The worldwide business intelligence and analytics software market revenue will reach 22.8 billion US Dollars by 2020, according to Statista. In 2008, the revenue for this market was only around 7 billion USD.
Organizations use Business Intelligence software to perform thorough analyses to steer the course of their business operations. The demand for this software hasn’t suffered from any economic crises, according to market research company Forrester. Organizations need the analyses provided by these programs, especially during economic downturns. Medium-to-small companies will purchase more BI Software. Currently, 30% of the revenue comes from these companies. Forrester expects that number to grow to 36% in the next five years.
New kinds of BI software
Opportunities for smaller players
The market is largely owned by huge suppliers like IBM, SAP, and Oracle. Forrester expects that the growing popularity of newer BI software will give smaller players opportunities in the marketplace.
Achieving results with BI software
Results aren’t achieved in just one year, a change of this magnitude needs time and continuous attention. The following factors are necessary for a successful BI software implementation:
- The “why” and “where are we going” of performance management have to be internalized by everyone, from management to employees.
- Managers and team leaders have been trained on the basic principles of performance management and its associated behavioral components.
- The competency profiles and HRM conversation cycles have been adjusted to/integrated with performance management.
- Users can work with Excel: Opening, switching tabs, closing, not changing data, analyzing with pivot tables, drilling down to details, changing fields, linking with data cubes.
- Score cards are used: Reading and interpreting KPIs and understanding how they’re structured, and which data and formulas are used. What does it mean if values go up or down? Interpretations have to be validated, including conclusions (peer review). It should be seen as a helpful tool to be able to work better.
- Norms have been established: users should be able to regularly brainstorm with each other and discuss the numbers. They should be able to think outside the box (for example: you’ve achieved an excellent occupancy rate, but at what cost?). Norms and targets have to be set for the most important KPIs and KRIs, and these have to be regularly evaluated and adjusted. Leadership should agree on the numbers, and objectives are formulated and periodically discussed and revised.
- Scorecards on the agenda: Scorecards are discussed during director/management meetings and team meetings, as well as in bilateral conversations with team leaders. Based on these meetings about the scorecards, actions will be planned, including analyzing and making/adjusting action and policy plans. Team leaders make project plans to improve a KPI and present these plans to colleagues and managers.
- There are active KPI ambassadors: performance management is for and by everyone in the organization. At least two KPI ambassadors should be trained and appointed, one per department. These are employees who know everything about the performance management system (KPIs, definitions, formulas, data cubes, possible analyses, etc.) and they train and help their colleagues. The ambassadors have a set of tasks similar to that of a business analyst (safeguarding relevance of management information, executing mostly simple data analyses, offering support for the making of action plans, etc.). These employees are the first point of contact about the organization’s scorecards.
- There’s a management organization: The scorecards will need a management organization that promotes their use and maintains them, that can determine if new requests can be fulfilled, and can answer specific questions that cross the boundaries of departments. For example, “how is it that my vacancy can increase in days, when ten rental units have just been finished and are up for rent?” The management team is capable of performing advanced (statistical) analyses.
Need help choosing BI Tools?
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