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Business Intelligence and Analytics – Contemporary System Model

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DOI: 10.15547/tjs.2017.s.01.053

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 Trakia Journal of Sciences, Vol. 15, Suppl. 1, pp 298-304, 2017
Copyright © 2017 Trakia University
Available online at:
http://www.uni-sz.bg
ISSN 1313-7069 (print)
ISSN 1313-3551 (online) doi:10.15547/tjs.2017.s.01.053

BUSINESS INTELLIGENCE AND ANALYTICS – CONTEMPORARY

SYSTEM MODEL
S. Klisarova-Belcheva*, G. Ilieva, T. Yankova
Department Management and Quantitative Methods in Economics, Faculty of Economics and
Social Sciences, University of Plovdiv Paisii Hilendarski, Plovdiv, Bulgaria

ABSTRACT
PURPOSE: This paper aims to analyze and evaluate the current state of business intelligence systems
(BIS) market and outline the main trends in BI technologies development.
METHODS: The main research methods employed are studying BIS characteristics, analysis of market
dynamics and the strengths and weaknesses of market participants, which is integrated in drawing
conclusions regarding trends in BIS products development and their market, modeling and synthesis in
developing innovative BIS architecture.
RESULTS: The trends in BIS products development and their market are outlined, and based on them, a
new model of modern BIS architecture is proposed.
CONCLUSION: There is positive dynamics on the BIS market and in 2016 several shifts occurred
among vendors, including the emergence of new ones. Users’ preferences continue evolving and smart
data discovery is sought after at an increasing rate, for example in processing native language queries. A
rising number of vendors offer BIS as a service with data being stored in the cloud or on-premise.

Key words: data science, advanced analytics, business intelligence framework

INTRODUCTION analysis of business information. Business

Business intelligence systems (BIS) have been intelligence tools and technologies include
among the most rapidly advancing software query and reporting, OLAP (online analytical
products in recent years. Modern companies processing), data mining and advanced
have always needed such software, but it was analytics, end-user tools for ad hoc query and
in the 10s of the XXI century that it became analysis, and dashboards for performance
widely accessible and virtually indispensable monitoring.”
as a convenient means of optimizing costs and
increasing revenue. BIS enable companies to According to other authors, (2-6), BI is neither
constantly monitor key indicators of their a product, nor a system. It is an architecture
productivity, plan and manage company and a collection of integrated operational
resources properly and cater to their applications, applications for analysis and
customers’ needs as best as they could. database, which provide a company with
Business intelligence is instrumental in making simpler ways of using its own information. BI
decisions on all managerial levels and it leads applications aiding decision-making facilitate a
to increased operating efficiency thereby number of activities such as multidimensional
giving companies an edge in demanding and analysis, clickstream data analysis, data
challenging market conditions. These mining, etc.
advantages bolster the statement that BI market
Mobility, collaborative work, working in the
is developing and will continue doing so at a
cloud, visual discovery, social analysis and
fast pace in the coming years.
forecasting capabilities are but few of BI
According to (1), business intelligence means innovations from recent years. Changes in the
“knowledge gained through the access and field of BI are so revolutionary, that they can
_____________________________ be likened to a BI Renaissance (7).
*Correspondence to: S. Klisarova-Belcheva,
Department Management and Quantitative The purpose of this work is analyzing and
Methods in Economics, Faculty of Economics and evaluating current state of BIS market and
Social Sciences, University of Plovdiv Paisii outlining significant trends in BI technologies
Hilendarski, Plovdiv, Bulgaria development for the last five years.
e-mail: [email protected]
298 Trakia Journal of Sciences, Vol. 15, Suppl. 1, 2017
 KLISAROVA-BELCHEVA S., et al.
MATERIALS AND METHODS descriptive analysis, as well as dispersion
This paper summarizes the results of a research analysis in MS Excel 2016;
study of BIS market for which data from - regression analysis, moving averages, and
annual reports from leading research and exponential smoothing – for forecasting
advisory firms such as Gartner, Dresner trends in sales volume (in monetary terms)
Advisory Services, and IDC, have been and market share of suppliers via Analysis
gathered and processed. Base functionalities of ToolPak in MS Excel 2016;
modern BI applications for company - generalization of empirical data and
productivity management and decision making uncovering relationships between market
are analyzed. On the basis of BI market trends, participants;
a new architectural model for a modern BIS is - modeling and synthesis in developing a
proposed. This model reflects discovered modern BIS architecture.
patterns and could be used as a stepping stone
RESULTS
for forecasting future market shifts.
The main results of this work are the
Methodology employed in this paper includes: following: trends in BI products development
- content analysis and secondary analysis – and their market are outline and based on these
for researching the BI market as a dynamic trends, a new architecture of a modern BIS is
collection of participants (suppliers and proposed.
buyers), BI instruments and their
Companies leading the BIS market
characteristics;
A competitive environment is characterized by
- comparative analysis – for determining the
being dominated by large and traditional BI
similarities and differences in research
suppliers. The leader’s quadrant is again
conducted by the mentioned research and
occupied by Microsoft, Qlik and Tableau as it
advisory companies;
has been for some years now, and these
- for statistical analysis and objectivization of
companies are developing fast (having 10%,
obtained results, the following methods
11% and 58% sales growths in monetary terms
were used: tabular, graphical and
in 2015, respectively) (Figure 1) (8-9).

Figure 1. Gartner’s Magic Quadrant for BI and Analytics Platforms

(Source: Gartner, 2017)

Trakia Journal of Sciences, Vol. 15, Suppl. 1, 2017 299

 KLISAROVA-BELCHEVA S., et al.
In order to trace the latest changes in behavior networks followers. Analyzing the ranking,
of the main participants in the BI market, we shows that Tableau demonstrates the largest
will use data from a research conducted by improvement – it moved from sixth place in
Capterra (10). Table 1 shows that the list of 2016 to first place in 2017. In 2016, the
top 10 BI products from the last two years leader’s number of customers and users has
contains not only products by business increased dramatically, with about 56% and
software companies, but also such by 598%, respectively, while the average growths
companies that create only BIS. These in consumers and users were about 10% and
products were ranked according to Capterra 30%, respectively. The change in the number
Market Score – an of social network followers on Facebook,
LinkedIn and Twitter was also significant. This
assessment that has been formed using the customer base expansion is an indicator of the
Simple Additive Weighting method taking into increased importance of BIS for modern
account total number of customers, total companies and their employees.
number of users and total number of social

Table 1. The ten most popular BI products in the world in 2016 and 2017.
# August 2016 Rank Changes February 2017 #
SAP (94 p.) Tableau (95 p.)
Customers: 37,153 Change: (+21)
1 Users: 4,990,767 Customers: 50,000
1
Users: 6,700,000
Qlik (87 p.) SAP (86 p.)
Customers: 35,000 Change (-8)
2 Users: 4,235,000 Customers: 34,000
2
Users: 4,556,000
Oracle (83 p.) Qlik (86 p.)
Customers: 24,769 Change (-1)
3 Users: 3,327,223 Customers: 40,000
3
Users: 5,360,000
IBM Cognos (78 p.) Oracle (81 p.)
Customers: 23,000 Change (-2)
4 Users: 3,089,593 Customers: 24,769
4
Users: 3,327,223
SAS (76 p.) IBM Cognos (75
Customers: 21,230 p.) Change (-3)
5 Users: 2,851,829 Customers: 23,000
5
Users: 3,327,223
Tableau (74 p.) SAS (72 p.)
Customers: 32,000 Change (-4)
6 Users: 960,000 Customers: 21,230
6
Users: 2,851,829
Microsoft (72 p.) Microsoft (70 p.)
Customers: 15,923 Change (-2)
7 Users: 2,138,939 Customers: 15,923
7
Users: 2,138,939
Information Information
Builders (69 p.) Builders (66 p.)
8 Customers: 13,000 Change (-3) 8
Users: 2,396,292 Customers: 13,000
Users: 2,396,292
TIBCO Spotfire (62 Yellowfin (60 p.)
p.) Change (+2)
9 Customers: 10,000 Customers: 10,000 9
Users: 1,340,000 Users: 2,000,000
MicroStratregy (61 TIBCO Spotfire
p.) (59 p.) Change (-3)
10 Customers: 4,000 Customers: 10,000
10
Users: 2,000,000 Users: 1,340,000

BIS market – present and future end of 2020, the total market will be $22.8
Grobal sales from business intelligence and billion (8).
analytical software are expected to reach $18.3
billion in 2017, which is an increase of 7.3% Business intelligence software sales grow by
compared to 2016. It is expected that by the 3% in 2015 to a total volume of about $14
billion. After compensating for exchange rate
300 Trakia Journal of Sciences, Vol. 15, Suppl. 1, 2017
 KLISAROVA-BELCHEVA S., et al.
effects, the market has increased by 11.7%. BI market in Bulgaria
Among the market’s three major segments, A CBN agency research by Panoff, Stoychev
software for queries, reports and analysis tools & Co. on the development of BIS market in
makes up 72%, but has increased by only 0.7% Bulgaria until 2013 shows that during that
in 2015. The second segment, the market for period, there were 44 companies offering BI
advanced and predictive analytics tools grows software, and only 13 of them have managed
by 7.8%, and the last segment (market for to implement BI solutions. Implementers that
content analytics tools) grows by 12.9%. The offer Oracle or SAP BI software are the most
year 2015 marks the beginning of the “big numerous. The research notes that, currently,
migration” towards cloud BI. In 2015, the on- the market is too concentrated and
premises part of BI market increased by only predominantly large companies that advantage
1.2%, while revenue from public cloud of that. The report indicates that out of 148
services went up by 38.5%. This was the first contracts from Operational programme
year in which public cloud BI revenue makes “Development of the Competitiveness of the
up more than 5% of BI instruments and Bulgarian Economy” for purchasing business
analysis market (9). software, only one project involved
implementation of BIS (12).
In 2015, SAP continues to be the largest BI
software and analytical instruments producer 38 integrators have implemented BI software
with annual revenue amounting to more than for customers in 16 vertical industries, and the
$2 billion. However, its share is shrinking due projects in 3 of these industries account for
to the negative effects of exchange rates and 74% of the market. The main BI providers in
fierce competition. SAP is followed by Bulgaria are Balkan Services, distributor of
Microsoft, SAS, IBM and Oracle – each Qlik (45 implementations), Team Vision –
having sales of more than a $1 billion on this distributor of Tableau and Microsoft with
market. The five biggest vendors have a Power BI, SQL Server, etc. Unlike ERP and
combined market share of 52%, which is CRM software, BI systems are most
falling down as compared to previous years commonly employed by large corporations.
(market share was 58% in 2013 and 59% in This fact clearly indicates that the potential for
2010). Nearly half of world sales are made by implementing BI software in this group as well
the so-called MISO group (Microsoft, IBM, as in SME is still quite high. The agency’s
SAP and Oracle) (47.7% - 2013, 46.1% - 2014, forecast for 2017 and 2018 are that business
42.3% - 2015, respectively). The decrease in customers’ interest in implementing BI
the share of the biggest five producers and the software is likely to grow and exceed the
MISO group is due to the increased popularity results from 2015 and 2016 (13).
of visual discovery software and also the
A model of modern BI architecture
increasing share of new generation of BI
According to research by Dresner Advisory
offering strictly cloud-based solutions (9).
Services (DAS) (14-15), the following
components are essential to the development of
According to IDC analysts, for the period
modern BIS:
2013-2015, the number of participants in world
- Big data analyses – They get researchers’
BIS market continued to grow. For example,
attention as data in modern organizations are
the sales share of “Other” grow during those
constantly growing in volume, have
years (27.4% - 2013, 28.1% - 2014, 29.7% -
heterogeneous composition and needs to be
2015, respectively).
updated frequently (16);
- Embedded analyses – According to Eckerson,
According to Gartner, modern BIS continue to
we are witnessing two main alternatives in BI
develop faster than the market which makes up
development over the last 35 years: reports
for the drop in sales of traditional BIS (8).
aimed at users and analyses aimed at power
Innovative BI and analysis platforms are
users. In recent years, however, there is a
increasingly successful in meeting customer
convergence of the two alternatives toward
requirements regardning ease of use, speed,
embedded analyses and analytical functionality
and providing a deeper analytical insights
is embedded directly in business applications
based on data. The share of modern BI sales
(17);
will continue to be greater than that of
- IoT analyses – the capability of IoT to
traditional BI, but its growth rate is slowing
connect multiple devices, to gather and analyze
down from about 64% in 2015 through 30% in
raw data created by this devices as well as
2016 to 19% in 2020 (11).
convert them to useful information, makes this
technology a logical next step in building BIS.

Trakia Journal of Sciences, Vol. 15, Suppl. 1, 2017 301

 KLISAROVA-BELCHEVA S., et al.
The DAS research covers 33 BI technologies Fundamental technologies – queries, reports,
and initiatives and three of them are included dashboards, are still strategically important for
for the first time - natural language analytics, BIS development. The priority of top
video analytics, and data catalog. The results technologies has remained practically
of this research show that working with unchanged since 2013. There is increase in
reports, visualization and self-service are vital interest in data discovery, integration with
to customers and video analyses, edge operational processes, and data storytelling.
computing and IoT are presently immaterial
(15). We check the validity of these Gartner researchers believe that the main
conclusions by juxtaposing these data with characteristic of modern BI is their
those from a similar research, Importance of functionality allowing business users to
Business Intelligence Trends in 2017 discovery patterns in the data visually.
(n=2,772), where 21 trends in BIS
Building on the Juniper Networks BI
development are compared. In it, surveyed BI
framework and in accordance with the
users consider the following to be the most
conclusions made above, we propose a new
important for BIS development: data
architecture of a modern BIS (Figure 2). The
discovery/visualization, self-service BI and
purpose of the model’s components is as
data quality/master data management. The
follows: the first layer (Backend) contains
least significant are Hadoop, data labs/data
internal and external BIS data sources –
science, cloud BI and data as a product/open
company, Web, mobile, and sensors data. This
(18). We notice a coincidence in two of the
model envisions integration of data into
most preferred functionalities (visualization
relational and/or non-relational databases, as
and self-service), which is proof for the
well as their transformation into OLAP-cubes.
reliability of the assessments from the two
Two types of processing are possible: offline
research papers.
and real time, whereas for shorter response
times, technologies such as in-memory, cloud
or edge computing are engaged.

Figure 2. System Model of Modern BIS

The next layer, Data Analysis, consists of five intelligence. The traditional analysis group
groups of tools: for traditional analysis, encompasses analysis based on a model
advanced analysis, content analysis, mobile predefined by the company’s IT experts. The
data analysis, and data mining and artificial modern BI platforms enable business users to

302 Trakia Journal of Sciences, Vol. 15, Suppl. 1, 2017

 KLISAROVA-BELCHEVA S., et al.
explore data directly, without needing a In Bulgaria BIS implementations are relatively
predefined model. The advanced analytics rare and only in large companies, however,
group includes new technologies such as data new investments within the framework of the
discovery/visualization, data storytelling, new “Operational Programme Innovations and
spatial/location analysis, Big data, etc. Content Competitiveness 2014-2020“ programme
analysis is concerned with analysis of text, period are expected.
video and graphical data, while special mobile
data analytics methods are applied to mobile The proposed model covers base as well as
data. To data mining and artificial intelligence innovative components of modern BIS:
applications we assign modern statistical artificial intelligence, IoT, edge computing,
analysis tools, including predictive analysis, content analysis (video, graphical, etc.). The
sentiment analysis, natural language analysis. advantage of the proposed BI architecture is
And finally, the last, third layer, Delivery that its three layers (backend, data analysis and
Layer, presents analysis results to end users delivery) reflect modern BI technologies. In
directly in company applications (via addition to data warehouses and OLAP cubes,
embedded BI) or via various communication data are stored in non-relational warehouses or
channels (e-mail, Web, mobile, cloud, edge). are processed in real-time (in-memory
technology, edge computing, big data
The main advantage of the new model in analytics). Modern analysis tools have their
comparison with the one by Juniper Networks place in the new model: visual data discovery,
is that, instead of just revolving around the data storytelling, video analysis, mobile data
needs of an organization’s managerial levels, analysis, natural language analysis, as
here the model incorporates a significant part involvement from an IT team is no necessary
of the innovative IT technologies that have (self-service BI, collaborative BI, etc.). End
been proposed in the last five years. This users’ access to BI means is additionally
change in structure is also due to the fact that alleviated via embedding BI in the company’s
modern BIS offer functionality that is useful to business software - embedded BI.
all managerial hierarchy levels. New BI
technologies are at the base of all three The proposed new BI and analytics
building layers of the model – from the architecture supports fast and on time
integration layer to the one presenting the final processing of data concerning manufacturing,
result. products, customers and suppliers in all
functional areas of an enterprise and increases
DISCUSSION operating excellence of organisations.
There is a wide variety of BIS and numerous
providers. Tableau, SAP, Qlik, Oracle and CONCLUSION
others are the companies whose products BI and analytical platforms market is highly
customers prefer most often. In a significant competitive – the number of vendors is
number of cases, providers of business growing, the products and technologies that are
software (ERP, CRM and others) offer BI offered have increasingly richer functionality,
solutions, nevertheless the market has many prices of traditional BI solutions are falling.
companies that produces BIS only. Traditional Modern BI market is dynamic – new
market players such as IBM, SAP, Oracle and participants emerge and old ones disappear,
MicroStrategy have reached the maturity phase market shares change as well as the growth
of their BI products and generate stable rate of participants’ sales. The number of
revenue from their investments in models and customers and users significantly rose in 2013-
analytical tools from previous years. Reduced 2016. Business realizes the importance of BI
product differentiation and price pressure software for improving competitiveness and
proove the maturity of the market, which is invests more in it. The new BI system model
saturated with BI providers. can serve as a benchmark for comparison in
researching future technological innovations in
Buyers prefer BI products with modern BI. It is flexible and can be adapted to reflect
functionality such as self-service BI, working changes.
with a combination of sources of various data,
etc. Gartner connects the future of BI with the The choice of software product is heavily
functionality smart data discovery (natural- determined by the offered functionality,
language processing, natural-language query therefore, the next logical steps in future
and natural-language generation) for text- and research are:
voice-based interaction and its realization will - analyzing functional characteristics of
hold a significant sway over the future ranking commonly used BI tools and
in the Quadrant.
Trakia Journal of Sciences, Vol. 15, Suppl. 1, 2017 303
 KLISAROVA-BELCHEVA S., et al.
- proposing a multi-criteria system for their Business Intelligence and Analytics
evaluation. Platforms. pp 126, Gartner, 2017.
9. Vesset, D., Gopal, C., Schubmehl, D.,
Knowledge of current state of affairs, main Bond, C., Olofson, C. W., Worldwide
participants and offered products on the BI Business Analytics Software Market Shares,
market will aid potential clients in choosing 2015: Healthy Demand Despite Currency
suitable BI solution. Exchange Rate Headwinds. IDC, pp 12,
2016.
ACKNOWLEDGEMENTS This paper was
10. Capterra, Top Business Intelligence
sponsored as a part of project SR17 FESS 012
Software Products.
/ 24.04.2017 at the Scientific Research Fund of
http://www.capterra.com/business-
the University of Plovdiv Paisii Hilendarski.
intelligence-software/, 2017. Last visited on
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