As a Business Intelligence and
Analytics (BIA) consultant, I need to keep up with the latest developments in
both analytics process and technology. This has become quite a bit easier in
recent years as quite a bit of useful information and wisdom is made freely
available over the Internet. Premium fee-based research, however, remains an
important source as it is generally deeper and more detailed and tends to carry
great weight with clients.
I’ve gotten to know several of the
analysts who cover the BIA space, and I find them to be among the most
hard-working folks around as they juggle their research, conference and
consulting responsibilities. Their methods are rigorous and the surveys span a
uniquely broad sample of industries and geography.
Given all that, I have become a
bit skeptical as to their influence because the research is often misused
and/or misinterpreted, resulting in poor purchases or misdirected
implementation programs that I have seen firsthand.
Part of the problem is that some
readers just look at the pictures. In the case of Gartner’s trademarked Magic
Quadrants, they note the vendors in the Northeast corner, and automatically
limit their purchase consideration set to the products fortunate enough to be
there that year. This is a big mistake. The real value in this content comes
from the detailed review of the relative strengths and weaknesses of each
vendor’s offerings.
Others get too caught up in the
feature function comparisons. Quality
and applicability; not quantity is what matters. Checking off the boxes may be
great for sales demos, but many customers get too far over their skis and don’t
end up using half the capabilities of the tools they buy.
Another mistake I see is when
buyers try to use the research as a substitute for their own reference checks
and a well –executed proof of concept to prove out the technology in context.
Keep in mind this research is
intended for both buyers and sellers. The vendors themselves are important
clients and participants. They provide insight into their product plans and
access to their reference clients. They also end up providing much of the
research funding. When vendors are reviewed positively, they often purchase the
work for redistribution. See here for one
example.
Some of the best insights in
research pieces are around the overall market as opposed to the individual
products and vendors. For example, in this year’s Magic Quadrant, Gartner took
the very significant step of redefining their market domain for BIA technology.
They completely removed a set of traditional data analysis and reporting tools
that have been a major market presence for many years (e.g. Oracle). They limited
the coverage to BIA “Platforms” that enable user-driven full-cycle data preparation,
integration, visualization and discovery capability. This change makes a strong
statement around the direction of the market and the shift of spending away
from IT-driven initiatives to user-driven and funded programs where IT is
expected to enable and emphasize data provisioning and governance over
technology enablement.
The wise consumer of this type of
research takes many factors into account when evaluating the products that are
covered, including:
- Vertical solutions – does
the vendor have a strong record creating solutions specific to your
industry?
- Partnerships – does the
vendor provide a complete solution or do they rely on partners?
- Costs and pricing –
although there is often useful information around pricing models, every
sales cycle is unique with regard to the effective costs of purchase and
eventual ownership. Negotiation
skills, reference potential, sales incentives etc. all play a significant
role.
- The relative importance of
sales experience, documentation, training, and support to you as a
customer
- Pay close attention to the methodology notes. They are usually very comprehensive important, particularly when they detail the breadth of the surveys and discussion of vendors who were included and excluded.
Careful consideration of these
details allows the reader to match the technology for a solution to your specific
situation, often preventing expensive mistakes.