Analytics Success. Top Factors for Business. Dan Vesset, Program VP, Business Analytics and Big Data Research, IDC September 2012

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1 Top Factors for Business Analytics Success Dan Vesset, Program VP, Business Analytics and Big Data Research, IDC September 2012 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

2 Business Analytics: High Demand In 2011 $30 billion was spent on business analytics software 75% of organizations (with over 500 employees) plan to invest in business analytics solutions over the next 12 months Over $500 million in VC has been invested into Big Data startups in the past few years. Large IT vendors are on a shopping spree for smaller analytics specialists. Source: IDC Vertical IT & Communications Survey, March 2012, n=2400; organizations with 500+ employees Source: CW and IDC Business Intelligence & Analytics Survey, IDC, February, 2012 Source:/Notes: 2

3 Business Analytics Solutions Investment Payoff Q: In general, would you say that your investment in a Business Analytics/Intelligence solution has paid off? Q: What is the average time to ROI of a BI/analytics technology deployment in your organization? Don t know 11% Undetermined; ROI metrics are difficult to determine 25% Don't know 23% Not sure how to measure benefits 36% In 6 months In 12 months 15% 14% No 15% In 3 months 9% Immediate 7% Yes 38% > 12 months 5% Source: IDC Global Technology and Industry Research Organization, 2012, N = 1506 Source: IDC and Computerworld BI and Analytics Survey Research Group IT Survey, 2012, N = 111

4 Top Business Analytics Solutions Shortcomings Q: What are top shortcomings of your Business Intelligence/Analytics solution(s)? The software I use does not provide enough flexibility in accessing/analyzing/manipulating 36% User interface is not intuitive Not all the relevant information is aggregated in a manner that is required Data is not updated frequently enough 31% 30% 30% No support for predictive analytics Data is not granular or detailed enough 27% 25% System performance is too slow 20% Other 12% None 1% Source: IDC Global Technology and Industry Research Organization, 2012, N =1506

5 Top Business Analytics and Big Data Solutions Challenges 74% say defining business requirements is the biggest non technical challenge Data Integration and Data Quality are the top two IT challenges Insufficient number of analytics and IT staff with appropriate skills is a top challenge 25% say deciding what data is relevant is the top Big Data challenge Source: IDC Global Technology and Industry Research Organization, 2012, N =1506 Source: IDC and Computerworld BI and Analytics Survey Research Group IT Survey, 2012, N = 111 5

6 Business Analytics Strategy Q: Does your organization have a stated Business Analytics/Intelligence strategy? 100% 90% 80% 14% 19% 18% 70% 60% 50% 60.2% 48.3% 36.3% Don't know No 40% Yes 30% 20% 10% 25.8% 32.8% 45.9% 0% Total Source: IDC Global Technology and Industry Research Organization, 2012, N = 4177

7 IDC Business Analytics Maturity Model Business Value (ROI, TCO, etc.) Optimization (cost control, efficiency) Innovation (product, service) Control (compliance, security, fraud)

8 Number of Decisions Decision Management Framework Strategic decisions set the long-term direction for the organization, a product, a service, or an initiative and result in guidelines within which operational decisions are made Scope and Degree of Risk Strategic Decisions Operational Decisions Degree of Automation Tactical Decisions Level of Collaboration Tactical decisions must apply the policy or rule in a specific case, which lends itself to automation Operational decisions focus on a specific project or process and result in the formation of a type of policy or rule that drives tactical decisions.

9 Number of Decisions Technology Considerations Strategic Tactical Scope and Degree Rules of Risk based automation Pattern and exception identification Guided navigation Real-time monitoring Tactical Operational Decisions Ad-hoc, exploratory analysis Root cause analysis Operational metrics Granular data from multiple Operational sources and of multiple types Decisions Rapid scenario evaluation Collaboration Simulation Risk management Strategic Profitability Decisions KPIs Collaboration Planning Problem identification, prioritization and alerting Degree of Automation Scenarios and Predictions Level of Collaboration

10 IDC Business Analytics Maturity Model Business Value (ROI, TCO, etc.) Optimization (cost control, efficiency) Innovation (product, service) Control (compliance, security, fraud) Process Technology People Data Intent Tracking Analysis Decisioning Adoption Performance Functionality Skills Org Structure Culture Relevance Quality Availability Strategy Sponsorship Justification

11 IDC Business Analytics Maturity Assessment Process People Data Beginner Novice Veteran Expert Intent Technology

12 Questions, Comments Dan Vesset Program VP, Business Analytics and Big Data Research, IDC Source:/Notes: 12

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