Business Intelligence Market Intelligence

Industry Outlook & Drivers

Business Intelligence Global Market Outlook:

• The worldwide BI market was valued at $18.3 billion in 2017. The market is forecasted to grow at a CAGR of 7.6 percent between 2017 and 2020, and it is estimated to reach $22.8 billion by 2020
• Regions, such as Europe and North America, have high market maturity, while APAC is expected to experience high market growth
• Key drivers for BI include big data analytics, demand for data-as-a-service, and desire for personalized and self-service BI capabilities. However, implementation cost is a major constraint for the market but the emergence of cloud deployments is expected to mitigate this

BREXIT - Impact on Business Intelligence

Impact Area: IT Service Providers and Buyers

• Talent crunch in specific skills for application development and maintenance, can have an impact on external consultants' billing rates
• The UK technology startups have a significant workforce from EU member states. The UK does not have sufficient math and science graduates to fill positions in application development and engineering

Impact Area: SaaS Service Providers

• The UK remains one of the key destinations for datacenters serving EU clients. Despite the exit from EU, UK companies have to abide by EU General Data Protection Regulations(GDPR) which is set to become law in May 2018
• In addition to local regulations, UK companies managing EU data need to adhere to more stringent GDPR regulations which is expected drive compliance costs

Business intelligence Market Analysis Overview

Business intelligence is an approach that enables access and analysis of information based on data, to improve and optimize business decisions and performance using a fact-based support system. The major components of business intelligence solutions are as follows:

• Data mining
• Statistical analysis and visualization
• Data warehouse/data Mart
• Data sources

Global BI - Drivers and Constraints

Drivers

Increasing need for Big data analytics

• Every day, the volume of big data creation amounts to 2.4 Quintillion bytes. By 2020, the amount of data generated is expected to reach 40 ZB (Zettabyte, i.e., 270 bytes). The exponential growth of data (volume, veracity, velocity) and needs mastering analytics to derive meaningful insights

Predictive/Prescriptive Analytics Tools

• BI analysis has been enhanced through the use of predictive and prescriptive analytics tools. Forecasting, graph analysis, and complex event processing techniques are used to improve the decision-making process

Visual Analytics

• Advanced visual data discovery tools have assisted enterprises in creating interactive dashboards for high volume of critical data

Natural Language Processing boost to self-service

• NLP based search extended to text and voice analytics is starting to gain prominence facilitating topline managers to quickly input analytical queries

Constraints

Digital Ethics

Data security breaches and issues result in a significant loss for enterprises. Cloud BI tools and integration with third-party applications with lack of secure framework may increase potential data breach opportunities

Data Governance

• With the emergence of cloud, there would be increasing cases of fragmented analytics deployments (smaller scale) driven by LOB managers as opposed to centralized IT. This can create challenges in maintaining data governance. Hence suppliers also need to focus on enhancing data audit features

High implementation cost

• Rising demand, complex programming, data integration and growing implementation costs result in price increase, which acts as a constraint in this market. Enterprise BI deployment and associated TCO are one of the barriers in adoption of BI technology by enterprises though this is being mitigated by the emergence of cloud deployments