Worldwide Business Intelligence software revenue is expected to reach $13.8 billion in 2013, a 7 percent increase from 2012, with a market forecast to reach $17.1 billion by 2016, according to Gartner analysts. Business Intelligence is important because it helps develop knowledge on which to make better decisions; helps retailers move from collecting data to taking action on that data; and to apply skill and experience to transform data into knowledge to advance along the continuum to business wisdom.
"The emerging data-as-a-service trends (like cloud-based pricing intelligence & assortment intelligence solutions for the retail sector) could significantly grow the market for Business Intelligence and Analytics platforms, says Gartner.
Here are some highlights of the Gartner announcement:
"Descriptive analytics have largely been completed for most large companies in traditional subject areas, such as finance and sales, but there is still a lot of growth expected for diagnostic, predictive and prescriptive deployments," says Gartner research vice president Kurt Schegel.
Today's business model is largely "build" driven, in that organizations license software capabilities to build analytic applications. However, organizations increasingly will subscribe to industry-specific data services that bundle a narrow set of data with Business Intelligence and analytic capabilities embedded, says the information technology research and advisory company.
"In time, most companies, regardless of their business model, will need to provide a data-as-a-service offering," says Gartner, "therefore, this trend has the potential to grow the market significantly as a range of vendors look to embed a Business Intelligence and analytic platform-provider's software capabilities into their data-as-a-service offerings.
Cloud, mobile, social and information… what Gartner calls, "The Nexus of Forces", are fundamental drivers, as the CIO appetite for Business Intelligence is complemented by more-tactical buying in business units for departmental and workgroup analysis, as well as for personal Business Intelligence.
BI and analytics have grown to become the fourth-largest application software segment... as end users continue to prioritize Business Intelligence and information-centric projects and spending to improve decision making and analysis," said Gartner principal research analyst Dan Sommer.
Since many midsize enterprises have yet to even start their BI and analytic initiatives, we expect the market for BI and analytics platforms will remain one of the fastest-growing software markets, Sommer says. Although this is a mature market and has been a top CIO priority for years, there is still a lot of unmet demand. Every company has numerous subject areas — such as HR, marketing, social and so on — that have yet to even start with Business Intelligence and analytics."
"As more and more information is generated, business models need reinvention, and it's increasingly clear that mastering analytics on big data will be a key driver for the next economic cycle," Sommer added.
Gartner analysts note that growth in the near term will be hampered by sluggish macro indicators, as well as by slowing sales cycles of multimillion-dollar end-to-end Business Intelligence deals. Compared with 2011 growth of 16 percent, they say, 2013 and the coming years are expected to be slower, with growth in the high single digits.
Gartner's services are designed to drive organizations toward analytics excellence by exploring the latest trends in Business Intelligence and Analytics and how the two disciplines relate to one another; Gartner also addresses how "The Nexus of Forces" will impact Business Intelligence and analytics. The company is planning a Business Intelligence and Analytics webinar on March 28: "Strategies for Business Intelligence and Analytics in the Cloud".