Businesses Find Value in Embedded Analytics

by Nathan Eddy
Businesses Find Value in Embedded Analytics

A Logi Analytics study indicated customers are starting to demand embedded analytics, and the user base is expanding.

There is a growing consensus that embedded analytics is delivering more value than traditional business intelligence (BI) deployments, improving user experience and customer satisfaction while increasing revenue, according to a report from Logi Analytics.

The study indicated customers are starting to demand embedded analytics, and the user base is expanding, with 86 percent of survey respondents saying embedded analytics is important to their customers.

Survey respondents also said they expect the number of regular users of analytics in their applications to grow from 51 percent currently to 68 percent within two years.

Embedded analytics is generally referred to as the use of reporting and analytic capabilities in transactional business applications.

These capabilities can reside outside the application, reusing the analytic infrastructure built by many enterprises, but should be accessible from inside the application, without forcing users to switch between systems.

The integration of a BI platform with the application architecture enables users to choose where in the business process the analytics should be embedded.

While 68 percent of software providers say analytics is required in their market, an even larger 89 percent say that embedded analytics has helped them create a competitive differentiator.

Software and software-as-a-service (SaaS) providers continue to invest in embedded analytics, with three-quarters of those who already have embedded analytics planning to make additional investments into it during the next 12 months, and 65 percent of all respondents said they would invest in embedded analytics during the next 12 months.

"As this report shows, software and SaaS providers recognize the tremendous value of embedding analytics into their applications. We are experiencing a market shift toward analytics becoming an intuitive part of all business applications, helping to differentiate product offerings and drive end-user adoption," Steven Schneider, chief product officer of Logi Analytics, said in a statement.

The median value of analytics as a percentage of the overall product value is 35 percent. The jump from 22.5 percent in last year’s report highlights the growing importance of analytics.

The survey indicated embedded analytics drives revenue, with 85 percent of software providers saying that it has helped them increase revenue. For those who charge an additional amount for analytic capabilities, companies charge, on average, 22.6 percent on top of their core offering.

Relational databases and data warehouses are the most common types of data repositories. Of the three popular types of big data technologies--Hadoop, NoSQL and analytic data stores--NoSQL has the highest degree of adoption, at 14 percent of software providers.

Originally published on eWeek.
  This article was originally published on Tuesday May 27th 2014
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