In today’s modern times, businesses tend to generate massive amounts of data, and if proper techniques are applied, the data can prove immensely useful for the business. The various strategies, methods, and technologies used by businesses to analyze large data sets are known as Business Intelligence (BI). The use of business intelligence can help businesses make decisions, identify new business opportunities, streamline processes and more. Business intelligence technologies include data mining, analytics, reporting, business performance management, benchmarking, and predictive and prescriptive analytics. The effective use of BI can help a business gain a competitive edge in the market and gain better stability.
Business Intelligence Market Trends
According to the current business intelligence market trends, the global BI market is estimated to reach a value of $22.8 billion by the year 2020, growing at a Compound annual growth rate (CAGR) of 7.6 percent. Factors driving the growth of the global business intelligence market are increased competition, big data analysis, demand for personalized business intelligence solutions, and data as a service. The high costs of the implementation pose a challenge to the growth of the business intelligence market.
- The major impactful cost components in the implementation of business intelligence are license cost implementation and support costs. Popular cost-saving opportunities in the implementation of business intelligence include consolidation of contracts, minimal customization with pre-built solutions, and engagement with value-added resellers. Emerging engagement strategies are multi-vendor business users that look for self-service data discovery for individual verticals and business functions.
- As more businesses and people move online, the amount of data generated is growing at an exponential rate. With the rise in the sheer volume of data, business intelligence is moving towards data quality management which ensures that the data taken into consideration for decision making is of top quality. Another major trend in the BI market is the incorporation of artificial intelligence that can be used to conduct routine analytical tasks on a large scale with the requirement of manpower.
- Business intelligence has evolved to use data analytics in two major ways, through predictive analytics and prescriptive analysis, both offering significant benefits to businesses. Predictive analytics examines past data to identify future probabilities in terms of consumer behavior so that the business can be prepared accordingly. In comparison, prescriptive analytics uses data to identify the possible decisions for a business, by mapping the possible outcomes, aiding businesses to make careful decisions.
Business Intelligence Market Global Outlook
As more businesses move towards globalization and expand across borders, business intelligence is growing as well. Globalization results in a greater competition since the business will also be competing against local and regional companies, in which case business intelligence can prove to be a great asset.
- Regions with high market maturity for business intelligence are the U.S., the U.K., Germany, Australia, and Japan where the BI market is expanding with the advent of cloud, mobile and social business intelligence solutions.
- Medium market maturity regions are China, India, Brazil, and Canada, while the overall APAC region is expected to have a high market growth rate. Increased adoption of business intelligence solutions by small and medium-sized businesses across the world is also expected to drive the business intelligence market at a global level.
Business intelligence is evolving to become an important part of any business, especially in the modern age of massive data collection and immense competition. The market continues to adopt new trends and technologies in a bid to beat competitor companies and offer customers the best service. The global outlook of business intelligence is positive, with the expansion of cloud, mobile and social business intelligence.