Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics and Data Management Study

1. Icebergs, Gold, and Foundations:
Insight from TBR’s BI/Analytics and Data
Management Study
TBR Webinar Series
Spring 2012
Original Webinar Date: April 4, 2012
Presenter: Allan Krans, Senior Analyst,
Software Practice (allan.krans@tbri.com) TBR
T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .

2. TBR
Today’s Presenter
Allan Krans
Senior Analyst, Software Practice
Technology Business Research, Inc. (TBR)
Email: allan.krans@tbri.com
2 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

3. Executive Summary: TBR Position TBR
The forthcoming surge of BI investment, driven by business growth, will
create opportunity from the data foundation up
BI/Analytics Market Opportunity Summary
1. Current adoption is the tip of the iceberg
Pressure is growing for laggards to regain competitive ground
2. Business expansion is the most important BI outcome
Opportunity is the lure of investment
3. Data quality separates mature from immature users
The data quality foundation is the center of customer success and
vendor opportunity
3 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

4. Study Methodology and Information TBR
TBR surveyed and interviewed 410 end users to create an accurate customer
maturity model and provide an intimate look at the opportunity
TBR’s BI & Analytics Platform Maturity & Purchasing Study Methodology:
• TBR conducted interviews and surveys across two business size segments and six industry
categories in N. America between December 2011 and January 2012:
• 350 online surveys with BI & Analytics and Data Management purchase decision-
makers (CIO, C-1 and C-2 levels, LOB and Executive IT mgmt)
• 60 in-depth interviews with key BI & Analytics and Data Management purchase
decision-makers (CIO, C-1 and C-2 levels, LOB and Executive IT mgmt)
• Business Segments
• Mid-market (500-2,500 employees)
• Large enterprise (2,501+ employees) segments
• Industries
• Communications and Media
• Industrial
• Financial Services
• Life Sciences
• Retail & Distribution
• Public Sector
4 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

5. Executive Summary: Current Adoption TBR
The race of immature firms to improve their capabilities will shift and
expand the playing field for BI over the next three years
BI/Analytics Market Opportunity Summary
Immature – lower current BI investment Mature – larger current BI investment
Lagging Improving Leading Slipping
Immature & Mature & incremental Mature & limited
Immature &
plans for both plans to invest future investment
limited plans to
basic & advanced plans
invest
BI
20% 35% 25% 20%
BI/Analytics Maturity
5 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

6. Executive Summary: Current Adoption TBR
Maximizing existing solutions lays the groundwork to move customers
forward with additional investments
BI/Analytics Market Opportunity Summary
Maturity Stage Offering Needs
Immature & limited plans Road mapping, data management, change
Lagging management, integration
to invest
Immature & plans for both
Improving basic & advanced BI
Consulting, business planning, ROI evaluation
Mature & incremental Extend solutions to encompass new and
Leading plans to invest emerging technologies
Mature & limited future
Slipping investment plans
Squeeze value from existing investments
6 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

7. Executive Summary: TBR Position TBR
The forthcoming surge of BI investment, driven by business growth, will
create opportunity from the data foundation up
BI/Analytics Market Opportunity Summary
1. Current adoption is the tip of the iceberg
Pressure is growing for laggards to regain competitive ground
2. Business expansion is the most important BI outcome
Opportunity is the lure of investment
3. Data quality separates mature from immature users
The data quality foundation is the center of customer success and
vendor opportunity
7 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

8. Executive Summary: Business Expansion TBR
Connecting BI and Analytics directly to customer business growth and
opportunity identification opens the door to sales conversations
BI/Analytics Market Opportunity Summary
Who uses? How? For what?
… to make better decisions … creating business
more quickly … opportunity and growth.
BI enables sales & finance …
“…it is very important to locate hidden areas of potential growth ... and to
organize the data to trap the future opportunities.” - CIO, MM Communications and Media
8 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

9. Executive Summary: Business Expansion TBR
The concentration of BI in sales & finance activities highlights the
business growth customers expect BI to enable
BI/Analytics Market Opportunity Summary
TBR Functions in which Purchasers are using BI
60%
Sales and finance
50% functions
40%
30%
20%
10%
0%
9 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

10. Executive Summary: Business Expansion TBR
Vendors can capture business by tuning offers and messaging against
specific buyer types, especially “improving” and “leading”
BI/Analytics Market Opportunity Summary
Lagging Improving Leading Slipping
Product & Service Needs & Opportunity
• Discrete product • Shared risk • ROI identification & • Support &
advancement with engagements tracking maintenance
clear ROI • Road mapping • Data quality • Data quality products
• Consulting to • Integration of basic & products & services & services
increase customer advanced products • Integration with • Demonstration of
orientation existing assets business case & exec
• ROI identification &
tracking buy-in
10 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

11. Executive Summary: TBR Position TBR
The forthcoming surge of BI investment, driven by business growth, will
create opportunity from the data foundation up
BI/Analytics Market Opportunity Summary
1. Current adoption is the tip of the iceberg
Pressure is growing for laggards to regain competitive ground
2. Business expansion is the most important BI outcome
Opportunity is the lure of investment
3. Data quality separates mature from immature users
The data quality foundation is the center of customer success and
vendor opportunity
11 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

12. Executive Summary: Data Quality TBR
Mature BI users must make the leap, moving from a human-centric
enterprise to a data-driven enterprise
BI/Analytics Market Opportunity Summary
"The way we worked has changed … management feels more confident
and are taking more calculated risks, and more importantly, we are
expanding rapidly.“ – Senior Director, IT – MM Life Sciences (High BI Maturity Organization)
Human-centric decision making Data-centric decision making
Intuition leads, data is pulled in Data informs and guides
over time to support decisions decisions more proactively
12 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

13. Executive Summary: Data Quality TBR
To drive the adoption of BI in less mature accounts, vendors can tie the
importance of data management and quality to BI success
BI/Analytics Market Opportunity Summary
Lagging Improving Leading Slipping
Data quality programs ranked as the …
4th most 3rd (tied) most 1st most important 1st most important
important BI important BI BI success factor BI success factor
success factor success factor
Vendor reinforcement of data quality importance
13 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

14. Questions TBR
Questions?
Allan Krans
Senior Analyst, Software Practice
Technology Business Research, Inc. (TBR)
Email: allan.krans@tbri.com
Twitter: allankrans
Youtube:
http://www.youtube.com/user/TBRIChannel?feature=
mhee
14 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

15. Associated Research and TBR Contacts TBR
Customer and Business Model Review Research
TBR BI & Analytics + Data Management Platforms Study
TBR High Performance Adoption Study
Report focuses on four key workloads including
BI/Analytics and Data Warehousing
Public Cloud Adoption Study
Report focuses on workload based adoption including
cloud based BI
Software Industry Benchmark
• Business Performance Ranking and Benchmarking
• Quarterly Report analyzing the previous quarters
performance on metrics like: operating margin,
growth rate, go-to-market strategy and more.
Contact James McIlroy at mcilroy@tbri.com
for more information
15 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

16. TBR
Appendix
16 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

17. Study Overview: Key Questions TBR
Understanding customers’ current BI maturity highlights the opportunity
in leading them toward aspirational maturity
Key Research Questions & Methodology
Current Maturity:
• What scenario led you to invest?
• What buying criteria helped you to select a vendor?
• Which vendors did you consider? How did you choose your final vendor?
• What professional services were attached to, or led, the implementation?
Future/Aspirational Maturity:
• What are your key business challenges?
• What are the barriers that impact your ability to achieve your business objectives?
• What technologies are you planning to purchase, and when?
• What are the top BI & Analytics + Data Management technologies or capabilities you believe will
have most impact on reaching your organization’s business objectives over the next three years?
Research Methodology (North America):
• 350 customer surveys across 6 verticals and 2 customer segments (midmarket and large enterprise)
• 60 customer interviews with BI adopters
17 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

18. Study Overview: Demographics TBR
The survey respondent base provides a broad cross section of different
industries and job classifications, looking at …
Survey Respondent Demographics
SURVEY RESPONDENTS N=350 SURVEY RESPONDENTS N=350
TBR conducted 350 surveys and 61 interviews with large enterprise and mid-market segment
respondents, across industries including retail and distribution, life sciences, financial services,
communication and media, public sector and industrial sector.
SOURCE: TBR BI & ANALYTICS AND DATA MANAGEMENT PURCHASING BEHAVIOR AND MATURITY STUDY SURVEY N=350; INTERVIEWS N=61
18 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

19. Study Overview: Demographics TBR
… U.S.-based large enterprises and midmarket companies
Survey and Interview Respondent Demographics
SURVEY RESPONDENTS N=350 IN-DEPTH INTERVIEWS N=61
SOURCE: TBR BI & ANALYTICS AND DATA MANAGEMENT PURCHASING BEHAVIOR AND MATURITY STUDY SURVEY N=350; INTERVIEWS N=61
19 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

20. Study Overview: Demographics TBR
The breadth of BI platform vendors selected for purchase shows disparity
among customer purchasing considerations
Interview Respondent Demographics – BI Vendors Selected
SOURCE: TBR BI & ANALYTICS AND DATA MANAGEMENT PURCHASING BEHAVIOR AND MATURITY STUDY SURVEY INTERVIEWS N=61; TOTAL RESPONSES: 64
20 Icebergs, Gold, and Foundations: Insight from TBR’s BI/Analytics Study Webinar ©2012 Technology Business Research, Inc.

21. About Us Contact Us
Technology Business Research is a leading independent technology market 1.603.929.1166
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T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
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