The Death of Business Intelligence

Business intelligence investment on the rise

Posted in Business, Business Intelligence by neilwilson1984 on September 25, 2013

More companies are preparing to invest in business intelligence solutions, but so far few have actually deployed in the field.

Big data investments in 2013 continue to rise, with 64 percent of organizations investing or planning to invest in big data technology compared with 58 percent in 2012, according to a survey by Gartner, Inc. However, less than eight percent of survey respondents have actually deployed.

“The hype around big data continues to drive increased investment and attention, but there is real substance behind the hype,” said Lisa Kart, research director at Gartner.

Organizations across industries and geographies see ‘opportunity’ and real business value rather than the ‘smoke and mirrors’, she explained.

While two-thirds of organizations are investing or planning to invest in big data technology in 2013, 30 per cent have already taken the leap. One-fifth (19 per cent) plan to invest within the next year, and an additional 15 per cent plan to invest within two years.

Wherever companies are based, investment typically has different stages that organizations go through. The process begins with knowledge gathering, followed by strategy setting. To start with, firms are spending more time than money.

Typically this is followed by an experiment or proof of concept. Again the financial investment is small.

After completing a successful pilot, the first deployments take place. Here the investment curve rises sharply, says Gartner. Over time, business operations start to rely on the deployments, and the investments move from implementing systems to managing them.

“For big data, 2013 is the year of experimentation and early deployment,” said Frank Buytendijk, research vice president at Gartner. “Adoption is still at the early stages with less than eight per cent of all respondents indicating their organization has deployed big data solutions.”

Twenty per cent are piloting and experimenting, 18 per cent are developing a strategy, 19 per cent are knowledge gathering, while the remainder has no plans or don’t know.

In the wide-ranging study, Gartner also revealed that many of the big data activities are incremental to current business practices; for example, better understanding customer needs, making processes more efficient, further reducing costs or better detecting risks. Indeed these make up the majority of the use cases today.

But a sizable minority of organizations are engaging in more “game-changing” activities; for example, 42 per cent are developing new products and business models. One-quarter (23 per cent) are monetizing information directly. This, says Gartner, is encouraging, the “big opportunities” lie mostly in these areas.

“While there are many areas companies would like to address, a slightly different picture emerges when we ask about the priority of these categories,” said Ms. Kart. “Different industries have different priorities when it comes to big data. Industries that are driving the customer experience priority are retail, insurance, media and communications, and banking, while process efficiency is a top priority for manufacturing, government, education, healthcare and transportation organizations.”

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