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Business Intelligence 2014 Gleansight Benchmark Report Business Intelligence Content In 2014 almost all organizations own some sort of business Part 1: Topic Overview intelligence (BI) tools, if only financial software that is capable Part 2: Reasons to Implement of more than cranking out P&Ls and balance sheets. In the Part 3: Value Drivers context of this report, BI will be defined as more than just the Part 4: Challenges technology, but a structured methodology and framework for Part 5: Performance Metrics Part 6: Success Story transforming raw data into meaningful information that informs Part 7: Vendor Landscape business strategy. Seventy seven percent (77%) of respondents reported they were currently using a stand-alone BI technology Sidebars and another 17% reported plans to invest in BI tools by 2015. Survey Stats Benchmark KPIs Core Technologies Gleanster Numbers Vendor Quick Reference Guide The concept of big data has gained considerable traction over the last few years. While most organizations don’t really have a “big data” problem (see the Gleanster Deep Dive on the 3 Tiers of Big Data), 89% of business leaders estimate they regularly use about 30% of the data that exists in their organization for informed data-driven business decisions. While it’s difficult to measure the accuracy of such claims, this theme continues to ripple through BI research over the years – organizations struggle to translate available data into strategic insights in a timely and efficient way. Only a small fraction of respondents indicated their organization was Note: This document is intended for individual currently engaging in sophisticated reporting on finances or customer use. Electronic distribution via email or by marketing segmentation. In fact, far fewer have what could be classified as a posting on a personal website is in violation of the terms of use. well-integrated and architected BI platform, encompassing broad capabilities Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited. Gleansight: Business Intelligence 2 for gathering, storing, merging, themes in the survey data. One, how purging, analyzing and distributing do Top Performing organizations data. The problem is the not the overcome issues with the data tools or technologies, but the quality quality and the perceived accuracy of of the data being analyzed. Both line business intelligence insights? Two, of business decision makers and IT the perceived competitive advantage respondents indicated information derived from business intelligence is frequently scrutinized based on practices. Can you ascertain the accuracy of the data analyzed. insights from business intelligence that improve operational efficiency, The 2014 Business Intelligence increase customer satisfaction, report explores Top Performing and improve business planning? organizations to understand two core Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited. Gleansight: Business Intelligence 3 Survey Stats Part 1: Topic Overview The research findings featured in this Gleansight benchmark report are derived from the Q2 2014 Gleanster Top Performers don’t simply gather and record data. They put it survey on business intelligence. to work. Data helps them optimize their sales, margins, inventory • Total survey responses: 238 and supply chains, informs their customer acquisition and retention • Qualified survey responses: 194 strategies, and identifies new product and market opportunities. • Company size: <$1M (11%); $1 In a time of economic turmoil, BI initiatives stand out for their potential to improve - 10M (23%); $10-250M (34%); corporate performance through better use of the data gathered by disparate $250M - $1B (23%); >$1B (9%) systems. Compared with many organizational IT projects, BI is relatively inexpensive. One of the most important trends in information technology has been • Geography: North America (67%); the emergence of a market for general-purpose business intelligence tools that can Europe (22%); Other (11%) be aimed at any sort of business problem. • Industries: Financial Services (14%); CPG (13%); Most BI vendors sell vertical applications that build on top of their base platform, Education (11%); Healthcare providing a customizable starter set of analytics and dashboards for a given (10%); Government (8%); industry. An automotive sales dashboard, for example, might focus on vehicle Manufacturing (6%); Life Sciences accessory sales according to demographics, whereas a banking dashboard might (5%); Telecommunications graphically show the breakdown in risk and profitability across account types. (4%); Other (29%) Short of these extensions, the foundational value drivers for BI tools are more • Job levels: C-level (24%); SVP/ basic, such as the ability to pull data on the fly from operational systems or analyze VP (34%); Director (29%); the contents of a more neatly organized data warehouse or data mart. This makes Manager & Staff (13%) it possible to create analytic applications that don’t fit neatly in the confines of a packaged software system or that cross-reference data from multiple systems. Sample survey respondents: An oft-cited goal of creating a broad-based BI platform is to achieve “one version of the truth,” by gathering and analyzing data consistently and creating standard Jody Belkowski, World Health definitions for common measures of corporate performance. Unfortunately, this is Organization, Public Health easier said than done. Many large organizations have several competing BI tools James McCormick, Director, in place, and new tools may come into the company over time through mergers, Data Solutions, Technology acquisitions or the purchase of packaged software with its own data handling and analytics formulas as well as presentation methods. In fact, respondents reported Sabahe Mrizag, Manager, an average of two internal BI tools were present inside their organizations. Clear Channel, Media Manager, City of Las Vegas Data warehousing, data mining, and analytic modeling are as much a part of a comprehensive BI strategy as are query tools, dashboards and Web portals, since BI Architect, Charlotte Russe, Retail the results delivered by a query tool are only as good as the databases and data warehouses that feed them. Overtly, the bottom end seems to be under control, what with decades of RDBMS development and legions of database administrators at work around the world. However, most of that work has been put into routinization of traditional business tasks, and business “intelligence” can be anything but routine. Big data can expand into Big Data with more money and hardware, whether in-house or through distributed storage, but regardless must still meet information needs. Note: This document is intended for individual use. Electronic distribution via email or by At the top end – the output of useful information – expansion is more difficult. posting on a personal website is in violation of Information does not scale as smoothly as data, nor is its development as the terms of use. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited. Gleansight: Business Intelligence 4 measurable as data. It demands models and definitions in topical or different ways of thinking about divisional data marts and company- information gathering, distribution, and wide data warehouses. They promote presentation, the latter including mobile standardization of the use of query access. All too often, “big information” tools and integration protocols wherever makes demands that traditional bottom possible, and promote those as criteria end data management methods cannot for selecting new applications. They meet. fight the difficult but necessary political battles needed to extract the information BI is as much about management they need from departments and discipline as technology. Even if the divisions who prefer to hoard and control creation of “stovepiped” systems with data for their own purposes. Finally, their data models can’t be avoided they coach top executives and middle (and often it can’t), Top Performers managers on how to use dashboards seek to reconcile different data effectively. Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited. Gleansight: Business Intelligence 5 Part 2: Reasons to Implement What are Reasons to BI implementations are driven by a variety of immediate business needs Implement? and long-range strategic goals. Organizations in pursuit of operational Reasons to Implement are the excellence are often motivated to promote data-driven decision making. reasons Top Performers invested, Just as often, the move to establish or enhance the BI platform is or plan to invest, in a technology. driven by a recognition of gaps in current analytic capabilities, where These also represent the most information that should be readily available is too hard to obtain. Today, common ways to justify the Top Performers are turning to BI as a source of competitive advantage. investment. Superior operational efficiency, increased customer satisfaction, and improved planning provide the foundation
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