BI Trends

Embedded Analytics: Not Just for OEMs Any More

By Michelle Gardner
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Analytics has become imperative to business success—and the best analytics are embedded into the fabric of the applications people use every day to do their work. Eighty-seven percent of application users want analytics embedded inside their applications. What’s more, the user adoption rate of embedded analytics is twice that of traditional business intelligence tools.

Historically, commercial independent software vendors (ISVs) and Software as a Service (SaaS) providers have embedded analytics in their applications as a way to boost revenue, drive user adoption, and improve customer satisfaction. They used analytics to make money—and they still do. 93 percent of OEMs recently reported that embedded analytics has helped them increase revenue.

However, over the past few years, non-commercial application providers have begun to see the benefits of embedded analytics for themselves. Their reasons are essentially the same as those of commercial OEMs: While they may not drive revenue by adding analytics to their applications, internal IT teams are able to see huge boosts in user adoption and satisfy users with more robust applications. At the end of the day, IT teams that provide applications to users within their organizations want to make sure their applications and portals are being used by their employees.

The fact is, all companies are becoming software companies and all software applications are becoming analytic applications. That’s why, starting last year, Logi expanded its annual State of Embedded Analytics Report to include respondents from commercial ISVs and SaaS providers as well as non-commercial IT-managed applications used by internal staff and partners.

In this year’s survey, some interesting comparisons emerged between OEMs and non-commercial application providers:

  • It’s becoming clear that all types of users expect business intelligence inside the applications they use every day. Ninety-four percent of commercial ISVs and SaaS providers and 80 percent of non-commercial application providers say that embedded analytics is important to their users. This is up from last year’s results, which showed 89 percent of commercial software providers and 76 percent of non-commercial providers said embedded analytics was important to users.

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  • User satisfaction is top of mind for non-commercial application providers. Increasing user satisfaction is the top strategic benefit for internal IT application providers and the number two strategic benefit for commercial software providers (second only to increasing overall revenue). Other top-ranked strategic benefits for both commercial and non-commercial app providers include improving the user experience, increasing user adoption, and differentiating their applications.
  • Commercial software and SaaS providers lead internal IT app providers in use of embedded analytics. Two-thirds of all software applications—both commercial and non-commercial—embed business intelligence and analytics. But commercial providers lead the way, with 77 percent of them offering embedded analytics as part of their applications. On the other hand, 56 percent of non-commercial application providers offer embedded analytics. The majority of both groups plan to invest in embedded business intelligence over the next year.

Building a data-driven culture starts with giving users easy access to analytics. As more organizations require their employees to report on metrics, it’s more important than ever to provide users with analytics within the applications they regularly use. Based on these latest survey results, we believe more and more non-commercial application providers will continue to embed analytics.

Get Your Copy of the 2016 State of Embedded Analytics Report >


Originally published April 20, 2016; updated on June 13th, 2018

About the Author

Michelle Gardner is the Director of Corporate Marketing & Communications at Logi Analytics. She has over a decade of experience writing and editing content, with a specialty in software and technology.