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SINGAPORE: The global market for business analytics or the use of analytical software to make better business decisions has grown despite the downturn.
Last year, the segment in Asia outside of Japan grew by 10.1 per cent to hit US$1.5 billion, roughly in line with the global growth rate. And industry leaders are continuing to raise their investments in the sector, especially in Asia.
One of the uses of business analytics is to uncover trends, patterns and links behind loose data. Industry players said this can help companies make more informed decisions by identifying problems early and predicting future trends.
It has also been adopted by law agencies and insurance companies. Its use has become increasingly important in the current climate of economic uncertainty.
David Hughes, vice president, Asia Pacific, SAS, said: "This up and down is another reason why companies need to embrace the power of analytics and to be able to kind of navigate the way forward into the future. I think that's very important.
"I think companies that don't use analytics are simply relying on gut feel, maybe on past performance, maybe on current situation, but they lack the ability to predict with a certain amount of certainty."
Industry players believe there is huge potential to tap on Asia's growth. The region only accounted for 10 per cent of the US$7.8 billion global market last year.
Market leader SAS said it has increased its headcount in Asia by 10 per cent this year and is pumping in US$200 million to upgrade its operations across the region - in countries such as China, Japan, New Zealand, Thailand and Singapore.
This follows IBM's own push into the arena, with its plans for a global network of business analytics service centres. It recently opened in China its third such facility this year.
But observers also believe the current global recession could affect the take-up rate of such new technology in the region.
Sharon Tan, senior market analyst, Asia Pacific, Application Tools Software Research, IDC, said: "There are a lot of cost constraints right now, decision cycles are longer, so vendors in the market have to put in a lot more effort to get the sale.
"When in previous time, pre-crisis, the time to close the deal might be much shorter. Organisations are looking very much at maximising existing IT investments and to do more with less.
IDC expects the market in Asia to stabilise in 2010 and forecasts it to grow at a 6.4 per cent compounded annual growth rate over the next five years. - CNA/vm
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