EIM and BI Market Trends. Affecto CMD

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2 EIM and BI Market Trends Affecto CMD

3 Nordic IT market The Scandinavian countries., which showed some of the highest growth in C&I service based on market share data in 2012, are expected to continue to provide the biggest opportunities for C&I providers in the coming years, albeit at lower growth rates than experienced in (Forecast Analysis: Consulting and Implementation Services, 3Q13 Update 23 September 2013; G )

4 Scandinavia as a growth market has not gone unnoticed.. 3

5 2014 Technology trends 4

6 The Nexus of Forces Extreme Collaboration Pervasive Access Industrialization of IT Data as revenue 5

7 Every Product and Service Will Go Digital Companies must: Discover New Digitalised Products and Services source: Amazon.com source: blucigs

8 Sensor Networks and the Internet of Things "The ability to marry real-time customer data with real-time performance data of our products to me that's the holy grail" Jeffrey Immelt, CEO, GE (Talking about the "Industrial Internet") 7

9 Industrial Internet

10 "SMART" Technologies Sensor Networks and the Internet of Things Maker Machines Augmentation Robotics Thinking Machines 9

11 Top business-improving technology investment. priorities now focus on data and customers Business analytics 61% Enterprise mobility 51% Business process outsourcing Customer experience mgmt (CEM) E-commerce M-commerce Enhanced business reporting Cloud business Electronic service enablement Data science management (Dynamic) business process Social organisation/ mass collaboration Product cost analytics Sustainability 49% 48% 45% 45% 42% 37% 34% 34% 32% 31% 30% 30% Mass customisation 20% 10 N = 71 CEOs & Senior FS Business Executives World Wide Which of the following technology enabled capabilities will be an important area of investment to improve your business over the next 5 years?

12 What Information Do CEOs Want? "If there was one additional regularly updated piece of information you could have to manage your business better, what would it be?" Customer intelligence Intelligence on competitors Sales information Regulatory information Costs Internal financial Industry trends data Workforce and 0% 5% 10% 15% 2012: All CEOs N = 229 Economic data Real time data Geographic market data 11 CEO APAC CEO EMEA CEO NA

13 Creating networks/ecosystems Analytics-as-a-service providers are making statistical and mathematical modeling more accessible. This ranges from staffing skills to managed services. Business leaders wield increasing influence in purchasing decisions and favor managed services in which technology is opaque but outcome is critical. Analytics-as-a-service providers' focus on services puts software vendor offerings at risk when the OEM mindset is not present for embedded ISV technology in service offerings. Enterprise buyers find that core assets, such as logical data models, KPI libraries and predefined data integration touchpoints, bridge the gap of creating methodologies and models from scratch. (Market Insight: Why BI Vendors Should Build Alliances With Analytics-as-a-Service Providers Published: 21 October 2013, G )

14 EIM and BI/BA is about best of breed Gartner recommends reconsidering some long-held best practices. The first of which is the supremacy of "single vendor centricity." Many companies believe that they need to consolidate BI tools down to a single vendor, but the reality is this is not possible in a large organization. There will always be multiple tools from multiple vendors to integrate, report and analyze data. Instead, Gartner recommends a strategy around tool standardization that is less about homogeneity (all from the same vendor) and more about specificity...also, rely much more substantially on external information sources.. (Toolkit: Ten Changes to Maximize the Impact of Your BI Strategy, Published: 28 September 2012, G ) 13

15 Current BI Initiatives are too much concentrated on too few data sources...

16 Widen the Context! 15

17 Data Discovery = USABILITY (lots of graphical interaction) + SPEED (In-Memory Computing) + CONNECTIVITY 16

18 The expanding Data Discovery capability What started as a niche solution Is now offered by all the major vendors SAP Visual Intelligence Oracle Endeca Information Discovery Microsoft PowerView SAS Visual Analytics IBM Cognos Insight Microstrategy Visual Insight Information Builders WebFOCUS Visual Discovery (through Advizor) Source: Gartner, Magic Quadrant Business Intelligence Platforms, 2012

19 Big Data is #1 on the 2012 and 2013 list of most ambiguous terms - Global Language Monitor Gartner's client inquiry statistics show that questions about big data grew by over 500% from 1Q12 to 1Q13, making it one of the three most mentioned topics. A large percentage of clients' inquiries boils down to the question "what is big data and what can it do for my organization? G

20 Big Data = New Business Value Current State Unrealized Business Opportunity and Value Volume: Growing quantity of data Internal systems Untapped data, industry and public data Velocity: Quickening speed of data Weekly or daily Hourly Real-time Variety: Increase in types of data Structured enterprise data Customer discussions, audio and video

21 Analyzing Big Data Leads to Three Categories of Business Opportunities Making better-informed decisions Agco It conducted pattern analysis of thousands of configuration options for farm machinery to determine optimal base configurations and real-time customer demand. It reduced product variety by 61% and slashed days of inventory 81%, while maintaining service levels. Discovering hidden insights Infinity Insurance It text-mined years of adjuster reports to identify key indicators of fraudulent claims. It reduced fraud 75%, and eliminated marketing to customers with a higher likelihood of submitting false claims. Automating business processes McDonald's Bakery operation photo-analyzes over 1,000 buns per minute for color, shape and seed distribution to continually adjust ovens and other equipment. It saves thousands of pounds of wasted product, speeds production and saves energy. 20

22 Big Data Risks and Opportunities Risks Opportunities New technology investments will be required in the emerging area Invest early and wisely to gain competitive advantage People with big data skills are scarce Recruit ahead of the market, and lock in partnerships New ground must be broken, so enterprises will need to be innovative Seek successes in other industries for innovation 21

23 External Internal Data Variety is King WLAN Business Information Economic Census Weather Open Data Public Data Geoinformation Meter s, RFID, GPS Sensor Monitoring Operational Data Transactions Crowdsourcing Market Research Credit Bureaus Commercial Data Data Fusion Communities, Blogs Social Media Data Enterprise "Dark Data" Twitter, Tumblr Reports Contracts Facebook, LinkedIn Structured Unstructured 22

24 Examples... across industry Marketing / Sales Operational / Financial Performance Pricing, New Business Models & Products Descriptive What happened? Dashboards; Reports; KPI s Diagnostic Why did it happen? Website Optimization Predictive What will happen? Sales Forecasting Prescriptive What should I do? 23

25 The future competition is still below the radar.. The "Technology Leaders" in one wave rarely survive to become the technology leaders in the next The "Leaders" who define each wave frequently do not exist in any significant way in the previous wave Launched 1995 Founded 1998 Launched 2004 The Digitalised Life Cycle Is Less Than 10 Years Before REGENERATION Becomes Advisable 24

26 Summary The Nordic C&I market is still growing, although moderately. This brings in new competition the Global League Digitalization of business is transforming business logic and generating new opportunities for BI/BA ICT service providers need to invest on building the right partnerships New, small, best-of-breed service/technology providers are the ones to watch out for!

27 Thank you! Katriina Valli