Presentation made at the DSS2010 Conference in Lisbon, July 2010. The abstract of the conference paper is: Business intelligence (BI) is the dominant technology for decision support in medium and large organizations. Unfortunately, there has been no rigorous academic research on the market and innovation strategies of the leading vendors. This is surprising as BI is a key technology priority for CIOs and unusually in a major global financial downturn it is an area of significant growth in IT spending. This paper presents a preliminary study of market strategy and innovation in one of the four leading BI vendors, Cognos / IBM. The case study uses data from archived press releases and statutory financial returns to analyse Cognos' activities from 1995 to 2009. The results illuminate a complex commercial environment. Based on the case study and background literature a research agenda structured around eight key questions is proposed.

1. Steve Remington, Peter O’Donnell & David Arnott
Market Strategy and
Innovation in the
Business Intelligence
Software Industry:
A Preliminary Study
Monash DSS Lab

2. Agenda
• Background and Context
• Research Question
• Method Overview
• Key Findings
• Research Agenda

3. Business Intelligence Software
• The dominant technology for DSS in medium
and large organisations
• A highest technology priority for CIOs for
four of the last five years
• Organisations spend large amounts on this
software (~ US$6 Billion in 2009)

4. Business Intelligence Software Market

5. 2007: The Year of Consolidation
13.7%
10.6% 9.4%
14.5%
18.2% 7.9% 1.2%

6. 2007: The Year of Consolidation
13.7%
10.6% 10.6%
14.5%
26.3%

7. The Market’s Response
“Rather than making their
business intelligence products
better and easier to sell to
discerning new customers,
they make sales through
bundling their new BI offerings
with other, more mainstream,
products”
Nigel Pendse, BI Report 2008

8. The Question
Does a business
intelligence software
vendor’s innovation
process change when it is
acquired by a large general
IT vendor?

9. The Method
• Single Case Study
– Cognos Inc. being acquired by IBM in 2007
• Content analysis of 15 years of press
releases and financial statements
• Compare pre-acquisition to post-acquisition
innovation behaviour to see if there was a
change

10. Class of Innovation
• Product Innovation (45% of total)
– A product release that provides new or improved
software functionality.
– e.g. A new product or version upgrade
• Usage Innovation (55% of total)
– A product release that makes it easier to use
(and sell) an existing product.
– e.g. A product usage or implementation template

11. Timeline of Product Release & Technology Acquisition Events (03/1995 to 12/2009)
PowerPlay Client
4.1 5.0 5.2 6.0 6.6 7.3
Impromptu
3.0 3.5 4.0 5.0
Angoss Ltd
RIS Ltd
PowerPlay Web Server
5.2 5.5 6.0
PowerPlay Server
5.0 5.2 6.0
Scenario
1.0 2.0
Interweave
DataMerchant
1.0 2.0 3.0
Impromptu Web Query
2.0 2.11
Acta Technology
Panorama
4Thought
4.0
NovaView
1.0 2.0
Impromptu Web Reports
5.0 6.0
Relational Matters
DecisionStream
1.0 6.5
LEX2000
PowerPlay Enterprise Server
6.0
Visualizer
1.0 1.5
Query
1.0
Planning Series
5.0 5.1 7.0 7.2 7.3
NoticeCast Software
NoticeCast
7.0
BI Series
7.0 7.2 8.0 8.1 8.3 8.4
Web Services
7.0
Metrics Manager
1.0 2.0
Aydatum
DataDirect Technologies
ReportNet
1.0 1.1 ?.?
Frango
Composite Software
Acorn Systems
Controller
2.3
Go! Search
8.? 8.4
Go! Mobile
8.? 8.4
Celequest
Now!
8.?
Applix
TM1
9.4
Builder
8.?
Dashboard Accelerator
8.?
Business Viewpoint
8.?
Go! Dashboard
8.?
SPSS Inc.
Express
1.0
Content Analyzer
1.0
Mashup Service
1.0
Product / Company
6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09
Symbol Legend
3/95 12/09
“N.n” = Major and minor
Product (New) Product (Major Version) Product (Minor Version) Product (OS / Platform) Technology Acquisition Technology OEM / Licensing
version number of product
N.n

12. Timeline of Third Party Integration and Product Extensions Events (03/1995 to 12/2009)
Impromptu Product Name: Product Name: Product Name:
Oracle Financials HeadStarts e-Applications Analytic Applications
PowerPlay
Pilot LightShip
HeadStarts, e-Applications...
Oracle Applications
PowerPlay
Oracle Express
Impromptu / PowerPlay
Sybase System X
Impromptu
IBM Database (DB2)
Impromptu
Prism Directory Manager Product Name:
Impromptu Product Name:
Analytic Applications
Sybase IQ Accelerator for SAP
PowerPlay
Informix MetaCube
HeadStarts, e-Applications...
SAP R/3 & mySAP
Impromptu / PowerPlay
Intentia MOVEX
HeadStarts, e-Applications...
PeopleSoft HRMS
PowerPlay
Informix MetaCube
Impromptu / PowerPlay
Microsoft SQL Server
Impromptu / PowerPlay
Oracle Database
Impromptu / PowerPlay
Sybase PowerDesigner
HeadStarts
BaanERP
HeadStarts Initiative and Strategic Planning
SSA BPCS
Impromptu
Ardent MetaConnect Financial Analytics
HeadStarts / e-Applications Supply Chain Analytics Retail Store Operations
J.D. Edwards OneWorld Customer Analytics
Impromptu / PowerPlay
Informatica MX2 API Production Analytics
Impromptu / PowerPlay
IBM Information Portal Bank Branch Profitability
Supply Chain Analytics Clinical Trial Forecasting
e-Applications
IFRS
IBM Commerce Suite MFR
e-Applications CCR
Microsoft ASP Partners
PowerPlay Enterprise Server
Plumtree Corporate Portal IBM Infomation Server SaleForce CRM
Analytic Applications
All Vendors All Products Retail Promotion Planning
Upfront / EPP Program x3 Sales Compensation IBM WebSphere
Enterprise Portal Vendors CRM Analytics Allocations Google OneBox
Microsoft SharePoint HP NeoView
BI Series SAP BW Risk Analysis
PeopleSoft Higher Ed IBM Info Mngt
Impromptu / PowerPlay Microsoft Excel
PeopleSoft EPM Microsoft Office
WhiteLight AnalyticServer IBM Lotus Notes
DecisionStream IBM InfoSphere Balanced Warehouse
SAP BW
SAP R/3 Ascential MetaBroker
BI Series
Various Vendors/Products
ReportNet x2 Retail Store Planning x2
Bank Risk Management
Various Vendors/Products
Enterprise Planning Workforce Performance Retail Merchandise Planning
Microsoft Excel
Plan-to-Perform Blueprints
Various Vendors/Products
Go! Search x3 x4 x2 x3 x10
x2
Retail Planning & Monitoring
Various Vendors/Products OmniFind
Go! Mobile x3
Various Vendors/Products
Go! Now x2
IBM Content Management
Autonomy Technologies Windows Mobile
FAST Enterprise Search Nokia Symbian
SAP mySAP
SAP mySAP
Workforce Utilization
Bank Customer Profitability
Financial Performance Management
Strategic Financial Planning
Cognos Product
3rd Party Coy / Product
6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09
Symbol Legend
3/95 12/09
Initial version of 3rd Party Upgrade to 3rd Party Initial version of Product Improvement to Product “N” = No of occurrences in
Product Integration Product Integration Extension Extension the month if more than one
xN

13. No significant
difference

15. → Post IBM Acquisition

16. → Post IBM Acquisition

17. → Post IBM Acquisition

18. Research Agenda – Key Items
• What factors drive BI software innovation?
• Is there a relationship between BI software
innovation, and a BI software vendor’s
organisation structure or lifecycle stage?
• Are there identifiable types (e.g. product and
usage) of BI software innovation?
• Does BI Software innovation (perceived or
actual) impact buying decisions?

19. Concluding Remarks
• Results indicate innovation
may reduce after acquisition
by a large IT vendor.
• Further research is required to
better understand what drives
BI software innovation.
• Impact on BI software industry
could be profound.

20. References
• Slide 1
– Gartner, Inc. (2009b, February 18). Business Intelligence Ranked Top
Technology Priority by CIOs for Fourth Year in a Row. Gartner Newsroom.
Press Release, . Retrieved January 1, 2010, from
http://www.gartner.com/it/page.jsp?id=888412
– 2007 annual report from Business Objects, Cognos Inc and SAS Institute
• Slide 2 & 3:
– Gartner, Inc. (2008a, April 1). Gartner Says Worldwide Business Intelligence
Spending to Grow 11 Percent in 2008. Gartner Newsroom. Press Release, .
Retrieved January 2, 2010, from http://www.gartner.com/it/page.jsp?id=636310

21. References
• Slide 4:
– Pendse, N. (2009, November 1). In Praise of the Smaller BI Vendors.
Information Management Magazine. in, . Retrieved January 3, 2010, from
http://www.information-
management.com/issues/19_8/in_praise_of_the_smaller_bi_vendors-
10016596-1.html?zkPrintable=true

22. Photo Credits
• Slide 1: Purchased from www.iStockPhoto.com
• Slide 3 & 4: www.cognos.com | www.ibm.com | www.oracle.com |
www.businessobjects.com | www.microsoft.com | www.sap.com |
www.sas.com | www.hyperion.com
• Slide 5: www.platon.net/files/ConferencePics/NigelPendse.jpg
• Slide 6: www.flickr.com/photos/crystaljingsr/3914729343/sizes/m
• Slide 7: www.cognos.com | www.ibm.com
• Slide 12: Purchased from www.iStockPhoto.com

23. Monash DSS Lab