Research firm calls on narrowly focused software providers to expand their horizons
Framingham, MA August 26, 2003 The worldwide analytic applications software market will top $4.8 billion in 2007, according to technology research group IDC, which is calling on narrowly focused vendors in this market to expand their horizons.
In its recent report "Worldwide Total Analytic Applications Software Forecast and Analysis, 2003-2007," IDC predicted that all three sectors of the analytic applications market customer relationship management (CRM) analytics, financial business performance management and operations will see healthy revenue growth rates through 2007.
CRM analytics will grow the fastest with a compound annual growth rate (CAGR) of 12.9 percent, followed by financial analytics/business performance management at 10.3 percent, and operations analytics at a 7.4 percent growth rate.
To capitalize on the growth of this market, vendors centered in one sector of analytic applications should consider expanding their presence to all three sectors through development, acquisition or partnering, IDC advised.
"Analytic applications are the best means of navigating from data to decision-making and action," said Bob Blumstein, research director for IDC's CRM analytics and marketing applications research. "As companies adopt these applications to enhance the effectiveness of finance, customer relationship management (CRM) and operations, they will gain a distinct competitive advantage over those companies that tolerate traditional inefficiencies."
In its report, IDC wrote that users would need to pay close attention to both simple and complex analytics by weighing their effectiveness in return on investment (ROI) and in qualitative value. Vendors will need to display an edge in terms of ease of use as well as in algorithmic functionality to gain market share.
The IDC report examines the total analytic applications market from 2002 to 2007, with vendor revenue trends and market growth forecasts for the total market, as well as key sectors within the market. The research firm also provided vendor competitive analysis, including vendor revenues and market shares of leading vendors.