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  • May 31, 2018

    Dresner Advisory Services, LLC

    Wisdom of Crowds® Business Intelligence Market Study

    2018 Edition

    Licensed to Information Builders

  • 2018 Wisdom of Crowds® Business Intelligence Market Study

    http://www.dresneradvisory.com Copyright 2018 – Dresner Advisory Services, LLC

    2

    Disclaimer

    This report should be used for informational purposes only. Vendor and product selections should be made

    based on multiple information sources, face-to-face meetings, customer reference checking, product

    demonstrations, and proof-of-concept applications.

    The information contained in all Wisdom of Crowds® Market Study Reports reflects the opinions expressed in

    the online responses of individuals who chose to respond to our online questionnaire and does not represent

    a scientific sampling of any kind. Dresner Advisory Services, LLC shall not be liable for the content of

    reports, study results, or for any damages incurred or alleged to be incurred by any of the companies

    included in the reports as a result of the content.

    Reproduction and distribution of this publication in any form without prior written permission is forbidden.

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  • 2018 Wisdom of Crowds® Business Intelligence Market Study

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    3

    Business Intelligence: A Definition Business intelligence (BI) is “knowledge gained through the access and analysis of

    business information.

    Business intelligence tools and technologies include query and reporting, OLAP (online

    analytical processing), data mining and advanced analytics, end-user tools for ad hoc

    query and analysis, and dashboards for performance monitoring.”

    Howard Dresner, The Performance Management Revolution: Business Results Through

    Insight and Action (John Wiley & Sons, 2007).

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    4

    Introduction In 2018, we celebrate the 11th anniversary of Dresner Advisory Services! Our thanks to

    all of you for your continued support and ongoing encouragement. Since our founding in

    2007, we have worked hard to set the “bar” high—challenging ourselves to innovate and

    lead the market—offering ever greater value with each successive year.

    We are also excited that our second annual conference, Real Business Intelligence, will

    be held June 27 and 28, 2018 on the MIT campus in Cambridge, Massachusetts. Unlike

    other events, Real Business Intelligence was designed as an immersive thought

    leadership event focused on strategies for success with information management,

    business intelligence, analytics and performance management.

    Our first market report in 2010 set the stage for where we are today. Since that time, we

    expanded our agenda and added new research topics every year. For 2018, we plan to

    release 16 major reports, including, this, our original BI flagship report—in its ninth year

    of publication!

    This latest installment of our flagship Business Intelligence Market Study continues to

    evolve. This year, we further expanded our section on the Chief Analytics and Chief

    Data Officer roles, added an “achievement” question and began tracking additional

    technologies and initiatives including IT analytics, sales planning, and GDPR—bringing

    the total to 36.

    We hope you enjoy this report!

    Best,

    Howard Dresner Chief Research Officer Dresner Advisory Services

    http://www.dresneradvisory.com/http://www.realbusinessintelligence.com/

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    5

    Contents Business Intelligence: A Definition .................................................................................. 3

    Introduction ..................................................................................................................... 4

    Benefits of the Study ..................................................................................................... 12

    Consumer Guide ........................................................................................................ 12

    Supplier Tool .............................................................................................................. 12

    External Awareness ................................................................................................ 12

    Internal Planning ..................................................................................................... 12

    About Howard Dresner and Dresner Advisory Services ................................................ 13

    About Jim Ericson ......................................................................................................... 14

    Survey Method and Data Collection .............................................................................. 15

    Data Quality ............................................................................................................... 15

    New for 2018 ................................................................................................................. 15

    Executive Summary ...................................................................................................... 17

    Study Demographics ..................................................................................................... 19

    Geography ................................................................................................................. 19

    Functions ................................................................................................................... 20

    Vertical Industries ...................................................................................................... 21

    Organization Size ....................................................................................................... 22

    Analysis and Trends ...................................................................................................... 24

    Departments/Functions Driving Business Intelligence ............................................... 24

    Functions Driving Business Intelligence 2013-2018 ............................................... 25

    Changes in Functions Driving Business Intelligence 2017-2018 ............................ 26

    Functions Driving Business Intelligence by Major Geography ................................ 27

    Functions Driving Business Intelligence by Vertical Industry .................................. 28

    Functions Driving Business Intelligence by Organization Size ............................... 29

    User Roles Targeted for Business Intelligence .......................................................... 30

    Targeted Users for Business Intelligence 2013-2018 ............................................. 31

    Targeted Users for Business Intelligence by Geography ........................................ 32

    User Targets for Business Intelligence by Organization Size ................................. 33

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    User Targets for Business Intelligence by Vertical Industries ................................. 34

    Objectives for Business Intelligence .......................................................................... 35

    Business Intelligence Objectives 2014-2018 .......................................................... 36

    Percent Change in BI Objectives 2017-2018 .......................................................... 37

    Business Intelligence Objectives by Geography ..................................................... 38

    Business Intelligence Objectives by Function ......................................................... 39

    Business Intelligence Objectives by Vertical Industry ............................................. 40

    Business Intelligence Objectives by Organization Size .......................................... 41

    Business Intelligence Achievements .......................................................................... 42

    Business Intelligence Achievements by Organization Size ..................................... 43

    Penetration of Business Intelligence Solutions .......................................................... 44

    Change in Penetration of BI Solutions 2017-2018 .................................................. 45

    Expansion Plans for Business Intelligence Through 2021 ...................................... 46

    Current Business Intelligence Penetration by Geography ...................................... 47

    Planned Business Intelligence Penetration by Geography ..................................... 48

    Current Business Intelligence Penetration by Function .......................................... 49

    Planned Business Intelligence Penetration by Function ......................................... 50

    Current Business Intelligence Penetration by Vertical Industry .............................. 51

    Planned Business Intelligence Penetration by Vertical Industry ............................. 52

    Current Business Intelligence Penetration by Organization Size ............................ 53

    Planned Business Intelligence Penetration by Organization Size ........................... 54

    Chief Data and Chief Analytics Officers ..................................................................... 55

    Enterprises with Chief Data or Chief Analytics Officers .......................................... 55

    Plans to Implement Chief Data or Chief Analytics Officers ..................................... 56

    Effectiveness of Chief Data or Chief Analytics Officers .......................................... 57

    Business Intelligence Achievements by Presence of CDO ..................................... 58

    Business Intelligence Achievements by Presence of CAO ..................................... 59

    Enterprises with Chief Data or Chief Analytics Officers by Geography ................... 60

    Enterprises with Chief Data or Chief Analytics Officers by Industry ........................ 61

    Enterprises with Chief Data or Chief Analytics Officers by Organization Size ........ 62

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    Enterprises with Chief Data and Chief Analytics Officers Reporting Structure ....... 63

    Chief Data and Chief Analytics Officer and Success with BI by Reporting Structure

    ................................................................................................................................ 64

    Number of Business Intelligence Tools in Use ........................................................... 65

    Number of Business Intelligence Tools in Use 2013 to 2018 .................................. 65

    Number of Business Intelligence Tools by Geography ........................................... 66

    Number of Business Intelligence Tools by Function ............................................... 67

    Number of Business Intelligence Tools by Vertical Industry ................................... 68

    Number of Business Intelligence Tools by Organization Size ................................. 69

    Technologies and Initiatives Strategic to Business Intelligence ................................. 70

    Technology Priorities 2015-2018 ............................................................................ 71

    Technology Priority Changes 2017-2018 ................................................................ 72

    Technologies and Initiatives Strategic to Business Intelligence by Geography ...... 73

    Technologies and Initiatives Strategic to Business Intelligence by Function .......... 74

    Technologies and Initiatives Strategic to Business Intelligence by Vertical Industry

    ................................................................................................................................ 75

    Technologies and Initiatives Strategic to Business Intelligence by Organization Size

    ................................................................................................................................ 76

    Business Intelligence and the State of Data .............................................................. 77

    Business Intelligence and the State of Data 2015-2018 ............................................ 78

    Business Intelligence and the State of Data by Geography .................................... 79

    Business Intelligence and the State of Data by Function ........................................ 80

    Business Intelligence and the State of Data by Industry ......................................... 81

    Business Intelligence and the State of Data by Organization Size ......................... 82

    Business Intelligence and Action on Insight ............................................................... 83

    Business Intelligence and Action on Insight by Geography .................................... 84

    Business Intelligence and Action on Insight by Function ........................................ 85

    Business Intelligence and Action on Insight by Vertical Industry ............................ 86

    Business Intelligence and Action on Insight by Organization Size .......................... 87

    Success with Business Intelligence ........................................................................... 88

    Change in Success with Business Intelligence 2017-2018 ..................................... 89

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    How Successful Organizations Measure Success with Business Intelligence ........ 90

    How Unsuccessful Organizations Measure Failure with Business Intelligence ...... 91

    Success with Business Intelligence by Organization Size ...................................... 92

    Success with Business Intelligence by BI Objectives ............................................. 93

    Success with Business Intelligence by Targeted Users .......................................... 94

    Success with Business Intelligence and Technology Priorities ............................... 95

    Success with Business Intelligence and Technology Priorities ............................... 96

    Success with Business Intelligence and Number of BI Tools ................................. 97

    Success with Business Intelligence and the State of Data ..................................... 98

    Success with Business Intelligence and Action on Insight ...................................... 99

    Success with Business Intelligence and Penetration of Users .............................. 100

    Business Intelligence Achievements by Success with BI ...................................... 101

    Technologies and Initiatives Strategic to Business Intelligence by BI Success .... 102

    Budget Plans for Business Intelligence .................................................................... 103

    Budget Plans for Business Intelligence 2017-2018 ............................................... 104

    Budget Plans for Business Intelligence by Geography ......................................... 105

    Budget Plans for Business Intelligence by Function ............................................. 106

    Budget Plans for Business Intelligence by Vertical Industry ................................. 107

    Budget Plans for Business Intelligence by Organization Size ............................... 108

    Budget Plans for Business Intelligence by Penetration of BI Solutions ................. 109

    Expansion Plans for Business Intelligence through 2021 by BI Budget Plans ...... 110

    Budget Plans for Business Intelligence by Success with BI .................................. 111

    Business Intelligence Achievements by BI Budget Plans ..................................... 112

    Technologies and Initiatives Strategic to Business Intelligence by BI Budget Plans

    .............................................................................................................................. 113

    Business Intelligence Product Replacements .......................................................... 114

    Current Business Intelligence Products Replaced by Another .............................. 114

    Reasons BI Products Are Replaced ..................................................................... 115

    Industry and Vendor Analysis ...................................................................................... 117

    Scoring Criteria ........................................................................................................ 117

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    Industry Performance ............................................................................................... 118

    Sales/Acquisition Experience................................................................................ 118

    Value .................................................................................................................... 119

    Quality and Usefulness of Product ........................................................................ 120

    Technical Support ................................................................................................. 121

    Consulting ............................................................................................................. 122

    Integrity ................................................................................................................. 123

    Recommended ..................................................................................................... 124

    Performance Improvements ................................................................................. 125

    Vendor Ratings ........................................................................................................... 127

    Business Intelligence Market Models .......................................................................... 128

    Customer Experience Model .................................................................................... 128

    Vendor Credibility Model .......................................................................................... 130

    Detailed Vendor Ratings ............................................................................................. 132

    Board Detailed Score ............................................................................................ 133

    ClearStory Data Detailed Score ............................................................................ 134

    Dimensional Insight Detailed Score ...................................................................... 135

    Domo Detailed Score ............................................................................................ 136

    Google Detailed Score .......................................................................................... 137

    IBM Detailed Score ............................................................................................... 138

    Infor Detailed Score .............................................................................................. 139

    Information Builders Detailed Score ..................................................................... 140

    Jedox Detailed Score ............................................................................................ 141

    Klipfolio Detailed Score ......................................................................................... 142

    Logi Analytics Detailed Score ............................................................................... 143

    Looker Detailed Score .......................................................................................... 144

    Microsoft Detailed Score ....................................................................................... 145

    MicroStrategy Detailed Score ............................................................................... 146

    OpenText Detailed Score ..................................................................................... 147

    Oracle Detailed Score ........................................................................................... 148

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    Pyramid Analytics Detailed Score ......................................................................... 149

    Qlik Detailed Score ............................................................................................... 150

    RapidMiner Detailed Score ................................................................................... 151

    Salesforce Detailed Score .................................................................................... 152

    SAP Detailed Score .............................................................................................. 153

    SAS Detailed Score .............................................................................................. 154

    Sisense Detailed Score ........................................................................................ 155

    Tableau Software Detailed Score ......................................................................... 156

    TIBCO Software Detailed Score ........................................................................... 157

    Yellowfin Detailed Score ....................................................................................... 158

    Zoomdata Detailed Score ..................................................................................... 159

    Other Dresner Advisory Services Research Reports .................................................. 160

    Dresner Advisory Services - 2018 Wisdom of Crowds Survey Instrument .................. 161

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    Benefits of the Study The Wisdom of Crowds® Business Intelligence Market Study provides a wealth of

    information and analysis—offering value to both consumers and producers of business

    intelligence technology and services.

    Consumer Guide

    As an objective source of industry research, consumers use the Wisdom of Crowds®

    Business Intelligence Market Study to understand how their peers leverage and invest

    in business intelligence and related technologies.

    Using our trademark 33-criteria vendor performance measurement system, users glean

    key insights into BI software supplier performance, enabling:

    • Comparisons of current vendor performance to industry norms

    • Identification and selection of new vendors

    Supplier Tool

    Vendor Licensees use the Wisdom of Crowds® Business Intelligence Market Study in

    several important ways such as:

    External Awareness

    - Build awareness for the business intelligence market and supplier brand, citing

    Wisdom of Crowds® Business Intelligence Market Study trends and vendor

    performance

    - Create lead and demand generation for supplier offerings through association with

    Wisdom of Crowds® Business Intelligence Market Study brand, findings, webinars,

    etc.

    Internal Planning

    - Refine internal product plans and align with market priorities and realities as

    identified in Wisdom of Crowds® Business Intelligence Market Study

    - Better understand customer priorities, concerns, and issues

    - Identify competitive pressures and opportunities

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    About Howard Dresner and Dresner Advisory Services The Wisdom of Crowds® Business Intelligence Market Study was conceived, designed,

    and executed by Dresner Advisory Services, LLC—an independent advisory firm—and

    Howard Dresner, its President, Founder, and Chief Research Officer.

    Howard Dresner is one of the foremost thought leaders in business intelligence and

    performance management, having coined the term “Business Intelligence” in 1989. He

    published two books on the subject, The Performance

    Management Revolution – Business Results through Insight

    and Action (John Wiley & Sons, Nov. 2007) and Profiles in

    Performance – Business Intelligence Journeys and the

    Roadmap for Change (John Wiley & Sons, Nov. 2009). He

    lectures at forums around the world and is often cited by the

    business and trade press.

    Prior to Dresner Advisory Services, Howard served as chief

    strategy officer at Hyperion Solutions and was a research fellow at Gartner, where he

    led its business intelligence research practice for 13 years.

    Howard conducted and directed numerous in-depth primary research studies over the

    past two decades and is an expert in analyzing these markets.

    Through the Wisdom of Crowds® Business Intelligence Market Study reports, we

    engage with a global community to redefine how research is created and shared. Other

    research reports include:

    - Advanced and Predictive Analytics

    - Analytical Data Infrastructure

    - Business Intelligence Competency Center

    - Cloud Computing and Business Intelligence

    - Collective Insights®

    - Embedded Business Intelligence

    - End User Data Preparation

    - IoT Intelligence®

    - Location Intelligence

    Howard (www.twitter.com/howarddresner) conducts a weekly Twitter “tweetchat” on

    Fridays at 1:00 p.m. ET. The hashtag is #BIWisdom. During these live events, the

    #BIWisdom community discusses a wide range of business intelligence topics.

    You can find more information about Dresner Advisory Services at

    www.dresneradvisory.com.

    http://www.dresneradvisory.com/http://advancedanalyticsreport.com/http://www.analyticaldatainfrastructure.com/http://www.biccreport.com/http://www.cloudbi.report/http://collectiveinsights.report/http://collectiveinsights.report/http://www.embeddedbireport.com/http://www.enduserdataprep.com/http://www.iotintelligence.report/http://www.locationintelligence.report/http://www.twitter.com/howarddresnerhttp://www.dresneradvisory.com/

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    About Jim Ericson Jim Ericson is a research director with Dresner Advisory Services.

    Jim has served as a consultant and journalist who studies end-user management

    practices and industry trending in the data and information management fields.

    From 2004 to 2013, he was the editorial director at Information Management magazine

    (formerly DM Review), where he created architectures for user and

    industry coverage for hundreds of contributors across the breadth of

    the data and information management industry.

    As lead writer he interviewed and profiled more than 100 CIOs,

    CTOs, and program directors in a 2010-2012 program called “25

    Top Information Managers.” His related feature articles earned

    ASBPE national bronze and multiple Mid-Atlantic region gold and

    silver awards for Technical Article and for Case History feature

    writing.

    A panelist, interviewer, blogger, community liaison, conference co-chair, and speaker in

    the data-management community, he also sponsored and co-hosted a weekly podcast

    in continuous production for more than five years.

    Jim’s earlier background as senior morning news producer at NBC/Mutual Radio

    Networks and as managing editor of MSNBC’s first Washington, D.C. online news

    bureau cemented his understanding of fact-finding, topical reporting, and serving broad

    audiences.

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    Survey Method and Data Collection As in our original Wisdom of Crowds® Business Intelligence Market Study, we

    constructed a survey instrument to collect data and used social media and crowd-

    sourcing techniques to recruit participants.

    We also include our own research community of over 5,000 organizations as well as

    vendors’ customer communities.

    Data Quality

    We carefully scrutinized and verified all respondent entries to ensure that the study

    includes only qualified participants.

    New for 2018 For 2018, we again expanded our research objectives substantially. This year’s study

    adds:

    • Three additional technologies and initiatives strategic to business intelligence (IT

    analytics, sales planning, and GDPR), extending our study to 36 areas

    • Expanded questions surrounding chief data officers (CDOs) and chief analytics

    officers (CAOs)

    • New question on business intelligence “achievements”

    • New questions related to BI product/tool replacements and rationale

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    Executive

    Summary

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    Executive Summary User Analysis:

    - Executive Management, Operations, and Sales are the primary roles driving BI in

    2018 (pp. 24-29).

    - Executives and middle managers are the most likely targeted users of business

    intelligence. Customer targeting increased in 2018 (pp. 30-34).

    - "Better decision-making" remains the top BI objective; but efficiency, revenue,

    and competitive objectives gained momentum (pp. 35-41). BI objectives are not

    always reflected in BI achievements (pp. 42-43).

    - Penetration of business intelligence grows year over year and continues to grow

    over time. Expansion plans are bullish, particularly in small organizations (pp. 44-

    54).

    - The ongoing uptake and longevity of chief data and chief analytics officers is

    quite modest and growing only slowly over time. Organizations with either title

    are more effective at achieving goals. CAOs are viewed as somewhat more

    effective in their roles and are more likely to report directly to the CEO (pp. 55-

    64).

    - The number of BI tools in use has grown slightly over time but remains stable

    overall (pp. 65-69).

    - Familiar technologies—dashboards, reporting, end-user self-service, advanced

    visualization, and data warehousing—remain most strategic to BI users. Several

    newer technologies grew strongly in 2018 (pp. 70-76).

    - Users’ confidence in their "state of data" grew over time, particularly in small

    organizations (pp. 77-82).

    - Organizations large and small in most industries are confident of their ability to

    take action on BI insights (pp. 83-87).

    - Our core measure of "success with BI" declined somewhat in the last three years

    (pp. 88-89).

    - Organizations that are successful with BI tend to measure results on user

    feedback. Unsuccessful BI organizations more often measure adoption and

    usage rates. Small organizations are usually more successful with BI.

    Organizations with an effective CDO or CAO report more success (pp. 90-102).

    - More than half of organizations will increase BI spending, and only 6 percent will

    decrease BI spending. Highly penetrated, high achieving, and successful

    organizations are more likely to increase BI investment further (pp. 103-113).

    - Three-quarters of respondents say they did not replace a BI product with another

    product. New products are more often purchased to serve a different audience or

    function (pp. 114-115).

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    Industry Analysis:

    - We observe mostly small declines in measures of industry sales and acquisition

    performance (p. 118).

    - End users continue to report that they receive high value from industry vendors,

    and value performance reached an all-time high in 2018 (p. 119).

    - Many measures of industry quality and usefulness touched all-time highs

    including “completeness of functionality, “customization/extensibility,” and “ease

    of administration” (p. 120).

    - All measures of industry technical support declined modestly, and “continuity of

    personnel” declined most of all (p. 121).

    - BI vendor consulting scores all dropped noticeably between 2017 and 2018 (p.

    122).

    - Vendor integrity—measured as honesty and truthfulness in all dealings—

    continued its slow long-term upward climb to an all-time high in 2018 (p. 123).

    - The number of customers willing to recommend a provider grew to another

    consecutive all-time high and delivered the highest score in our survey (p. 124).

    - A recent peak in overall vendor performance may signal maturity and diminishing

    urgency for upgrades (p. 125).

    - Perpetual on-premises licensing is offered by 50 percent of vendors in 2018, a

    notable decline over 2017. Public cloud perpetual licensing dipped more

    modestly (p. 126).

    - Concurrent use licensing continues to decline in favor with vendors, reaching an

    all-time low (p. 127).

    - The number of vendors offering subscription licensing continues to grow for both

    on-premises and public cloud models (p. 128).

    - Named user and concurrent use licensing models become less available over

    time (p. 129).

    - Among vendors that still offer perpetual licenses, maintenance fees are now as

    likely to be based on discounted price as on list price (p. 130).

    - (VENDOR RANKINGS…)

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    Study Demographics Our 2018 survey base provides a cross-section of data across geographies, functions,

    organization sizes, and vertical industries. We believe that, unlike other industry

    research, this supports a more representative sample and better indicator of true market

    dynamics. We have constructed cross-tab analyses using these demographics to

    identify and illustrate important industry trends.

    Geography

    Seventy-one percent of respondents work at North America-based organizations

    (including the United States, Canada, and Puerto Rico). EMEA accounts for about 20

    percent of respondents; the remainder are distributed across Asia Pacific and Latin

    America (fig. 1).

    Figure 1 – Geographies represented

    70.5%

    20.3%

    5.4%3.7%

    0.0%

    10.0%

    20.0%

    30.0%

    40.0%

    50.0%

    60.0%

    70.0%

    80.0%

    North America Europe, Middle East andAfrica

    Asia Pacific Latin America

    Geographies Represented

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    Functions

    Our 2018 sample base includes a mix of functions (fig. 2). IT accounts for the largest

    group (28 percent), followed by Executive Management (22 percent), and Finance (19

    percent). Sales/Marketing (8 percent) and the BICC (7 percent) are the next most

    represented functions.

    Tabulating results across functions helps us develop analyses that reflect the

    differences and influence of different departments within organizations.

    Figure 2 – Functions represented

    28.3%

    21.7%

    18.5%

    7.7% 7.3%

    4.4% 4.3%

    1.5%

    6.06%

    0.0%

    5.0%

    10.0%

    15.0%

    20.0%

    25.0%

    30.0%

    Functions Represented

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    Vertical Industries

    In 2018, technology organizations lead vertical industry distribution (16 percent). Business Services and Healthcare each represent 9 percent of our sample (fig. 3). Manufacturing, Consulting, and Retail/Wholesale are the next most represented. Tabulating results across industries helps us develop analyses that reflect the maturity and direction of different business sectors.

    Figure 3 – Vertical industries represented

    16%

    9% 9%

    7%

    6% 6%

    4% 4%3%

    3% 3% 2% 2% 2% 2% 2%

    4%

    0%

    2%

    4%

    6%

    8%

    10%

    12%

    14%

    16%

    18%

    Vertical Industries Represented

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    22

    Organization Size

    Participation in our sample base is balanced across organizations of different sizes in

    2018 (based on global headcount). Small organizations (1-100 employees) represent 25

    percent of respondents, mid-size organizations (101-1,000 employees) represent 31

    percent, and large organizations (>1,000 employees) account for the remaining 43

    percent (fig. 4).

    Tabulating results by organization size reveals important differences in practices, planning, and maturity.

    Figure 4 – Organization sizes represented

    25.3%

    31.1%

    10.0% 10.3%

    6.3%

    17.0%

    0.0%

    5.0%

    10.0%

    15.0%

    20.0%

    25.0%

    30.0%

    35.0%

    1-100 101-1,000 1,001-2,000 2,001-5,000 5,001-10,000 More than10,000

    Organization Sizes Represented

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    Analysis and

    Trends

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    Analysis and Trends

    Departments/Functions Driving Business Intelligence

    We asked respondents which functional roles drive business intelligence “always,”

    “often,” “sometimes,” “rarely,” or “never” (fig. 5). Our results show a breadth of influence,

    and in 2018, survey respondents say Executive Management is the leading BI driver.

    Operations (which was the leading driver in 2016 and 2017), closely follows as the

    second most likely driver of BI, followed by Sales (which moved ahead of Finance) as

    the third most likely driver in 2018. Other departments that, at minimum, "often" drive BI

    at least 40 percent of the time include Marketing, IT, and Strategic Planning. While

    functional influence may roll up to a centralized program or strategy, we observe that BI

    tactics and influence are widely distributed in organizations.

    Figure 5 – Functions driving business intelligence

    0% 20% 40% 60% 80% 100%

    Manufacturing

    Human Resources

    Research and Development (R&D)

    Competency Center/Center of Excellence

    Strategic Planning Function

    Information Technology (IT)

    Marketing

    Finance

    Sales

    Operations

    Executive Management

    Functions Driving Business Intelligence

    Always Often Sometimes Rarely Never

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    Functions Driving Business Intelligence 2013-2018

    As noted in fig. 5, Executive Management supplants Operations as the leading driver of

    business intelligence, though the two functions narrowly shifted order over time (fig. 6).

    Also, Sales gains influence as a BI driver in 2018, as do Marketing, the BICC, and HR.

    This second tier of role influence likely reflects more front-end control of BI strategy

    execution and shorter cycles of decision support. R&D and Manufacturing also gain

    influence in small degrees while other functions are flat or lower.

    Figure 6 – Functions driving business intelligence 2013-2018

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    4

    4.5

    Functions Driving Business Intelligence 2013-2018

    2013 2014 2015 2016 2017 2018

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    Changes in Functions Driving Business Intelligence 2017-2018

    Fig. 7 depicts another instructive view of year-over-year office and departmental

    influence. Most notable in 2018 is a greater than 7 percent increase in influence among

    Human Resources respondents (also the leading gainer in 2017). Marketing, the BICC,

    and Sales gains also portend an increasing expectation of front-end BI execution.

    Despite the attention shown to technology and process automation in 2018, BI influence

    slips among IT and Strategic Planning respondents, albeit only slightly.

    Figure 7 – Change in functions driving BI 2017-2018

    -2.2%

    -1.3%

    0.0%

    0.5%

    1.1%

    1.1%

    2.7%

    5.0%

    5.1%

    5.9%

    7.3%

    -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

    Information Technology (IT)

    Strategic Planning Function

    Finance

    Operations

    Manufacturing

    Research and Development (R&D)

    Executive Management

    Sales

    Competency Center/Center of Excellence

    Marketing

    Human Resources

    Change in Functions Driving BI 2017-2018

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    Functions Driving Business Intelligence by Major Geography

    Functional influence of business intelligence varies interestingly by geography (fig. 8).

    We note that Executive Management and Operations lead influence over time; but

    notably, Sales emerges as the leading driver among Latin American and EMEA

    organizations in our 2018 sample. Latin America and Asia Pacific report the greatest

    executive influence, while Latin and North America report the most operations influence.

    Finance is the next most likely to drive BI decisions across all geographies. Marketing

    influence is strongest among Asia-Pacific respondents.

    Figure 8 – Functions driving business intelligence by geography

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    4

    4.5

    Asia Pacific Latin America North America Europe, Middle East andAfrica

    Functions Driving Business Intelligence by Geography

    Executive Management Operations

    Sales Finance

    Marketing Information Technology (IT)

    Strategic Planning Function Competency Center/Center of Excellence

    Research and Development (R&D) Human Resources

    Manufacturing

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    Functions Driving Business Intelligence by Vertical Industry

    The importance of various functional drivers of BI is somewhat predictable across

    industries (fig. 9). In 2018, Executive Management leadership is greatest in Insurance

    and Healthcare. Likewise, Operations influence is most prominent in Insurance,

    Healthcare, and Retail/Wholesale organizations. Insurance, Retail/Wholesale and

    Business Services often lead BI through sales. Education respondents are most likely to

    drive BI through HR while Retail/Wholesale respondents are least likely to drive BI at

    the human resource level.

    Figure 9 – Functions driving business intelligence by industry

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    4

    4.5Executive Management

    Operations

    Sales

    Finance

    Marketing

    Information Technology (IT)

    Strategic Planning Function

    Competency Center/Center ofExcellence

    Research and Development(R&D)

    Human Resources

    Manufacturing

    Grand Total

    Functions Driving Business Intelligence by Industry

    Insurance Manufacturing Financial Services Technology

    Healthcare Education (Higher Ed) Retail and Wholesale Business Services

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    Functions Driving Business Intelligence by Organization Size

    Executive Management and Operations are the most likely drivers of business

    intelligence in all enterprises with the exception of small organizations (1-100

    employees) where Sales has the most influence (fig. 10). The net influence of Sales

    generally decreases as organization size increases, while the influence of IT grows with

    organization size. Executive and Operational influence is greatest in very large

    organizations (> 10,000 employees), followed by mid-sized organizations (101-1,000

    employees). The influence of Finance is also greatest at very large and mid-sized

    organizations.

    Figure 10 – Functions driving business intelligence by organization size

    0.00

    0.50

    1.00

    1.50

    2.00

    2.50

    3.00

    3.50

    4.00

    4.50

    1-100 101-1,000 1,001-10,000 More than 10,000

    Functions Driving Business Intelligence by Organization Size

    Executive Management Operations

    Sales Finance

    Marketing Information Technology (IT)

    Strategic Planning Function Competency Center/Center of Excellence

    Research and Development (R&D) Human Resources

    Manufacturing

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    User Roles Targeted for Business Intelligence

    In 2018 (as in our two most recent studies), executives and middle managers are the

    most likely targeted users of business intelligence (fig. 11). By a wide margin,

    executives are primary targets 65 percent of the time and not targeted only about 7

    percent of the time. Like middle managers, individual contributors and professionals are

    primary targets of BI almost 40 percent of the time and only somewhat less targeted as

    secondary users compared to middle managers. Suppliers and partners are least often

    targeted.

    Figure 11 – Targeted users for business intelligence

    0% 20% 40% 60% 80% 100%

    Suppliers

    Partners / Affliates

    Customers

    Line Managers

    Individual Contributors andProfessionals

    Middle Managers

    Executives

    Targeted Users for Business Intelligence

    Primary Secondary Future plans No plans

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    Targeted Users for Business Intelligence 2013-2018

    In 2018, we observe a significant increase in the targeting of customers, individual

    contributors, and to a lesser extent, line managers (fig. 12). At the same time,

    designated targeting of middle managers decreases significantly year over year,

    followed by a slight decline in executives. In our opinion, this demonstrates an

    increasing democratization of business intelligence as it increasingly flows to historically

    less well-served constituents.

    Figure 12 – Targeted users for business intelligence 2013-2018

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    Executives MiddleManagers

    IndividualContributors and

    Professionals

    Line Managers Customers Suppliers

    Targeted Users for Business Intelligence 2013-2018

    2013 2014 2015 2016 2017 2018

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    Targeted Users for Business Intelligence by Geography

    Executives are the most likely targets for business intelligence across all geographies,

    though Asia Pacific respondents place the highest secondary emphasis on middle and

    line managers (fig. 13). Asia Pacific and Latin America account for a part of the surge in

    customer BI enablement noted already. Unlike other geographies, North American

    respondents are most likely to target individual contributors and professionals equally or

    more than middle or line managers.

    Figure 13 – Targeted users for business intelligence by geography

    0.00%

    10.00%

    20.00%

    30.00%

    40.00%

    50.00%

    60.00%

    70.00%

    80.00%

    90.00%

    100.00%

    Asia Pacific North America Latin America Europe, Middle East andAfrica

    Targeted Users for Business Intelligenceby Geography

    Executives Middle Managers

    Individual Contributors and Professionals Line Managers

    Customers Partners / Affliates

    Suppliers

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    User Targets for Business Intelligence by Organization Size

    Small organizations (1-100 employees), which tend to be flatter organizationally, most

    often choose executives over other roles as targets for BI enablement (fig. 14). Small

    organizations are also most likely to target customers. As we would expect,

    organizations with more than 1,000 employees are more likely than others to target

    middle and line managers, as well as individual contributors and professionals. Very

    large organizations (> 10,000 employees) are most likely to target suppliers with BI

    enablement.

    Figure 14 – Targeted business intelligence users by organization size

    0.00%

    10.00%

    20.00%

    30.00%

    40.00%

    50.00%

    60.00%

    70.00%

    80.00%

    90.00%

    100.00%

    1-100 101-1,000 1,001-10,000 More than 10,000

    Targeted Users by Organization Size

    Executives Middle Managers

    Individual Contributors and Professionals Line Managers

    Customers Partners / Affliates

    Suppliers

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    User Targets for Business Intelligence by Vertical Industries

    In our 2018 sample, respondents in the Insurance industry are most likely to highly

    target multiple constituencies of users with BI enablement, and this leading sentiment

    extends to customers and lesser tiers of users as well (fig. 15). Business Services and

    Technology are the industries next most likely to target customers. After Insurance,

    Healthcare organizations are most active in middle-tier enablement of managers and

    individual contributors. Like the aforementioned, Manufacturing, and Education

    respondents are also likely to target individual contributors and professionals. Executive

    targeting nonetheless leads across all industries.

    Figure 15 – Targeted business intelligence users by industry

    0.00%

    10.00%

    20.00%

    30.00%

    40.00%

    50.00%

    60.00%

    70.00%

    80.00%

    90.00%

    100.00%

    Targeted Users by Industry

    Executives Individual Contributors and ProfessionalsMiddle Managers Line ManagersCustomers Partners / AffliatesSuppliers

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    Objectives for Business Intelligence

    In 2018, the non-specific goal of “making better decisions” remains atop our list of

    business intelligence objectives (fig. 16). (We traditionally associate this goal with

    organizations seeking general improvements wherever they may be found through the

    use of business intelligence.) At the same time, a second tier of more quantifiable

    objective emerged in "improved operational efficiency," "growth in revenues," and

    "increased competitive advantage." While the overall finding is not industry specific, it is

    worthy to note that "compliance/risk management" is the least likely "critical" driver of

    business intelligence.

    Figure 16 – Business intelligence objectives

    0% 20% 40% 60% 80% 100%

    Compliance / Risk Management

    Enhanced Customer Service

    Increased Competitive Advantage

    Growth in Revenues

    Improved Operational Efficiency / Cost Savings

    Better Decision-Making

    Business Intelligence Objectives

    Critical Very important Important Somewhat important Unimportant

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    Business Intelligence Objectives 2014-2018

    As we noted, more notable growth in BI objectives comes in formerly secondary

    concerns about customer service, revenue growth, competitive advantage and other

    more quantifiable business imperatives (fig. 17). This may result from both the newer

    directive and the ability to identify ROI in all investments including BI, and not just the

    "soft" benefits of technology evolution. In demonstration of the importance of business

    intelligence, the importance of all specified objectives increases year over year in sum

    and in detail. (We added compliance/risk management in 2018).

    Figure 17 – Business intelligence objectives 2014-2018

    0.00

    0.50

    1.00

    1.50

    2.00

    2.50

    3.00

    3.50

    4.00

    4.50

    5.00

    Better Decision-Making

    ImprovedOperational

    Efficiency

    Growth inRevenues

    IncreasedCompetitiveAdvantage

    EnhancedCustomer

    Service

    Compliance /Risk

    Management

    Business Intelligence Objectives 2014-2018

    2014 2015 2016 2017 2018

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    Percent Change in BI Objectives 2017-2018

    Fig. 18 shows another helpful view of year-over-year attitudes toward BI objectives.

    Here we observe clearly that the BI objective of "enhanced customer service" gains the

    most importance, followed by "growth in revenues" and "increased competitive

    advantage." "Improved operational efficiency" (a topic that gained momentum in earlier

    studies), grows at a slower rate, while "better decision-making" continues its upward

    trajectory, but at the slowest rate of all BI objectives.

    Figure 18 – Percent change in BI objectives 2017-2018

    1.2%

    2.8%

    4.5%

    5.4%

    8.2%

    0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

    Better Decision-Making

    Improved Operational Efficiency /Cost Savings

    Increased Competitive Advantage

    Growth in Revenues

    Enhanced Customer Service

    Percent Change in BI Objectives 2017-2018

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    Business Intelligence Objectives by Geography

    “Better decision-making” is the most important BI objective across all geographical

    regions in 2018, though by lower margins than we observed in earlier studies (fig. 19).

    Overall results are somewhat similar across geographies. Excluding non-specific "better

    decision-making," revenue growth and competitive advantage are most important to

    Latin American respondents, while Asia-Pacific and North American respondents

    posted slightly higher scores for better operational efficiency. Asia-Pacific respondents

    also gave the highest degree of importance to enhanced customer service.

    Figure 19 – Business intelligence objectives by geography

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    4

    4.5

    5

    Asia Pacific North America Latin America Europe, Middle East andAfrica

    Business Intelligence Objectives by Geography

    Better Decision-Making Improved Operational Efficiency / Cost Savings

    Growth in Revenues Increased Competitive Advantage

    Enhanced Customer Service Compliance / Risk Management

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    Business Intelligence Objectives by Function

    In 2018, the importance of "better decision-making" is highest across all functions with

    the exception of R&D, where "increased competitive advantage" earns the top priority

    (fig. 20). The BICC and Operations are most likely to focus on issues of revenue growth

    and customer service. As we might expect, "improved operational efficiency" resonates

    strongly with Finance, IT, and Executive Management. Compliance/Risk Management is

    the least important objective across all roles.

    Figure 20 - Business intelligence objectives by function

    00.5

    11.5

    22.5

    33.5

    44.5

    5

    Business IntelligenceCompetency Center

    Executive Management

    Finance

    Information Technology(IT)

    Operations (e.g.,Manufacturing, Supply

    Chain, Services)

    Research and Development(R&D)

    Sales & Marketing

    Business Intelligence Objectives by Function

    Better Decision-Making Improved Operational Efficiency / Cost Savings

    Growth in Revenues Increased Competitive Advantage

    Enhanced Customer Service Compliance / Risk Management

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    Business Intelligence Objectives by Vertical Industry

    By industry, Insurance respondents give the highest mean scores for all BI objectives

    (with emphasis on customer service) (fig. 21). Financial Services organizations report

    the most tightly clustered importance and awarded high importance to “enhanced

    customer service” and "compliance/risk management." Interestingly, Healthcare

    respondents give above-mean scores to compliance, but are more interested in all other

    objectives, led by "better decision-making." Business Services give the highest overall

    score to "increased competitive advantage."

    Figure 21 – Business intelligence objectives by industry

    00.5

    11.5

    22.5

    33.5

    44.5

    5Insurance

    Financial Services

    Retail and Wholesale

    Technology

    Healthcare

    Business Services

    Manufacturing

    Education (Higher Ed)

    Business Intelligence Objectives by Industry

    Better Decision-Making Growth in Revenues

    Improved Operational Efficiency / Cost Savings Increased Competitive Advantage

    Enhanced Customer Service Compliance / Risk Management

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    Business Intelligence Objectives by Organization Size

    Organizations of different sizes all place the highest emphasis on "better decision-

    making" with strong mean importance above "very important" (fig. 22). Improved

    operational efficiency is the next most important objective at mid-sized organizations

    (101-1,000 employees) and larger organizations. 2018 focus on "compliance/risk

    management" importance tends to increase with organization size.

    Figure 22 – Business intelligence objectives by organization size

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    4

    4.5

    5

    1-100 101-1,000 1,001-10,000 More than 10,000

    Business Intelligence Objectives by Organization Size

    Better Decision-Making Improved Operational Efficiency / Cost Savings

    Growth in Revenues Increased Competitive Advantage

    Enhanced Customer Service Compliance / Risk Management

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    Business Intelligence Achievements

    New for 2018, we asked respondents to gauge their level of "BI achievements" as a way

    of augmenting our longstanding and ongoing polling on "BI objectives" (fig. 23). By this

    measure, we find some minor distinctions between intent and ongoing accomplishment.

    In 2018, for example, the top two achievements ("better decision-making," "improved

    operational efficiency") match the top BI objectives (fig. 17, p. 36), but "enhanced

    customer service" is the third most cited achievement and perhaps easier to achieve

    than the third most cited objective of "growth in revenues" (ibid). Over time, we expect

    this polling will help identify some distinctions between specific organizational goals and

    the difficulty of modeling and managing different processes successfully.

    Figure 23 – Business intelligence achievements

    0% 20% 40% 60% 80% 100%

    Compliance /Risk

    Management

    IncreasedCompetitiveAdvantage

    Growth inRevenues

    EnhancedCustomer

    Service

    ImprovedOperationalEfficiency /…

    Better Decision-Making

    Business Intelligence Achievements

    High Achievement Moderate Achievement Acceptable Achievement

    Not Yet Attempted Not Yet Achieved

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    Business Intelligence Achievements by Organization Size

    Measured by organization size, respondents at all organizations find "better decision-

    making" their most successful organizational BI achievement (fig. 24). Perhaps more

    interesting, we observe that small organizations (1-100 employees) and, to a lesser

    degree, mid-sized (101-1,000) organizations are more successful than larger peers at

    achieving revenue growth and increased competitive advantage through BI. Both small

    and very large organizations (>10,000 employees) are similarly successful at improving

    operational efficiency. Finally, compliance and risk management achievement (success)

    requirements are more often achieved as organization size increases.

    Figure 24 – Business intelligence achievements by organization size

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    1-1

    00

    10

    1-1

    ,00

    0

    1,0

    01

    -10

    ,00

    0

    Mo

    re t

    han

    10

    ,00

    0

    1-1

    00

    10

    1-1

    ,00

    0

    1,0

    01

    -10

    ,00

    0

    Mo

    re t

    han

    10

    ,00

    0

    1-1

    00

    10

    1-1

    ,00

    0

    1,0

    01

    -10

    ,00

    0

    Mo

    re t

    han

    10

    ,00

    0

    1-1

    00

    10

    1-1

    ,00

    0

    1,0

    01

    -10

    ,00

    0

    Mo

    re t

    han

    10

    ,00

    0

    1-1

    00

    10

    1-1

    ,00

    0

    1,0

    01

    -10

    ,00

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    Mo

    re t

    han

    10

    ,00

    0

    1-1

    00

    10

    1-1

    ,00

    0

    1,0

    01

    -10

    ,00

    0

    Mo

    re t

    han

    10

    ,00

    0

    Better Decision-Making

    ImprovedOperational

    Efficiency / CostSavings

    EnhancedCustomer Service

    Growth inRevenues

    IncreasedCompetitiveAdvantage

    Compliance / RiskManagement

    Business Intelligence Achievements by Organization Size

    High Achievement Moderate Achievement Acceptable Achievement Not Yet Attempted

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    Penetration of Business Intelligence Solutions

    In an ongoing (and positive) development, the penetration of business intelligence (as a

    percentage of total employees) increases over the past four years (fig. 25). Percentages

    of the lowest penetration (< 10 percent) fall from 34 percent to 30 percent in 2018, while

    mid-tier (11-20, 21-40, 41-60 percent) all increase. At the highest levels of penetration,

    the 61-80 percent segment grows slightly while the highest (> 81 percent) penetration

    group declines slightly. The trending of this finding gives us some confidence that the BI

    enablement and democratization we saw last year continues to show improvement.

    Figure 25 – Business intelligence penetration 2015-2018

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    Under 10% 11 - 20% 21 - 40% 41 - 60% 61 - 80% 81% or more

    Penetration of Business Intelligence Solutions2015-2018

    2015 2018

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    Change in Penetration of BI Solutions 2017-2018

    Year over year, increased BI penetration is greatest at the 21-40 percent level, where

    there is 2.6 percent growth (fig. 26). We also see lesser growth in mid-tier levels of

    penetration, while the highest level of growth declines slightly. The largest decrease is

    at the lowest (< 10 percent) level, reflective of the aforementioned improvements in BI

    penetration generally.

    Figure 26 – Change in penetration of BI solutions 2017-2018

    -1.3%

    1.3%

    1.3%

    2.6%

    0.9%

    -4.7%

    -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0%

    81% or more

    61 - 80%

    41 - 60%

    21 - 40%

    11 - 20%

    Under 10%

    Change in Penetration of BI Solutions 2017-2018

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    Expansion Plans for Business Intelligence Through 2021

    Beyond current deployment, respondents describe bullish plans for expanding BI in

    future time frames (we consider the 12-month period the most likely to be supportable

    and budgeted) (fig. 27). In this context, respondents expect a decline in the sub-10

    percent segment, and an increase in all higher levels of penetration in the coming 12

    months. This 12-month finding includes significant growth at high penetration levels

    above 41 percent. Extended time frame plans beyond 12 months are expected to

    extrapolate higher levels of high BI penetration and lower levels of low penetration.

    Figure 27 – Expansion plans for business intelligence through 2021

    0% 20% 40% 60% 80% 100%

    In 36 months

    In 24 months

    In 12 months

    Today

    Expansion Plans for Business Intelligence through 2021

    Under 10% 11 - 20% 21 - 40% 41 - 60% 61 - 80% 81% or more

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    Current Business Intelligence Penetration by Geography

    Arguably the most mature among BI markets, North America leads penetration at the

    highest (> 81 percent) level in 2018 (fig. 28). Penetration at or above the 41-60 percent

    level, however, is slightly higher in EMEA. Asia Pacific respondents report the greatest

    number of low-penetration (from less than 10 percent to 40 percent) BI users.

    Figure 28 – Business intelligence user penetration today by geography

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    http://www.dresneradvisory.com/

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    48

    Planned Business Intelligence Penetration by Geography

    A view of future BI plans by geography reveals distinctions but globally supports the

    overall theme of growing expectations in 12, 24 and 36-month time frames (fig. 29).

    North America and EMEA expect the most expansion at the highest (> 81 percent) level

    in future time frames. Over time, Asia-Pacific respondents by far expect the largest

    lingering constituencies of lower penetration (

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    49

    Current Business Intelligence Penetration by Function

    In 2018, the most penetrated BI users by function are in Executive Management, the

    BICC and IT (fig. 30). This tranche generally leads with the most numerous high level

    and fewest low-level penetration of users. A second tier of Finance, Sales/Marketing,

    Operations reveals noticeably more lingering low-level penetration but still holds distinct

    pockets of users at the higher penetration levels. Somewhat curiously, R&D

    respondents fare worst at both low and high levels of BI penetration.

    Figure 30 – Business intelligence penetration today by function

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    Manufacturing,Supply Chain,

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    (R&D)

    Penetration of Business Intelligence Solutions Today by Function

    Under 10% 11 - 20% 21 - 40% 41 - 60% 61 - 80% 81% or more

    http://www.dresneradvisory.com/

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    50

    Planned Business Intelligence Penetration by Function

    All functions expect to see increased BI penetration over time (fig. 31). BICC and

    Executive Management respondents expect the greatest improvements at varying

    levels of penetration. Conversely, Operations respondents expect far larger cohorts of

    low to mid-level BI penetration and very little BI penetration at the highest (>81 percent)

    level. Notably, IT respondents expect greater future improvements than do

    Sales/Marketing respondents.

    Figure 31 – Expansion plans for business intelligence through 2021 by function

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    Expansion Plans for Business Intelligence through 2021 by Function

    Under 10% 11 - 20% 21 - 40% 41 - 60% 61 - 80% 81% or more

    http://www.dresneradvisory.com/

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    51

    Current Business Intelligence Penetration by Vertical Industry

    Both high and low levels of BI penetration vary inconsistently across different vertical

    industries (fig. 32). In our 2018 sample, Insurance again provides the best overall result

    with the greatest high level and lowest low-level penetration among industries.

    Technology reports 40 percent of organizations with 41 percent or greater penetration,

    while, by the same measure, Business Services reports 38 percent penetration.

    Education and Manufacturing report the lowest overall penetration by weighted mean,

    though "pockets" of penetration among certain specialist users in all industries color

    these results.

    Figure 32 – Penetration of business intelligence solutions today by industry

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    Insurance Technology BusinessServices

    Retail andWholesale

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    Manufacturing Education(Higher Ed)

    Penetration of Business Intelligence Solutions Today by Industry

    Under 10% 11 - 20% 21 - 40% 41 - 60% 61 - 80% 81% or more

    http://www.dresneradvisory.com/

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    52

    Planned Business Intelligence Penetration by Vertical Industry

    In our 2018 sample, expansion plans for business intelligence vary unevenly by industry

    (fig. 33). Insurance respondents, already with the fewest low-penetration users, expect

    to carry that forward and increase penetration most dramatically at high levels.

    Technology and Business Services make up a clear second-best tier of future

    expectations while Education respondents expect only modest gains in BI penetration in

    coming time frames.

    Figure 33 – Expansion plans for business intelligence through 2021 by industry

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    Expansion Plans for Business Intelligence through 2021 by Industry

    Under 10% 11 - 20% 21 - 40% 41 - 60% 61 - 80% 81% or more

    http://www.dresneradvisory.com/

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    53

    Current Business Intelligence Penetration by Organization Size

    As we reported in every year of our study, small organizations of one to 100 employees

    have higher BI penetration than larger peers (fig. 34). While overall headcount almost

    ensures this score, we also expect small organizations, likely to be newer and

    comprised of more information workers, would find fewer barriers of cost or deployment

    and more immediate benefits than larger and older companies. As we saw in earlier

    studies, very high penetration rates tend to decrease with organization size, while low

    penetration rates tend to linger.

    Figure 34 – Penetration of business intelligence solutions today by organization size

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    Penetration of Business Intelligence Solutions Today by Organization Size

    81% or more

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    41 - 60%

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    Under 10%

    http://www.dresneradvisory.com/

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    54

    Planned Business Intelligence Penetration by Organization Size

    Along with being the most penetrated BI users today, small organizations (1-100

    employees) have the steepest expectations for high future BI penetration in coming time

    frames (fig. 35). Though less aggressive, mid-sized organizations (101-1,000

    employees) expect the next highest number of highly penetrated (> 60 percent) user

    audiences. Large and very large organizations (> 10,000 employees) have somewhat

    lower expectations (which may be colored by large global headcounts not considered

    audiences for business intelligence).

    Figure 35 – Expansion plans for business intelligence through 2021 by organization size

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    Expansion Plans for Business Intelligence through 2021 by Organization Size

    81% or more

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    http://www.dresneradvisory.com/

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    55

    Chief Data and Chief Analytics Officers

    Beginning in 2016, we asked our audience whether their organization had appointed a

    chief data officer (CDO) or chief analytics officer (CAO). We understand that these

    appointments can cause significant changes in the technology and business

    architecture of organizations and also that these roles and titles are relatively new, fluid

    by definition, and evolving.

    Enterprises with Chief Data or Chief Analytics Officers

    The ongoing uptake and longevity of chief data and chief analytics officers is quite

    modest but growing over time. Fewer than 15 percent of respondent organizations have

    a chief data officer and only about 10 percent have a chief analytics officer (fig. 31). In

    both cases, the largest groups of adopters have had a CDO or CAO either five years or

    longer or from 3 to 5 years. In the last year, more CDOs have been appointed than

    CAOs. Over three years of study, momentum is somewhat in favor of the former as the

    preferred role/title.

    Figures 36 – Enterprises with chief data or chief analytics officers in place

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    Chief AnalyticsOfficer (CAO)

    Chief DataOfficer (CDO)

    Enterprises with Chief Data or Chief Analytics Officers in Place

    Don't have one For less than 1 year 1 -3 years 3 - 5 years More than 5 years

    http://www.dresneradvisory.com/

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    56

    Plans to Implement Chief Data or Chief Analytics Officers

    Among the large majority of organizations that have no CDO or CAO, adoption plans for

    coming time frames are modest and similar for both roles (fig. 37). Just 5 percent of

    organizations say they will name a CDO this year (3 percent will name a CAO), and 11

    percent or less will name a CDO or CAO either this year or next. Two-thirds or more of

    all organizations currently have no plans to appoint either title.

    Figure 37 – Plans to implement Chief Data or Chief Analytics Officer Roles

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    This Year Next Year Distant Future No plans

    http://www.dresneradvisory.com/

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    57

    Effectiveness of Chief Data or Chief Analytics Officers

    We asked respondents to describe the effectiveness of a chief data officer or chief

    analytics officer in their organization (fig. 38). By this measure, we find that CAOs are

    viewed as more effective in their roles than CDOs. More than 20 percent of CAOs are

    "highly" effective compared to 17 percent of CDOs. Likewise, CAOs are only about half

    as likely (13 percent) as CDOs (25 percent) to have "low" effect on their organization. In

    total, however, between 79 and 82 percent of CDOs and CAOs have, at least

    "moderate" effectiveness, which indicates that the presence of a CDO or CAO definitely

    creates broad workforce awareness and a more noticeable approach to data and

    analytics that likely brings more organizational focus.

    Figure 38 – Effectiveness of Chief Data and Chief Analytics officers

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    CDO

    Effectiveness of Chief Data and Chief Analytics Officers

    Low Moderate High

    http://www.dresneradvisory.com/

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    58

    Business Intelligence Achievements by Presence of CDO

    We asked respondents to describe the degree of achievement of BI objectives in the

    presence of a chief data officer (fig. 39). This question also addresses impact

    regardless of the tenure of the CDO. Across all objectives/achievements we study,

    organizations with a CDO fare better than those without. In 2018, about half of

    respondents with a CDO report a "high" achievement of "better decision-making"

    com