A recent report from insight generator Market Watch predicts that the global business intelligence market will enjoy a compounded annual growth rate of 26.98% in the next six years and will be valued at $147.19 billion by 2025.
More and more organizations are turning to data-driven decision making to address the challenges of complex business decisions. Business Intelligence (BI) provides companies with various tools for analyzing data that aid in information-driven outcomes.
Growth drivers:
BI development and adoption hinge on platforms aiding top management and departmental heads in making better decisions, growing revenue, increasing efficiency, and cornering competitive advantages in their industry. The increasing competition across industries remains the biggest driver that’s disrupting BI platforms.
Data explosion is a precursor to BI. With emerging technologies such as the Internet of Things, machine learning, and blockchain, data generation is in overdrive. Developments in data processing tools like Kubernetes and languages like R and Python make it easier to process terabytes of data in a flash. This provides companies with unprecedented access to data and potential insights they can utilize for growth.
Small and medium enterprises (SMEs) are now taking advantage of BI platforms which are now accessible on-demand. SMEs are turning to new open-source web-based and XML data warehouses to improve their access to decision support systems. As a result, BI has become more accessible than ever before.
In fact, financial markets are increasingly relying on BI and its capacity for visualization. Time Square Chronicles notes that investors are utilizing BI visual presentations to decide on whether to buy or sell a stock. Data visualization gives them an image comparison of a company’s past and present performance. For many businesses, Yoss highlights that dashboards and visualization tools are the top BI applications that are in demand right now. By leveraging BI generated insights and data storytelling, businesses can gain more momentum and grow much faster.
Trends and challenges:
While the huge growth in the BI market is certain, there are specific factors and trends that are emerging.
The role of artificial intelligence (AI) will become central in BI platforms. AI will overhaul how data is stored, processed, crunched, and used. It will change how different platforms approach the handling of unstructured data towards more efficient and more accurate analytics capabilities. This will also bridge the gap between non-expert end-users and the increasingly complex BI dashboards generated today.
Enterprise-level tools will dominate new purchases. For the longest time, most BI platforms hinged on department level needs like sales, purchases, and logistics. With how easy it is to process information nowadays, enterprise-level tools will be the most adapted type of BI.
There are new areas of adoption as well. Insurance, technology, and vertical business services have been the top BI adopters over the last decade. Supply chain visibility, price optimization, and workforce analytics are the new frontiers in BI growth. Smart Data Collective also emphasizes that corporate social responsibility is a key area that will need decision support platforms as it continues to boom.
Data governance and regulations will help BI development progress in the coming years. Institutional oversight of data management, collection, and its use will be a key trend this year. The European Union’s General Data Protection Regulation and similar legislative initiatives like the California Consumer Privacy Act will impact BI adoption in two ways. Firstly, the new regulatory environment will have a dramatic effect on the industry, including data minimization, storage limits, accuracy oversight, and purpose limitations. And secondly, this could also prompt businesses to employ third party software and infrastructure to ensure compliance.
Data management and analytics are key in navigating today’s complex markets. Therefore, the adoption and development of BI is now a necessity for companies to remain competitive more than ever before.
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