The embedded analytics landscape is always shifting – new needs drive new capabilities, and larger industry trends drive major transformations. Each year, we take the pulse of the industry in our State of Embedded Analytics survey. And each year, new trends emerge that not only show us how the market is evolving, but also give us an idea on where it’s headed.
Looking at this year’s results, we’ve developed a few predictions around the trends we think will drive the embedded analytics market over the next few years.
Prediction #1: Infused Analytics will Become Standard
Businesses are moving to the infused analytics model, in which analytics is a core component of all software applications. Within three years, it will be impossible to tell the difference between an application and the analytics content embedded within it. Just as B2C applications embed analytics as a natural part of the user experience, B2B applications will continue to move from bolt-on approaches to more infused implementations. Users will only have to use their preferred application, not two or more applications, in their daily work.
Prediction #2: Self-Service Expands to Include Every User
The demand for self-service analytics will extend from tech-savvy users to more and more nontechnical users who demand analytics access within their preferred business applications. As a result, the user experience will move front and center to empower these non-technical BI users.
Your product management and development teams must embrace the challenge of delivering self-service even more so than managed reporting. You will need to empower your users to ask their own questions of the data, as well as provide the dashboards to help them answer a few key questions—and the sooner you get started, the better.
Prediction #3: Advanced Analytics Gets Operationalized
Over the next five years, we will see analytics capabilities themselves become more sophisticated. Organizations will graduate from descriptive and diagnostic analytics—describing what’s happened and diagnosing issues—and move toward more predictive and prescriptive analytics. They will focus on what the future holds and how the business can prepare itself for tomorrow.
While embedded analytics tends to be primarily descriptive and diagnostic in nature, interest in predictive analytics continues to grow among application providers. Prescriptive analytics is the most difficult to implement, and wide adoption is expected much further out, in the next eight to ten years.