By Greg Wilson
According to IDC, CRM analytics will be the fastest growing area of the analytics software market, registering a 12.9% compound annual growth rate (CAGR).
Global demand for analytical customer relationship management (CRM) applications is booming. According to statistics from IDC, CRM analytics will be the fastest growing area of the analytics software market, registering a 12.9% compound annual growth rate (CAGR) until 2007.Financial analytics/business performance management application segment will grow at an estimated 10.3% CAGR over the next four years. The operational analytics market will grow 7.4% CAGR between 2003 and 2007.Overall, the worldwide analytical applications market will be worth approximately US $4.8 billion by 2007.“Analytic applications are the best means of navigating from data to decision-making and action,” explains Bob Blumstein, research director for IDC’s CRM analytics and marketing applications research.“As companies adopt these applications to enhance the effectiveness of finance, CRM, and operations, they will gain a distinct competitive advantage over those companies that tolerate traditional inefficiencies,” he adds.End users will need to pay close attention to both simple and complex analytics by weighing their effectiveness in ROI and in qualitative value. Vendors will need to display an edge in terms of ease of use and algorithmic functionality to gain market share.