BI has become one of the most promising areas in the global information technology market and an important part of the development of information technology in Chinese enterprises. Statistics show that in 2007, the size of the BI market in mainland China reached 2 billion yuan [260 million US dollars], an increase of 35% over 2006, including a BI product license of 900 million yuan and a BI system integration of 1.1 billion yuan. More than 500 BI companies [product developers, integrators, distributors and service providers] currently employ approximately 80,000 people in China.
BI is often referred to as a software solution that compiles existing enterprise data into appropriate knowledge to help the company's decision-making process. BI typically involves the following technologies: data marts, data warehousing, user queries and reports, online analytical processing [OLAP], data mining, key performance indicators, and analytics applications.
Leading BI technology company in China
Guangzhou Sunnet - Sunnet has been in operation for nine years, starting with the basic multidimensional analysis product BlueQuery 2.6 in 2001 and then the latest BlueQuery EnterpriseV product for enterprise multidimensional analysis services.
Shanghai Tenly Software - Tenly's Markway brand products include analysis systems, network mining systems, intelligent reporting and information testing software. Its Markway analysis system is China's first Chinese language with independent intellectual property rights, large-scale statistical analysis and data mining software.
ADM Software - ADM has successfully completed more than 200 large and medium-sized projects, providing relatively complex BI solutions for the financial, aviation, retail and government sectors. ADM has become a leader in the field of decision support systems for Chinese companies.
Beijing Weway Power Co - This is a fast-growing SME information company. Its Power-BI Enterprise Decision Analysis System is China's first fast-installing BI software.
Competitive landscape
Due to the surge in global M&A activity in 2007, the BI software market will be dominated by IBM, Oracle, SAP and Microsoft, and professional BI companies such as SAS, Informatica and Microstrategy are expected to lead product development. industry. At present, China's domestic BI company has a market share of 36% in China, and China's BI license only accounts for 6% of China's total BI license revenue.
Transnational BI advantage
The revenue sources of multinational BI companies in China mainly come from product sales, technical services and large-scale project integration. Multinational companies currently have a competitive advantage in data warehousing, data mining, ETL [extraction, conversion and load], reporting and OLAP, with strong market share in large projects in the financial, telecommunications, insurance and energy sectors.
Domestic BI advantage
Chinese local business intelligence companies have earned most of their money through system integration and product sales, and local system integration companies account for half of the system integration market in the financial and telecommunications industries. Local BI product developers made significant progress in 2007, especially Sunnet and Runqian's BI reporting products. While product developers have successfully upgraded their core technologies, the key to last year's sales performance was a partnership with downstream integrators and distributors.
Industry growth
The BI market in the finance, telecommunications and insurance industries experienced a growth rate of around 20% in 2007, while the energy, manufacturing and government sectors all grew by more than 30%. The environment for implementing enterprise-class BI systems is becoming more and more complex in large companies, so it will remain an important part of the entire Chinese BI market in the next three years. Medium-sized companies will become the main growth point for China's BI market, as this segment will be in the development stage in the next three years. The BI system for small companies is still in its early stages and is expected to mature in five years. Overall, China's demand for BI products will enter a period of rapid growth in the next five years, with an estimated value of RMB 5 billion, followed by an expiration of another three years.
BI software can be implemented more independently in large Chinese companies, while BI functions in small and medium-sized enterprises may still rely on management software such as ERP and CRM. Therefore, it is expected that more and more BI products will be embedded as complementary functions in ERP and CRM management software. But in the long run, Chinese BI developers should pay more attention to effective BI products.
The biggest limiting factor in promoting BI products is the high price and lack of support talent. While industries such as finance, telecommunications, insurance, energy, and power may be more dependent on BI capabilities, companies in other industries may require relatively small BI investments. It is expected that the entire BI industry in China will be more competitive and lower the overall pricing level. As a result, BI license sales will be higher, but total sales growth may remain relatively stable.
Market segment demand analysis
The demand for BI products in different departments may change over time. The results of 2007 are as follows:
Reporting and OLAP Products - Reporting is a fundamental aspect of BI functionality, and OLAP multidimensional analysis is a prominent feature of BI. Although reports and OLAP products account for 45% of the BI market, the market segment is highly competitive, with multinational companies accounting for more than 80% of the shares.
Data warehousing products - Data warehousing and data mart products are another foundation for BI projects, accounting for 40% of China's BI market, with foreign suppliers occupying a prominent market position.
ETL and Data Integration Tools - While ETL and data integration account for 40% of typical BI projects, ETL tools have a market share of only 9% in China. Many applications are still based on China's manual coding methods, which means that ETL tools take some time to become popular.
Data Mining - Data mining technology has a 3% market share in 2007 and is now relatively mature, but the lack of technical support experts has hampered their acceptance.
Last year, other products such as performance management, KPI and metadata accounted for 3% of the Chinese market share.
Orignal From: The development of China's business intelligence (BI) market in 2008
No comments:
Post a Comment