CIOs rank BI number one priority in 2007

CIOs rank BI number one priority in 2007

Local BI revenue to top $143 million

CIOs have ranked business intelligence (BI) projects as the number one technology priority for 2007 with revenue expected to grow 12 percent in Australia topping $100 million.

Following the release of a global survey of 1400 CIOs, Gartner said BI platform revenue in Australia will grow at an annual compound growth rate of 10 percent to reach more than $143 million by 2010.

This will create a tough market for software vendors with Gartner predicting that BI revenue from the 'mega vendors' such as Oracle, SAP and Microsoft, to grow three times faster than revenues from the BI pure-play vendors in 2007.

Worldwide BI revenue from the 'mega vendors' will grow 20 percent in 2007 compared to six percent for the pure-play vendors. In 2006 the 'mega vendors' had just over 20 percent of the global BI market and Gartner predicts this will increase to more than 30 percent by 2010.

At the company's inaugural Business Intelligence and Information Management Summit in Australia, which kicks off in Sydney tomorrow, Gartner research managing vice president Ian Bertram will outline the future of BI and how it will impact the business environment over the next 10 years assessing the opportunities and challenges it presents to Australian organisations.

"BI has become a strategic initiative and is now recognised by CIOs and business leaders as instrumental in driving business effectiveness and innovation," he said.

However, Bertram also cautioned that while BI is recognised as a strategic priority at management level, BI is not well understood among company employees.

He said an increased focus on training will be crucial in 2007.

A central theme at the conference will be data quality and integration, with visiting Gartner research vice presidents Ted Friedman and Andreas Bitterer providing advice on how to remove the 'garbage in, garbage out' problem to allow data to drive growth.

As companies put a more strategic focus on BI, they are also taking steps to reduce the number of vendors and tools deployed in their organisation.

In the past, each department bought their own BI solutions, resulting in an explosion of different tools across the business. Today they are looking to use the same systems across the business to ensure a standardised and rational way of analysing and measuring the same data, and to increase impact and operational efficiency.

The Asia Pacific market for BI platforms increased 22.7 percent to more than $US244 million in revenue in 2005, according to Gartner Dataquest's latest market share report released last month.

Australia represented more than 43 percent of the market and the top five BI platform software vendors in the region by revenue is Cognos, SAS Institute, Microsoft, Business Objects and SAP.

Gartner warned BI vendors that price pressures, increased competition and consolidation spell tough times ahead.

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