Development of Business Intelligence (BI) Market of China in 2008

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BI has become one of the most promising sectors in the global information technology market and also plays an important role in the evolution of business information in China. Statistics showed that in 2007, the BI market in mainland China reached 2 billion yuan ($ 260 million), up 35% from 2006, consisting of 900 million BI product license. yuan and BI system integration of 1.1 billion yuan. There are currently over 500 BI companies (product developers, integrators, distributors and service providers) employing around 80,000 people in China.

BI is generally referred to as software solutions which can compile existing business data into appropriate knowledge, in order to aid the decision-making process of a business. BI typically involves the following technologies: data mart, data warehouse, user query and report, online analytical processing (OLAP), data mining, KPIs, and analytics application.

Top BI Technology Companies in China

Guangzhou Sunnet – Sunnet has been operating for nine years, from the basic multidimensional analytical product BlueQuery2.6 in 2001 to the latest BlueQueryEnterpriseV product for multidimensional enterprise analytical services.

Shanghai Tenly Software – Tenly’s Markway brand products include analytical systems, network exploration system, intelligent test report and information software. Its Markway Analysis System was the first Chinese language-based large-scale statistical analysis and data mining software with proprietary intellectual property in China.

ADM Software – ADM has successfully completed over 200 large and medium scale projects, with relatively sophisticated BI solutions for the financial, aerospace, retail and government industries. ADM has become a leader in the field of enterprise decision support systems in China.

Beijing Ourway Power Co – This is a fast growing small and medium business information company. Its Power-BI business decision analysis system is China’s first quick-install BI software.

Competition landscape

Due to the boom in global M&A activity in 2007, the BI software market will now be dominated by IBM, Oracle, SAP and Microsoft, and BI companies such as SAS, Informatica and Microstrategy are expected to lead the business. product developments in industry. Currently, local Chinese BI companies have a 36% market share in China, and Chinese BI licenses only account for 6% of total BI license revenue in China.

Multinational BI Advantages

The main sources of income for multinational BI companies in China come from product sales, technical services and large-scale project integration. Multinationals currently have competitive advantages in data warehouses, data mining, ETL (Extract, Transform and Load), reporting and OLAP, with strong market shares in large projects in the sectors of finance, telecommunications, insurance and energy.

Benefits of home BI

Chinese local BI companies make the most money from systems integration and product sales, and local systems integration companies have captured half of the systems integration market in financial and telecommunications. Local BI product developers made significant progress in 2007, particularly the BI reporting products from Sunnet and Runqian. Although product developers have successfully upgraded their core technologies, the key to their sales last year still lies in cooperative partnerships with integrators and downstream distributors.

Industry growth

BI markets in finance, telecommunications and insurance all experienced growth rates of around 20% in 2007, while growth rates above 30% were seen in the energy sectors. , manufacturing and government. The environment for implementing enterprise-wide BI systems is becoming more and more sophisticated in large enterprises, so it remains an important part of the overall BI market in China for all three. coming years. Mid-sized companies will be the main growth pole in the Chinese BI market, as this segment will be in the development stage over the next three years. BI systems for small businesses are still at an early stage and are expected to mature in five years. Overall, demand for BI products in China will enter a phase of rapid growth over the next five years, with an estimated value of 5 billion yuan, followed by another three years of post-maturity extension.

BI software may be implemented more independently in large Chinese enterprises, while BI capabilities in small and medium enterprises may still need to rely on management software such as ERP and CRM. . Therefore, it is expected that an increasing number of BI products will be integrated into ERP and CRM management software as complementary capabilities. But in the long run, BI developers in China should pay more attention to operational BI products.

The biggest constraints in popularizing BI products are their high prices and the lack of supporting talent. While sectors such as finance, telecommunications, insurance, energy, and power may rely more on BI capabilities, companies in other sectors may require relatively smaller BI investments. The entire BI industry in China is expected to become more competitive, thereby reducing the overall price level. Therefore, the BI license sales volume would be higher, but the growth in total sales value could remain relatively stable.

Market demand analysis by segment

The demand for BI products from different segments may change over time, and the performance results in 2007 were as follows:

Reporting and OLAP products – Reporting is a fundamental aspect of BI capabilities, and OLAP multidimensional analysis is an exceptional feature of BI. While reporting and OLAP products represented 45% of the BI market, this segment was very competitive, with multinationals capturing more than 80% of the share.

Data Warehouse Products – Data warehouse and data mart products were another basis for BI projects, accounting for 40% of the BI market in China, with overseas vendors taking prominent positions on the market. market.

ETL and Data Integration Tools – Although ETL and Data Integration accounted for 40% of a typical BI project, ETL tools only had a 9% market share in China. Many applications are still based on manual coding methods in China, which means that it will take some time for ETL tools to become popular.

Data Mining – Data mining technologies, with a 3% market share in 2007, have now matured relatively, but a lack of technical support experts is hampering their acceptance.

Other products such as performance management, key performance indicators and metadata collectively held a 3% market share in China last year.



Source by Face Zhang

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