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Dan Power

Greetings to all of my friends who work in the area of computerized decision support. This blog is a way for me to share stories from my encounters related to decision support, to comment on industry events, and to comment on other blogger's comments, especially those of my friends on the Business Intelligence Network. I'll try to state my opinions clearly and provide an old professor's perspective on how computers and information technology are changing the world. Decision making has always been my focus, and it will be in this blog as well. Your comments, feedback and questions are welcomed.

About the author >

Daniel J. "Dan" Power is a Professor of Information Systems and Management at the College of Business Administration at the University of Northern Iowa and the editor of DSSResources.com, the Web-based knowledge repository about computerized systems that support decision making; the editor of PlanningSkills.com; and the editor of DSS News, a bi-weekly e-newsletter. Dr. Power's research interests include the design and development of decision support systems and how these systems impact individual and organizational decision behavior.

Editor's Note: More articles and resources are available in Dan's BeyeNETWORK Expert Channel. Be sure to visit today!

Market size and market share hinges on defining the market for business intelligence information and analyses. Analysts do not agree on the scope of the business intelligence market. I take a broad, inclusive approach and define data-driven decision support software and services as the appropriate focus.

So how large is the global data-driven decision support software and services market in terms of annual sales? And what is the anticipated growth of the market?

According to a release from AMR at DSSResources.com, "Global spending on business intelligence and performance management applications will reach $57.1B in 2008 ..." AMR Research sees U.S. BI/PM market growing 4.2% in 2008 (see http://dssresources.com/news/2502.php).

Contrast that with Mary Hayes Weier's estimate of a USD $7 billion dollar market for BI discussed in my April 27, 2008 blog post. What is the reality?

From the numbers I have seen over the years and from looking at vendor revenue numbers, USD $7 billion is much too low for the data-driven decision support market size, but USD $57 billion seems very high. I estimate a USD $15-20 billion dollar market. As far as growth, I think the growth rate is about 5% and it should be much higher in future years if companies want to remain competitive.

Let's see what my friends and colleagues on the BI network think.


Posted May 16, 2008 9:47 AM
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