BI Trends

Top 7 Insights from the State of Embedded Analytics

By Alvin Wong
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The State of Embedded Analytics Report provides insight to product managers, executives, and technology leaders on why and how software providers embed analytic capabilities within their applications. We delve into the strategic vision, the business case, and the implementation approaches for embedding analytics. Here are the top seven insights from our findings:

1. Embedded analytics is here now, and is becoming increasingly important: 89% of software providers provide some kind of analytics capability (dashboards, reports, self-service analysis) within their applications today. Over the next 12 months, not only do 86% of software providers feel the importance of embedded analytics will increase, but no one felt that it would become less important in any way.

Q: Do you think embedded analytics will become more or less important over the next 12 months?


2. Software providers embed analytics to differentiate their products, increase customer satisfaction, and ultimately, increase sales and improve sales efficiency: Software providers strongly agree that embedded analytics enables them to: create a competitive differentiator (65%), increase customer satisfaction (63%), give better sales demos (56%), and improve the user experience (54%).

Q: To what extent embedded analytics helps you to…


3. Infused Analytics is the best way to differentiate your use of analytics: Of the different ways analytics can be embedded within an application, 91% of software providers who infuse analytics into their core workflows strongly agreed that analytics helps them create a competitive differentiator. As analytics is integrated deeper within the application, and analysis and action are woven together, not only do you create a better user experience, but you have a greater chance of differentiating your product with embedded analytics. [See previous post for a deeper dive into the 4 stages of embedding.]


4. Analytics is a substantial portion of the overall value of software applications today: The median value of analytics as a percentage of the overall product value is 22.5%. For Infused Analytics applications, this value more than doubles to 51%. This is a clear indication that analytics deserves focused attention from software executives looking to build product value.

5. Time to market drives the need to embed third-party products: Software providers turn to third-party products to get to market faster, reduce costs of development and maintenance, and keep resources dedicated to their core application. Companies target 3-6 months to release analytics capabilities to market.

Q: Why did you choose a third-party product to help deliver analytic capabilities? (select all that apply)


6. Most embedded analytics implementations utilize a single vendor, but it is not uncommon to see multi-vendor implementations: 60% of software providers utilize a single third party to deliver analytics, while 40% turn to multiple vendors. The multi-vendor approach could be part of a transition while switching vendors, or an intentional portfolio approach where different products are selected to address different use cases.


7. No surprises when it comes to the most popular capabilities embedded into software applications: Dashboards, reports, and self-service analysis are the top embedded capabilities, matching the most widely deployed traditional BI capabilities.

Want more? Download the latest report now!


Originally published January 9, 2014; updated on June 15th, 2018

About the Author

Alvin Wong has an extensive background in solution architecture and implementation of SaaS and business intelligence applications. Alvin earned his MS in Engineering Management from Stanford University and BS in Electrical Engineering from Cornell University.