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The top three classic business intelligence and analytics capabilities–dashboards, reports, and self-service analysis–are also the most popular embedded capabilities, each being implemented in at least half of all software applications, according to Logi Analytics’ third annual State of Embedded Analytics Report.
In previous years, self-service analysis ranked third in importance, but this year, it has made the move to the second most popular embedded capability.
A survey of more than 500 business and technology professionals in the United States and United Kingdom revealed that 93 percent of commercial independent software vendors (ISVs) and software-as-a-service (SaaS) providers think embedded analytics have helped them increase revenue.
“Embedded analytics is about making these insights available in the context of where and when people need them, which is inside the applications and processes that they use every day,” Alvin Wong, product marketing manager for Logi Analytics and author of the report, told eWEEK. “This makes users more efficient and gives application providers a way to improve their user experience, driving customer satisfaction and user adoption of the analytic capabilities in their product.”
Almost two-thirds of software application providers embed business intelligence and analytics capabilities into their products. Application providers reported that analytics provides a relative value of about 43 percent of the overall application—a substantial jump from just two years ago when the median relative value was 22.5 percent.
Commercial software and services vendors are charging more for embedded analytics capabilities, increasing pricing on their core product by a median 25%, up from 15% a year ago, according to the report.
The top reason application providers cite for embedding business intelligence and analytics from a third party into their software products is to get to market faster.
Functionality is the top evaluation criteria for embedding third-party business intelligence and analytics products, as it has been every year of the survey.
The biggest change in this year’s report is how industry experience moves from the bottom of the list to the middle of the list, indicating its growing importance.
Inline analytics, where analytic content and capabilities are integrated with the data, security, and UI of the application, is the most popular at 45 percent of all implementations.
Infused analytics, which embeds analytics within the application workflow, was second most popular, with 29 percent of implementations.
Looking at commercial ISVs and SaaS providers, adoption of inline analytics at 53 percent is the same as last year, but infused analytics increased from 22 percent last year to 33 percent this year.
“We also see analytic capabilities becoming integrated deeper within the application user experience and workflow – moving beyond implementing a reports tab as a separate module in the application,” Wong said. “By infusing analytics as a natural part of the workflow of an application, you create a richer user experience, increase user adoption, and create a more unique product offering.”