Steve Remington, Peter O’Donnell & David ArnottMarket Strategy andInnovation in theBusiness IntelligenceSoftware Industry:...
Agenda•   Background and Context•   Research Question•   Method Overview•   Key Findings•   Research Agenda
Business Intelligence Software• The dominant technology for DSS in medium  and large organisations• A highest technology p...
Business Intelligence Software Market
2007: The Year of Consolidation                 13.7%   10.6%                          9.4%                 14.5%   18.2% ...
2007: The Year of Consolidation                 13.7%   10.6%                          10.6%                 14.5%        ...
The Market’s Response  “Rather than making theirbusiness intelligence products  better and easier to sell to  discerning n...
The Question                    Does a business                  intelligence software                   vendor’s innovati...
The Method• Single Case Study   – Cognos Inc. being acquired by IBM in 2007• Content analysis of 15 years of press  releas...
Class of Innovation• Product Innovation (45% of total)   – A product release that provides new or improved     software fu...
Timeline of Product Release & Technology Acquisition Events (03/1995 to 12/2009)PowerPlay Client                          ...
Timeline of Third Party Integration and Product Extensions Events (03/1995 to 12/2009)Impromptu                           ...
No significant difference
→ Post IBM Acquisition
→ Post IBM Acquisition
→ Post IBM Acquisition
Research Agenda – Key Items• What factors drive BI software innovation?• Is there a relationship between BI software  inno...
Concluding Remarks           • Results indicate innovation             may reduce after acquisition             by a large...
References•   Slide 1     – Gartner, Inc. (2009b, February 18). Business Intelligence Ranked Top       Technology Priority...
References•   Slide 4:     – Pendse, N. (2009, November 1). In Praise of the Smaller BI Vendors.       Information Managem...
Photo Credits•   Slide 1: Purchased from www.iStockPhoto.com•   Slide 3 & 4: www.cognos.com | www.ibm.com | www.oracle.com...
Monash DSS Lab
Market strategy and innovation in the business intelligence industry
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Market strategy and innovation in the business intelligence industry

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Presentation made at the DSS2010 Conference in Lisbon, July 2010. The abstract of the conference paper is:

Business intelligence (BI) is the dominant technology for decision support in medium and large organizations. Unfortunately, there has been no rigorous academic research on the market and innovation strategies of the leading vendors. This is surprising as BI is a key technology priority for CIOs and unusually in a major global financial downturn it is an area of significant growth in IT spending. This paper presents a preliminary study of market strategy and innovation in one of the four leading BI vendors, Cognos / IBM. The case study uses data from archived press releases and statutory financial returns to analyse Cognos' activities from 1995 to 2009. The results illuminate a complex commercial environment. Based on the case study and background literature a research agenda structured around eight key questions is proposed.

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  • World-wide BI software revenue continued to grow despite the global financial crisis.
  • Four non-BI specific software vendors now control over 61% of the BI software market.
  • Press releases used as a proxy indicator of innovation activity.Useable sample of press releases: 1,331Product and technology press releases: 189 (14.2%)
  • Product Innovation: (Any innovation activity that either makes new functionality available or improves existing product functionality. This activity can be either direct or indirect) Product release Technology purchase Technology LicensingUsage Innovation: (Any innovation activity that makes it easier for a customer to implement and customize an existing product)Product ApplicationProduct Integration
  • Market strategy and innovation in the business intelligence industry

    1. 1. Steve Remington, Peter O’Donnell & David ArnottMarket Strategy andInnovation in theBusiness IntelligenceSoftware Industry:A Preliminary StudyMonash DSS Lab
    2. 2. Agenda• Background and Context• Research Question• Method Overview• Key Findings• Research Agenda
    3. 3. Business Intelligence Software• The dominant technology for DSS in medium and large organisations• A highest technology priority for CIOs for four of the last five years• Organisations spend large amounts on this software (~ US$6 Billion in 2009)
    4. 4. Business Intelligence Software Market
    5. 5. 2007: The Year of Consolidation 13.7% 10.6% 9.4% 14.5% 18.2% 7.9% 1.2%
    6. 6. 2007: The Year of Consolidation 13.7% 10.6% 10.6% 14.5% 26.3%
    7. 7. The Market’s Response “Rather than making theirbusiness intelligence products better and easier to sell to discerning new customers, they make sales throughbundling their new BI offerings with other, more mainstream, products” Nigel Pendse, BI Report 2008
    8. 8. The Question Does a business intelligence software vendor’s innovation process change when it is acquired by a large general IT vendor?
    9. 9. The Method• Single Case Study – Cognos Inc. being acquired by IBM in 2007• Content analysis of 15 years of press releases and financial statements• Compare pre-acquisition to post-acquisition innovation behaviour to see if there was a change
    10. 10. Class of Innovation• Product Innovation (45% of total) – A product release that provides new or improved software functionality. – e.g. A new product or version upgrade• Usage Innovation (55% of total) – A product release that makes it easier to use (and sell) an existing product. – e.g. A product usage or implementation template
    11. 11. Timeline of Product Release & Technology Acquisition Events (03/1995 to 12/2009)PowerPlay Client 4.1 5.0 5.2 6.0 6.6 7.3Impromptu 3.0 3.5 4.0 5.0Angoss LtdRIS LtdPowerPlay Web Server 5.2 5.5 6.0PowerPlay Server 5.0 5.2 6.0Scenario 1.0 2.0InterweaveDataMerchant 1.0 2.0 3.0Impromptu Web Query 2.0 2.11Acta TechnologyPanorama4Thought 4.0NovaView 1.0 2.0Impromptu Web Reports 5.0 6.0Relational MattersDecisionStream 1.0 6.5LEX2000PowerPlay Enterprise Server 6.0Visualizer 1.0 1.5Query 1.0Planning Series 5.0 5.1 7.0 7.2 7.3NoticeCast SoftwareNoticeCast 7.0BI Series 7.0 7.2 8.0 8.1 8.3 8.4Web Services 7.0Metrics Manager 1.0 2.0AydatumDataDirect TechnologiesReportNet 1.0 1.1 ?.?FrangoComposite SoftwareAcorn SystemsController 2.3Go! Search 8.? 8.4Go! Mobile 8.? 8.4CelequestNow! 8.?ApplixTM1 9.4Builder 8.?Dashboard Accelerator 8.?Business Viewpoint 8.?Go! Dashboard 8.?SPSS Inc.Express 1.0Content Analyzer 1.0Mashup Service 1.0Product / Company 6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 Symbol Legend 3/95 12/09 “N.n” = Major and minor Product (New) Product (Major Version) Product (Minor Version) Product (OS / Platform) Technology Acquisition Technology OEM / Licensing version number of product N.n
    12. 12. Timeline of Third Party Integration and Product Extensions Events (03/1995 to 12/2009)Impromptu Product Name: Product Name: Product Name: Oracle Financials HeadStarts e-Applications Analytic ApplicationsPowerPlay Pilot LightShipHeadStarts, e-Applications... Oracle ApplicationsPowerPlay Oracle ExpressImpromptu / PowerPlay Sybase System XImpromptu IBM Database (DB2)Impromptu Prism Directory Manager Product Name:Impromptu Product Name: Analytic Applications Sybase IQ Accelerator for SAPPowerPlay Informix MetaCubeHeadStarts, e-Applications... SAP R/3 & mySAPImpromptu / PowerPlay Intentia MOVEXHeadStarts, e-Applications... PeopleSoft HRMSPowerPlay Informix MetaCubeImpromptu / PowerPlay Microsoft SQL ServerImpromptu / PowerPlay Oracle DatabaseImpromptu / PowerPlay Sybase PowerDesignerHeadStarts BaanERPHeadStarts Initiative and Strategic Planning SSA BPCSImpromptu Ardent MetaConnect Financial AnalyticsHeadStarts / e-Applications Supply Chain Analytics Retail Store Operations J.D. Edwards OneWorld Customer AnalyticsImpromptu / PowerPlay Informatica MX2 API Production AnalyticsImpromptu / PowerPlay IBM Information Portal Bank Branch Profitability Supply Chain Analytics Clinical Trial Forecastinge-Applications IFRS IBM Commerce Suite MFRe-Applications CCR Microsoft ASP PartnersPowerPlay Enterprise Server Plumtree Corporate Portal IBM Infomation Server SaleForce CRMAnalytic Applications All Vendors All Products Retail Promotion PlanningUpfront / EPP Program x3 Sales Compensation IBM WebSphere Enterprise Portal Vendors CRM Analytics Allocations Google OneBox Microsoft SharePoint HP NeoViewBI Series SAP BW Risk Analysis PeopleSoft Higher Ed IBM Info MngtImpromptu / PowerPlay Microsoft Excel PeopleSoft EPM Microsoft Office WhiteLight AnalyticServer IBM Lotus NotesDecisionStream IBM InfoSphere Balanced Warehouse SAP BW SAP R/3 Ascential MetaBrokerBI Series Various Vendors/ProductsReportNet x2 Retail Store Planning x2 Bank Risk Management Various Vendors/ProductsEnterprise Planning Workforce Performance Retail Merchandise Planning Microsoft ExcelPlan-to-Perform Blueprints Various Vendors/ProductsGo! Search x3 x4 x2 x3 x10 x2 Retail Planning & Monitoring Various Vendors/Products OmniFindGo! Mobile x3 Various Vendors/ProductsGo! Now x2 IBM Content Management Autonomy Technologies Windows Mobile FAST Enterprise Search Nokia Symbian SAP mySAP SAP mySAP Workforce Utilization Bank Customer Profitability Financial Performance Management Strategic Financial PlanningCognos Product 3rd Party Coy / Product 6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 Symbol Legend 3/95 12/09 Initial version of 3rd Party Upgrade to 3rd Party Initial version of Product Improvement to Product “N” = No of occurrences in Product Integration Product Integration Extension Extension the month if more than one xN
    13. 13. No significant difference
    14. 14. → Post IBM Acquisition
    15. 15. → Post IBM Acquisition
    16. 16. → Post IBM Acquisition
    17. 17. Research Agenda – Key Items• What factors drive BI software innovation?• Is there a relationship between BI software innovation, and a BI software vendor’s organisation structure or lifecycle stage?• Are there identifiable types (e.g. product and usage) of BI software innovation?• Does BI Software innovation (perceived or actual) impact buying decisions?
    18. 18. Concluding Remarks • Results indicate innovation may reduce after acquisition by a large IT vendor. • Further research is required to better understand what drives BI software innovation. • Impact on BI software industry could be profound.
    19. 19. References• Slide 1 – Gartner, Inc. (2009b, February 18). Business Intelligence Ranked Top Technology Priority by CIOs for Fourth Year in a Row. Gartner Newsroom. Press Release, . Retrieved January 1, 2010, from http://www.gartner.com/it/page.jsp?id=888412 – 2007 annual report from Business Objects, Cognos Inc and SAS Institute• Slide 2 & 3: – Gartner, Inc. (2008a, April 1). Gartner Says Worldwide Business Intelligence Spending to Grow 11 Percent in 2008. Gartner Newsroom. Press Release, . Retrieved January 2, 2010, from http://www.gartner.com/it/page.jsp?id=636310
    20. 20. References• Slide 4: – Pendse, N. (2009, November 1). In Praise of the Smaller BI Vendors. Information Management Magazine. in, . Retrieved January 3, 2010, from http://www.information- management.com/issues/19_8/in_praise_of_the_smaller_bi_vendors- 10016596-1.html?zkPrintable=true
    21. 21. Photo Credits• Slide 1: Purchased from www.iStockPhoto.com• Slide 3 & 4: www.cognos.com | www.ibm.com | www.oracle.com | www.businessobjects.com | www.microsoft.com | www.sap.com | www.sas.com | www.hyperion.com• Slide 5: www.platon.net/files/ConferencePics/NigelPendse.jpg• Slide 6: www.flickr.com/photos/crystaljingsr/3914729343/sizes/m• Slide 7: www.cognos.com | www.ibm.com• Slide 12: Purchased from www.iStockPhoto.com
    22. 22. Monash DSS Lab

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