Logi Analytics has conducted a survey, 2016 State of Embedded Analytics Report, to get an understanding of this year’s state of embedded analytics among many industries, from technology and healthcare to education and manufacturing. Overall, there were three main areas in which the survey results provided enlightenment, and a fourth area that supports some predictions.
Overall, the report found:
- 2/3 of all software applications across all industries represented in survey embed BI and analytics.
- A strong majority (77%) of the embedded analytics adopters are commercial software providers, most likely because of increased revenue potential and competitive differentiators embedded analytics brings to the table.
- This is the first year the executive team AND the product management team have tied for being top drivers of embedded analytics. This points to embedded analytics being both lucrative for the business and essential for the product.
1- Logi’s State of Embedded Analytics Survey found that the growth of embedded analytics can be most contributed to consumer demand.
- 42% of app users employ embedded analytics features on a regular basis. This will jump to an estimated 52% within two years.
- 87% of all application providers say that embedded analytics is important to their customers.
- There is a 20%-point gap in user need of embedded analytics (87%) vs. applications with embedded analytics (67%).
- Embedded analytics has a higher adoption rate (43%) vs. traditional BI tools (30%).
2- There are value perception, revenue potential, and customer satisfaction benefits with embedded analytics.
- 45% percent of an application’s value is tied to data and analytics, increasing from 35% just two years ago.
- 93% of commercial software providers say embedded analytics has helped them increase revenue, and software providers charge a median value of 24% more for embedded analytics on top of their core offerings.
- 92% of commercial software providers and 93% of non-commercial app providers agree that embedded analytics improves customer service.
3- The survey found that application providers are investing in embedded analytics over the next 12 months.
- 62% of app providers will invest in embedded analytics over the next year.
- #1 Dashboards (68%), #2 self-service reporting & analysis (57%), #3 and static and interactive reports (55%) were the top 3 embedded analytics capabilities app providers offer within their apps.
- Inline analytics (meaning analytics content and capabilities are integrated with the data, security, and UI of the application) is the most popular form of embedding, making up 53% of all implementations.
4- Logi makes 3 predictions based on the results of this survey:
- Infused analytics will become the standard. This means analytics is a core component of all software applications. Within three years, it will be impossible to tell the difference between an app and the analytics content embedded within it.
- Self-Service will expand to include every user. Demand for self-service analytics will extend from tech-savvy users to more and more non-technical users.
- Advanced analytics will get operationalized. Over the next five years, organizations will graduate from descriptive and diagnostic analytics—describing what’s happened and diagnosing issues—and move toward more predictive and prescriptive analytics.
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