Mid-market solutions tend to sell themselves on factors such as ease of use, quick implementation times, lower total cost of ownership (TCO), diversity in deployment methods and licensing, broader
payment structures and lower price points. These are the reasons proliferated in the market regarding why and how small and mid-sized companies can take advantage of business intelligence without
paying high prices and without having strong internal IT infrastructure.
But with organizations struggling to integrate business intelligence (BI) into their environments within an economy that won’t tolerate mistakes, the ability to apply mid-market strategy and
solutions that currently exist within the marketplace to enterprise organizations is becoming a valuable choice for larger organizations looking to take advantage of what business intelligence has to
offer. Organizations that may have been open to high investments and longer implementation times in order to develop a full scale in-house BI and data warehousing application/toolset are no longer
willing to invest the time, money and resources required. Organizations now want immediate gratification from their investments. Whether in the guise of deployments within hours or days as opposed to
weeks or months, or in the form of measurable performance improvements quickly, there is a push away from traditional business intelligence due to a perceived lack of flexibility.
Coupling economic downturn and the advent of lower cost and low maintenance solutions actually presents a new opportunity on two fronts. First, solution providers offering business intelligence as a
service and/or with low cost subscription fees can take advantage of this market because they already have the structure in place to implement solutions quickly. They can offer services to customers
freeing organizations from the requirement of on-premise expertise, and they can offer ongoing support at a fraction of the cost of large-scale implementations. They do this while providing the same
basic features and functionality of their traditional BI counterparts. Second, and maybe more importantly, because of this new advantage for niche players in the market, organizations now have the
upper hand. They can pick and choose exactly what they want to implement or have hosted, giving them more freedom without additional hassles.
This article looks at how targeted mid-market solutions are now shifting toward the enterprise and how enterprise organizations are starting to apply these solutions within their organizations to
maximize performance.
Toward the Enterprise
Some BI solutions that were formerly targeted at mid-sized companies are now moving back toward the enterprise. A year ago, talk was being directed at how small and mid-sized companies were
better poised to take advantage of BI solutions now that alternative options existed. Ironically, with the economic downturn, these same solutions are being rolled out by enterprise organizations
looking to take advantage of the same aspects targeted to mid-market companies, but on a larger scale. Swayne Hill, President and CEO of Cloud9 Analytics, a BI solution based in the cloud, stated in
a recent interview with WiseAnalytics that within cloud analytics and the on-demand sector, he is seeing the shift in adoption moving from small and mid-sized companies toward the enterprise.
Companies are now looking for targeted solutions that can meet their business requirements and that allow them flexibility in design and execution, which companies such as Cloud9 Analytics and other
on-demand suites are able to do more efficiently because of their constant interaction with customers.
Aside from faster implementation times and the ability to update and change the information required at a quicker rate than when dealing with internal IT departments, the last few years have pushed
the emphasis away from IT managed solutions and toward departmental or operational type deployments. The implication of this is that in some cases departments and/or business units prefer having
hosted solutions where the vendor plays a consulting role and the turnaround time is almost immediate, allowing end users to react to market changes more rapidly. By placing the ability to design and
maintain solutions in the hands of end users, the ability to hone in to solve business pains, to manage trends and to develop forecasts can be achieved more easily. And although not just limited to
on-demand, these solutions seem to provide some of the best recent examples of the shift from mid-market toward the enterprise.
Using Tableau Software as another example, Elissa Fink, the VP of Marketing expanded upon her company’s announcement of 16 quarters of growth in a row by citing quick implementation times and
lower costs as reasons why companies are continuing to invest in business intelligence. In an economic downturn, companies do not have the option to take time to make decisions or to wait many months
to implement a solution. They require quick value assessments and the ability to get a solution up and running almost immediately.
These insights highlight the fact that what organizations are looking for is starting to shift. Because large organizations generally have larger data volumes than their smaller counterparts, and
because there are more constraints around that data, silos are more likely to exist, which helps feed into the concept of departmental rather than overall solutions. Although this goes against the
push towards BI for the masses and developing an enterprise-wide BI strategy, this becomes a key advantage for vendors that put power of use into the hands of the end users.
Focusing on the Department
Within many enterprise companies, it becomes more feasible to deploy business intelligence across multiple departments to analyze a wide variety of business issues while giving end users the
autonomy to create their own applications. Consequently, many mid-market solutions are poised to do just that. Many mid-market solutions are developed to give end users the ability to customize and
change how they view and analyze data as well as the information they are accessing without IT or third-party consultation. Because these solutions are built on the premise that smaller businesses do
not have access to extensive IT departments, solutions are generally more intuitive related to end user access, customization, and the ability to develop new or different applications easily.
What this means for enterprise organizations looking for business intelligence is that departments can act independently to develop applications that suit their requirements, manage their data sets,
and still share accurate and relevant data across the organization. What mid-market solutions have, whether on-demand or on-premise, is a greater likelihood that solutions were developed with the
business user in mind. And although this is not always the case, the reality remains that solutions targeted to small and mid-sized organizations target business users over their IT counterparts in
relation to solution management.
With the debate over the value of deploying departmental solutions at the cost of information sharing across the organization, the ability to use these solutions independently of IT does have some
downsides. If organizations do not have a way to manage and share information across the organization or do not value the ability to collaborate across multiple business units, then putting these
solutions in the hands of departments increases the likelihood of additional silos being created.
Conclusion
Overall, as the economy continues to play havoc with organizations, the reality of mid-market solutions expanding back toward the enterprise is an obvious extension of a combination of
conservative spending and the intrinsic value of managing performance more closely. With a wider range of solution offerings targeting the mid-market and the ability to implement business
intelligence more quickly in many cases, it becomes obvious that enterprise organizations looking to maintain their business while expanding their view of their organization and how it fits within
their respective markets will continue to turn to mid-market solutions in hopes of achieving these goals while saving costs.
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Lyndsay Wise
Lyndsay is the President and Founder of WiseAnalytics, an independent analyst firm specializing in business intelligence, master data management and unstructured data. For more than seven years, she has assisted clients in business systems analysis, software selection and implementation of enterprise applications. Lyndsay conducts regular research studies, consults, writes articles and speaks about improving the value of business intelligence within organizations. She can be reached at lwise@wiseanalytics.com.
Editor's Note: More articles and resources are available in Lyndsay's BeyeNETWORK Expert Channel. Be sure to visit today!
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Comments
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Posted April 2, 2009 by Tom L
Lindsay, you make some really good points. In particular, you identify some of the main needs of the midsize firm:
1 - Quickness and ease of implementation
2 - Low cost--TCO, licensing, maintenance
3 - Robustness of features coupled with lightness and flexibility
4 - Focus on end-users--with the BI solution making them smarter and the company more competitive
A lot of the advantages you cite for SaaS are applicable to the lighter, more dynamic Web-based commercial solutions (e.g. LogiXML).
These are quick to implement and extremely forgiving on the kind of data-source or architecture the midsize firm may use; they are optimized to be run and maintained by small IT departments; they have low cost of ownership, are licensed by the server (no user fees) and they send out automatic upgrades over the Web; they offer all the features today’s companies need--including dashboards, advanced visualization tools, heat and geographic maps, automatic scheduling and alerts, actionable KPIs, etc; and they are designed and constantly improved to be truly easy to use and intuitive for the end-user.
One of the major advantages I see in the model I’ve just described over SaaS is the fact that with a commercial Web-based BI solution, a company’s data is not hosted elsewhere. It’s fair to say that data security is still an evolving concept with the SaaS model, whereas for commercial BI solution it’s come of age.
So I would say that a dynamic, Web-based commercial BI solution offers the midsize firm the benefits of SaaS without the drawbacks; also, if more departments end up adopting BI, this type of solution can be made available to more users at no additional cost, thereby offering a great degree of flexibility.
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Posted March 27, 2009 by Lyndsay Wise
Ken - I think that is a very interesting point related to SaaS companies also providing business analysis for their customers. For mid-market companies I wonder if this change might give companies the chance to access business analyst expertise, where otherwise they might not have the chance to access that expertise.
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Posted March 26, 2009 by Ian Maclachlan
Lyndsay - You make a lot of valid points and the relative ease with which some of the newer, lightweight, BI tools can be implemented has obvious appeal. However, from the perspective of a large enterprise, with a significant investment in "traditional" BI tools and infrastructure, that is where the high value content lies that everyone needs to get at whether at a departmental or corporate level. The problem is the accessibility of that data, the relevance of its structure and the availability of tools to present information in the way that users want to consume it.
In the case of those enterprises with a large investment in BusinessObjects Antivia (www.antivia.com) offers capabilities that will greatly enhance the users BI experience and put the users and their knowledge of the business back at the centre of enterprise BI. I won't go into all the details here but you, and any of your readers who have an existing investment in BusinessObjects, should take a look - you won't be disappointed!
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Posted March 25, 2009 by Anonymous
Business Intelligence with Office SharePoint Server 2007 provides an infrastructure that makes it easy for decision-makers to access information anytime, anywhere. People can get up-to-date information where they work, collaborate, and make decisions, whether it's on the desktop or over the Web. There is more information on Business Intelligence solution at http://www.nsynergy.com/Products/SharePoint/Pages/Business_Intelligence.aspx or please mail to info@nsynergy.com.
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Posted March 25, 2009 by Ken Rudin krudin@lucidera.com
Lyndsay -- Great article. At LucidEra, we are definitely seeing a rapid increase in interest from large enterprises for SaaS BI. In fact, several of our recent customers are multi-billion dollar companies.
I also want to add to your comment that "departments and/or business units prefer having hosted solutions where the vendor plays a consulting role and the turnaround time is almost immediate." In the last few months, I've seen a large shift across all sizes of companies from a "DIY" approach to a "DIFM" (Do It For Me) approach. Our customers are coming to the conclusion that as long as they have a company providing BI as a service, they might as well use that company's resources to help them with the analysis too. People in various lines of business (sales, marketing, manufacturing) know their business, but aren't necessarily experienced in using analytics to uncover the real metrics that matter. So, they like having the ability to turn to their SaaS BI provider and say "you're already providing the BI software on-demand, how about also providing some business analysts on demand?"
We now have a service offering that is coupled with our on-demand software where we can perform quarterly Pipeline Healthchecks on a company's sales pipeline, and we go a step further as well and offer a Concierge service where we act as on-demand business analysts.
People are extremely busy with their day-to-day activities, and often don't have time to step back and analyze what's working and what isn't -- particularly with recent staff reductions which means people have even more to do every day. The ability to have a third party provide not just the BI software on-demand, but also the business analysts on-demand is going to be a very popular trend.
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