Embedded Analytics

What’s Driving the Need for Embedded Analytics with Big Data?

Watch this video to learn why the embedded analytics marketplace is experiencing explosive growth.

Without effective analytics, companies cannot compete. But not just any analytics will do. Users want analytics in the applications they use every day. They want to use data that may reside in multiple locations. And this is across virtually every line of business (LOB).

Moreover, the embedded analytics market touches several stakeholders in addition to LOB users. Independent software vendors (ISVs) are eager to tap the growing interest in embedded analytics. Right now at least, it looks like very low hanging fruit. And enterprise IT needs to come to terms with the age old tech question: buy or build?


More than ever before, companies today are becoming increasingly data driven and are looking to raise the analytical bar within their organizations. But with the changing dynamics of the workforce, the wide discrepancy of technical sophistication among users, and the explosion in data volume and disparity, what’s the best way to deliver analytics and get users the tools they need within the context of how they work?

Hi. I’m Mike Lock, Vice President and Principal Analyst at the Aberdeen Group, and today we’re going to be talking about embedded analytics: a scenario where business intelligence and analytical capabilities are integrated, or embedded, within other business applications, such as CRM, ERP, or financial applications, for example.

Background and Drivers for Embedded Analytics

So, this is the first in a five-part series exploring embedded analytics and this video provides some of the background and drivers for this approach and provides an overview of what this embedded analytics ecosystem looks like. So, to provide a little bit of background here, I want to share some data from my most recent business analytics survey where I surveyed over 400 organizations.

Line of Business Pressures

This chart here provides an overview of some of the pressures that drive companies to invest in analytics. At the top of the list is a palpable competitive pressure to become more data driven. It’s not really seen as differentiation anymore. Companies see effective analytics as table stakes really to being able to compete.

Secondly, users from a variety of different business functions and job roles are simply asking for better capabilities to access their data and make better decisions from its use. The data silo issue--in other words, information that’s needed for analysis being locked away within other functional areas across the company--is a problem for the line of business, too. And they’re looking to analytics to help address that need for accessibility.

And then, finally, they want to make use of their data, rather than just storing it. They see big data more as a missed opportunity than a problem that needs to be solved and they’re looking to analytics to help exploit more of their data and drive performance.

Embedded Analytics Stakeholders

So, let’s talk about what this world of embedded analytics looks like and talk through some of the various stakeholders involved.

So, as I mentioned before, in today’s business environment there’s simply more people that are interacting with some form of software technology in a variety of different modalities. Whether we’re talking about financial planning applications, marketing automation, something like supply chain management, or a mobile sales application, for example, there are more users, in more job roles, interacting with these tools more frequently.

The other important part of this ecosystem are the companies that are actually delivering applications. So, essentially, we could be talking about anyone designing, developing, delivering, supporting, or maintaining these applications.

This could be a traditional independent software vendor, or an ISV, delivering commercial applications for a particular job role or industry; this could be a managed or cloud service provider implementing, supporting, or maintaining these applications; or it could be a regular enterprise not necessarily associated with technology at all that has a strong internal IT team that is perhaps developing proprietary internal applications or perhaps creating a customer or a supplier-facing portal externally. A variety of use cases here and a variety of stakeholders that are providing applications for embedded analytics.

So, these are the companies that are taking strides to embed analytics within these applications and they can go about this in one of two ways: they can build these capabilities and embed them themselves, or they can engage with a third-party analytics provider and purchase individual capabilities or a suite of capabilities to embed within their applications.

So, that’s the ecosystem that we’re talking about in this video series. I’d invite you to join us for the second video, where we focus on the perspective of business users and how embedded analytics is impacting their decision processes.

What’s Driving the Need for Embedded Analytics with Big Data?

Without effective analytics, companies cannot compete. Learn why the embedded analytics marketplace is experiencing explosive growth.


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