The Western European market for analytic applications is growing significantly and will be worth 1.9bn euros (£1.3bn) by 2010, industry analysts predict.
A study by analyst firm IDC forecasts solid growth in all segments of the analytic applications market, with total value set to increase by 10.3% a year on average between 2005 and 2010.
The business performance management and financial analytics segment is set to experience the highest growth, driven by user demands for better strategic information on core functions and compliance requirements, and the ability to make more frequent adjustments to financial plans.
Businesses’ need to manage their costs and risks by optimising internal processes and supply chains will feed demand for supply chain management and operations analytics, the IDC report says.
It also notes that businesses have invested heavily in operational CRM applications, and are now seeking to use analytics to “unlock” the data these systems produce, in order to improve marketing and sales intelligence.
Christina Steensboe, IDC’s programme manager for European business intelligence and analytic applications, said the development of product suites, platforms and partnerships were key to meeting the analytics needs of businesses.
“Niche vendors will need to demonstrate above average expertise and measurable advantages over the suite vendors to win sales,” she said.