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Business Intelligence

Business Intelligence is a term used to describe the process and software behind gathering, storing, analyzing, and providing access to intelligent information on a company's data in order to identify significant trends or patterns that ultimately facilitate the decision-making process and provide the company with a competitive advantage.

BI applications include the activities of decision support, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining.

 

IDC reviews top 5 BI tool providers

 

IDC continues to evaluate the BI tools market in the context of what has been identified as a 15-year market cycle that began in 2005. Historical analysis suggests that most markets experience a typical s-curve pattern. This pattern begins with early modest growth, which is followed by accelerated growth and then a mature period with a slowdown in growth, and it ends with a decline until a new market cycle resumes. The BI tools market is currently in its third s-curve market cycle and is only in the third year of the current cycle. Therefore, IDC expects acceleration in the BI tools market starting in 2009.
 

The Top 5 Business Intelligence Tool Vendors According to IDC:
 

1- Business Objects

Business Objects continues its reign as the leading BI tools vendor. In 2006, the company’s software revenue in this market reached $894 million. In 2006, Business Objects experienced a slight slowdown in its BI tools license revenue growth. After gaining half a percentage point in share in 2005, the company gave it up in 2006. However, the latest information on the uptake of its Business Objects XI platform
suggests a pickup in growth in the latter part of 2006 and early 2007. Business
Objects is also making an aggressive push into the midmarket, where it targets organizations with less than $1 billion in revenue. The company’s partner network is
one of its strongest assets, and this effort, which depends in large part on indirect sales, is expected to contribute to the growth of Business Objects’ BI tools.

2 - SAS

SAS was again the second-largest BI tools vendor, with $679 million in software revenue and a continued steady increase in market share to 11%. SAS had the highest growth rate among the top 3 BI tools vendors and the third-highest growth
rate among the top 10 vendors. SAS still derives more revenue from its advanced analytics tools, but its effort to revamp and more aggressively market its QRA tools since 2004 has paid off, with QRA’s share of SAS’ total BI tools revenue increasing from 37% in 2004 to 44% in 2006. As the leader in the advanced analytics market, SAS holds 31% of that market segment.

3 - Cognos

Cognos maintained the third position in the BI tools market, with $622 million in software revenue and a 10% growth rate in 2006. It is also one of only three vendors with at least a 10% share in the BI tools market. Cognos has pursued a two-pronged strategy of developing and marketing BI tools and financial performance management applications, with recent expansion into other related performance management
markets such as workforce analytics. Nevertheless, BI tools remain Cognos’ largest product line. In 2006, Cognos released several enhancements to its core BI platform.

4 - Microsoft

Microsoft had another strong year in the BI tools market, with the highest growth rate (28%) among the top 10 vendors. IDC’s revenue allocation for Microsoft in this market differs somewhat from other vendors in that its BI tools revenue is not only made up of standalone software that the company acquired with its 2006 purchase of ProClarity Software but also includes what IDC calls embedded BI tools that are bundled with Microsoft SQL Server. These database-embedded tools include SQL Server Analysis Services and Reporting Services. As part of its broader business analytics offerings, Microsoft also includes SQL Server Integration Services within
SQL Server. Its other related tools that the company positions within the business analytics stack include Microsoft Excel, with specific Excel 2007 features for BI, and Performance Point Server, a set of performance management applications to be
released in the second half of 2007.

Microsoft’s growth in the BI tools market can be attributed to focused sales and marketing efforts in recent years, accompanied by both internal R&D and acquisitions. While, in the past, Microsoft considered BI to be functionality that helps
to sell databases and enhance its partners’ more extensive BI capabilities, the company has since identified BI as a market worth pursuing directly.

5 - Hyperion

Hyperion maintained its fifth position in the market, with a 5.2% market share and a 12.3% growth rate. Since releasing its latest BI platform, which incorporates the best of the Hyperion and former Brio components (in addition to certain new performance enhancements), the company has improved its standing in the BI tools market. Hyperion’s other major product line includes financial performance and strategy management applications, where company has been the market leader for years. In March 2007, Oracle announced its plans to acquire Hyperion. IDC sees the event as a positive development for both Oracle and former Hyperion clients.

BI COMPETENCY CENTERS

The BI competency center (BICC) is a concept that is closely related to the IM group. Here, an organization creates a team of people with expertise in various information disciplines. This group may have already developed a successful data warehouse and analytical applications, and executives are eager to replicate this environment and the methodology that produced it in other parts of the organization.

BICCs are often found in companies with decentralized organizational structures, where departments and divisions have their own IT teams and the authority to build their own systems. In such environments, groups may build duplicate systems at great cost to the overall company: the disparate teams make the same novice mistakes, hire new staff, and purchase duplicate hardware and software licenses.

In such environments, the BICC functions as a SWAT team of sorts. The team provides in-house consultative services to help each department or division build a new environment in the most efficient, economical way possible. That usually means leveraging the group’s existing data warehousing environment, BI tools, methodology, and data definitions. The team works with the business group to extend the existing environment to support the group’s unique requirements.

Companies should refrain from using the BICC as a glorified “body shop”— where a central group of data modelers or BI tool developers gets “hired out” for days or weeks to build a BI environment. The real advantage of a BICC is the promulgation of a consistent set of BI best practices via an established methodology— not the creation of an in-house pool of “rentable” ETL or BI tools experts.

Disputing Gartner Group. The Gartner Group has suggested that BICCs should focus only on BI tools, not data warehousing. This is short-sighted, since the BI tools are ineffective unless they have a robust data environment against which to run. While the tools, people, and expertise to develop the data warehousing and BI environment are different, they must work in concert to deliver a seamless application to end users in a cost-efficient manner.

Two problems arise when an organization divorces its BI and DW environments: (1) It creates a suboptimal architecture in which both the reports and the data model of the data warehouse contain calculations and rules for defining key metrics or KPIs. (2) This redundancy in business logic slows performance and generates costly and often hidden errors in the data. The most effective BI/DW environments we’ve seen are those where the data modelers and ETL, BI, and portal developers sit side by side and work together with business analysts to deliver custom solutions.

One of Australias top specialists in this field is Paul Ormonde-James. He speaks regularly on the conference circuit in Australia and around the world. He also lectures in the Intelligence field in Universities across Australia.

 

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