Business intelligence (BI) transforms raw data into applicative information for better decision-making. BI allows organizations to process, analyze, and visualize large amounts of data, allowing them to make data-driven decisions. Besides, businesses use BI to gain a competitive edge by analyzing large amounts of data to identify trends, patterns, and insights. According to Inkwood Research, the global business intelligence market is predicted to surge with a 9.68% CAGR by the end of 2032, generating a revenue of $53761.82 million during the forecast period 2023-2032.
Digital Transformation is Lucrative to Business Intelligence
Digital transformation integrates digital technology into all business areas, fundamentally changing how the organization operates and delivers value to customers. It is a strategic process of leveraging digital technologies, data, and other assets to drive significant improvements in organizational performance, customer experience, and stakeholder outcomes. The rise of digital transformation has created a significant demand for BI solutions. The insights gained from business intelligence can inform and guide digital transformation initiatives, such as implementing new technologies, optimizing business processes, advancing transaction monitoring software, and developing new products & services.
For instance, business intelligence can help organizations to better understand their customers, identify areas for improvement in their operations, and make informed decisions about their digital strategy. SAP SE introduced RISE with SAP in 2021: the intelligent enterprise’s basic components in one bundle are complemented with premium services and tools. Moreover, the company will come with SAP S/4HANA Cloud, enabling businesses to transform their processes with intelligent automation. This can result in improved customer satisfaction, increased efficiency, and boosted competitive position in the market. Additionally, business intelligence can monitor and track key performance metrics, enabling organizations to respond quickly to market changes and adjust their digital transformation efforts as needed.
Role of Cloud-Based Business Intelligence Solutions
Cloud-based business intelligence solutions have gained popularity in recent years due to their ability to store, process, and analyze large amounts of data in real time. This eliminates the need for organizations to invest in expensive hardware and software, making it easier for them to access and analyze their data.
Cloud-based business intelligence (BI) plays a critical role in digital transformation by providing organizations with scalable, flexible, and cost-effective business intelligence capabilities.
Some of the key benefits of cloud-based BI solutions include the following:
- Scalability: Cloud business intelligence can scale to meet the changing needs of an organization, providing the ability to add or remove resources as needed without the need for significant upfront investments in hardware and infrastructure.
- Accessibility: Cloud-based business intelligence provides remote and mobile access to data and analytics, enabling decision-makers to access critical insights from anywhere, at any time.
- Cost-effectiveness: Business intelligence typically has lower upfront costs, maintenance costs, and reduced IT overhead compared to traditional, on-premises BI solutions.
- Integration: The solutions can easily integrate with other cloud-based technologies and services, such as customer relationship management (CRM) systems, enterprise resource planning (ERP) systems, and data warehousing platforms.
- Security: These solutions provide robust security features, including encryption, data backup and recovery, and multi-factor authentication, to protect sensitive data.
Cloud is anticipated to lead the deployment segment with a 10.77% CAGR in the global business intelligence market from 2023 to 2032.
BI Market: Strategic Undertakings by Tech Giants
Digital transformation has a profound effect on companies across all industries. It enables organizations to improve efficiency, increase competitiveness, and better serve their customers by leveraging digital technologies, data, and other assets. In addition, integrating digital technology into all business areas can significantly improve organizational performance, customer experience, and stakeholder outcomes.
Some of the major strategic initiatives by key market players are as follows:
- Microsoft invested $1 billion in the Series G funding round of Databricks, a data-and-AI company that interacts with corporate information stored in the public cloud.
- Cisco invested $24 million in the Series B funding round of Illusive Networks, a cybersecurity software company.
- In 2022, Fivetran extended its partnership with Microsoft Azure, including support for the Microsoft Intelligent Data Platform and integrations with Azure Data Lake Storage (ADLS) and Azure Synapse
- In 2021, Domo entered into a partnership with Snowflake and introduced Snowpark, Snowflake’s new developer experience, to make it easier with languages like Scala and Java to build custom solutions within Domo’s modern business intelligence platform.
All in All
Integrating digital technology into business intelligence practices is a key aspect of digital transformation. Organizations that embrace this transformation will benefit from increased efficiency, better-informed decision-making, and competitive advantage. Besides, due to the latest advancements and boom in the cloud industry, many organizations are expected to increase their cloud spending budget by almost 50%. Organizations can unlock new insights and opportunities to drive their digital transformation efforts forward by leveraging the power of the cloud and data, further advancing the growth of the global business intelligence market.
What are some prominent growth drivers of the global business intelligence market?
The effect of globalization on businesses, reliance on real-time information and decision-making, and the need for a customer-centric approach are some prominent growth drivers of the global business intelligence market.
Which country is dominating the global business intelligence market during the forecast period?
The United States is dominating the global business intelligence market during the forecast period.