Chapter 1
What are Embedded Analytics?
Learn how embedded analytics are different from traditional business intelligence and what analytics users expect.
Embedded analytics are the integration of analytics content and capabilities within applications, such as business process applications (e.g., CRM, ERP, EHR/EMR) or portals (e.g., intranets or extranets).
The end goal is to help users work smarter. By leveraging data analysis to solve high-value business problems, they will become more efficient. These capabilities are to be made available inside the applications people use every day. This is in contrast to traditional BI, which extracts insight from data outside of the app.
BI is a set of independent systems (technologies, processes, people, etc.) that gathers data from many sources. These tools prep that data for analysis and then provide reporting on it from a central viewpoint. These reports are critical to making decisions. Aggregated views of information may come from a department, function, or an entire organization. These systems are designed for people whose primary job is data analysis.
Embedded analytics are a set of capabilities that are tightly integrated into existing applications (like your CRM, ERP, financial systems, and/or information portals) that bring additional awareness, context, or analytic capability to support business decision-making. The data may come from multiple systems or aggregated views, but the output is a centralized overview of information. It supports a decision or action in the context in which that decision or action takes place.
While traditional BI has its place, the fact that BI and business process applications have entirely separate interfaces is a big issue. It forces users to switch between applications to derive insights and act. Embedded analytics, on the other hand, puts intelligence inside the applications people use every day. The result is a much better analytics experience. By combining insight and action, it makes users that much more productive.
Consider Delta. Their BI tool didn’t provide them with the functionality that they needed to create in-depth workflows. They migrated to embedded analytics, and it changed their world. Now, Delta managers can get a full understanding of their data for compliance purposes. Additionally, with write-back capabilities, they can clear discrepancies and input data. These benefits provide a 360-degree feedback loop. Embedded analytics has proven to be a must-have for staying in compliance. Delta has taken their app to the next level.
Said another way...
Business intelligence is a map that you utilize to plan your route before a long road trip.
Embedded analytics are the GPS navigation inside your car that guides your path in real time.
Businesses from many industries use embedded analytics to make sense of their data. The result is more informed decisions. In a recent study by Mordor Intelligence, financial services, IT/telecom, and healthcare were tagged as leading industries in the use of embedded analytics. Healthcare is forecasted for significant growth in the near future.
Any organization that develops or deploys a software application often has a need to embed analytics inside their application. This includes commercial software and SaaS providers who are serving the analytical needs of their paying customers. This also includes IT departments who develop and manage applications used by internal stakeholders and partners.
Even though this second group may not have a revenue-driving “product,” they still need to meet “customer” demand for analytics. IT is responsible for driving user adoption of their application. In our surveys, we have found that commercial software providers lead in their adoption of embedded analytics over their non-commercial peers.
It is telling to look at the businesses that have incorporated these. Check out how they are represented by industry type.
The industries that are users of embedded analytics is interesting. The Business Services group leads in the usage of analytics at 19.5 percent. Financial Services represent 13.0 percent, and Healthcare, 12.1 percent. And Manufacturing and Technology, both 11.6 percent. Retail and Wholesale are the next that are best represented.
