Non-IT units to control 40 percent of BI budget

By siliconindia   |   Tuesday, 20 January 2009, 23:41 IST   |    1 Comments
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Bangalore: On the backdrop of the economic crisis and its huge impact on the IT sector, the business units, rather than IT will control atleast 40 percent of the total budget for Business Intelligence (BI) by 2012. It is also expected that 35 percent of the largest 5,000 companies will regularly fail to make insightful decisions about significant changes in their business and markets. The lowered confidence in IT will increase spending on packaged analytics, including corporate performance management, predictive analytics, and online marketing BI wares. "In so doing, however, they risk creating silos of applications and information, which will limit cross-function analysis, add complexity, and delay corporate planning and execution of changes," said Nigel Rayner, Research Vice President at Gartner. The findings are based on Gartner's five predictions on the upcoming traits in the BI zone for 2009 through 2012, as reported by IT World. The research firm has predicted an inclination towards SaaS, with 20 percent of the companies adopting SaaS-styled applications by 2012. It is also expected that collaborative decision making will emerge as a new product category. This approach will improve the business value of BI because it ties all the good stuff BI delivers (e.g. analytical insights, KPIs) directly to decisions made in the business. Gartner's fifth prediction is that by 2012 one-third of analytic applications applied to business processes will be delivered via coarse-grained mashups. IT shops are no longer focusing on grand visions such as SOA, which involve building composite applications out of fine-grained services or portals that merely display operational and analytical information next to each other, the analyst firm explained. Coarse-grained mashups, on the other hand, can be used to overlay analytical insights.