1. Copyright 2008 IDC. Reproduction is forbidden unless authorized. All rights reserved. Leveraging Business Intelligence For Competitive Advantage Competing to Outperform the Competition Vinay Nair Research Manager, Enterprise Applications IDC Canada Ltd.

2. Oct-15 © 2008 IDC 2 Topics of Discussion  What Do Top Canadian Business Executives Need From ICT in 2008?  Why Are Canadian Businesses Adopting Business Intelligence?  How Can Business Intelligence Enable Competitive Advantage?  Key Opportunities for Partners

3. Oct-15 © 2008 IDC 3 About IDC IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.  IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy.  Over 900 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. Established in 1984, IDC Canada has over 40 analysts, researchers and consultants who focus exclusively on the IT and communications sectors in Canada.

4. Oct-15 © 2008 IDC 4 Your competitors are closer than they appear “ Companies questing for killer apps generally focus all their firepower on the one area that promises to create the greatest competitive advantage. But a new breed of company is upping the stakes. …. they are transforming their organizations into armies of killer apps and crunching their way to victory” Thomas H. Davenport - Competing on Analytics

5. Oct-15 © 2008 IDC 5 Source:/Notes: What Do Top Business Executives Need From ICT in 2008?

6. Oct-15 © 2008 IDC 2008 N =122 2007 N=132 A02. Which ONE business or organizational problem will take priority in 2008? Source: IDC Canada, 2008 What are the top Priorities of Executives? Shifting Priorities Increase the Challenges Game On: War for talent and expansion top the CxO’s agenda

7. Oct-15 © 2008 IDC 2008 N =122, 2007 N=132, 2006 C01. Which of the following best describes the overall impact of IT on your company? Source: IDC Canada, 2008 Overall Impact of IT on Company Smart ICT investments Catalyze Competitive Advantage

8. Oct-15 © 2008 IDC 2008 N =122 2007 N=132 B02. Which ONE of the following six tasks will be your company's main area of IT focus during 2007? Source: IDC Canada, 2008 What do CxO’s Expect from ICT? Competitive Realities Increasing

9. Oct-15 © 2008 IDC 2008 N=122, 2007 N=132, 2006 N=100, 004 N =96, 2004 N=100 C02. Which one area could vendors of IT products and services improve to help your company increase its return on investment for information technology? Source: IDC Canada, 2008 Areas which IT Vendors Could Improve to Increase Return On Investment for IT

10. Oct-15 © 2008 IDC 10 Source:/Notes: Why Are Canadian Businesses Adopting Business Intelligence?

11. Oct-15 © 2008 IDC 11 Growth of Canadian Business Intelligence Software Market $CDN Millions 11% CAGR

12. Oct-15 © 2008 IDC 12 Executives Expect CRM & Business Analytics To Increase Operational Efficiency N=518: A3. What is your perception of the following technologies ability to increase operational efficiency of your organization? Source: IDC Canada 2008

13. Oct-15 © 2008 IDC 13 CompileAnalyse DATAINFORMATION Communicate INTELLIGENCE DECISIONS KNOWLEDGE The Business Intelligence Flow

14. Oct-15 © 2008 IDC 14 The High Costs of Information Work – Time Well Wasted? Task Average Hours per Worker per Week Cost per Worker per Year ($) Office productivity13.2$19,788 Search8.7$12,992 Email (both reading and answering)7.2$10,741 Analyze information from various sources and systems4.5$6,676 ERP3.1$4,651 n = 255 Source: IDC Canada 2008 Note: Cost per worker per week is based on an average salary $60,000 per year.

15. Oct-15 © 2008 IDC 15 Departments within an Organization Utilizing Business Intelligence / Analytics Applications N=257: I04AMR. Where in your organization are BI applications being utilized?

16. Oct-15 © 2008 IDC 16 Issues That Drive Organizations to Invest In Business Intelligence Solutions N=140: Which one business or organizational issue is driving new investment in this application? Source: IDC Canada 2008

17. Oct-15 © 2008 IDC 17 BI & Analytic Reporting User Interfaces That Are Needed N=284; I04C. What type of business intelligence and analytic reporting user interfaces are needed within your organization? Source: IDC Canada 2008

18. Oct-15 © 2008 IDC 18 Enterprise Solutions that are Integrated with CRM Solutions N=180: F01. What other enterprise solution(s) are you integrating your CRM solution with? Source: IDC Canada 2008

19. Oct-15 © 2008 IDC 19 Department Most Likely to Invest in BI Application – Vertical Industry View N=454: B02A. Which department is most likely to invest in each of the following types of applications in the next 12 months? – Business Intelligence Source: IDC Canada 2008

20. Oct-15 © 2008 IDC 20 Summary  Smart ICT Investments Catalyze Business Growth And Competitive Advantage  Top Canadian Business Executives Need ICT To Support Business Growth and Competitive Advantage  Implement Business Intelligence/Analytics across Sales/ Marketing and Customer Service departments to have the greatest impact on Business Performance in 2008  Look at the Strategic, Tactical and Operational impact of Business Intelligence to help support goal setting, performance monitoring, data analysis and information dissemination  Consider both custom, on-demand reports as well as personae/role- based interfaces to help end-users reduce time to search, aggregate and report data, while increasing time on analysis and decision making  Business Intelligence and Analytics Improves Business Monitoring, Streamlines Business Planning while creating Competitive Advantage

21. Oct-15 © 2008 IDC 21 Opportunity for Partners

22. Oct-15 © 2008 IDC 22 Help Customers to take advantage of the BI evolution to Business Performance Management GAP Partner Opportunity

23. Oct-15 © 2008 IDC 23 Stages of Analytical Competition 1. Analytically Impaired 2. Localized Analytics 3. Analytical Aspirations 4. Analytical Companies 5. Analytical Competitors Migrate customers to become Analytical competitors Davenport: Competing on Analytics

24. Oct-15 © 2008 IDC 24 Services That Will Require An External BI Solution Provider/Vendor N=257: Which of the following services is your organization likely to need from an external solution provider or vendor over the next 12 months for your existing/planned BI areas? Source: IDC Canada 2008

25. Oct-15 © 2008 IDC 25 Key Opportunities for Partners Facilitating the evolution of customers from Business Intelligence to more holistic business performance management. Assess current state of analytical use within organizations, and identify new areas within the business to analyze for competitive advantage. Move customers to become analytical competitors. Support and maintenance services, IT consulting, training and education will be key areas of demand from customers implementing BI.

26. Oct-15 © 2008 IDC 26 Thank you Please email me at Vinay Nair vnair@idccanada.com