The five primary benefits of embedded analytics
We live in an age of applications. From fitness apps telling us how much we’re moving to our favourite retailers giving us the ability to shop on the go, applications have become integral to our day-to-day activities. At the same time, these simple-to-use, feature-rich applications in our personal lives have been raising our expectations for the capabilities and usability of the applications we use in the workplace.
This balance of application dominance and user expectations means that anyone developing a business application today has to keep many elements of consumer front of mind, optimising the experience for end users. After all, whether you’re an IT manager overseeing an internal application for employees only or an OEM development team releasing a commercial product, if your application fails at engaging users, growing adoption, or proving its value with a positive ROI, it risks extinction.
For the past five years, many application teams have seen the benefits of embedded analytics in improving their user experiences while increasing end-user adoption and growing revenue. This is no surprise given that users want access to their information in an insightful way through analytics. Companies are now realising that, unlike standalone BI solutions, embedded analytics keeps users in the applications they use every day and puts data in the context of the solutions people already use.
In the new 2017 State of Embedded Analytics Report—the fifth annual trend report on the subject—Logi surveyed over 500 product managers, software engineers, and members of application teams. According to the report, embedded analytics has never been more pervasive: 93 percent of respondents are currently embedding analytics in their applications. That’s up from 78 percent last year.
Why is embedded analytics so popular? Because users want insights in context, not in separate applications. According to a survey on adoption of analytics solutions released earlier this year, 84 percent of business users want access to analytics within the applications they’re already using. But 66 percent of users say they found themselves switching from their usual business apps to separate analytics tools to get the data or analysis needed.
When users have to leave their usual applications to analyse data in a standalone analytics tool, those analytics simply won’t be used. That’s one of the primary reasons embedded analytics is so appealing. These five trends highlight some of the key benefits of embedded analytics.
Better adoption than traditional BI
Where adoption of standalone self-service tools has hovered around 20 percent for the past three years, adoption of embedded analytics is higher than ever this year—60 percent. Whether a company is releasing commercial software or an internal application for employees, they know that embedded analytics solves the adoption challenges that have plagued standalone data discovery tools.
Increased time spent in the application
What’s the ultimate gauge of engaging users? Measuring time spent in the application. After embedding analytics, 84 percent of respondents say time spent in application went up.
Adding value to the application
What percentage of the overall value of their applications would respondents assign to embedded analytics? This year, they estimate the value of embedded analytics at 54 percent—up from 45 percent last year. This growth demonstrates the value that both users and product teams are realising from embedded analytics.
Improving the user experience
Nearly all companies agree that a successful application starts with a great user experience. When it comes to embedded analytics, 95 percent of respondents say it improves their customer satisfaction and 98 percent agree that it improves the overall user experience for their application.
Contributing to revenue growth
Ninety-eight percent of respondents said embedded analytics contributes to revenue growth. It also helps application teams improve their win rate (96 percent) and differentiate their solutions from competitors (94 percent).
Given all these benefits it’s no surprise that application teams are quickly replacing traditional BI tools with embedded analytics capabilities.
So is embedded the future of our application economy? It certainly looks that way, as everyone from sales and marketing teams to finance and legal now expect to see analytics for the data they are using every day easily and quickly. With this boom in demand, it’s time more development teams woke up to the reality of embedding analytics within applications. After all, the application market is too competitive for you to be a laggard.
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