Gartner Says By 2008 Large Enterprises Will Need Three Times As Many Business Intelligence Personnel As They Did in 2004

Business Wire, March 8, 2005

CHICAGO -- Analysts Examine BI Usage Patterns During Gartner Business Intelligence Summit in Chicago

The largest barrier to business intelligence deployment is a lack of user skills and knowledge of best practices, according to Gartner, Inc. Gartner analysts said large enterprises will need three times as many business intelligence personnel in 2008 as they did in 2004. The second largest barrier to business intelligence is the high total cost of ownership (TCO).

"Lack of skills and TCO are related because projects that require a lot of 'trial and error' are more costly," said Howard Dresner, vice president and Gartner fellow. "High TCO is a barrier particularly in Asia, and for those who deploy business intelligence for the first time. In Japan, nearly half of the respondents said that difficulty in learning to use business intelligence hampers its adoption."

Gartner analysts presented the findings here during the Gartner Business Intelligence Summit, which is being held March 7-9.

Gartner surveyed 917 IT and business users across multiple industries, to gauge their business intelligence spending plans, and their assumptions for business intelligence. The results show the current state of business intelligence investment, and the business intelligence strategies enterprises are using.

Thirty-nine percent of respondents in North America said they expect to increase spending on business intelligence in 2005, while another 34 percent of respondents said they plan to spend the same amount as they did in 2004.

"Organizations that have already deployed business intelligence expect that spending on business intelligence software will be higher in 2005," Mr. Dresner said. "In established markets, high-tech and telecom companies, as well as large healthcare and mid-size education organizations, mostly expect business intelligence budgets to increase, although retailers expect them to decrease."

Respondents said the key reasons for investing in business intelligence are to respond to user needs for timely data and to speed up and improve decision-making.

"Most organizations' approaches appear to be fairly tactical; the majority are not tying business intelligence to specific business objectives," said Bill Hostmann, research director at Gartner. "Enterprises must use a business intelligence competency center to move beyond the tactical stage of business intelligence and achieve a more comprehensive and strategic level in order to realize the benefits of technology."

Corporate performance management (CPM) is the business intelligence application planned by most respondents. CPM refers to financially oriented business intelligence applications that help executives to understand and manage their businesses.

"Demand from this type of application appears to be benefiting from growing government regulation," Mr. Hostmann said. "Front-office applications such as sales analytics is the next application, perhaps reflecting an improved and improving economy."

The survey was conducted in the United States, Canada, Germany, France, United Kingdom, China, Japan and Australia, across multiple industries, and representing a range of small, medium and large enterprises.

Gartner defines BI as an interactive process for exploring and analyzing structured, domain-specific information (often stored in data warehouses) to discern business trends or patterns, thereby deriving insights and drawing conclusions.

About Gartner Business Intelligence Summit

The Gartner Business Intelligence Summit is being held at the Sheraton Chicago Hotel and Towers. The Summit is the only event designed to provide businesses with the knowledge required to create a visionary business intelligence strategy. Through a content-focused curriculum, attendees will learn the methodologies, strategies, technologies and architectures that will move them from the tactics of cost cutting and compliance to increasing their companies' agility and responsiveness, and improving overall business performance. For complete event details, please visit the Gartner Business Intelligence Summit Web site at www.gartner.com/us/bi.> About Gartner

Gartner, Inc. (NYSE: IT and ITB) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,500 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. For more information, visit www.gartner.com.