Business Analytics and Big Data. Computerworld March 2012 Survey Results

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1 Business Analytics and Big Data Computerworld March 2012 Survey Results

2 Purpose & Methodology Survey Sample Survey Method Field Work 1/24/12-2/21/12 Audience Base Computerworld Online Collection Number of Questions Online Questionnaire 25 (incl. demographics) Survey Goal The goal of the study was to assess the adoption and deployment patterns of business intelligence and analytics solutions COMPUTERWORLD 2

3 Respondent Profile Total Respondents Organization Size IT Leadership 111 Average Company Size Top Represented Industries 5,306 employees 100% of survey respondents are involved in the acquisition of BI & Analytics solutions at their organization Professional services (e.g., business, legal, engineering) 27% Job Title Breakdown Sr. IT management 12% Mid-level IT management 47% IT professionals 4% Business management 35% Other 2% Healthcare facilities or services Insurance Education 7% 11% 10% 2012 COMPUTERWORLD 3

4 BIG DATA 2012 COMPUTERWORLD 4

5 Big Data: More than Sheer Volume 50% 50% 11% 11% Large amount of data (volume) High-speed data processing or streaming data (velocity) Multiple data types or formats (variety) 50% All of the above Q. What does Big Data mean to you? 2012 COMPUTERWORLD 5 Source: Computerworld BI and Analytics Survey Research Group IT Survey, 2012, Source:/Notes: N = 111

6 Data Store Sizes Continue to Grow Rapidly 1 PB or more 4% 100 TB - < 1 PB 14% TB 7% TB 10% TB 9% TB 14% GB 3% GB 6% 1-99 GB 18% Don't know 15% Q. What is the size of your largest data store? 2012 COMPUTERWORLD 6

7 Variety of Data Being Captured/Analyzed Transactional data 72% Text from non social network sources e.g. , forms, etc. 38% Machine or device generated sensor data Web logs (click stream) Video Audio 21% 16% 36% 35% 10% of respondents capture & analyze ALL data types Chatter on social networks unstructured data 15% GPS data from mobile devices 10% Q. What types of data are being captured and analyzed in your organization? 2012 COMPUTERWORLD 7

8 Relational Databases Used for Growing Data Stores 100 or more TB 1% Relational databases 62% TB TB 1% 6% Document Store 11% TB 2% Graph Databases 5% TB 11% Hadoop or other file system 3% GB GB 13% 63% Key value stores 1% 1-99 GB 34% Other 1% Q. How much is your largest data store growing per month on average? It is growing by Q. What is the technology used for this largest data store? 2012 COMPUTERWORLD 8

9 Majority Realizing Value to be Gained from Real-Time Data Capture No 27% No, but evaluating investment in real-time data capture 23% Yes 40% Don't know 11% Q. Has your organization benefited from real-time data capture, monitoring, and analysis? 2012 COMPUTERWORLD 9

10 Only One-Quarter Use BI & Analytics Tools Now 30% 26% 20% 11% 14% 1 = Pockets of regular use in some departments = Wide-spread reliance on BI/analytics on a daily or ongoing basis Q. How pervasive is the use of BI/analytics technology and processes in your organization? 2012 COMPUTERWORLD 10

11 Decentralized Self-Service BI and Analytics and Centralized Information Management CONTROLLED EMPOWERMENT 2012 COMPUTERWORLD 11

12 Organizational Structure:: Centralized vs. Decentralized Data warehousing technology 60% 21% Data integration 57% 29% BI or analytics technology 47% 32% Data Governance 46% 28% Analytic services 41% 43% Centralized Distributed throughout the organization Q. How are the following BI and analytics related functions established in your organization? 2012 COMPUTERWORLD 12

13 Decentralized Analytics Group Strategy Favored No 38% Don't know 5% We outsource the quantitative analysis function 7% Yes 51% Yes, we have quantitative analysts across business units (decentralized) 32% Yes, we have a separate group (centralized) 19% Q. Does your organization have an analytics group consisting of quantitative analysis staff with expertise in data mining, statistical modeling or predictive analytics? 2012 COMPUTERWORLD 13

14 Self Service Functionality Provided by Most Add new metrics, KPI s, calculations 32% Change layout or formatting of user interface 25% Add new data source 24% Business users are not provided with self-service functionality 30% None of the above 16% Q. Which of the following, if any, self-service functionality do business end users of BI/analytics software in your organization have access to? 2012 COMPUTERWORLD 14

15 RESULTS, ROI, SATISFACTION 2012 COMPUTERWORLD 15

16 BI & Analytics Solutions Leave Room for Improvement Ranking Overall satisfaction with our business analytics capabilities 8% 21% 44% 23% 5% 2.95 Ability to deliver the right information to the right people at the right time 5% 28% 41% 21% 5% 2.95 Functionality and features 5% 21% 46% 21% 8% 3.07 Price 12% 23% 43% 14% 7% 2.82 Support from vendor 6% 17% 47% 23% 6% 3.06 Performance (speed of response) 8% 15% 49% 20% 8% 3.05 Usability (intuitive to use) 9% 25% 41% 17% 7% = Not at all satisfied = Very satisfied Q. How satisfied are you with the following aspects of your organization s BI and analytics solution? 2012 COMPUTERWORLD 16

17 ROI Measurement Key Area to Focus On Immediate ROI 7% Within 3 months 9% Within 6 months 15% Within 12 months 14% Over 12 months 5% Nearly 50% find it difficult to determine ROI or don t know average time to ROI Q: What is the average time to ROI of a BI/analytics technology deployment in your organization? 2012 COMPUTERWORLD 17

18 Customer Related Services Top Priority Customer acquisition Customer retention Internal process optimization Product/Service Innovation Workforce optimization Compliance Supply chain optimization = Very important; 1 = Not at all important Q. Please rate the importance of the following initiatives for BI/analytics projects in the next 12 months COMPUTERWORLD 18

19 BI & Analytics to Increase for Execs, Power Users Executives 4% 8% 44% 33% 11% Power users 4% 6% 45% 23% 23% Information consumers 3% 6% 49% 26% 16% Mobile BI Users 5% 6% 50% 28% 11% 1 = Decrease significantly 2 3 = Keep same # of users 4 5 = Increase significantly Q. To what extent are you planning to make BI/analytics technology available to new/additional users in each of the following categories over the next 12 months? 2012 COMPUTERWORLD 19

20 Visualization Needs Improvement Better visualizations 30% Ability to do scenario evaluation, what-if analysis 21% Support for collaboration 20% Faster response time 16% Better interactivity 14% Q: Which of the following would you most like improved from your current BI/Analytics software? 2012 COMPUTERWORLD 20

21 TECHNOLOGY 2012 COMPUTERWORLD 21

22 Broad Spectrum of Investments Planned Relational database 73% 9% 7% Search index 51% 15% 18% Rules Engines 33% 20% 25% Columnar or column-oriented database 30% 15% 27% Document Store (MondoDB, SimpleDB, CouchDB, etc.) 28% 10% 31% Complex Event Processing 23% 21% 33% In-memory database 22% 18% 27% Data warehouse appliance that combines software and hardware into a single pre-configured bundle 21% 15% 36% Key Value Stores (Cassandra, Dynamo, BigTable, etc.) 13% 13% 44% Hadoop 11% 17% 44% Have already done Planning to add within 12 months No plans Q. Does your organization use or have plans to deploy the following technologies? 2012 COMPUTERWORLD 22

23 Spreadsheets Most Frequently Used Tool in BI & Analytics Spreadsheets 3.91 Text mining or other content analysis 2.96 Rules engine 2.71 Complex event processing 2.62 Rich media (image, audio, video) analysis software 2.53 Geospatial/GIS 2.13 Hadoop 2.07 Scale: 5 = Very important; 1 = Not at all important Q. Using the scale provided below, please rate the frequency with which the following tools are part of business intelligence & analytics solutions you have implemented for your client(s) over the past year COMPUTERWORLD 23

24 On-Premise Software Leading Deployments On-premise software 58% 23% 20% Cloud-based/on-demand (SaaS) 22% 23% 55% On-premise appliance 23% 20% 57% Have already done Planning to add within 12 months No plans Q. Have any BI/analytics/DW projects been deployed in the following fashion at your organization? 2012 COMPUTERWORLD 24

25 CHALLENGES: INCLUDING SKILLS SHORTAGES 2012 COMPUTERWORLD 25

26 IT & Business Have Different Views of Challenges Data integration Managing data quality 51% 48% Defining business requirements 74% Cost of technology Lack of sufficiently skilled IT staff Data governance 34% 47% 47% Lack of sufficient number of staff with analytics skills Securing budget 70% 61% Evaluating appropriate technology Keeping up with system performance requirements High ongoing technology maintenance costs 28% 24% 21% Agreeing on KPIs, metrics Finding executive sponsors 53% 41% Q: What are the top IT challenges to delivering a successful business analytics solution? Q: What are the top business challenges to delivering a successful analytics solution in your organization? 2012 COMPUTERWORLD 26

27 Majority Perform Data Analysis for Clients 5 = Very frequently 24% 1 = Never (we do not provide this type of service) 4% 2 = Rarely 11% 3 = Sometimes 29% 4 = Frequently 31% Q. How frequently are you engaged in projects where your staff performs data analysis for the client? 2012 COMPUTERWORLD 27 Source: Computerworld BI and Analytics Survey Research Group IT Survey, 2012, N = 45 services firms

28 Demand for BI & Analytics Skills Increasing Decreased more than 10% Decreased 5-10% Decreased less than 5% 2% 2% 4% 4% 4% No change 31% 36% Increased 5-10% Increased less than 5 % 16% 16% 13% 16% Increased more than 10% 22% 33% Next 12 months Past 12 months Q. How has the number of people employed by your organization with skills to consult, design, develop, or implement business intelligence and analytics technologies changed? 2012 COMPUTERWORLD 28 Source: Computerworld BI and Analytics Survey Research Group IT Survey, 2012, N = 45 services firms

29 Advanced Analytics Skills In Demand & Hard to Find Skills Required Difficulty Finding Skills (1 = very difficult; 5 = very easy) 69% Advanced analytics/ predictive analytics % BI tools % Data Integration % Project management % 22% Industry/business process expertise Rules management % 20% Complex event processing Master data management % Data warehousing 3.0 Q. What type of skills are you looking for most over the next 12 months? Q. How difficult it is to find talent with the following skills? 2012 COMPUTERWORLD 29 Source: Computerworld BI and Analytics Survey Research Group IT Survey, 2012, N = 45 services firms

30 Conclusions Beyond sheer volume, Big Data can mean velocity of data and variety of data as well. A variety of types of data are being captured/analyzed. A majority of organizations have analytics groups with a decentralized format of spreading analysts throughout business units favored. Satisfaction with current BI & Analytics solutions is relatively low, leaving room for improvement. On the business side, most organizations don t know what to do with BI & analytics, and therefore, don t know how to measure the results they may see. Vendors can help IT communicate the benefits and create more user-friendly tools. BI & Analytics provide the most value when it comes to customer related services. Advanced analytics skills are most needed, but also the most difficult to find COMPUTERWORLD 30

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