services upstaging software in the business intelligence space

TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

TBR’s BI Professional Services Customer

Research Highlights and Outlook

Services upstaging software in the business intelligence space Technology Business Research (TBR) Quarterly Webinar Series

Sept. 17, 2014

TBR

2 TBR Quarterly Webinar Series | 9.17.14 | www.tbri.com | ©2014 Technology Business Research Inc.

BI Professional Services Customer Research Highlights and Outlook: Webinar Presenters

Jen Hamel

Professional Services Analyst Email: [email protected]

Twitter: @jenhameltbr

Patrick Heffernan

Principal Analyst and IT Services Practice Manager Email: [email protected]

Twitter: @TBR_PatrickH

mailto:[email protected]


TBR


• How TBR’s Business Intelligence program is used:

o Identify opportunity.

o Adjust messaging to align with customer needs and broader purchasing criteria.

o Improve competitive positioning.

• Insight to advance clients’ business intelligence (BI) software and services businesses:

o Understand segment customers’ current and evolving behaviors.

o Realize market opportunity based on customers’ perception and assessment of BI vendors.

o Profit from insights around exemplar vendor strategies, customer trends and results.

Clients gain advantages and a better understanding of revenue opportunities through our reports and their personal relationships with TBR.

BI Professional Services Customer Research Highlights and Outlook: Webinar Overview

TBR’s Business Intelligence program delivers insights into vendor and customer behavior that improve clients’ market opportunity

Covered in today’s webinar: TBR’s Business Intelligence

Professional Services Customer Research report

Additional BI products: • Business Intelligence Services

Vendor Benchmark • Business Intelligence Software

Customer Research • Business Intelligence Software

Vendor Benchmark

TBR


BI Professional Services Customer Research Highlights and Outlook: Key Trends

BI Professional Services Customer Research, August 2014

Buying Trends: Vendors that speak equally to IT and lines of

business (LOBs) and deliver speed and efficiency to improve

business outcomes are best positioned to gain customers.

Vendor Outlook: Despite BI software vendors’ head start,

C&SI vendors can unseat incumbents by nurturing

relationships and addressing external concerns.

Opportunity: As the BI market expands, BI professional

services vendors have the opportunity to guide buyers

toward end-to-end solutions.

Third-party professional services vendors must prove their value beyond what BI software vendors deliver to gain market share

TBR


Customers want big data and analytics solutions to get ahead; they need vendors to provide options and manage deployment and ongoing use

BI Professional Services Customer Research Highlights and Outlook: Opportunity

The broad spectrum of maturity in the market presents varying profitable opportunities for

professional services vendors. Vendors can leverage advisory and consulting to help new

buyers navigate to solutions and position SI and managed services to extract greater value

from existing BI investments.

TBR


BI professional services market expansion will outpace the growth of IT services overall as analytics adoption becomes more mainstream

Barriers to BI Growth

• Budgetary pressure

• Software vendor entrenchment

• Unclear value of additional BI

professional services

• Sluggish IT services growth

Drivers of BI Growth

• Operational efficiency

• Industry expertise

• Scalability of resources

• Maturation of complementary

emerging technologies

Global BI Professional Services Market Opportunity

2013

$57 billion global

revenues

2016

$85 billion global

revenues


TBR


As the BI market expands, organizations will broaden the spectrum of professional services used to maximize value from software investments

Similar to the trend TBR observed in the cloud professional services market over the past four years, according

to its 1H14 Cloud Professional Services Customer Research, vendors with end-to-end BI professional services are

best positioned to win in the next year. Organizations will move beyond the exploratory phase to build,

customize and manage BI software deployments to drive business outcomes and ROI.

BI Services Adoption by Service Line


TBR


Customers are buying professional services to speed development and deployment of BI solutions

Top 4 Purchase Drivers by BI Service Line

BI Professional Services Customer Research Highlights and Outlook: Buying Trends

Messaging the value that BI-focused services can bring in expediting installations and creating additional

operating efficiency positions BI professional services vendors to positively influence decision makers.

TBR


Customers rely on relationships with trusted consultants to help select BI solutions that meet their unique industry needs

BI and analytics services customers value relationships and relationship-selling. They want contact

from current IT services vendors, consultants and sales teams.

Top 4 Key Factors in BI Solution Evaluations

SOURCE: TBR


TBR


As BI software increasingly falls under LOB budgets, IT and LOB share decision-making responsibility for related professional services

BI Services Decision Makers


More frequently, the person making the buying decision is in the C-Suite, indicating high-level, established

relationships factor into BI and analytics purchases more than expertise and capabilities.

Customer Quote: “Whatever we implement, I want to have my team more intimately involved in the implementation. Not

only to save some cost where my team can do some of the stuff that we might otherwise pay an implementer to do but also

just so they are intimately familiar with it — so that once it is up and running and we get down the line, my team knows

how to make adjustments instead of having to pick up the phone and call and pay another fee to get someone out here to

fix something or change something.” — F&A Director, Travel/Hospitality industry

TBR


The relative immaturity of the BI professional services market results in organizations relying on software vendors to deliver services

Vendor Incidence by Service Line

IBM, SAP and Oracle are

the top three selected

BI professional services

vendors across service

lines, indicating

organizations prefer

working with the same

vendor for BI software

and professional

services.

BI Professional Services Customer Research Highlights and Outlook: Vendor Outlook

IBM holds the strongest

overall position with

strategy consulting

services to help make

the business case for BI

adoption.

TBR


Customers are new to BI and looking for more, creating opportunities for C&SI vendors to overcome software vendors’ established positions

Buyer Experience and Sentiment Around BI Solutions

Of BI services adoption, 60% has

happened in the last two years.

Of BI services customers, 55% are

looking for more.

As customers seek to enter the BI market or expand BI capabilities and move beyond

implementation, software-centric vendors will cede more of the rapidly growing BI services

market to C&SI vendors providing testing, planning, development and optimization services.


TBR



Though software vendors are top of mind for BI services, C&SI vendors can take share by building relationships and tailoring solutions

As customers look to review more BI solutions and demand greater responsiveness from services providers, client-focused C&SI vendors will gain market share from software-led organizations.

IBM Strategy and Analytics

• Combined practice delivers end-to-end analytics services (design-implement-run).

• Includes management consultants and data scientists (15,000+ dedicated experts) in GBS

Accenture Strategy & Accenture Digital

• Accenture Strategy: management and technology consulting to guide transformation

• Accenture Digital: implementation and managed services around analytics and other digital technologies

SOURCE: IBM

SOURCE: TBR AND ACCENTURE

IBM’s end-to-end BI capabilities (software, hardware and services) will be tough to beat.

Opportunity for C&SI-led Vendors

TBR



Looking forward, vendors that can address customers’ uncertainty about harnessing and protecting data will lead the BI services market

Regulatory compliance and growing competition from emerging markets rank high on the list of customer concerns, and professional services vendors can message how analytics can improve

customers’ foresight and agile reaction to changing market requirements.

Top External Factors Impacting BI Professional Services Buyers Over the Next 5 Years

Beyond data security, a concern that permeates the entire IT market, opportunity exists for vendors engaging in implementations of data warehousing tools as customers seek to mitigate the

impacts of a large increase in the volume of available data.

TBR


TBR evaluates the business intelligence professional services market across 4 lines of service delivery

Consulting (BI Strategy)

Integration and

Implementation

Applications Development

and Maintenance

Operations, Management

and Maintenance

Provide strategic and tactical advice in a particular area of expertise for the use of

business intelligence.

Offer assistance in aligning business intelligence deployments with existing on- and off-premises

infrastructure and applications.

Software development and personnel-led maintenance that encompasses requirements of engineering design, implementation, testing

and maintenance to construct software for business intelligence

Assistance in the maintenance, enhancement and monitoring of business intelligence

deployments, and support of overall interaction of the infrastructure

BI Professional Services Customer Research Highlights and Outlook: Taxonomy

TBR BI Professional Services Taxonomy Segments

TBR


TBR delivers actionable intelligence on the maturing BI market to help clients bridge the gap between buyer aspirations and vendor actions

BI Professional Services Customer Research Highlights and Outlook: Research Portfolio

Business Intelligence Software Vendor Benchmark

Business Intelligence Professional Services Vendor Benchmark

Business Intelligence Software and Professional Services Addressable Market Forecast

Business Intelligence Software Customer Research

Business Intelligence Professional Services Customer

Research

TBR


Questions?

TBR


BI Professional Services Customer Research Highlights and Outlook: Contact Information

Jen Hamel

Professional Services Analyst Email: [email protected]

Twitter: @jenhameltbr

Telephone: 603.758.1875

Patrick Heffernan

Principal Analyst and IT Services Practice Manager Email: [email protected]

Twitter: @TBR_PatrickH

Telephone: 603.758.1834

James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc

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PSP Syndicated Research Coverage

IT Services Vendors Public Sector Vendors Benchmarks (Benchmark XLS data also available)

• Accenture • Atos • Capgemini • CGI* • Cisco Services • Cognizant • CSC • Dell Services • Fujitsu • HCL Technologies • HP Services • IBM Global Services • Infosys • T-Systems • Tata Consultancy Services • Unisys • Wipro IT Services • Xerox

• Booz Allen Hamilton* • CACI International* • General Dynamics IS&T* • L-3 Communications* • Leidos* • Lockheed Martin IS&GS* • ManTech* • Northrop Grumman IS&TS* • Raytheon Intelligence, Information &

Services* • SAIC*

• Business Intelligence Services Vendor Benchmark*

• Global Delivery Benchmark* • Healthcare IT Services Vendor

Benchmark • IT Services Vendor Benchmark • Management Consulting Benchmark* • Public Sector IT Services Vendor

Benchmark

Healthcare IT Services Vendors

• Accenture HITS* • CSC HITS* • Dell HITS* • HP HITS* • IBM HITS*

Management Consulting Vendors

• Bain & Company* • Boston Consulting Group* • Deloitte Consulting* • McKinsey & Co.* • PwC*

TBR Professional Services Practice Syndicated Coverage

*Semiannual publication

TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

About TBR Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today.

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This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.


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