Guesstimates are often essential for market sizing and trending. To be useful, especially where primary data are lacking, they demand a valid conceptual framework.
Like you, I’m looking forward to the responses to Boris Evelson’s quick Web-based survey, which you can access from his most recent blogpost.It’s always a challenge to assess how truly pervasive BI is—and pervasive it could potentially become.
To generate a valid first approximation, Boris scoped his blog comments and quick survey to “traditional BI” applications (i.e., historical reporting, query, dashboarding). He scoped his estimate only to large enterprise and midmarket firms (i.e., those with 100 or more employees) and only to BI usage in the US.
In order to keep this task manageable, Boris excluded some use cases that are often included in the “traditional BI” category: spreadsheets and other “homegrown” analytics apps; BI embedded in line-of-business apps; and non-interactive, static, published BI outputs. He leveraged both public and Forrester-gathered primary datato gauge how many actual and potential BI users there might be.
Scoping it as he did, Boris estimated that slightly more than 1.5 million people in the US are using traditional BI applications, which is between 2-3 percent of the employees of BI-implementing firms. He suspects the actual percentage might be as high as 6-8 percent of employees, but he’s not sure. That’s why he’s running the Web-based quick survey.
Analytics gets a lot of attention these days. And it should. Additional business insight is really important to improve the customer experience and more and more to understand the on-line experience. And predictive analytics is really cool. But these exciting areas tell only part of the story. Analytics can also help improve content management and transactional business processes. The infrastructure and plumbing that keeps most companies afloat. Analytics can help consolidate archives, improve capture, classify documents, improve business processes, and enhance the value of packaged apps. In short, there is a strong analytics play just for better content management and process improvement but poorly deeloped use cases and better buzz in other areas tamps down the potential. But we shall hear more about this soon.