Analysts forecast the global Business Intelligence market to post a CAGR of more than 10% by 2020, according to a recent report.
A research study by Technavio states that growth in the Business Intelligence market is mainly driven by an increase in the volume of data generated from social networking sites.
According to the report, business intelligence is a set of tools and techniques used to transform raw data into meaningful information for critical business decision-making process. “It helps users analyze data, receive information from various channels or business activities, and use the information in organizational opportunities and to improve business efficiency,” states leading enterprise application research analyst, Amrita Choudhury.
Analysis brings forth the technological segmentation of business intelligence market, which include traditional BI, mobile BI, cloud BI, and social BI. Of these four segments, the traditional BI segment accounted for the majority of market in 2015, with close to 60% market share.
The Americas was categorized as the largest BI market in 2015 and the region will continue to dominate the market over the next four years. The high adoption of cloud BI is the major contributor to the growth of this market, recording a revenue of nearly USD 6 billion in 2015.
The three major factors driving the global business intelligence market according to analysts are:
- Growing adoption of data analytics
- Increase in data availability
- Increased implementation of cloud BI by SMEs
Growing adoption of data analytics
The report specifies the growing adoption of data analytics by organizations is to maximize their profits, increase revenue, and save costs. Data analytics helps eliminate the major work involved in understanding customers and in the data tracking process and also helps organizations attract new customers and analyze data patterns to serve existing customers well and retain them. With the use of data and customer analytics, various activities can be undertaken such as direct marketing, CRM, and collecting information regarding buying patterns of new customers.
“Using data analytics in the cloud to track social media traffic engagements for example, help organizations understand their customers better and provide them with customized services,”
Increase in data availability
Social media platforms and social networking sites generate a large volume of data, which continues to increase over the years. The majority of corporate data sources include data generated by enterprise applications as well as newly generated cloud-based data, social network data, and enterprise data. These data must be accessible as an extension to the corporate information framework and should be made available for analysis to inform critical business decisions. This is when BI tools are useful, as they are used in the retrieval and analysis of these vast and growing volumes of diverse data.
Increased implementation of cloud BI by SMEs
According to Technavio analysts, organizations worldwide are rapidly adopting cloud computing technologies to reduce their costs and manage enterprise IT infrastructure efficiently, thus enabling organizations to concentrate on core activities rather than managing their IT environment. The cloud model also enables easy integration with third-party applications that are often hosted outside the enterprise firewall. Thus, with all these advantages, cloud BI has evolved as an ideal model to serve as a core platform for many enterprise applications.
As SMEs have a constrained budget and a limited number of IT personnel to implement and support on-premises solution, they adopt cloud BI which gives them access to the benefits of BI and at the same time helps them save costs and time.