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TBR T E C H N O L O G Y B U S IN E SS R E SE A R C H , IN C. Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics and Data Management Study Original Webinar Date: April 4, 2012 Presenter: Allan Krans, Senior Analyst, Software Practice ( [email protected]) TBR Webinar Series Spring 2012

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The current level of BI investments is just the tip of the iceberg. Early adopters of BI technology have evolved their businesses to capitalize on the flood of available data, thereby spawning rapid new investment and creating significant business opportunity for the major technology and service providers. To provide insight into this evolution, TBR’s benchmarked the adoption of business intelligence and analytics at both the current level of adoption maturity and the future aspirational maturity of Midmarket (2,500 or fewer employees) and Large Enterprise (2,501+ employees) customers across 6 targeted verticals. This research supports the assertion that ultimately organizations that understand how this new era of big data will affect them and their end customers, and invest in these technologies, will be prepared capitalize on a wave of change that shows no signs of slowing. To help vendors understand their addressable market and end users to understand their peers’ investment plans, TBR recently surveyed 350 purchase decision makers and interviewed 60 more across 6 different industries to determine what buyers are planning to help them manage this stream of information, and how they will move from ad hoc analytics to predictive analytics. Allan Krans, Software Practice Senior Analyst, reviewed findings from our recent research BI & Analytics + Data Management Platforms Report in a webinar that took place April 4th, 2012. Along with discussing high level trends Allan provided insight around: • Current BI Analytics Customer Maturity • Aspirational BI Analytics Customer Maturity • The who, how, and what driving BI Analytics adoption • Key customer categories • Differences in aspirations and maturity by industry For more information contact us at [email protected]

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Page 1: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

Icebergs, Gold, and Foundations:Insight from TBR’s BI/Analytics and Data Management Study

Original Webinar Date: April 4, 2012Presenter: Allan Krans, Senior Analyst, Software Practice ([email protected])

TBR Webinar SeriesSpring 2012

Page 2: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.2

Allan KransSenior Analyst, Software Practice Technology Business Research, Inc. (TBR)

Email: [email protected]

Today’s Presenter

Page 3: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.3

BI/Analytics Market Opportunity Summary

The forthcoming surge of BI investment, driven by business growth, will create opportunity from the data foundation up

Executive Summary: TBR Position

Opportunity is the lure of investment

Pressure is growing for laggards to regain competitive ground

2. Business expansion is the most important BI outcome

1. Current adoption is the tip of the iceberg

The data quality foundation is the center of customer success and vendor opportunity

3. Data quality separates mature from immature users

Page 4: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.4

TBR’s BI & Analytics Platform Maturity & Purchasing Study Methodology: • TBR conducted interviews and surveys across two business size segments and six industry

categories in N. America between December 2011 and January 2012:• 350 online surveys with BI & Analytics and Data Management purchase decision-makers

(CIO, C-1 and C-2 levels, LOB and Executive IT mgmt)• 60 in-depth interviews with key BI & Analytics and Data Management purchase

decision-makers (CIO, C-1 and C-2 levels, LOB and Executive IT mgmt)• Business Segments

• Mid-market (500-2,500 employees)• Large enterprise (2,501+ employees) segments

• Industries• Communications and Media• Industrial• Financial Services• Life Sciences• Retail & Distribution• Public Sector

Study Methodology and Information

TBR surveyed and interviewed 410 end users to create an accurate customer maturity model and provide an intimate look at the opportunity

Page 5: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.5

BI/Analytics Market Opportunity Summary

The race of immature firms to improve their capabilities will shift and expand the playing field for BI over the next three years

Executive Summary: Current Adoption

20%

Lagging Improving Leading Slipping

35% 25% 20%

BI/Analytics Maturity

Immature & limited plans to

invest

Immature & plans for both

basic & advanced BI

Mature & incremental plans to invest

Mature & limited future investment

plans

Immature – lower current BI investment Mature – larger current BI investment

Page 6: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.6

BI/Analytics Maturity Quadrant Mapping

Current and future technology adoption segments the market opportunity by quadrant

Executive Summary: Current Adoption – Quadrant Mapping

Lagging Improving Leading Slipping

Do Not Have Full Core Toolset: Dashboards/Scorecards, Spreadsheets, Reporting, Predictive Analytics, and Data Mining

Lagging: No purchase plans for the next 12 months

Improving: Have plans to invest in the next 12 months

Have All of the Core Toolset: Dashboards/Scorecards, Spreadsheets, Reporting, and Predictive Analytics

Leading: Have plans to invest in the next 12 months outside of core toolset

Slipping: No purchase plans for the next 12 months

Page 7: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.7

BI/Analytics Market Opportunity Summary

Maximizing existing solutions lays the groundwork to move customers forward with additional investments

Executive Summary: Current Adoption

Offering Needs

Squeeze value from existing investments

Extend solutions to encompass new and emerging technologies

Road mapping, data management, change management, integration

Consulting, business planning, ROI evaluation

Lagging

Improving

Leading

Slipping

Immature & limited plans to invest

Mature & limited future investment plans

Mature & incremental plans to invest

Maturity Stage

Immature & plans for both basic & advanced BI

Page 8: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.8

BI/Analytics Market Opportunity Summary

The forthcoming surge of BI investment, driven by business growth, will create opportunity from the data foundation up

Executive Summary: TBR Position

Opportunity is the lure of investment

Pressure is growing for laggards to regain competitive ground

2. Business expansion is the most important BI outcome

1. Current adoption is the tip of the iceberg

The data quality foundation is the center of customer success and vendor opportunity

3. Data quality separates mature from immature users

Page 9: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.9

BI/Analytics Market Opportunity Summary

Connecting BI and Analytics directly to customer business growth and opportunity identification opens the door to sales conversations

Executive Summary: Business Expansion

BI enables sales & finance …

… to make better decisions more quickly …

… creating business opportunity and growth.

“…it is very important to locate hidden areas of potential growth ... and to organize the data to trap the future opportunities.” - CIO, MM Communications and Media

Who uses? How? For what?

Page 10: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.10

BI/Analytics Market Opportunity Summary

The concentration of BI in sales & finance activities highlights the business growth customers expect BI to enable

Executive Summary: Business Expansion

0%

10%

20%

30%

40%

50%

60%Functions in which Purchasers are using BI

Sales and finance functions

TBR

Page 11: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.11

BI/Analytics Market Opportunity Summary

Vendors can capture business by tuning offers and messaging against specific buyer types, especially “improving” and “leading”

Executive Summary: Business Expansion

Product & Service Needs & Opportunity• ROI identification &

tracking• Data quality

products & services• Integration with

existing assets

Lagging Improving Leading Slipping

• Shared risk engagements

• Road mapping• Integration of basic &

advanced products• ROI identification &

tracking

• Support & maintenance

• Data quality products & services

• Demonstration of business case & exec buy-in

• Discrete product advancement with clear ROI

• Consulting to increase customer orientation

Page 12: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.12

BI/Analytics Market Opportunity Summary

The forthcoming surge of BI investment, driven by business growth, will create opportunity from the data foundation up

Executive Summary: TBR Position

Opportunity is the lure of investment

Pressure is growing for laggards to regain competitive ground

2. Business expansion is the most important BI outcome

1. Current adoption is the tip of the iceberg

The data quality foundation is the center of customer success and vendor opportunity

3. Data quality separates mature from immature users

Page 13: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.13

BI/Analytics Market Opportunity Summary

Mature BI users must make the leap, moving from a human-centric enterprise to a data-driven enterprise

Executive Summary: Data Quality

Human-centric decision making Data-centric decision making

Intuition leads, data is pulled in over time to support decisions

Data informs and guides decisions more proactively

"The way we worked has changed … management feels more confident and are taking more calculated risks, and more importantly, we are expanding rapidly.“ – Senior Director, IT – MM Life Sciences (High BI Maturity Organization)

Page 14: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.14

BI/Analytics Market Opportunity Summary

To drive the adoption of BI in less mature accounts, vendors can tie the importance of data management and quality to BI success

Executive Summary: Data Quality

Lagging Improving Leading Slipping

4th most important BI success factor

3rd (tied) most important BI

success factor

1st most important BI success factor

1st most important BI success factor

Data quality programs ranked as the …

Vendor reinforcement of data quality importance

Page 15: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.15

Questions

Questions?

Allan KransSenior Analyst, Software Practice Technology Business Research, Inc. (TBR)

Email: [email protected]: allankrans

Youtube: http://www.youtube.com/user/TBRIChannel?feature=mhee

Page 16: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.16

Associated Research and TBR Contacts

Customer and Business Model Review Research

TBR BI & Analytics + Data Management Platforms Study

TBR High Performance Adoption StudyReport focuses on four key workloads including BI/Analytics and Data Warehousing

Public Cloud Adoption StudyReport focuses on workload based adoption including cloud based BI

Software Industry Benchmark• Business Performance Ranking and Benchmarking

• Quarterly Report analyzing the previous quarters performance on metrics like: operating margin, growth rate, go-to-market strategy and more.

Contact James McIlroy at [email protected] for more information

Page 17: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.17

Appendix

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TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.18

Understanding customers’ current BI maturity highlights the opportunity in leading them toward aspirational maturity

Current Maturity:• What scenario led you to invest? • What buying criteria helped you to select a vendor?• Which vendors did you consider? How did you choose your final vendor?• What professional services were attached to, or led, the implementation?

Future/Aspirational Maturity: • What are your key business challenges?• What are the barriers that impact your ability to achieve your business objectives?• What technologies are you planning to purchase, and when? • What are the top BI & Analytics + Data Management technologies or capabilities you believe will

have most impact on reaching your organization’s business objectives over the next three years?

Research Methodology (North America):• 350 customer surveys across 6 verticals and 2 customer segments (midmarket and large enterprise)• 60 customer interviews with BI adopters

Key Research Questions & Methodology

Study Overview: Key Questions

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TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.19

The survey respondent base provides a broad cross section of different industries and job classifications, looking at …Survey Respondent Demographics

Study Overview: Demographics

SOURCE: TBR BI & ANALYTICS AND DATA MANAGEMENT PURCHASING BEHAVIOR AND MATURITY STUDY SURVEY N=350; INTERVIEWS N=61

TBR conducted 350 surveys and 61 interviews with large enterprise and mid-market segment respondents, across industries including retail and distribution, life sciences, financial services, communication and media, public sector and industrial sector.

SURVEY RESPONDENTS N=350 SURVEY RESPONDENTS N=350

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TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.20

… U.S.-based large enterprises and midmarket companies

Survey and Interview Respondent Demographics

Study Overview: Demographics

SOURCE: TBR BI & ANALYTICS AND DATA MANAGEMENT PURCHASING BEHAVIOR AND MATURITY STUDY SURVEY N=350; INTERVIEWS N=61

SURVEY RESPONDENTS N=350 IN-DEPTH INTERVIEWS N=61

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TBR

Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.21

The breadth of BI platform vendors selected for purchase shows disparity among customer purchasing considerationsInterview Respondent Demographics – BI Vendors Selected

Study Overview: Demographics

SOURCE: TBR BI & ANALYTICS AND DATA MANAGEMENT PURCHASING BEHAVIOR AND MATURITY STUDY SURVEY INTERVIEWS N=61; TOTAL RESPONSES: 64

Page 22: Getting Below the Tip of the Iceberg – Analyzing the Current and Future State of Customer BI Analytics Maturity

TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

About Us

Technology Business Research is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors.

Serving a global clientele, TBR provides timely and accurate market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis.

TBR has been empowering corporate decision makers since 1996.

To learn how our analysts can address your unique business needs, please visit our website or contact us today.

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This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.