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Gartner: Business intelligence leaders and laggards

Gartner: Business intelligence leaders and laggards

Market growth declines though many business units still not deploying BI systematically

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Many organisations have yet to begin using systematic data analysis techniques in HR, marketing and social, according to analyst house Gartner.

Gartner estimates that global business intelligence software revenue will reach $13.8 billion (£8.9 billion) in 2013, a 7 per cent increase from 2012, but significantly smaller than the 16 percent revenue growth in 2011.

"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 BI and analytics," said Kurt Schlegel, research vice president at Gartner.

"The descriptive analytics have largely been completed for most large companies in traditional subject areas, like finance and sales, but there is still a lot of growth expected for diagnostic, predictive and prescriptive deployments,” he added.

Gartner presented a complex picture of BI and analytics purchasing and deployment, with many medium-sized organsations yet to start systematic business intelligence programmes.

"BI and analytics have grown to become the fourth-largest application software segment as end users continue to prioritise BI and information-centric projects, and spending to improve decision making and analysis," said Dan Sommer, principal research analyst. "Mastering analytics on big data will be a key driver for the next economic cycle."

While CIOs continue to spend on BI, many organisations see more tactical BI purchasing in business units for departmental and workgroup analysis and also personal BI. The growth of cloud, mobile and social technologies were driving this trend the analyst said.

Gartner also noted the emerging data-as-a-service trend, which is changing the way enterprises buy and consume BI technology.

Currently organisations generally licence software capabilities to build analytic applications, said Gartner. In future organisations increasingly will subscribe to “industry-specific data services that bundle a narrow set of data with BI and analytic capabilities embedded”.

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