Business Intelligence – Prepared

by Tushar Seth
Market Overview:
 The majority of executives rely on cost-benefit analysis & RIO analysis to
support of purchase of Business Intelligence Solution.

 CFOs, CEOs, COOs are expected to be the most active users of BI solution

 While ROI is a critical decision factor when analyzing the solution category,
proven ROI is superseded by feature/function, ease of integration with other
systems and ease of use when selecting a specific vendor’s product

a) Global

New license revenue in the worldwide business intelligence (BI) software market is
poised for constant growth through 2009 when the market is projected to reach $3
billion, according to the latest forecasts by Gartner, Inc. The analysts estimate the
BI market will reach $2.5 billion in 2007, a six percent increase from 2005.

b) India

According to IDC, the Indian business intelligence market is growing at a CAGR of

27.09% and is expected to top $10.55 m by year-end of 2005. SAS India is the leader
in the Business Intelligence (BI) software market in India for the year 2004, with a
23% market share.

The India BI software market is slated to grow at a CAGR of 35.9% (2006-2011-

Source: IDC's India BI Software Market Report, June 2007).

c) Singapore

IDC estimated that the Asia/Pacific excluding Japan (APEJ) business intelligence
market size for 2005 was nearly $340 m. This represented a healthy annual growth
rate of 22.5%. The market is expected to remain on the fast growth track with a 5-
year CAGR of 13.5%, reaching $639 m by 2010. In 2005, the Singapore BI and BPM
market was valued at $19.54 m and is anticipated to enjoy a 5-year CAGR of 12.7%.
The Hong Kong market was estimated at $16.43 m in 2005 and predicted to breach
the $25 m dollar mark before the end of the decade.
 d) UAE

Business Intelligence (BI) platform revenue will grow 10 percent in Europe, Middle
East and Africa (EMEA) in 2007 to reach $3 billion, according to Gartner, Inc. BI
platform revenue will grow at an annual compound growth rate (CAGR) of 9.7
percent to reach $3.8billion in 2010. Gartner said that while increasing investments
in BI present good opportunities for software vendors, the market will get tougher in
2007 with increased competition from the major software vendors such as Oracle,
SAP and Microsoft. It predicted that BI revenue from these ‘mega vendors’ will grow
three times faster than revenues from the BI pure-play vendors in 2007.

Fig: Market share for Business Intelligence in the various regions around the world for 2005
 EMEA Rest of the World
39.12%
India
Rest of the World
Singapore
52.16%
EMEA
Singapore India
8.33% 0.39%

Fig: Market share for Business Intelligence in the various regions around the world for 2010

Major players in the sector:

The above figure is self explanatory

Major Sectors in which BI is implemented:
 Commercial Mail
 Communications
 Consumer Packaged Food
 Financial Services
 Government
 Retail
 HealthCare
 Energy
 Hospitality
 Manufacturing
 Pharmaceuticals

This is a new field and limited academic research is done. A lot of enormous growth
opportunities is there and still to be explored.

Challenges in implementing a BI solution

 Cross-Organizational Collaboration
 Lack of Business Sponsors
 Dedicated Business Representation
 Availability of Skilled Team Members
 BI Application Development Methodology
 Planning BI Projects
 Business Analysis and Data Standardization
 Impact of Dirty Data on Business Profitability
 Importance of Meta-Data

My Analysis:
I believe that we have a BI is one of the technologies that are coming up in a big
way but the problem with the implementation of this technology is the costs and the
time frames required to implement such solutions as the cost involved is huge and
the time required to implement is long .
The CIOs does have implementation of BI high on their preference list but the
amount of money required to implement the solution is huge and they are not able
to justify the investment in ROI terms. The major players are Cognos, SAS, Business
Objects and Hyperion.

The Organizations with more that 10K employees are most likely to go for tools like
OLAP, Data Warehousing & Business Intelligence.

References:

http://www.dmreview.com/article_sub.cfm?articleId=6195
http://www.gantrygroup.com/pdf/Gantry%20BI%20Trends%20Presentation5_11.pdf
http://datawarehouse.ittoolbox.com/topics/t.asp?t=415&p=415&h1=415
http://www.cognos.com/news/analyst_reviews.html