Embedded Analytics

What’s To Be Gained for ISVs and Enterprises from Embedding Analytics?

What's to be gained for ISVs

This video reveals what various stakeholders have to gain from embedding analytics.

Different types of companies have different motivations for embedding analytics in their applications. Independent software vendors embed analytics to gain competitive advantage for their offerings. Whatever the core purpose of their software, analytics can improve its functionality and value for potential customers.

On the other hand, enterprises often use embedded analytics in internal and customer-facing applications to find and act on opportunities for cross-sell and upsell. A customer-facing portal can provide value for customers, but it also gives visibility into their behavior for the enterprise delivering that application. It’s a data mining tool that can pay for itself many times over.


So you work for a software provider or a services organization, or maybe a company that’s not tech-related at all, but you create your own internal applications. Are you embedding analytics within those offerings? Maybe you should consider it.

Hi, again. I’m Mike Lock. I’m Vice President and Principal Analyst at the Aberdeen Group and today we’re continuing our dialogue on embedded analytics.

Embedded Analytics Recap

So, if you recall the first video in the series, you will remember our discussion of the ecosystem of embedded analytics and all the various stakeholders involved. So, this third video here in this series focuses on those providing applications, so traditional software vendors and service providers and other enterprises creating their own applications, perhaps for internal purposes or perhaps for customer or supplier-facing tools.

Motivations to Embed Differ for ISVs and Enterprises

First off, why do this? Why go through all the trouble of integrating analytics functionality within the applications you provide? What I’ve done here in this chart is separate out traditional independent software vendors, or ISVs, from those what I’m calling non-technology enterprises to show an interesting dichotomy in how they think. ISVs see embedded analytics as a way to drive competitive advantage. So whatever their core functionality is--financial reporting or marketing automation or human capital management even--they view the addition of powerful analytics capabilities as a way to basically super-charge their applications and provide a competitive advantage.

Enterprises, on the other hand, are much more focused on expanding existing customer relationships. Because the company mission may have nothing to do with software, or technology of any kind for that matter, they look to embed analytics as an avenue for finding and acting on opportunities for cross-sell and upsell.

Think about a customer-facing portal that provides value and automation of some kind for those customers, but also provides visibility into customer behavior for the enterprise delivering that application. The addition of embedded analytics can help accelerate those cross-sell and upsell opportunities.

What Do Companies Gain from Embedding Analytics?

So, we talked about the why. Let’s talk about the what. In other words, what are these organizations getting for their efforts in embedded analytics? So, from some recent research that I’ve done on the topic what we’re looking at here are the leaders and the followers when it comes to embedding analytics. Leaders being the top 40% in performance and followers being the remaining 60%. And we see some pretty striking discrepancies in performance.

So, we just saw some of the drivers for embedding analytics and we see here that the leaders have actually been able to execute against those objectives. So, 12% average year-over-year increase in cross-sell/upsell revenue, compared to completely flat for followers. Leaders saw almost three times the increase in average deal size through the incorporation of embedded analytics and they also saw more than three times the increase in customer renewal rate.

So, the main objectives that we saw before--driving competitive differentiation and customer development--leaders were able to deliver some very real and very attainable performance benefits through embedding analytics.

Thanks so much for joining us for this video. Be sure to check out the next video in the series where we’ll compare the build-versus-buy approaches with embedded analytics. Thanks very much and have a great day.

What’s To Be Gained for ISVs and Enterprises from Embedding Analytics?

Discover what various stakeholders have to gain from embedding analytics. It’s a data mining tool that can pay for itself many times over.


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