The Business Intelligence (BI) software industry is quickly emerging as one of the top software categories in terms of market size. With an expected increase of 7.3 percent from 2016, global revenue of BI software is forecast to reach $18.3 billion in 2017, according to Gartner. In addition, Gartner expects global revenue of BI to rise to $22.8 billion in 2020.
We realize that the rise of an analytics-driven industry isn’t exactly breaking news these days, but you may be wondering what these forecasts can mean for you and your business. With BI software leading the way in helping businesses make better-informed decisions, there are a few key points to take note of based on Gartner’s predictions.
Big Data is Bigger than Ever
Why are more and more businesses turning to BI software? The short and easy answer is that we’re living in a data-driven world (a shocking revelation, we know). IDG Enterprise’s Data & Analytics Survey found that 69% of businesses have implemented or are planning on implementing data-driven projects. Nearly everyone in a wide variety of positions uses data in some capacity these days. Whether they’re assessing web traffic or finding patterns in customer behavior, everyone from the social media manager to the office IT guy uses data in their day-to-day business.
Although it’s certainly possible for a business to aggregate and analyze its data in-house, BI software expedites the process and helps businesses find the minute details hidden in their data. Based on the increases we’ve seen in the BI market and the forecasts ahead, it’s safe to say that BI software has become an integral tool to running a successful business.
For a list of the top BI software vendors, take a look at our Business Intelligence Leaderboard.
Real-Time Analytics are Really Important
Information is constantly being collected from all kinds of sources, including everything from social media to wearable devices. With so many ways to gather data related to even the smallest detail of everyday life, businesses have a treasure trove of information at their disposal.
“Organizations will increasingly leverage streaming data generated by devices, sensors and people to make faster decisions.” – Gartner.
BI software helps businesses make sense of data faster than ever, so they can react to the patterns they see in real-time. For example, an ad agency can gauge the performance of, and reactions to a campaign in real-time, so they can decide to either push it more or pull it entirely. Additionally, someone wearing a fitness tracker could be targeted with various dinner recipes based on how many calories they’ve burned that day.
The real-time capabilities of analytics is the new norm, and the rise in the size of the BI software market certainly reflects this trend.
Lots of Uses Leads to Lots of Growth
“Unleashing the insights hidden in unstructured data is providing enterprises with the potential to compete and improve in areas they had limited visibility into before.” – Louis Columbus, Contributor at Forbes.
BI software gives businesses the detailed view of the minutia of their operations that simply wasn’t possible before. IDG’s survey found that some of the leading reasons businesses implement data-driven initiatives include improving customer relationships (55%), changing the way they organize operations (41%) and redefining product development (27%). This variety of applications for BI has led to many businesses overhauling the way they operate. In fact, IDG’s survey also found that 78% of businesses believe that the aggregation and analysis of Big Data can completely change the way they do business. Due in part to the myriad applications that BI software possesses, it’s safe to say that the category will stay on its current growth trajectory for a while.
The nature of running a successful business practically revolves around analytics these days, so business leaders need to keep pace with the related growth and changes. The Big Data industry as a whole is on a strong pace for growth, and the BI software category is more than keeping pace with it. Expect to hear a lot more about BI in the coming years as the sophisticated software we know today becomes even more so.