Market strategy and innovation in the business intelligence industry
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Monash DSS Lab
Steve Remington, Peter O’Donnell & David Arnott
Market Strategy and Innovation in the Business Intelligence Software Industry:
A Preliminary Study
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Agenda
• Background and Context• Research Question• Method Overview• Key Findings• Research Agenda
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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)
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Business Intelligence Software Market
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2007: The Year of Consolidation
13.7%
1.2%
9.4%
18.2% 7.9%
10.6% 14.5%
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2007: The Year of Consolidation
10.6%
13.7%
26.3%
10.6% 14.5%
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“Rather than making their business intelligence products
better and easier to sell to discerning new customers,
they make sales through bundling their new BI offerings with other, more mainstream,
products”Nigel Pendse, BI Report 2008
The Market’s Response
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The Question
Does a business intelligence software vendor’s innovation
process change when it is acquired by a large general
IT vendor?
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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
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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
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PowerPlay Client
Impromptu
RIS Ltd
Scenario
PowerPlay Web Server
Interweave
PowerPlay Server
DataMerchant
Impromptu Web Query
Acta Technology
NovaView
4Thought
Impromptu Web Reports
Panorama
Relational Matters
LEX2000
PowerPlay Enterprise Server
Visualizer
DecisionStream
Query
NoticeCast
NoticeCast Software
3/95 12/09
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
BI Series
4.1 5.0
3.0 3.5Angoss Ltd
5.0
5.2
4.0
5.2
5.2
7.0
6.0
4.0
5.5
1.0 2.0
2.112.0
6.0
6.0
6.0
1.0 2.0
1.0
6.0
5.0
1.0
2.0
1.0
3.0
5.0
6.6
Planning Series
5.0
1.5
6.5
5.1
7.0
Web Services
Metrics Manager
1.0Aydatum
7.2
7.0
7.0
DataDirect Technologies
2.0
ReportNet
1.0
7.2
1.1
7.3
Frango
Composite Software
?.?
Controller
2.3
7.3
8.0
Go! Search
8.?
8.1
Celequest
Go! Mobile
Now!
8.?
8.?
Acorn Systems
Applix
8.3
Builder
Dashboard Accelerator8.?
TM1
9.4
Business Viewpoint8.?
8.4
Go! Dashboard
8.?
8.4
8.4
SPSS Inc.
8.?
Express
1.0Content Analyzer
Mashup Service
1.0
1.0
Symbol Legend
1.0
Product (Major Version) Product (Minor Version)Product (New) Technology Acquisition Technology OEM / LicensingProduct (OS / Platform)“N.n” = Major and minor version number of product
N.n
Timeline of Product Release & Technology Acquisition Events (03/1995 to 12/2009)
Product / Company
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ImpromptuOracle Financials
PowerPlayPilot LightShip
PowerPlayOracle Express
Impromptu / PowerPlaySybase System X
ImpromptuIBM Database (DB2)
3/95 12/09
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
HeadStarts, e-Applications...Oracle Applications
Symbol Legend
Timeline of Third Party Integration and Product Extensions Events (03/1995 to 12/2009)
ImpromptuPrism Directory Manager
ImpromptuSybase IQ
PowerPlayInformix MetaCube
HeadStarts, e-Applications...SAP R/3 & mySAP
Impromptu / PowerPlayIntentia MOVEX
HeadStarts, e-Applications...PeopleSoft HRMS
PowerPlayInformix MetaCube
Impromptu / PowerPlayMicrosoft SQL Server
Impromptu / PowerPlayOracle Database
Impromptu / PowerPlaySybase PowerDesigner
HeadStartsBaanERP
HeadStartsSSA BPCS
ImpromptuArdent MetaConnect
HeadStarts / e-ApplicationsJ.D. Edwards OneWorld
Impromptu / PowerPlayInformatica MX2 API
Impromptu / PowerPlayIBM Information Portal
e-ApplicationsIBM Commerce Suite
e-ApplicationsMicrosoft ASP Partners
PowerPlay Enterprise ServerPlumtree Corporate Portal
Analytic ApplicationsAll Vendors All Products
Upfront / EPP ProgramEnterprise Portal Vendors
BI SeriesPeopleSoft Higher Ed
Microsoft SharePoint
Product Name: e-Applications
Product Name: HeadStarts
Product Name: Analytic Applications
Impromptu / PowerPlayWhiteLight AnalyticServer
Product Name:Accelerator for SAP
DecisionStreamSAP R/3
Product Name: Analytic Applications
BI SeriesVarious Vendors/Products
Financial AnalyticsSupply Chain AnalyticsCustomer Analytics
CRM Analytics
Production Analytics
ReportNetVarious Vendors/Products
Enterprise PlanningMicrosoft Excel
Supply Chain Analytics
Plan-to-Perform BlueprintsVarious Vendors/Products
Sales CompensationAllocationsRisk Analysis
Initiative and Strategic Planning
Retail Store Operations
Workforce Performance
Bank Branch ProfitabilityClinical Trial ForecastingIFRSMFRCCR
Go! SearchVarious Vendors/Products
Retail Store Planning
Retail Promotion Planning
Workforce UtilizationBank Customer Profitability
Go! MobileVarious Vendors/Products
Go! NowIBM Content Management
Retail Merchandise Planning
Bank Risk Management
SAP BW
PeopleSoft EPM
IBM Info Mngt
IBM Lotus Notes
IBM WebSphereGoogle OneBox
IBM Infomation Server SaleForce CRM
HP NeoView
SAP BWAscential MetaBroker
Microsoft Office
Autonomy TechnologiesFAST Enterprise SearchSAP mySAP
Microsoft Excel
Financial Performance ManagementStrategic Financial Planning
OmniFind
SAP mySAP
x3
x3 x4
x2
x3
x2 x2x3
Windows MobileNokia Symbian
x2
Retail Planning & Monitoringx10
IBM InfoSphere Balanced Warehouse
x2
Upgrade to 3rd Party Product Integration
Initial version of Product Extension
Initial version of 3rd Party Product Integration
“N” = No of occurrences in the month if more than one
Improvement to Product Extension
xN
Cognos Product3rd Party Coy / Product
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No significantdifference
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→ Post IBM Acquisition
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→ Post IBM Acquisition
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→ Post IBM Acquisition
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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?
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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.
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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
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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
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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
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Monash DSS Lab