Published in TDAN.com October 2002
Data Integration Market: More Doers, Fewer Dollars
Due to the persistent need of organizations to integrate data from an increasing variety of data sources, we project the data integration (DI) market (e.g., extract-transform-load [ETL] and
enterprise information integration [EII]) to grow at a pace outstripping many other technologies. However, because of downward price pressures introduced by DBMS vendors (most
notably Oracle and Microsoft) offering low-cost DI solutions, DI market revenue gains (10%-15%) will fall short of actual adoption-rate growth (25%-30%) through 2003. Doug Laney
BI Management: Software Installation
Business intelligence (BI) client tools demand database connectivity to each desktop and the establishment of initial security profile information. Standard software distribution
techniques will usually not fully support BI deployment without additional configuration work. Zero Administration Business Objects (ZABO) is an interesting effort to get around these problems
without sacrificing client software functionality. Most other vendors rely primarily on thin-client (e.g., DHTML, plug-in) technologies for client support. Some BI users have successfully deployed
full client tools with Windows Terminal Server and Citrix; this alternative is viable where large deployments of client tools are needed. David Folger
BI Management: Report Development
Query and analysis (Q&A) vendors (e.g., Brio, Cognos, Business Objects, Crystal) tout end-user report development for reducing IT report development backlogs. But these tools are only a partial
solution to end-user report creation. Typically, even IT organizations with large Q&A tool deployments must provide an IT report development team, as needed. Also, power users will need
help designing complex reports and understanding corporate data models. Enterprise reporting vendors (e.g., IBI, Crystal, Actuate, Brio) support advanced development facilities (e.g.,
object-oriented libraries, version control mechanisms) designed to help IT developers deal with large numbers of complex reports. Typically, these facilities are not targeted at end users.
David Folger
Care and Feeding of ERP/CRM “Adolescent” BI Solutions
Most enterprises face a challenge when provisioning enterprise analytics, given the multi-vendor enterprise application envrionment (e.g., PeopleSoft HR and Siebel sales automation) typical in most
organizations. A major challenge arises because each of these mega-vendors acts as if it is the ordained “center of gravity” for information (e.g., customer information) and
provides integrated free or low-cost business intelligence (BI) capabilities. SAP R/3 and PeopleSoft 8.0 users are fortunate because the BI offerings from these mega-vendors provide solid
functionality and integration. Aaron Zornes
BI/Data Integration/Analytic Tool Integration Delivers Business Value
During 2002/03, business intelligence, data integration, and analytic tools will become more information-focused, concentrating on providing business value rather than technological
prowess. By 2003/04, comprehensive (a.k.a. integrated) information delivery and analysis architectures will become available, delivering both unstructured and structured information
through enterprise portals. Through 2006, further integration, including business application vendors embedding tools such as analytic engines into their products, will enable optimization of
customer-related business processes and data quality, thereby reducing “information sprawl” and yielding substantial business ROI. Louis Boyle & Doug Lynn
Extending Data Warehouse Analytics With a Time Dimension
Most, if not all, data warehouses are modeled according to the current state of the particular business world, and analytic applications are based on that model. This may work for most
organizations; however, companies with constantly changing organizational structures, products, customer segments, or supplier relationships are challenged to run up-to-date or future
analytics. Moreover, they will feel a strong need to reshape data warehouses, particularly when trying “what-if scenarios” on top of theoretical models. Although most database and data
warehouse vendors may be able to model time, companies such as Kalido have already built the time dimension into their core engine. Andreas Bitterer
Preparing for the Decision Disconnect
Corporate business decisions are made based on the current knowledge of the particular decision maker. Business intelligence tools are supposed to help support these decisions; however, in many
cases, the varying levels of aggregation and access to historical and strategic data can lead to conflicting decisions by different decision makers. For example, a micro-analytic
decision to reorder a low-running stock item may be in direct conflict with a macro-analytic decision to discontinue selling that particular item. Companies should reduce the risk of wrong
decisions by establishing an information architecture that includes strategic directions and processes to double-check high-impact decisions. Andreas Bitterer
Analytics in Contact With the Call Center
Increasingly, enterprises must consider their contact center as a primary touch point, not only for customers, but for all business allies (e.g., partners, suppliers, employees). Ensuring the high
performance of this critical business function through robust analytics can be the difference between survival and extinction. We believe that urgent windows of opportunity will impel many
organizations to adopt packaged analytic solutions for contact centers in lieu of protracted custom development efforts. Doug Laney
Analytics Help Drive Interaction Management
An approach to accelerate e-channel adoption is to set baseline measurements of “channel effectiveness.” Such collaborative CRM requires analytical CRM metrics to reinforce design of
customer-centric business processes. Finding justification for seemingly ROI-tenuous initiatives will remain difficult if customers decide the business cannot be trusted with personal info. To
break down this barrier, businesses must continuously integrate the customer viewpoint into Web content, workflow design, and e-service cultural norms. Aaron Zornes
Radioactive Heat From Unintegrated Analytics
Sensors at a US-Canadian border detected a truck carrying radioactive material entering the US in June. However, government inspectors did not check the sensor readings until days after the truck
passed. Now the shipment (somewhere in the US) is unaccounted for, and its purpose unknown. In addition to the risk incurred, consider the costs of locating the truck versus stopping it at the
border in the first place. Enterprises must heed high-profile lessons like this to appreciate how important real-time analytics can be to their corporate well-being, but how little use
analytics are if not integrated into operational processes. Doug Laney
Integrated Analytics Require “Deep Analytics” or “Data Primacy”
Although most BI vendors are headed down the “integrated analytics” path, they have the disadvantage of owning neither the “deep analytics,” such as SAS and SPSS data mining and predictive
models, nor the data primacy/ownership that the mega ERP and CRM package vendors enjoy (Oracle, PeopleSoft, SAP, Siebel). By 2004/05, the dominant vendors for integrated analytics
will include: Business Objects, Cognos, Hummingbird, Oracle, PeopleSoft, SAP, SAS, and Siebel – with each of these vendors dominating certain vertical industries. Niche vendors will thrive by
targeting specific industries (e.g., SpotFire in pharmaceutical and oil and gas, Manugistics in warehouse management). Aaron Zornes
“Integrated Analytics” for Breakthroughs in Corporate Decision-Making Capabilities
Increased competitiveness and other business decision-making pressures related to economic stress are mandating that business intelligence (BI) deliver information to the people who need it now.
The marketing “noise level” will increase markedly in 2002/03, due to vendors jumping on the marketing bandwagon for “integrated analytics,” as each BI vendor attacks the others’ technical
features (e.g., Business Objects, Cognos, SAS). Through 2003, “integrated analytics” will increasingly amalgamate BI components into a single, end-to-end analytical framework
that can serve all the diverse user requirements across the enterprise to solve specific decision management problem areas. Aaron Zornes
BI Marketplace Challenged to Deliver “Integrated Analytics”
Enterprises can increasingly standardize on business intelligence (BI) platforms to deploy high-value BI enterprisewide – generating higher levels of productivity and efficiency than ever before.
Increasingly, the key BI market differentiator will be the degree of “integrated analytics” via support for: online analytical processing (OLAP); enterprise reporting; shared
metadata; a common, customizable Web portal; and support for business workflow. By 2004/05, the dominant vendors for integrated analytics will include Business Objects, Oracle, PeopleSoft, SAP,
SAS, and Siebel – with each of these vendors dominating certain vertical industries. Niche vendors will thrive by targeting specific industries (e.g., SpotFire in pharmaceutical and oil and gas).
Aaron Zornes
BI and Mega Applications: When Worlds Collide
Enterprises have invested millions of dollars/euros in ERP, CRM, and SCM solutions, yet remain frustrated by their inability to receive aggregated, timely information from their new
operational systems. The mega-application vendors are increasingly competing on the basis of embedded analytics (e.g., Oracle’s “virtual close,” PeopleSoft’s Enterprise Performance
Management, SAP’s Business Information Warehouse, Siebel’s eBusiness Data Warehouse). These vendors also show a determination to compete aggressively with their former BI partners and optimize
the revenue capture associated with these formerly add-on capabilities. During 2003/04, the intersection of “analytics” and “application packages” will be of great interest to all software
vendors, systems integrators, and investors in these two dynamic, churning markets. Aaron Zornes
Closed-Loop BI via Business Workflow Support
When vendor analytical solutions share data models and look/feel, analytics can be leveraged within a common business workflow as a competitive advantage. With its nQuire
acquisition, Siebel is positioned to include such workflow, as are startups Apama, e.Intelligence, and Siperian. Classic rules engines are also increasingly integrated into “analytic platforms”
(e.g., Fair, Isaac & Company [via the HNC Blaze Advisor rules engine]; and DWL partnering with ILOG). Users need to analyze business intelligence (BI) data, and then e-mail reports/OLAP cubes
to other users instantly or schedule/export reports for regular delivery in Excel, PDF, or HTML formats. BI vendors Actuate, Crystal, Hummingbird, and MicroStrategy have strong capabilities in the
latter area. By 2004/05, such simplified information sharing will provide a full capability to create and share BI insight in corporate decision making. Aaron Zornes
Used by permission of Doug Laney, META Group, Inc.
Copyright 2002 © META Group, Inc.
