Market Demand for Business Intelligence and Performance Management in 2007

Market Demand for Business Intelligence and Performance Management in 2007

Spending continues to accelerate in 2007, with $23.8 billion budgeted for software, hardware, labor (both internal and external) and integration services. Modest growth is expected overall, with all categories advancing.

Market Demand for Business Intelligence and Performance Management in 2007 – The Big Picture

Overall BI/PM software spending is expected to grow 8.3 percent from last year to $5.9 billion. Spending on integration services will increase 10 percent to $3.9 billion. Spending for BI/PM hardware will remain flat, or slightly down 0.9 percent to $3.

Market Demand for Business Intelligence and Performance Management in 2007 – The People Picture

Internal labor and headcount allocation is expected to shoot up 13 percent to $7.48 billion. But outsourced services will show the biggest decline, over 21 percent to $2.9B as companies staff internally.

Market Demand for Business Intelligence and Performance Management in 2007 – Break it Down

BI/PM growth in all apps categories will increase 3.6 percent in 2007 to hit $23.8 billion. Analytic applications will bring the biggest growth, expanding nearly 9 percent. BI tools and dashboards will grow at a faster clip than the sector as a whole.

Market Demand for Business Intelligence and Performance Management in 2007 – Deeper Dive

Apps spending shows some double-digit growth high performers.

• PBF +16 percent 2006: $982 million 2007: $1.135 billion
• Dashboards +14 percent 2006: $1.214 billion 2007: $1.368 billion
• Analytics +13 percent 2006: $759 million 2007: $

Market Demand for Business Intelligence and Performance Management in 2007 – The Basics

Core BI software is growing at the average for the market as a whole. Analytic infrastructure is flat to slightly declining.

Market Demand for Business Intelligence and Performance Management in 2007 – BI/PM expansion in 2007

More than one-third (37 percent) of respondents said they planned no BI/PM expansion in 2007. But the other 63 percent plan to push out more functionality to more users, led by PBF software and dashboards & scorecards.

Market Demand for Business Intelligence and Performance Management in 2007 – Stalled Initiatives

Here are the top four reasons why BI/PM expansions may fall.

• Lack of resources to work on projects, 18 percent
• Perceived difficulty in using the products, 14 percent
• Getting management user attention, 14 percent
• Cost of sof

Market Demand for Business Intelligence and Performance Management in 2007 – Anomalies

Add outsourced services and integration together–a proxy for all external staff work–compared to 2006. Aggregate spend is down by only 6.4 percent. Tally all people-related costs (internal and external spending) the budget is expected to grow 2.9 percen

Market Demand for Business Intelligence and Performance Management in 2007 – Challenges Ahead

More reasons BI/PM initiatives could stall:

• Lack of training, 10 percent
• Cost of hardware, 7 percent
• IT backlog, 7 percent
• No clear ownership of processes, 7 percent
• Competing technologies internally, 4 percent