Today Gartner released a report discussing the BI /CPM market, key takeaways from the report are:
- Worldwide business intelligence (BI) platform, analytic applications and performance management (PM) software revenue reached $10.5 billion in 2010
- Growth of 13.4 percent increase from 2009 revenue,
- BI spending has far surpassed IT budget growth overall for several years, and it is clear that BI continues to be a technology at the center of information-driven initiatives in organizations. Vendors aggressively market their capabilities in this area, so revenue growth is as much a function of vendor push as a demand pull
- The four large "stack" vendors (SAP, Oracle, IBM and Microsoft) continue to consolidate the market, owning 59 percent of the market share. (Chart with the market share break up)
- There is ongoing BI tools consolidation in the IT-department
- Business users care less about who they buy from; they want domain-specific functionality and usability that meet their needs.
So why were/are companies willing to spend on BI / CPM solutions even in these challenging times during which we have seen IT budgets overall frozen or cut? Here are some interesting data/view points:
- Through 2015, organizations integrating high-value, diverse, new information types and sources into a coherent information management infrastructure and use that information to make better decisions will outperform their industry peers financially by more than 20%. – Gartner
- Through 2015, more than 35% of top 5,000 global companies will fail to adapt to significant changes in their business and markets due to underinvestment in their information intelligence infrastructure and analytic competencies – Gartner
- Top performing organizations use analytics 5 times more than lower performers – MIT Sloan Management Review Survey
- Half the respondents said that improvement to information & analytics was a top priority in their organization. And more than 1 in 5 said they were under significant pressure to adopt advanced information and analytics approaches. - MIT Sloan Management Review Survey
- 6 out of 10 said innovating to achieve competitive differentiation as a top business challenge - MIT Sloan Management Review Survey
In the Gartner has highlighted / focused on the booming BI/CPM market based on software/license sales, but I think the important part to focus on is how or whether enterprises/organizations are getting these projects executed successfully. Getting the product / solution bought is only the first or initial part of the battle, getting it implemented right, maintaining & growing it successfully on an ongoing basis, increasing the usage / proliferation of these tools and methods across the organizations are where BI / CPM projects succeed or fail.
As highlighted by this recent report by Geneca on IT project failures – here are some interesting data points to think about:
- Seventy-five percent of respondents believe that their projects are either always or usually doomed right from the start
- Seventy-eight percent of respondents think the business team always or usually lacks alignment on project objectives
Another key data point that highlights the fact that organization's need to do more on the implementation front to make BI / CPM projects successful is:
- Only 27% of organization have adopted or setup business intelligence competency centers in their organizations – Gartner. This is a critical piece of the BI / CPM puzzle for companies to transform themselves into analytic enterprises.