BI Trends

The Death of Business Intelligence: Why the Future Belongs to Embedded Analytics

By Steven Schneider
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The business intelligence (BI) industry is undergoing a transformation. Nucleus Research predicts spend on BI tools will decrease more than 80 percent this year, according to their First Half 2018 Market Survey. This is hardly a surprise if you look at what’s been happening in the market. Newcomer Domo was forced to go public at a fraction of their original valuations. And even long-established companies like MicroStrategy are in a spending spree despite stagnant revenue.

And yet, analytics are in more demand than ever—just not from traditional standalone BI tools.

Traditional BI is losing ground to a new class of solutions: embedded analytics. Spend on embedded analytics now represents 60 percent of new or additional analytics purchases, according to the 2018 Nucleus Research survey. Why? Because over 83 percent of professionals want analytics inside the applications they already use, instead of wasting time switching from one application to another, according to the 2017 State of Analytics Adoption Report.

But even in the category of embedded analytics, there’s a massive range of solutions.

The Future Is Embedded Analytics

Plenty of traditional BI tools are trying to wedge themselves into the growing embedded analytics market—but they just fall flat. “Not all analytics platforms were built to be embedded,” says Gartner in their report, 5 Best Practices for Choosing an Embedded Analytics Platform Provider. “Some providers attempt to offer embedded analytics offerings that are the same products sold to direct customers, but lack required capabilities for a truly embedded experience.”

Traditional BI vendors that “dabble” in embedded analytics fall short for two reasons. First, they’re not designed to be embedded. Their architectures, security frameworks, and feature sets just aren’t built with application teams in mind. And they aren’t completely customizable or extensible—which means they can’t keep up with the requirements of independent software vendors (ISVs) that need to maintain their brands and deliver a completely seamless user experience.

Second, traditional BI tools have set up their businesses to chase 100 different use cases. Their roadmaps, professional services, and support teams are focused on embedded analytics, which leaves their whole business fractured.

Logi Analytics has emerged as the leading embedded analytics platform recommended by Dresner Advisory Services. We’re the only analytics platform designed from the ground up to be embedded, and the only vendor focused exclusively on the embedded analytics use case.

There is a world of difference between a solution that focuses exclusively on embedded analytics and one that’s been retrofitted for embedded use cases. Traditional BI vendors are trying their hardest to enter the embedded analytics space, but no one benefits from a tool that is suddenly able to “support” embedded analytics. You’ll only end up with a disjointed and disappointing application experience. Purpose-built embedded analytics solutions put information in context of the business applications users already love—and they’re dedicated to delivering modern features and engaging experiences that makes your application even more valuable.

It’s not a surprise that Nucleus Research declares embedded analytics will dominate in the coming year, in their Top Ten Predictions for 2019. “Analytics will become a part of a solution, offering a look backward or forward from within a solution directly to a user,” writes Nucleus.

Ready to update your analytics? See Gartner’s 5 Best Practices for Choosing an Embedded Analytics Platform Provider >


Originally published November 9, 2018

About the Author

Steven Schneider is the CEO of Logi Analytics, where he brings more than 15 years of technology leadership experience. Steven has previously served as both Chief Operating Officer and Chief Product Officer at Logi, where he led the sales, product, engineering, marketing, and customer success teams. Prior to Logi, he was a founding partner of OnDemandIQ, a Hosted Business Intelligence solution, and a practice manager at leading web technology company Proxicom. Steven holds a BS in Computer Science from Virginia Tech and an MBA from the University of Southern California.