The Death of Business Intelligence

Predictive analysis spending soars on demand for business intelligence

Posted in Analytics, Business Intelligence, IT, Microsoft, SAP by neilwilson1984 on December 12, 2013

A desire for better business intelligence is driving demand for predictive analysis software, according to a new set of figures. According to the study by Transparency Market Research, the market for predictive analytics software will be worth over $6.5 billion by 2019.

The growth is being driven by increased demand for customer intelligence, as well as fraud and security intelligence software. In addition, cloud hosted predictive analytics software solutions are seen as an emerging market that will drive growth in the near future.

Banking and finance services, insurance, government, pharmaceuticals, telecom and IT, and retail, are seen as key demand drivers during the forecast period, which will see the market more than triple in value from a base of just over $2 billion.

But the biggest growth will be in retail and manufacturing, largely due to fast growing consumer driven digital data and the subsequent need to extract strategically critical information from this data.

The study authors say a rise in incidences of frauds, payment defaults, over or under stock inventory levels, and regulations regarding governance, risk, and compliance, have pushed companies to adopt predictive analytical models.

“Demand for industry specific software solutions has caused customer intelligence, fraud and security intelligence, and campaign management to emerge as leading segments,” they say. These segments together accounted for approximately 50 per cent of market revenue in 2012.

The US and Canada will continue to lead the way as business intelligence demands drive uptake of solutions capable of analyzing big data.

“North America, which has been at the forefront of generating big data in large quantities, is expected to remain the largest market for predictiveanalytics software solutions,” the authors say.

“This is due to demand for advanced business intelligence being directly affected by need to analyze big data. Growth of predictive analytics aspect of business intelligence has seen a revival ever since big data gained popularity and has been growing exponentially.”

All this is good for companies, with competition increasing as big data vendors – SAP, SAS, Oracle, IBM, Microsoft – now entering the market for predictive analytics.

Advertisements

One Response

Subscribe to comments with RSS.

  1. Steve Polilli said, on December 16, 2013 at 3:01 pm

    I work for SAS so I was surprised to read in the last paragraph that we are “entering” the predictive analytics market, one we have been in for all of our 36 years. It is still great news for us and competitors that analytics spending will continue to grow as our customer realize the benefits of this valuable technology. Thanks for spotlighting this research.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: