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    Market Demand for Business Intelligence and Performance Management in 2007

    By
    eWEEK EDITORS
    -
    May 28, 2012
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      1Market Demand for Business Intelligence and Performance Management in 2007

      1

      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.

      2Market Demand for Business Intelligence and Performance Management in 2007 – The Big Picture

      2

      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.

      3Market Demand for Business Intelligence and Performance Management in 2007 – The People Picture

      3

      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.

      4Market Demand for Business Intelligence and Performance Management in 2007 – Break it Down

      4

      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.

      5Market Demand for Business Intelligence and Performance Management in 2007 – Deeper Dive

      5Apps 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: $

      6Market Demand for Business Intelligence and Performance Management in 2007 – The Basics

      6

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

      7Market Demand for Business Intelligence and Performance Management in 2007 – BI/PM expansion in 2007

      7

      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.

      8Market Demand for Business Intelligence and Performance Management in 2007 – Stalled Initiatives

      8Here 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

      9Market Demand for Business Intelligence and Performance Management in 2007 – Anomalies

      9

      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

      10Market Demand for Business Intelligence and Performance Management in 2007 – Challenges Ahead

      10More 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
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