New Zealand businesses are set to spend $92.3 million on global business intelligence (BI) and analytics software in 2016, as the market value increases 8.1 percent from 2015.
Latest forecasts from Gartner suggest that Kiwi organisations are ahead of the curve on a global scale, beating predicted revenue growth of 5.2 percent across the world.
With the Australian market also set to hit AU$960 million, up 9.1 percent from last year, the BI and analytics market is in the final stages of a multiyear shift from IT-led reporting and analysis systems to what Gartner terms the “modern BI and analytics platform”.
Consequently, trans-Tasman businesses are shifting focus away from big data towards advanced analytics, leading Gartner to cite business intelligence and analytics as top technology priorities for CIOs and IT decision markers during 2016.
“The shift to the modern BI and analytics platform has now reached a tipping point,” says Ian Bertram, Managing VP, Gartner.
“Organisations must transition to easy-to-use, fast and agile modern BI platforms to create business value from deeper insights into diverse data sources.”
The democratisation of analytics
Bertram says that as analytics has become increasingly strategic to most businesses and central to most business roles, every business is an analytics business, every business process is an analytics process and every person is an analytics user.
“It is no longer possible for chief marketing officers (CMOs) to be experts only in branding and ad placement,” Bertram adds.
“They must also be customer analytics experts. The same is true for the chief HR, supply chain and financial roles in most industries.”
To meet the time-to-insight demanded by today's competitive business environment, Bertram believes many organisations want to democratise analytics capabilities via self-service.
Defining the modern BI and analytics platform
Bertram says the most significant difference between a modern BI and analytics platform and a traditional, IT-centric reporting and analysis platform is the amount of upfront modelling required, as well as the skills needed, to build analytics content.
Creating analytics content via IT-centric reporting platforms starts with IT consolidating and modelling data in advance.
By contrast, a modern BI&A platform supports IT-enabled development of analytics content.
“To get the full benefit of modern BI and analytics platforms, leaders must rethink most aspects of their current IT-centric, centralised analytics deployments, including technology, roles and responsibilities, organisational models, governance processes and leadership,” Bertram adds.
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