturing market

BI Software Adoption

Opportunity

Landscape

Outlook

TBR


The BI software market will exceed $45 billion in 2018, fueled by maturing BI solutions

Barriers to BI Software Market Growth

• Budgetary pressure

• Unclear value proposition

• Unclear timelines for ROI

• Sluggish enterprise software market growth

• Unclear path to inclusion of cloud functionality

and delivery

Global BI Software Market Opportunity

2013

$37 billion global

revenues

2018

$45 billion global

revenues

Drivers of BI Software Market Growth

• Operational efficiency

• Industry expertise

• Scalability of resources

• Maturation of complementary emerging

technologies

TBR BI Software Customer Research Highlights and Outlook: Market Outlook

TBR


For vendors with point solutions, the ability to integrate with existing infrastructure changes the game for customer consideration

Landscape

Customers seek paths

without disruption;

heterogeneous point

products win. New technologies

can still attract attention —

and purchasing — provided

deployment is simple.

TBR BI Software Customer Research Highlights and Outlook: Purchasing Landscape

TBR


BI software is seen as more than just a path to efficiency, emphasizing the need for vendors to lead with business value positioning

New ways to drive

revenue

Cost reduction

TBR BI Software Customer Research Highlights and Outlook: Market Outlook

Landscape

TBR


13%

31%

38%

18%

SENTIMENT TOWARD BI

Our use of BI will remain limited

We have all the BI solutions weneed for now

We are evaluating more BIsolutions

Expanding our BI capabilities is atop priority for us for the next

24 monthsn = 443SOURCE: TBR

Vendors that invest in marketing to create urgency in mature buyers’ minds successfully will win BI software and services wallet share

TBR BI Software Customer Research Highlights and Outlook: Opportunity

Top customer targets for BI software vendors will respond to sales and

marketing messaging around the potential business value with additional BI

software purchasing.

Landscape

TBR


16%

26%

30%

29%

37%

14%

17%

23%

25%

28%

24%

27%

19%

37%

38%

33%

17%

19%

21%

24%

25%

29%

30%

34%

41%

44%

45%

46%

48%

48%

50%

53%

0% 15% 30% 45% 60%

Event processing

Content analytics

Predictive analytics

Data visualization

Data mining

Online analytical processing (OLAP)

Scorecards

Data discovery

Queries

Data warehousing

Dashboards

Analytic components of business apps

Spreadsheets

Analytic applications

Performance management

Reporting

BI SOFTWARE CAPABILITIES

Currently used Planned for future useSOURCE: TBR

Creating clear paths and timelines to value will move customers from considering to using advanced BI tools such as content analytics

TBR BI Software Customer Research Highlights and Outlook: Customer Landscape

Landscape

Mature

Maturing

n= 453

TBR


A maturing BI market creates innovation-driven segment splits; legacy firms lead in tools sales, but there is opportunity to take platform share

SAP BusinessObjects’ and Microsoft Office’s prevalence in customers’ initial BI software deployments position SAP and Microsoft as leaders in adoption of basic BI tools.

Disruptive technology acquisition and development enable IBM to edge out Microsoft in penetration of the advanced BI tools segment.

HP’s ability to integrate legacy Vertica assets with longtime strengths in data management positions HP to rapidly improve its incidence position in BI applications and platforms across the next 12 to 18 months.

TBR BI Software Customer Research Highlights and Outlook: Competitive Landscape

Landscape

TBR


The relative immaturity of the BI professional services market results in organizations relying on software vendors to deliver services

IBM, SAP and Oracle are

the top three selected

BI professional services

vendors across service

lines, indicating

organizations prefer

working with the same

vendor for BI software

and professional

services.

TBR BI Software Customer Research Highlights and Outlook: Services Vendor Outlook

IBM holds the strongest

overall position with

strategy consulting

services to help make

the business case for

adoption of BI

professional services.

Landscape

TBR


Customers rely on relationships with trusted consultants to help select BI solutions that meet their unique industry needs

BI and analytics services customers value relationships and relationship-selling. They

want contact from current IT services vendors, consultants and sales teams.

SOURCE: TBR

TBR BI Software Customer Research Highlights and Outlook: Services Buying Trends

Landscape

TBR


TBR BI Software Customer Research Highlights and Outlook: Services Vendor Outlook

Though software vendors are top of mind for BI services, C&SI vendors can take share by building relationships and tailoring solutions

As customers look to review more BI solutions and demand greater responsiveness from services providers, client-focused C&SI vendors will gain market share from software-led organizations.

IBM Strategy and Analytics

• Combined practice delivers end-to-end analytics services (design-implement-run).

• Includes management consultants and data scientists (over 15,000 dedicated experts) in GBS

Accenture Strategy & Accenture Digital

• Accenture Strategy: management and technology consulting to guide transformation

• Accenture Digital: implementation and managed services around analytics and other digital technologies

SOURCE: IBM

SOURCE: TBR AND ACCENTURE

IBM’s end-to-end BI capabilities (software, hardware and services) will be tough to beat.

Outlook

TBR


The pressure is on for vendors to quickly deliver results with BI solutions, since maturing buyers have higher expectations

Outlook

TBR Assessment: Return on Investment

With more than two-thirds of buyers expecting

positive ROI within two years, vendors should take

note: Failure to deliver on promised business

outcomes is no longer an option.

TBR


Risk aversion impacts mission-critical data and novice buyers’ vendor selection for data warehousing and basic BI tools, respectively


50%

23%

20%

44%

39%

22%

32%

21%

21%

0% 15% 30% 45% 60%

Previous relationship with the vendor

Working knowledge of my IT infrastructure

Vendors’ proven ability to link BI technology to broader portfolios



Complete line of BI professional serv ices capabilities(advise, design, build, manage and update)


Working knowledge of my specific industry verticalissues

Working knowledge of BI issues

Ora

cle

(n

= 1

8)

Mic

roso

ft (

n =

19

)SA

P (n

= 3

0)

Percentage of Respondents

MAIN CRITERIA FOR SELECTING A DATA WAREHOUSING VENDOR

SOURCE: TBR

TBR

44%

37%

17%

35%

22%

22%

35%

22%

22%

0% 15% 30% 45% 60%










IBM

(n

= 4

1)

Mic

roso

ft (

n =

46

)SA

P (n

= 5

4)


MAIN CRITERIA FOR SELECTING A BASIC BI TOOLS VENDOR

SOURCE: TBR

TBR

Outlook

TBR


Disparate selection criteria by vendor creates an opportunity for disruptive firms to gain customers


38%

38%

31%

33%

29%

24%

22%

22%

19%

0% 15% 30% 45% 60%






Experience with complete line of B I offer ings




Mic

roso

ft (

n =

16

)IB

M (

n =

21

)SA

P (n

= 2

7)


MAIN CRITERIA FOR SELECTING AN ADVANCED BI TOOLS VENDOR

SOURCE: TBR

TBR

23%

23%

21%

27%

23%

23%

49%

22%

16%

0% 15% 30% 45% 60%










IBM

(n

= 3

7)

Mic

roso

ft (

n =

39

)SA

P (n

= 4

4)


MAIN CRITERIA FOR SELECTING A BI APPLICATIONS AND PLATFORMS VENDOR

SOURCE: TBR

TBR

Outlook

TBR


Overall satisfaction with BI software deployments emphasizes products are mature, but solutions are still evolving in the eyes of customers

Vendors that can help IT enroll and engage LOB buyers in BI applications and platform segment purchasing will be positioned for CY15 growth.

TBR BI Software Customer Research Highlights and Outlook: Satisfaction

Outlook

Point products (basic BI tools and advanced BI tools) are most readily explained to and deployed by buyers, creating a clear path to value and overall satisfaction for customers.

TBR


Newer, more complex BI software capabilities such as in-memory data processing are ripe with opportunity for professional services vendors

The degree to which in-memory computing can reinvent application and database deployments creates opportunities for software vendors and trusted systems integrators to transform customers’ data center footprints.

Early movers can define territory and capitalize on opportunity, influencing customers’ behavior and buying in the near term.

TBR BI Software Customer Research Highlights and Outlook: In-memory opportunity

Note: Percentages do not add to 100% due to rounding.

Outlook

TBR


Questions?

TBR


TBR BI Software Customer Research Highlights and Outlook: Contact Information

Patrick Heffernan

Principal Analyst and Practice Manager, IT Services

Email: [email protected]

Twitter: @TBR_PatrickH

Telephone: 603.758.1834

James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc

SlideShare: www.slideshare.net/TBR_Market_Insight

YouTube: www.youtube.com/user/TBRIChannel

LinkedIn: www.linkedin.com/company/technology-business-research

Matt Healey Principal Analyst Email: [email protected] Twitter: @Mhealey_TBR Telephone: 603.758.1846



https://twitter.com/TBRinc

http://www.slideshare.net/TBR_Market_Insight

http://www.youtube.com/user/TBRIChannel

http://www.linkedin.com/company/technology-business-research






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BI Software Definitions

TBR BI Software Customer Research Highlights and Outlook: Definitions

TBR BI Software Taxonomy Segments

TBR



Reporting, Queries,Spreadsheets

Basic BI Tools

Dashboards, Scorecards

Online Analytical Processing(OLAP)

Data Discovery


TBR BI Software Taxonomy Subsegments

TBR



Data Mining

Advanced BI Tools Event Processing

Data Visualization

Content Analytics

Predictive Analytics


TBR BI Software Taxonomy Subsegments

TBR


TBR evaluates the business intelligence professional services market across 4 lines of service delivery

Consulting (BI Strategy)

Integration and

Implementation

Applications Development

and Maintenance

Operations, Management

and Maintenance

Provide strategic and tactical advice in a particular area of expertise for the use of

business intelligence.

Offer assistance in aligning business intelligence deployments with existing on- and off-premises

infrastructure and applications.

Software development and personnel-led maintenance that encompasses requirements of engineering design, implementation, testing

and maintenance to construct software for business intelligence

Assistance in the maintenance, enhancement and monitoring of business intelligence

deployments, and support of overall interaction of the infrastructure

TBR BI Software Customer Research Highlights and Outlook: Taxonomy

TBR BI Professional Services Taxonomy Segments

TBR


TBR delivers actionable intelligence on the maturing BI market to help clients bridge the gap between buyer aspirations and vendor actions

TBR BI Software Customer Research Highlights and Outlook: Research Portfolio

Business Intelligence Software Vendor Benchmark

Business Intelligence Professional Services Vendor Benchmark

Business Intelligence Software and Professional Services Addressable Market Forecast

Business Intelligence Software Customer Research

Business Intelligence Professional Services Customer

Research

Contact Us

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BI software drives value: The next wave of customers’ business strategies

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