Explain it to Me like I’m a CFO
embedded FOR CFOs Explain it to Me like I’m a CFO: What’s the ROI of Embedded Analytics?
Prepare to Pivot :: The Changing Role of the CFO CFOs, your time has finally come. Accenture deems this the year that CFOs across all industries will make the transition to being true “Architects of Business Value,” as their focus shifts from reducing costs to creating business growth. That’s right, ”Bean Counters” no more, your true value is being recognized for once 1 and for all. Of course, as a financial leader in one of the most rapidly evolving sectors in the world, you probably pivoted a long time ago—early-on becoming of the 81% of CFOs that are now partnering directly with CEOs to drive transformational change via strategic planning and decision-making. And, as a SaaS leader—you also probably were ahead of your peers in understanding the importance of technology in enabling those processes, while simultaneously reducing complexity. 72% of CFOs now confirm that big data and analytical insight are critical to decision-making. WHAT’S THE ROI OF EMBEDDED ANALYTICS? 2
But...have you considered that data and analytics If you’re a SaaS “Architect of Business Value” with are not just the keys to planning for growth— growth on the brain—now is the time to invest in but rather, might be the actual keys to growth? embedded analytics, harvesting the full value of Gartner estimates that, through 2015, more than 90% the data that already exists within your core product. of business leaders will view content information as Turn the page to get a better understanding of the a strategic asset, yet fewer than 10% will quantify its market opportunity for data products and services; economic value. 2 Are you part of the 90% of business how analytics can help you create business growth; leaders that recognizes their data as an asset? and what key attributes to look for in an embedded Better yet, are you part of the 10% that analytics partner solution. knows how to quantify its value? CFOs FOCUS ON GROWTH TO BECOME ARCHITECTS OF BUSINESS VALUE 50 45 36 39 27 28 22 16 2011 2014 2016 - Projected Focus primarily on cost control Focus primarily on investment in Evenly split between cost control growth-oriented activities and growth Source: Accenture, “Accenture 2014 High Performance Finance Study: The CFO as Architect of Business Value” WHAT’S THE ROI OF EMBEDDED ANALYTICS? 3
Just the Facts, Please :: The Embedded Analytics Market Opportunity We know you want the numbers. And they’re impressive. Read on to see why embedded analytics should be your next investment. Fact 1 Data and Analytics Investments Fact 2 Cloud Investments are Increasing are Accelerating in Lockstep Of your peers, 82% plan to increase their investment in big Those same CFOs, 85% in total, cite cloud and 1 1 data and analytics within the coming year, per Accenture. software-as-a-service as their top investment area for FY’16. 82% 85% 64% 2 of 5 26.4% Fact 3 SaaS Analytics are Leading the Nexus Fact 4 SaaS + Embedded Analytics Fact 5 Monetizing Data is THE KEY of Forces Creating Business Opportunity Will Shape the Future of Business to Driving Business Growth and Value Sixty-four percent of North American and European software Applications Innovation IDC forecasts the Big Data products and services decision-makers specifically list increasing the use of analytics The cloud/SaaS and embedded analytics category growing at a CAGR of 26.4%, eventually within business applications as a high or critical priority, have been identified by Forrester as two of reaching $41.5 billion. Six times the growth rate of the 3 5 according to Forrester. the five technology pillars that will shape the overall tech sector. future of business applications innovation.3 The cloud and analytics are two of the “Nexus of Forces” that 4 Gartner claims will create new business opportunities. WHAT’S THE ROI OF EMBEDDED ANALYTICS? 4
Let’s recap. SaaS and analytics investments are exploding. And you have a SaaS product, full of monetizable data—from which you can architect business value, while creating massive ROI, with embedded analytics. Convinced yet? Turn the page to learn the three top benefits embedded analytics can deliver to your organization. WHAT’S THE ROI OF EMBEDDED ANALYTICS? 5
Value Driver # 1 :: Net New Revenue Creation The value you can achieve with embedded analytics It’s a process we like to call Agile compounds exponentially over time. Make the Revenue Development. investment, and you’ll be reaping rewards for years to come. Start customers at your basic tier, then walk them up the analytics maturity model, collecting enhanced Analytics can be a powerful differentiator— returns along the way. Double down on your initial giving you a competitive advantage. An advantage offering: releasing advanced analytics with ad hoc that can be exploited over and over again to help reporting; monetizing benchmark data gleaned you land net new business and create new lines of across customer instances; and integrating third- revenue, offering upgrades or even launching new party data to become a leader in delivering industry data products. macro-indicators. NEW REVENUE STREAMS BY TIERING AND MONETIZING ANALYTICS Elite “We are empowering our Premium customers with GoodData’s tactical, Additional operational, and strategic insight to Advanced data sources, Advanced Benchmarking including change how the industry as a whole reporting, across industries, ERP and Standard dashboards geographies third-party makes decisions.” Interactive and ad-hoc and more reporting analysis across products —Sid Shetty, VP Global Services Want to see how it’s done? Read the case study to learn how GoodData customer ServiceChannel, a cloud-based ERP system provider for management of facilities like shopping malls—became a leading source of industry insights when they combined their own data with external data on weather patterns, gas prices, and demographics. WHAT’S THE ROI OF EMBEDDED ANALYTICS? 6
Value Driver # 2 :: Increased Lifetime Customer Value Embedded analytics don’t just help you land new customers—they also help you keep the customers you have, reducing churn while increasing lifetime customer value. Customers that engage with analytics are stickier. They use the product more, and they feel better about it. When renewal time comes, or upgrade discussions take place, they’re loyal. Why? Because analytics prove their own value— delivering critical insights to users of all skill-levels across organizations, while strengthening your relationship with those customers. It’s a personal touch that motivates your customer to become a better customer. Need some proof points? Let’s talk about: WHAT’S THE ROI OF EMBEDDED ANALYTICS? 7
804% ROI Customer Engagement: GoodData’s average daily user rate rivals that of popular consumer apps, at 30%. Customers like ServiceChannel have increased engagement from 30% to an incredible 80%. Customer Satisfaction: GoodData customer AppDynamics achieved a Net 650% ROI Promoter Score of 85 after integrating embedded analytics within their product. FCm Travel Solutions reports that, since adding analytics, their customers have “never been happier.” Customer Lifetime Value: GoodData analytics are the #1 reason why customers from Bolder Thinking and Oversight 615% ROI Systems upgrade to higher subscription tiers. Demandbase increased conversion by 200% with the addition of analytics. Embed GoodData analytics within your products and be rewarded with an ROI your investors will love. WHAT’S THE ROI OF EMBEDDED ANALYTICS? 8
Value Driver # 3 :: Reduced Financial and Operational Risk We’ve talked a lot about growth—but let’s not Think about it. What kind of capital and human forget that growth and cost reduction aren’t resources would it take for you to build-in the mutually exclusive. Partnering with an embedded capabilities yourself? What kind of risks would you analytics solution provider can help you achieve take on venturing into new areas, where you have rapid growth and returns, with minimal cost and risk. less institutional knowledge and expertise from which to borrow? How long would it take you, and what would be the opportunity costs? The Powered by GoodData Program gives you access to an industry-leading analytics distribution platform, with a hyper-engaging user interface your customers will love. Our HIPAA and SOC Type II compliant cloud architecture ensures the safety of your customers’ data, eliminating business risk. With easy integration, cloud- based deployment, and an average implementation time of less than 90 days—it’s a powerful tool to accelerate your path to productizing and monetizing analytics. Want the deep dive? Check out Powered by GoodData: Monetize Data with Embedded Analytics. WHAT’S THE ROI OF EMBEDDED ANALYTICS? 9
For an easy cost-benefit analysis on the build vs. buy discussion, take a look at the chart below. Then contact GoodData to start the conversation about how you can architect business value into your solution and your business—monetizing data with embedded analytics. BUILD YOURSELF PARTNER WITH GOODDATA DEVELOPMENT REQUIREMENTS 6 people, 1 Full Scrum Team Product Mgr, 1 Developer TIME TO MARKET FOR V1 1 Year 3 to 5 Months MINIMUM FEATURE SET 10 “Dashboards” 1 to 3 Product Tiers UPDATE RELEASE CYCLE Annual Monthly to Quarterly SECURITY PATCH CYCLE Fire Drill Daily Operations CAPITAL EXPENSE HW/SW for Data Center, Databases, etc. None OPERATING EXPENSE Maintenance Team, Support GoodData Payment WHAT’S THE ROI OF EMBEDDED ANALYTICS? 10
Invest in the Bottom Line GoodData, recognized for OEM Analytics in Gartner’s* October 2015 Magic Quadrant for Business Intelligence and Analytics Platform,6 and as a leader in The Forrester Wave™: Agile Business Intelligence Platforms, 7 offers an industry-leading Q3 2015, business intelligence platform and deep Go-To-Market expertise. The Powered by GoodData partner program helps ISVs quickly create new revenue streams and increase customer retention—embedding advanced, self-service analytics directly into existing SaaS solutions. GoodData delivers the market’s most complete multi-tenant analytics distribution platform, coupled with a hyper-intuitive user interface your customers will love. With fully-responsive, embedded analytics customized to meet your (and your customers’) brand and business needs—GoodData guides users to fast discovery and adoption using interactive recommendations. WHAT’S THE ROI OF EMBEDDED ANALYTICS? 11
Related Assets • Explain it to Me like I’m a CEO: What’s So Great About Embedded Analytics Explain it to me Like I’m a VP of Product: How to • GSD with GTM Planning for Embedded Analytics Explain it to Me like I’m a Product Manager: How to • Successfully Launch an Embedded Analytics Product Powered by GoodData: Monetize Data with • Embedded Analytics Suggested Resources • Powered By GoodData On Demand Demo Growing a Cash Crop: How to Turn Data Into Dollars • CITO Research: A Guide to Data Monetization • Blue Hill Research Report: GoodData’s Role in the Next • Era of Analytics: Data Monetization Discover why SaaS leaders like SendGrid Customer Success Stories and Demandbase are choosing • Travel: FCm Travel Solutions GoodData as their analytics partner. Health: MediGain Billing and Reimbursement • MarTech: Autopilot, Demandbase, Influitive Contact GoodData today to learn more. • Operations: Zendesk, Bolder Thinking • WHAT’S THE ROI OF EMBEDDED ANALYTICS? 12
1 “Accenture 2014 High Performance Finance Study: The CFO as Architect of Business Value”, Accenture Strategy 2 Gartner “Why and How to Measure the Value of Your Information Assets”, Douglas Laney, 4 August 2015 3 “Digital Innovation Reshapes The Future Of Business Applications”, Forrester Research, Inc., July 17, 2015 4 Gartner “Nexus Forces Fuel the Digital Workplace”, Jeffrey Mann, Matthew W. Cain, Chris Howard, Gartner Foundational, 24 February 2015 5 “Worldwide Big Data Technology and Services Forecast, 2015–2019” IDC, October 2015 6 Gartner, “Magic Quadrant for Business Intelligence and Analytics Platforms”, Rita L. Sallam, Bill Hostmann, Kurt Schlegel, Joao Tapadinhas, Josh Parenteau, Thomas W. Oestreich, 23 February 2015 7 “The Forrester Wave™: Agile Business Intelligence Platforms, Q3 2015”, Forrester Research, Inc., September 25, 2015 *Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. WHAT’S THE ROI OF EMBEDDED ANALYTICS? 13