A rising demand for cloud-based Corporate Performance Management (CPM) software is lifting the awareness and availability of CPM software within the marcoms sector, according to business systems consultancy Agency DNA.
In fact, Gartner predicts that the Worldwide Business Intelligence and Analytics Market (including CPM) is to reach $16.9 billion in 2016 and expected to reach $20.81 billion by 2018, equating to a compound annual growth rate (CAGR) of around 8.28%.
Agency DNA highlight’s the main factors that are contributing to the growth of market within the Marcoms sector:
· Rising demand for self-service CPM tools
· Increased need to enhance business productivity
· Greater need for visibility into business processes
· The need for change
Rising demand for self-service CPM solutions
Agencies are realising the importance and value of integrated data and Agency DNA believes that where expectations will be looked to be met this year is above the transactional data layer of ERP and project or job management systems, and in the planning, forecasting and general reporting level where Excel still reigns.
As such agency teams are looking toward self-service cloud analytics tools, and within the sector systems such as BizView are leading the way, being smart but simple to use business planning systems (CPM), fed from structured and better connected ERP systems, and delivering real value across several areas.
Cloud systems allow companies to use software which is cost effective and can be scaled within the business. Low maintenance costs, less dependency on internal IT personnel, limited hardware infrastructure, easier and faster implementation of IT solutions are factors that drive the adoption of cloud software.
Increased need to enhance business productivity
Agencies are continually focusing on improving overall efficiency and in today’s increasingly competitive market, companies want and need agile analytics. They need the right data to get to the right people, quickly and seamlessly.
Within an agency, at the CRM and ERP levels, control and visibility over transactional data, job budgets, time, resource utilisation and accounting, has never been more important, especially as budgets are squeezed.
Currently within agencies a lot of reported data is still downloaded from an ERP or accounting system into Excel, and then PowerPoint to produce charts and commentary. With the rise of sophisticated tools companies will stop trying to gather every bit of data in Excel and then spend hours of manual time each month to produce standard management packs. Finance teams can connect to each data set where it lives and gather every byte of data they require in one clever system. Saving valuable resource time whilst distributing accurate and adaptable packs is revolutionising reporting.
The account teams across agencies are becoming more sophisticated. They require more intelligence and deeper analytics. When it comes to pipeline and demand planning, Excel is still heavily used even if the ERP combines resourcing within their core management functionality. Traffic Managers attempt to match resources to a job and execute smart decisions as to when a freelancer should be brought in. Again much of this information is extracted from an ERP or resourcing systems and put into Excel, which of course instantly out of date. Given a self-service BI tool accurate decisions can be made in an instant in real time.
Greater need for visibility into business processes
Gartner says that as analytics has become more increasingly strategic to most businesses and central to most business roles, every business is an analytics business, every business process is an analytics process and every person is an analytics user.
As such Agency DNA believes that scorecards should be the norm. Scorecards would be a revolutionary step within many agencies with all the key metrics collated and presented. The lack of scorecards is usually a function of disorganised data and the complexity of extracting and collating it. With a smart BI tool this process is much easier and the possibility of collating this data a reality.
The Need for Change
Both data and the information it gives are changing the conversation in board rooms. Agencies are beginning to visualise their data to uncover insights, drive growth and profits.
However they are held back whilst still being heavily reliant on Excel-based business plans and reports because informed decisions are hard to make using data that is outdated and often unreliable. They require agile analytics.
To deliver trustworthy analytics, collaboration between departments is essential and giving them empowerment with self-service BI tools they can easily connect, visualise and share their data is crucial. Also, as more millennials enter the work place their expectations for data tools and analysis is strong.
As managers become more sophisticated in the analytics they expect to see, using just one or two systems is not enough. The latest cloud ERP systems outperform the legacy systems, however they still lack the reporting and analytics capabilities.
By layering a self-service BI system over the top of an ERP, companies will be able to analyse more data faster. They will come to rely on it just like any other crucial business system