BI and EPM Landscape
- by frank.buytendijk
Most of my blog entries are not about Oracle products, and most of the latest entries are about topics such as IT strategy and enterprise architecture. However, given my background at Gartner, and at Hyperion, I still keep a close eye on what's happening in BI and EPM.
One important reason is that I believe there is significant competitive value for organizations getting BI and EPM right. Davenport and Harris wrote a great book called "Competing on Analytics", in which they explain this in a very engaging and convincing way. At Oracle we have defined the concept of "management excellence" that outlines what organizations have to do to keep or create a competitive edge. It's not only in the business processes, but also in the management processes.
Recently, Gartner published its 2009 market shares report for BI, Analytics, and Performance Management. Gartner identifies the same three segments that Oracle does: (1) CPM Suites (Oracle refers not to Corporate Performance Management, but Enterprise Performance Management), (2) BI Platform, and (3) Analytic Applications & Performance Management.
According to Gartner, Oracle's share is increasing with revenue growing by more than 5%. Oracle currently holds the #2 market share position in the overall BI Software space based on total BI software revenue.
Source: Gartner Dataquest Market Share: Business Intelligence, Analytics and Performance Management Software, Worldwide, 2009; Dan Sommer and Bhavish Sood; Apr 2010
Gartner has ranked Oracle as #1 in the CPM Suites worldwide sub-segment based on total BI software revenue, and Oracle is gaining share with revenue growing by more than 6% in 2009.
Source: Gartner Dataquest Market Share: Business Intelligence, Analytics and Performance Management Software, Worldwide, 2009; Dan Sommer and Bhavish Sood; Apr 2010
The Analytic Applications & Performance Management subsegment is more fragmented. It has for instance a very large "Other Vendors" category. The largest player traditionally is SAS. Analytic Applications are often meant for very specific analytic needs in very specific industry sectors. According to Gartner, from the large vendors, again Oracle is the one who is gaining the most share - with total BI software revenue growth close to 15% in 2009.
Source: Gartner Dataquest Market Share: Business Intelligence, Analytics and Performance Management Software, Worldwide, 2009; Dan Sommer and Bhavish Sood; Apr 2010
I believe this shows Oracle's integration strategy is working. In fact, integration actually is the innovation. BI and EPM have been silo technology platforms and application suites way too long. Management and measuring performance should be very closely linked to strategy execution, which is the domain of other business application areas such as CRM, ERP, and Supply Chain. BI and EPM are not about "making better decisions" anymore, but are part of a tangible action framework.
Furthermore, organizations are getting more serious about ecosystem thinking. They do not evaluate single tools anymore for different application areas, but buy into a complete ecosystem of hardware, software and services. The best ecosystem is the one that offers the most options, in environments where the uncertainty is high and investments are hard to reverse. The key to successfully managing such an environment is middleware, and BI and EPM become increasingly middleware intensive. In fact, given the horizontal nature of BI and EPM, sitting on top of all business functions and applications, you could call them "upperware".
Many are active in the BI and EPM space. Big players can offer a lot, but there are always many areas that are covered by specialty vendors. Oracle openly embraces those technologies within the ecosystem as well. Complete, open and integrated still accurately describes the Oracle product strategy.
frank
