Business Analytic Trends 2020 Vision

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1 Business Analytic Trends 2020 Vision Dan Sommer Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."

2 From Bits to Bytes Reimagination of Nearly Everything Business Models, Politics, The Economy, Trade, Computing Devices, Operating Systems, Connectivity, News, Information Flow, Storage, Magazines, Money, Payments, Knowledge, Note-taking, Transportation, Funding & Lending, Recruiting, Production, Education, Thermostats, Music, Shopping

3 Big Data Confusion - Hurting BI Spend #GartnerSYM 2

4 Analytics Will Be Central For Business Model Reinvention 2012 $65B +8%* 2016 $85 Billion 7% CAGR 2020 $112 Billion? BAM, CEP; 0,8 Other; 2,9 BAM, CEP; Data 0,5 Warehouse ; 12,3 CRM Analytics; Data 1,3 Integration, BI Data Platforms, Quality; 3,7 CPM, Analytic Apps; 13,1 Other; 2,4 BI/DW Services; CRM 32,0 Analytics; 1,9 Data Integration, Data Quality; 5,5 Data Warehouse; 16,9 BI Platforms, CPM, Analytic Apps; 17,1 BI/DW Services; 40,2 Analytics Everywhere Based on All Data At the Point of Decision or Action *estimate

5 Analytics Everywhere: IT Must Lay the Foundation Percentage of Potential Users That Analytics Will Reach 100% 75% 50% Today 30%+ 25% (driven by IT)

6 IT Budgets Are Constrained $ $ $ $ $ $ $ $ % $ % $ % + 2.7% + 3.1% + 3.3% $ % + 0.5% % - 0.5% n = >2000, CIO Survey - 8.1% 2009

7 Traditional ways of doing BI going out of fashion (Poor) Usability (Lack of) Speed (Limited) Relevance

8 The Disruption of Data Discovery (Poor) Usability (Lack of) Speed (Limited) Relevance "An intuitive interface, enabling users to explore data without much training." "A built-in performance layer that obviates the need for aggregates, summaries and precalculations." "A proprietary data structure to store and model data gathered from disparate sources."

9 Analytics Everywhere: Reaching the 50% Point by 2014 Percentage of Potential Users That Analytics Will Reach 100% 75% 50% (depart mental) %+ today 25%

10 "If There Were a Single Market Theme in 2012, It Would Be That Data Discovery Became a Mainstream Architecture" challengers leaders Tableau Software Microsoft ability to execute Prognoz Bitam Board International Jaspersoft Pentaho Targit arcplan LogiXML Birst Actuate QlikTech Oracle IBM SAS MicroStrategy Tibco Spotfire Information Builders SAP Panorama Software Alteryx Salient Management Company GoodData niche players visionaries completeness of vision As of February 2013 From "Magic Quadrant for Business Intelligence and Analytics Platforms," 5 February 2013 (G )

11 2013: The Worlds Collide high Desktop/Small Workgroup Business Unit Change/Agility Enterprise/IT low high Integration = Analytical Capabilities low

12 Pick Your Analytic Flavor Procurement Sustainability Megavendors: SAS, Oracle, FICO Churn Price Optimization Market Basket Credit Risk System Integrators: IBM, Deloitte, Accenture, Cognizant SaaS and Data as a Service: Visier, IMS, Reuters, Nielsen Workforce Claims Fraud Independents: Claim Insights, Innovation Group, Insurity, MSB Warranty Analytics CPM Profitability By 2017 Analytic Applications offered by software vendors will be indistinguishable from Analytic Applications offered by service providers.

13 A Whole New Set of Users Will Be Tapped, Percentage of Potential Users That Analytics Will Reach 100% 75% Person 50% Today 25%

14 2014 and Beyond: So far, limited uptake at the enterprise 80 Percent of Social Business Efforts Will Not Achieve Intended Benefits Through 2015 Only 11% actively using, but another 50% piloting or planning to deploy Only 3% of BI revenue. 67% have no intention to deploy in the cloud 1:16 software:services ratio. Less than 3% of BI software spend was driven by "Big Data"

15 The Nexus of Forces Enable Personal Analytics Peer Influence Pervasive Access Easy Adoption Quantified Self

16 Is Your Company Tapping Into Quantified Self?

17 Microsegmenting the Customer Will Bring the Next Billion The CMO will spend more on IT than the CIO. Every budget will be an IT budget.

18 The Era of Predictive Only 11% of organizations today do advanced analytics Emergence of the CDO and Data Science is a reaction to consumerization of analytics New vendors emerge to challenge the hegemony of SAS

19 Analytics Will Reach the Pervasive Point After 2020 Percentage of Potential Users That Analytics Will Reach 100% 75% 50% Today 25%

20 2020: Internet of Everything Courtesy of Intel

21 2020: Your Future Decision Support Team?

22 2020: Crowdsource Your Analytic Problem and Innovation Source: Apple Source: IBM

23 A Great Deal of Money Is Chasing This Space

24 A Great Deal of Money Is Chasing This Space Despite ongoing consolidation and acquisitions by megavendors, new categories of analytic applications will continue to emerge, resulting in more, not less, market fragmentation.

25 Conclusion: All Working Together Creates the Transformational Analytic Enterprise Optimization: Analytics everywhere, on all data, at the point of decision/action. Consumer/Customer: Cloud/social/mobile/ information becomes mainstream. Business: Analytics broadens and becomes widespread acceptance with new usage paradigms, such as data discovery/packaged apps/operational BI Device/Language/Algorithm: Prescriptive/Optimization 100% Consumer/Individual: Predictive 75% of Usage Business: Diagnostic 50% of Usage Today IT: BI projects remain shielded from cuts; further embedability. IT: Descriptive 25% of Usage

26 2020: Analytics at the centre Applicationscentered today Business analyticscentered tomorrow Analytic Capabilities Business Applications Business Applications Analytic Capabilities Analytic Capabilities Analytic Capabilities Business Applications Business Applications

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