The Inevitable Challenge: What to Do with All This Data?
Businesses across all applications and in every industry are faced with mountains of data. Finding a meaningful way to manage this data has become a necessity, especially when it’s data that can help your customers or partners succeed. The only question is: will data be your company’s weak point or competitive differentiator?
In today’s ambitious business environment, customers want access to an application’s data with the ability to interact with the data in a way that allows them to derive business value. Afterall, customers rely on your application to help them understand the data that it holds, especially in our increasingly data-savvy world.
Embedded Analytics Is the Most Popular Answer
Embedded analytics is defined as when analytical capabilities such as data management, reporting and visualization are built into other business applications and solutions. Service providers, including on-premise, cloud-based or hybrid solutions, can then offer customer-facing dashboards, reports, and services such as software infrastructure, platforms, and processes.
Many companies today are embedding analytics into their application so users can access insights from their data in easy to understand reports and dashboards. Gartner reported that today 25% of analytics capabilities are embedded in business applications, while other industry research firms stated that as high as 40% percent of organizations are embedding analytics. Both numbers show the incredible growth of embedding analytics and point to a high-value return on investment.
The Hidden and Not-So-Hidden Benefits
The value is actually two-fold: service providers who are using embedded analytics solutions to help their customers be more successful are simultaneously creating a powerful competitive differentiator. The outcome? Happier, more loyal customers, and a strong competitive advantage for the company.
Aberdeen Group discovered that 53% of service providers are embedding analytics to drive competitive advantage, and the top service providers who did saw a 31% year over year increase in customer base. Other top benefits service providers are experiencing include improved user experience, new revenue streams, and increased average customer value.
Becoming an OEM Partner for BI & Analytics
Today, it is most common to embed a business intelligence solution by working with a BI partner and embedding their product through an original equipment manufacturer (OEM) agreement. Becoming an OEM is proven to be the easiest and most-effective way to offer business intelligence because it allows you a fast time to market using an established BI solution and technology.
Many of the resource allocation and budget issues dissipate by embedding a BI solution, especially one with technology built on cost-effective infrastructure and that can easily scale to your current and future data needs. In fact, top BI analyst and researcher, Wayne Eckerson described the movement towards embedding analytics as:
“The best way to simplify and operationalize BI is to embed it directly into operational applications and processes that drive the business. This is the definition of embedded analytics, and it’s the next wave in BI.“
How to Make Analytics Your Competitive Differentiator
To capitalize on the value of their information, many companies today are taking an embedded approach to analytics and delivering insights into the everyday workflow of their users through embedded reporting and business intelligence (BI). However, in order to successfully expose analytics to customers and partners, companies are faced with three main challenges:
Manage complex data (big and disparate datasets) quickly
Securely share data and insights
Ensure the solution is built on scalable, cost effective infrastructure
Learn how to overcome those challenges by seeing a series of matrixes comparing popular embedded analytics solutions and vendors in our new eBook The Ultimate Guide to Comparing Embedded Analytics. You’ll get a general overview of embedded analytics as well as in-depth analysis of the different approaches to embedding BI and analytics, and the benefits and challenges of the most common BI solution technologies that offer OEM partnerships. By the end, you’ll have a strong sense of the embedded analytics marketplace and understand the most strategic way your company can benefit from embedded analytics.