German data analytics market: investment backlog is slowly clearing

German data analytics market: investment backlog is slowly clearing

The market for data analytics is now also picking up speed in Germany. More and more user companies are shedding the reluctance of previous years and investing in the development of advanced analytics solutions.

The aim is to continuously gain new insights into customer behavior and the processes in the value chain. Service providers and solution providers are taking advantage of the positive market development and are significantly expanding their advanced analytics portfolio.

This is one of the central results of the two provider comparisons “ISG Provider Lens Analytics Services for Germany” and “ISG Provider Lens Analytics – Platforms and Solutions for Germany”, which the market research and consulting company Information Services Group (ISG) has now presented. The studies examine the know-how and implementation capabilities of a total of 37 providers operating in the German data analytics market.

“In recent years, the German analytics market has been in a kind of sideways movement. Above all, the lack of skilled workers and the availability of analyzable data have slowed demand for a long time,” states Heiko Henkes, Director & Principal Analyst at the Information Services Group (ISG). “Against the background of the pandemic experience, however, a rethink has now begun. For example in supply chain management, where a rapidly increasing need for real-time information is contributing to a noticeable increase in demand for advanced analytics solutions.”

Users from new industries

While the use of advanced analytics was concentrated on banks, insurance companies and financial service providers as well as large corporations with highly specific market requirements for a long time, the range of user industries has now become much broader. Key demand groups have long included areas such as healthcare, life sciences, retail, consumer goods and manufacturing. The areas of application for Advanced Analytics are becoming correspondingly more diverse. They range from predictive analytics in procurement to the optimization of production-related services such as predictive maintenance to the creation of sales forecasts or customer-specific sales recommendations.

The requirements go far beyond the determination of classic company key figures (Key Performance Indicators; KPIs). For the providers, this means that they have to deepen their analytical expertise once again. Specialists and start-up companies who can create tailor-made solutions for highly specific analysis tasks therefore have particularly good market opportunities. Increasingly, they are able to develop competitive offers and, at least in some areas, to hold their own against established full-service providers.

Irrespective of this, the generalists still have enough market power to maintain their place in the group of leading providers, according to ISG. As large, globally active providers, they play to their strengths above all where access to personnel capacity that can be deployed quickly is required. In contrast, the group of specialists scores particularly well with users who attach greater importance to physical proximity and native-speaker contact persons.

New offers

Among the most interesting technological advances, the two new studies count improvements in the field of infrastructure. This shows an increasing convergence of DataOps, MLOps and DevOps approaches. In addition, ISG points to a number of application-related innovations with which access to advanced analytics techniques can be significantly facilitated. We’re talking about low-code and no-code development platforms that enable users, regardless of their programming skills, to create more complex analyses. “Through such a citizen development approach, the employees in the specialist department have direct access to their company’s analytics environment,” explains study leader Heiko Henkes. “This increases the number of users who can use their respective domain knowledge to serve the company without going through IT.”

Data Engineering Services

In the “Data Engineering Services” market segment (Fig. 2), ISG evaluates service providers whose offerings include the collection and aggregation of data from structured, semi-structured and unstructured sources. This includes, but is not limited to, instant messages, email messages, and Office documents, as well as audio and video files. The data is obtained from different systems, processed in context and made available based on roles. Important subtasks include developing data pipelines and data models, managing file format conversions, performing data transformations and cleansing, and handling extract, transform, and load (ETL) operations.

Leading data engineering service providers owe their position to a combination of user-specific specialist knowledge, technical and scientific expertise in the development of analyzes and the technical resources that they can provide for the realization, implementation and, if necessary, their operation.

Data Lifecycle Management Services

In the “Data Lifecycle Management Services” submarket, ISG evaluates service providers who deal with the development and implementation of data governance systems and guidelines as well as procedures for the effective and efficient management of data. In an increasingly stringent regulatory environment, data handling service providers are tasked with the end-to-end management of data storage, sharing, archiving and retrieval while adhering to relevant compliance practices. There are also services to ensure data quality, security and control, compliance with the GDPR, the creation and management of data lakes and other services.

Data Science Services

In the “Data Science Services” market segment, ISG examines consulting and system integration service providers who use scientific methods, processes, algorithms and systems to derive knowledge, patterns and conclusions from structured and unstructured data. In essence, it is about defining the right questions and, on this basis, filtering out relevant information from a large number of data streams. The study also looks at the further development of data science services. This includes the automated recognition of the meaning of data and the development of previously unused data.

Data Preparation & Integration Platforms

The “Data Preparation & Integration Platforms” submarket includes software and solution providers that provide highly available platforms for collecting, transferring, merging, preparing, transforming and integrating data. This is happening across a variety of enterprise applications and systems, as well as business units, partners and customers. Platform and solution providers are expected to have sufficient expertise in handling heterogeneous data. Another key differentiator is being able to offer pre-built connectors for critical applications, as well as data discovery, tagging, and data preparation capabilities.

Self-Service & BI Solutions

In the “Self-Service & BI Solutions” area, ISG analyzes software manufacturers and solution providers who have platforms for advanced analysis, reporting and visualization tasks. These include modular solutions that combine the complex analysis of large amounts of multi-structured data with the ease of use required by non-technical workers. The desire for more and more powerful analytical functions, coupled with the convenience of a dashboard, dominates among users. Many providers are expanding their functionalities accordingly, but are still trying to deliver lean and dynamic solutions.

classifications

The comparative study “ISG Provider Lens Analytics Services for Germany” evaluates the capabilities of 37 providers in the three market segments Data Lifecycle Management Services, Data Science Services and Data Engineering Services. The study ranks Accenture, Alexander Thamm, Atos, Capgemini, DXC and IBM as leaders in all three segments. *um (Orange Business Services), Cognizant, Deloitte, Infosys, PwC and STATWORX each receive this award in two market segments. GFT, Infomotion, NTT DATA and Tech Mahindra in one each. In addition, Blue Yonder, Data Insights and Wipro are each referred to as “Rising Stars” in one market segment. According to ISG’s definition, these are companies with a promising portfolio and high future potential.

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