In its report, entitled “Worldwide Business Analytics Software 2006 – 2010 Forecast and 2005 Vendor Shares”, IDC found that in 2005, the worldwide business analytics market grew at a rate of 11 percent to reach $16.6 billion in revenue. SAP’s business analytic applications revenue grew faster than the overall market, at a rate of 13.4 percent. To further extend its leadership in the analytic applications segment of this market, SAP also announced general availability of more than
100 analytic composites in the SAP xApp Analytics composite application – software built on the SAP NetWeaver platform that has proven to deploy quickly and seamlessly for early customers. “Business analytics (BA) is moving beyond traditional business intelligence that improves data capture and information delivery,” said Kathleen Wilhide, research director, IDC. “What is required are analytic applications that support business process improvements such as the introduction of new products, pricing changes, or workforce and inventory optimization, among others. IDC expects a trend towards integrating day-to-day processes with analytics that enhance decision support, a concept IDC calls intelligent process automation (IPA).”
Market leadership in analytic applications
SAP software for analytics delivers critical business insight to improve core horizontal and industry-specific business processes and includes the following:
- Analytics for enterprise resource planning (ERP), including financials and human capital management (HCM), enable enterprise-wide performance management and analysis, improving decisions and actions on all organizational levels.
- Analytics for customer relationship management (CRM) provide customer insights that help organizations to improve sales, marketing and customer service. Analytics for CRM enable organizations to analyze and optimize customer acquisition, customer retention and customer cross-sell and up-sell processes.
- Analytics for supply chain management (SCM) enable companies and individuals to sense and respond through an adaptive supply chain network in which distribution, transportation and logistics are driven by and integrated with real-time planning processes.
- Industry-specific analytics enable information workers within specific industries to gain the business insight they need to target their specific markets, including manufacturing, retail, financial services and many others.
Delivering innovation in analytics
Designed to evolve the way information workers leverage software, feeding timely and actionable insight into their daily work, SAP xApp Analytics is a model-driven composite application built on the SAP NetWeaver platform. SAP xApp Analytics delivers analytics, as part of mySAP Business Suite applications, augmenting their analytic functionality and providing embedded support for core business processes. SAP continues to extend its leadership in the analytics applications market by doing the following:
- Providing easy-to-use analytics – Analytic composites from SAP can be used immediately by information workers with no training. The intuitive, modern user experience benefits from the capabilities of the Adobe Macromedia Flex environment and sets the standard for delivering analytics in a rich Internet application.
- Delivering model-driven analytics – Leveraging the SAP NetWeaver Visual Composer modeling tool, business process experts can work side-by-side with information workers to easily customize the software or create their own analytic applications, with minimal support from the IT department.
- Leveraging enterprise service-oriented architecture (enterprise SOA) – Customers can compose new analytic applications from the rich set of enterprise services available to customers that use mySAP ERP with the SAP NetWeaver platform. Customers can innovate rapidly on top of a solid backbone of enterprise processes and can just as easily leverage
- Web services provided by third-party vendors.
- Bringing together SAP and non-SAP data – SAP xApp Analytics is built on the SAP NetWeaver platform, seamlessly pulling key business information from SAP and non-SAP environments and combining them effortlessly.
“As a long-time SAP NetWeaver Business Intelligence customer, we have been successfully leveraging the Web application designer and enterprise portal technology to build our own analytic applications to understand the performance of the business with key metrics, identify new growth opportunities for the company, evaluate areas for improvement and make immediate business decisions based on this critical insight,” said Mike Masciandaro, Business Intelligence Director, Rohm and Haas. “With SAP xApp Analytics, we are looking to take this foundation to the next level. The seamless integration of analytic composites with our applications and more importantly to other non-SAP based sources will ensure that we continue to leverage our existing investments while enabling us to take advantage of new innovations from SAP.”
“Customers have demanded a new approach to analytics – an approach that delivers real-time actionable insight at the time and place needed, built into daily business processes instead of bolted-on,” said Sanjay Poonen, senior vice president and general manager, analytics, SAP. “Only through this approach can information workers make timely business decisions that align with the strategic objectives of the business. The SAP xApp Analytics composite application delivers on this requirement, while also providing the historical viewpoint of traditional analytical offerings. With the announcement, SAP extends its leadership in the analytic applications market by delivering more than 100 analytic composites, empowering information workers with innovative new ways to make better business decisions.”