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MAR 22, 2010 6:03am ET

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Number of People Using BI

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A number of clients ask me "how many people do you think use BI." It's not an easy question to answer, it will not be an exact science and will have many caveats. But here we go:

1. First, let's assume that we are only talking about what we all consider "traditional BI" apps. Let's exclude home grown apps built using spreadsheets and desktop databases. Let's also exclude operational reporting apps that are embedded in ERP, CRM and other applications.

2. Then, let's cut out everyone who only gets the results of a BI report/analysis in a static form, such as a hardcopy or a non interactive PDF file. So if you're not creating, modifying, viewing via a portal, sorting, filtering, ranking, drilling, etc, you probably do not require a BI product license and I am not counting you.

3. I'll just attempt to do this for the US for now. If the approach works, we'll try it for other major regions and countries.

4. Number of businesses with over 100 employees (a reasonable cut off for a business size that would consider using what we define as traditional BI) in the US in 2004 was 107,119

5. US Dept of Labor provides ranges as in "firms with 500-749 employees". For each range I take a middle number. For the last range "firms with over 10,000" I use an average of 15,000 employees.

6. This gives us 66 million (66,595,553) workers employed by US firms who could potentially use BI

7. Next we take the data from our latest BDS numbers on BI which tell us that 54% of the firms are using BI which gives us 35 million (35,961,598) workers employed by US firms that use BI

8. Then we make the following, unscientific, but educated guesses

   a. 20% of workers in any business can be considered "decision makers"

   b. 1/10th of them are strategic decision makers. Our latest BI maturity survey assumes that 50% of the strategic decision makers use BI, but a large number of respondents disagreed so we'll lower that number to 40%

   c. 8/10 of the decision makers are tactical and operational decision makers. The same BI maturity survey assumed that 25% of them use BI, and a quite a few of the respondents disagreed so we'll lower that number to 20%

9. That gives us 1.5 million (1,582,310) of workers in the US using traditional BI apps, or just over 2% (2.37%) of the total number of employees from these firms. I'd bump it up (unscientifically) to 3%-4% to adjust for growth since 2004.

I think that's a very low number, I would've guessed off the top of my head that it was closer to 6% or 8%. So please let's start a dialog where I might've gone wrong in my assumptions.

Also, BI vendors, please send me your stats on the number of individual licenses that you have (I'll keep them under NDA), and I'll triangulate the numbers.

Boris also blogs at http://blogs.forrester.com/boris_evelson/.

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Comments (2)
Your estimate of the number of users of BI at 3-4% may be accurate. How does this compare with Excel usage in business?

Most of us exclude Excel when we think about the BI market. The problem is BI is expensive and it is getting harder to justify an ROI. Excel is often closer to providing true decision support, which is why "export to Excel" is a universal requirement of BI tools.

Excel is 30 year old technology.

Posted by richard t | Wednesday, March 24 2010 at 4:38PM ET
Here are several comparisons to a BI solution vs Excel. SKYPAD, powered by Qlikview, will be the BI solution.

Saving user-created reports-- With SKYPAD, Users can independently create and save reports as bookmarks; no custom development required for on-the-fly report format changes. With EXcel- Users can alter reports within contraints of pivot table functions; all user-created reports must be reconfigured with each new data refresh

Sharing--SKYPAD,Bookmarks can be shared instantly by user; data refreshes are automatically populated into saved report format. EXCEL, Individual reports may only be shared as an entire pivot table workbook (report suite + data cache)

Incorporating Images- SKYPAD, Product images are easily integrated in report views; exporting capabilities to merchandising/ production/ sales reports. EXCEL, Actual images are not supported within pivot table views or functionality

Visualization options- SKYPAD, Offers portfolio of advanced visual analytics and dashboard features (e.g. heat maps, geographic maps, gaging, etc). EXCEL,Limited to pivot tables and excel-based charts and graphs

Data Set- SKYPAD, Data is held "in-memory", exclusive to client hardware capabilities; full data set available to any view. EXCEL, Only a subset of data can typically be shown and analyzed in excel because cache size is limited.

Posted by Gil H | Monday, March 29 2010 at 11:31AM ET
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Blog Archive for Boris Evelson

Why Don’t We Measure BI Performance?
Looking for BI Talent? You’re Not Alone
Evaluating BI for Cloud and Mobile
Help Wanted: Defining a Business Intelligence Leader
Searching for Measures of Business Intelligence Performance

More from Boris Evelson »

Blog Index »

Where do young IT professionals (30 and under) obtain information to aid with daily role responsibilities and career development?

Trade publication websites 14%
Social media 23%
Vendor websites 4%
Vendor/community forums 7%
Newsletters 1%
Trade conferences/meetups 2%
RSS feeds 6%
Web search 44%

 

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