What is Business Intelligence Software?

Business intelligence helps users derive meaningful insights from raw data. It's an umbrella term that includes the software, infrastructure, policies and procedures that can lead to smarter, data-driven decision making. In the past, BI software has been used exclusively by data analysts or IT staff. Nowadays, any user can take advantage of BI tools, regardless of their data skillset, due to the self-service functionality.

The are 2.5 quintillion bytes of data created every single day.

Source: Domo

82% of enterprises are prioritizing analytics and BI as part of their budgets.

Source: TDWI

The global business intelligence market is expected to increase to $34.4 billion by 2022.

Source: Market Research Future

Common BI Software Features

Here are several common features found in BI software

Source data

Most BI software connects to data in real time from internal and external sources, such as enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, HR software, social media, spreadsheets, MySQL and many more.

Data Warehouse

A data warehouse is a repository containing information from all the business's applications and systems, as well as external sources, so it can be analyzed together.

Online Analytical Processing (OLAP)

The data warehouse and ETL process represent the back end of business intelligence, while Online Analytical Processing (OLAP) represents the front end. OLAP tools present data to users and allow them to group, aggregate and sort the data based on various criteria

This is the function that allows users to pull out the data they want and make the comparisons they need to have their questions answered.

Data Mining

Data mining refers to the process of finding new information or patterns within large and complex data sets.

Predictive Analytics

Predictive analytics uses a variety of sources to analyze current and past information to predict future events. One example of predictive analytics is data mining, which refers to the process of finding new information or patterns within large data sets.

Extract, Transform, Load (ETL)

A key part of BI is the tools and processes used to prepare data for analysis. The process of getting data ready for analysis is known as Extract, Transform, Load (ETL). The data is extracted from internal and external sources, transformed into a common format and loaded into a data warehouse. This process also typically includes data integrity checks to make sure the data being used is accurate and consistent.

Visualizations

Visualization tools present data using charts, graphs and other formats. Traditional formats include bar graphs, pie charts and scorecards, while advanced data visualization can create interactive and dynamic content, automatically choosing the best type of representation and personalizing content for the user.

Dashboards

The dashboard is the primary graphical interface used when working with a business intelligence system. Typically the first thing the user sees when logging on, the dashboard presents the most important reports and data visualizations for the user, customized based on the person's role.

The dashboard is a simple way to organize information in one place and allow the user to dig deeper for more.

Ad Hoc Reporting

Users can create ad-hoc reports by choosing the specific metrics they want in their report. The results are then shown in the format the user specifies. Ad-hoc reporting features free up IT staff from compiling reports for end users.

Types of BI Tools

Here are the three main types of BI tools:

Analysis

Analysis is the main focus of business intelligence, as data is more useful when it's being analyzed. The three common types of analysis are spreadsheet analysis, ad-hoc query and visualization tools. Another type is predictive analytics that uses techniques such as data mining and machine learning to predict future trends within the data. Predictive analytics isn't just a feature found in BI software; there are dedicated predictive analytics solutions.

Reporting

Reporting tools help users visualize their data in different formats, such as graphs or charts. They have evolved from static (non-manipulated) reports to interactive reports that let users drill down into certain elements for more details. Some reporting features include ad-hoc reporting, scheduled reporting, and exporting or sending reports in different file formats (PDF, Excel, etc.).

Embedded BI

Embedded business intelligence (also known as embedded analytics) is an integration of business intelligence tools into a company's existing applications. Examples of those applications include ERP, CRM, accounting or marketing systems.

There are several vendors (e.g., Izenda, Exago BI, Zoomdata) that focus exclusively on embedded software. However, a growing list of dedicated BI software vendors (such as Looker or GoodData) also sell embedded analytics.

Top Benefits of BI Software

Using a BI Tool has several benefits, including:

The ability to combine data from internal and external sources

Companies tend to use many different systems to run their business, and each system can store large amounts of data. BI software connects data from multiple internal and external sources so users can perform analytics with one platform.

Faster access to real-time data for on-the-fly decision making

Businesses need to quickly adapt to any changing conditions within their company or industry to get competitive advantage. Therefore, they may not be able to wait weeks, days, or even hours, as critical decisions need to be made quickly. BI software includes automated features, so users get the answers they need right away.

Improved productivity for data analysts and IT staff

Many BI tools provide self-service functionality so end users are able to easily access features without having to rely on a data analyst or their IT department. Also, some features of BI software are automated, such as data cleaning, which allows data analysts to focus on more important job tasks.

Identify new areas of business opportunities

Business intelligence software provides companies with new opportunities to improve their business, such as making new sales or revenue, improving customer service or creating new job roles. The software has forecasting features, such as predictive analytics, so users can easily spot trends in their data. BI tools also help companies eliminate any processes that no longer work or hinder productivity.

Increased collaboration

BI tools can help improve collaboration and break down silos among teams, as everyone has access to the same information. The dashboards and reports are interactive and easily shareable. Anyone can provide comments directly within the dashboard or report. Reports are also shared securely to external users, such as clients or vendors.

How to Compare BI Tools

The recent growth in business technology has made the investment into a BI solution significantly more affordable than it was just a few years ago, leveling out the competition for companies of all sizes. But just because the technology is more accessible doesn't mean choosing a solution has become simple.

Now, there are more vendors than ever jockeying to gain your company's business. That's why you must do your homework before settling on a solution.

1

Knowing your company's needs

Before starting the selection process for a BI tool, you must do your homework. Talk to people from all the departments that'll be affected by the BI tool (e.g., IT, finance, marketing, sales and operations) to find any issues that must be addressed. You'll also want to ensure that top executives will be onboard with implementing a BI solution.

It's key to prioritize your main objectives for using the software (also known as use cases). For example, where does your company need to improve? Revenue? Sales? Employee performance? New business opportunities? These objectives will be used to establish your use cases.

2

Creating a shortlist

Once you've established your objectives for using the BI tool, create a shortlist of vendors that best fit your needs. We recommend listing out the must-have features, as well as the nice - to - have - but - not -urgently-needed ones, to help determine the type of tool you're looking for.

In addition to features, you'll need to consider the vendor's deployment options (e.g., on-premise, cloud), implementation processes and customer support.

3

Contacting vendors

Once you've established your shortlist of vendors, it's time to reach out to them. Explain what your objectives are and what features you require in a solution. You'll also want to request a demo of the software with real-data scenarios if possible. Vendors offer virtual demonstrations, but ask if a vendor is willing to meet with you at your office. Another way to test the software is to participate in a free trial, if there is one. Most vendors offer a 14-day or 30-day free trial.

You'll also want to compare different price quotes you received. We explain more on pricing in our section below.

And finally, once you've selected your top two or three vendors, ask for references from their current or previous clients. While the vendor will give you the clients with the most glowing recommendations or experiences, ask to speak to clients that are in the same industry or are the same size as your company. You'll want to get not just the positives of the solution or vendor, but any issues the client has experienced as well.

BI Software Pricing

One of the most important factors in selecting BI software is pricing. Prices can vary depending on company size, customization, implementation and deployment. They typically range from $10 per user, per month up to hundreds of thousands of dollars for an on-premise deployment.

Here are a few questions you should consider about pricing:

  • Is there a clear plan to judge return on investment?
  • What is our budget for implementing/hosting/purchasing BI software?
  • How many users will need to access the software?

BI software vendors use two popular pricing models: perpetual licensing (on-premise) or subscription hosting plans (cloud).

Perpetual licensing (on-premise)

Businesses that prefer to host their own data can purchase licenses that last for the life of the software. On-premise deployment requires the business to purchase hardware, servers and other infrastructure, as well as use IT resources to host and maintain the solution.

man with checklist and giant pen

Subscription hosting (cloud)

Businesses that don't have the time or resources to host their own solution can consider deploying BI in the cloud. They will only need to pay a monthly or annual subscription cost. Subscription costs can include the number of features the company needs, as well as any support and maintenance.

Regardless of deployment, you'll need to consider implementation, training, data migration, the size of your data, customization and support. Depending on the vendor, each of these factors may require additional fees. Some vendors have a staff of implementation specialists, while others rely on third-party consultants.

For more information about pricing, including questions to ask vendors, head over to our BI Pricing Guide. There, we've also compared pricing on popular BI software, such as Microsoft Power BI, Tableau and Sisense.

man at desk thinking
Alteryx
VENDOR NAME: Alteryx
READ REVIEW

GOOD

Self-service data blending features, geospatial analytics capabilities, choice of cloud or on-premise deployment.

BAD

Learning curve for new users, outdated interface.

BOTTOM LINE

Alteryx offers the ability to deliver actionable insights by seamlessly incorporating internal company information, cloud data, and third party data in a single workflow.

READ REVIEW
AnswerRocket
VENDOR NAME: AnswerRocket
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GOOD

Ability to work with large datasets and connect to most data sources, flexible visualization options with drill-down capability, generative AI assistant for complex data analyses.

BAD

Not intended for small businesses, some early users have reported that the software was buggy at times.

BOTTOM LINE

Search-powered analytics platform that uses machine-learning technology and smart data discovery to enable users to find answers within their data in seconds.

READ REVIEW
BOARD
VENDOR NAME: BOARD
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GOOD

Combines features of BI and corporate performance management in one platform, job-centric solutions available.

BAD

While BOARD does target small businesses, the software could be too robust for a very small business/team.

BOTTOM LINE

BOARD combines the features of BI and corporate performance management (CPM) into an all-in-one, programming-free solution.

READ REVIEW
ClicData
VENDOR NAME: ClicData
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GOOD

Scalable pricing plans, automatic dashboard refresh when data sources are updated, various options to share dashboards.

BAD

Some users have experienced a steep learning curve.

BOTTOM LINE

BI platform that allows users to connect data from multiple sources and build intuitive dashboards more efficiently.

READ REVIEW
CXAIR
VENDOR NAME: Connexica
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GOOD

Supports all data structures and sets, accessible for all users regardless of their techical expertise, Venn diagrams feature shows relationships and trends wtihin data.

BAD

AI module was recently launched, but many users may not have access to it yet.

BOTTOM LINE

Data discovery solution that leverages search technology so all users can easily gain actionable insights to make better business decisions.

READ REVIEW
datapine
VENDOR NAME: datapine
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GOOD

Intuitive for any user, from the least experienced business professional to the most advanced data expert.

BAD

Knowledge of SQL may be required in order to use some advanced features.

BOTTOM LINE

Multinational data analytics solution that allows anyone to derive valuable insights from data.

READ REVIEW
Diver Platform
VENDOR NAME: Dimensional Insight
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GOOD

Data integration capability in a single view, easier data discovery tools, fast insights.

BAD

Some users have mentioned a steep learning curve because of software's robustness.

BOTTOM LINE

Its Diver Solution includes time-sensitive data integration in a single view, helping users deploy role-based BI throughout their businesses.

READ REVIEW
Domo
VENDOR NAME: Domo
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GOOD

Connect data with hundreds of connectors, access information and report from single platform, customized solutions.

BAD

Expensive for a small business, some users prefer Domo provide advance notice of software changes or upgrades.

BOTTOM LINE

Business management platform that empowers all users to make better business decisions.

READ REVIEW
FYIsoft
VENDOR NAME: FYIsoft, Inc.
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GOOD

Integration with ERP software and general ledgers, AI functionality to project future revenue and expenses, more advanced security than spreadsheets.

BAD

Not suitable for single-entity QuickBooks users.

BOTTOM LINE

Financial reporting and analysis software that empowers finance teams in large companies to improve their productivity.

READ REVIEW
GoodData
VENDOR NAME: GoodData
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GOOD

Shorter implementation process than traditional vendors, robust features, strong security.

BAD

Time-consuming setup, learning curve for some new end users.

BOTTOM LINE

Embedded analytics platform with high scalability and self-service functionality.

READ REVIEW
Grow
VENDOR NAME: Grow.com
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GOOD

Intuitive features and the ability for all employees to access the dashboard as needed.

BAD

Ability to send metrics via a Slack direct message is not currently supported, learning curve for some new users.

BOTTOM LINE

A user-friendly, easy-to-build dashboard that visualizes key metrics to track daily progress for more informed decisions.

READ REVIEW
ibi WebFOCUS
VENDOR NAME: Cloud Software Group
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GOOD

Configurable features, scalability, augmented analytics.

BAD

Learning curve for new users.

BOTTOM LINE

Embedded analytics that can work with most tools and data sources.

READ REVIEW
Cognos
VENDOR NAME: IBM
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GOOD

AI Assistant that learns users’ data and suggests new data joins and visualizations; drag-and-drop capabilities to create new dashboards and reports; data integration from two to many sources

BAD

Steep learning curve as software can be robust.

BOTTOM LINE

IBM Cognos Analytics offers users access to a wide range of business analytics functionality to help them make well-informed decisions faster.

READ REVIEW
iDashboards
VENDOR NAME: iDashboards
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GOOD

Short implementation process, mobile functionality, ability to build dashboards with a series of right-click menus.

BAD

Learning curve for new users.

BOTTOM LINE

With low cost of ownership and straightforward licensing, iDashboards provides a cost-effective alternative to complex BI solutions.

READ REVIEW
InetSoft
VENDOR NAME: InetSoft
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GOOD

Usable by everyone in company, regardless of BI knowledge, drag-and-drop report designer, data mashups done in real time.

BAD

Steep learning curve for some users.

BOTTOM LINE

InetSoft’s proprietary Data Block technology allows for data mashups from most data sources in real time.

READ REVIEW
Infor Birst
VENDOR NAME: Infor
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GOOD

Automated Data Refinement feature for extracting data from any source, self-service analytics through dashboards, reporting, visual discovery, and mobile tools, low total cost of ownership.

BAD

Social and collaboration features are not offered.

BOTTOM LINE

BI software that empowers business users wtih easy-to-use tools for faster and accurate decision-making.

READ REVIEW
Jaspersoft
VENDOR NAME: Cloud Software Group
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GOOD

Self-service capability, ability to work with big data, users can build their own data mart or warehouse.

BAD

Lack of Impala connectivity, comparatively minimal technical support offered.

BOTTOM LINE

Jaspersoft has a scalable, modular, standards-based design that allows the flexibility needed for a wide variety of deployments.

READ REVIEW
Knowi
VENDOR NAME: Knowi
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GOOD

The platform is built for users to blend structured, multi-structured and unstructured data alike.

BAD

Some users have mentioned that the user interface can be slow at times and that there are occasional glitches.

BOTTOM LINE

A unified analytics platform built to simplify data architectures and help users obtain valuable business insights.

READ REVIEW
Logi Analytics
VENDOR NAME: Insightsoftware
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GOOD

Available for all company sizes, analytics can be embedded into existing applications, ability to customize CSS and JavaScript to reports.

BAD

Steep learning curve for non-SQL users.

BOTTOM LINE

For companies that are either skeptical of BI and are seeking immediate ROI, or for others that need to implement a system immediately, LogiAnalytics offers a swift and affordable solution.

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Logi Composer
VENDOR NAME: Insightsoftware
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GOOD

Speed-of-thought analytics on billions of rows of data, Data DVR tool with real-time real-time data streaming.

BAD

Predictive or profit analysis tools is not offered.

BOTTOM LINE

Embedded platform that simplifies data exploration, analysis and visualization on big, streaming and traditional data sources.

READ REVIEW
Logi Report
VENDOR NAME: Insightsoftware
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GOOD

Flexible tools to create custom, advanced embedded reports and dashboards, support team is responsive and easy to work with.

BAD

Some customers have mentioned there's a learning curve when building reports.

BOTTOM LINE

JReport is an interactive embedded business intelligence suite that allows developers to create robust reports and dashboards, and embed analytics into current business applications.

READ REVIEW
Logility
VENDOR NAME: Logility
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GOOD

Platform-as-a-service option, data is housed in a single repository, code development and maintenance are automated.

BAD

Robust features could lead to steep learning curve.

BOTTOM LINE

Flexible and scalable deployment options, including PaaS, offering a lower total cost of ownership than traditional BI software.

READ REVIEW
Longview Analytics
VENDOR NAME: Insightsoftware
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GOOD

Low cost of ownership, mobile functionality, sharing and collaboration focus.

BAD

No automatic reports scheduling.

BOTTOM LINE

Longview works with many different data sources, especially other vendors such as SAP, Oracle, IBM, and more.

READ REVIEW
Looker
VENDOR NAME: Google Cloud
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GOOD

SQL knowledge not required, LookML proprietary data modeling language, short implementation.

BAD

Learning curve and complex set-up for new users; some users find it isn't always intuitive.

BOTTOM LINE

Looker's web-based platform allows users to explore data in a timely manner to help them make better business decisions.

READ REVIEW
Power BI
VENDOR NAME: Microsoft
READ REVIEW

GOOD

Familiar, easy-to-use interface similar to Excel with the ability for users to create and import simple visuals.

BAD

Interface isn't always user friendly, challenging for new users to learn at first.

BOTTOM LINE

Cloud-based BI software that's simple to use, correlates disparate data and gives full visibility of business performance.

READ REVIEW
MicroStrategy
VENDOR NAME: MicroStrategy
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GOOD

AI capabilities to streamline analytics workflows, flexible cloud environments, all analytics use cases in one solution.

BAD

Steep learning curve, initial setup and configuration can be time-consuming.

BOTTOM LINE

End-to-end analytics platform with robust AI features to help end users get quick insights.

READ REVIEW
OpenText
VENDOR NAME: OpenText
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GOOD

AI-augmented analytics platform, flexible deployment options, self-service functionality for end users.

BAD

Learning curve for new users.

BOTTOM LINE

Analytics tools that empower organizations to make timely business decisions and improve their customer experience.

READ REVIEW
Oracle Analytics
VENDOR NAME: Oracle
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GOOD

Machine learning that provides smart recommendations and fast insights, the ability to collaborate on reports, flexible deployment options.

BAD

Occasional slow performance of Oracle Analytics Cloud, steep learning curve for some users.

BOTTOM LINE

BI solution that uses augmented analytics to empower organizations to make faster and better business decisions.

READ REVIEW
Pentaho
VENDOR NAME: Hitachi Vantara
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GOOD

Combination of data integration and analytical processing, first BI tool to market direct reporting for NoSQL, wide variety of reporting solutions.

BAD

Interface is not always intuitive, some users are unable to find explanation of cause of specific errors.

BOTTOM LINE

Pentaho's unique ability to cross data integration with business analytics unites IT and end-users, helping them integrate and visualize the information that is most important to business results.

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Phocas
VENDOR NAME: Phocas Software
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GOOD

Self-service functionality for all users, collaborative features, native integration with over 200 data sources.

BAD

Could use more options, especially in customization, for visualization tools.

BOTTOM LINE

Cloud-based BI software that empowers end users to perform data analysis and track business performance without relying on IT.

READ REVIEW
Pyramid
VENDOR NAME: Pyramid Analytics
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GOOD

New AI capabilities to aid in analytical workflows, seven robust modules, no-code interface designed for any user.

BAD

New users may experience a short learning curve.

BOTTOM LINE

Robust analytics suite that designed for any user, regardless of technical expertise.

READ REVIEW
Qlik Sense
VENDOR NAME: Qlik
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GOOD

Robust drill-down features, self-service with drag-and-drop capabilities, augmented analytics functionality.

BAD

Advanced customization options may require integration with a third-party application, software slows down when compiling large datasets.

BOTTOM LINE

A flexible and scalable data analysis and visualization tool for a full spectrum of users.

READ REVIEW
Qlikview
VENDOR NAME: Qlik
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GOOD

Google-like search protocol for finding data, ability to combine data sources, no need to rely on IT.

BAD

Self-service difficulty for non-tech users, some filtering issues at the end user and developer levels.

BOTTOM LINE

Qlik's in-memory processor vastly speeds up the application and allows it to refresh in real-time, providing insights as data is added.

READ REVIEW
Reveal
VENDOR NAME: Infragistics
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GOOD

Transparent pricing structure, the ability to create and edit dashboards without having to use a separate software, multiple data connectors supported.

BAD

Software is in its infancy, so it is missing some more advanced features.

BOTTOM LINE

Flexible and easy-to-integrate embedded BI solution that doesn't require a lot of time on the developer's end.

READ REVIEW

GOOD

Minimal or no involvement from IT, BI analysis done from multiple data sources and in different formats, accessible via any platform.

BAD

Software tends to be complex for non-tech users.

BOTTOM LINE

Broader BI solution with self-service functionality.

READ REVIEW

GOOD

SAS Visual Analytics combines data preparation, interactive reporting, visual discovery, self-service analytics, scalability and governance all from a single, powerful in-memory environment.

BAD

Software can have steep learning curve and is not always intuitive, according to some users.

BOTTOM LINE

SAS Visual Analytics provides a modern, integrated environment for governed discovery and exploration with easy-to-use analytics and visualizations that help everyone get insights from data to better solve complex business problems.

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Sisense
VENDOR NAME: Sisense
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GOOD

Robust features, flexible developer tools, deployment in cloud, on premise or hybrid of the two.

BAD

Some users prefer additional flexibility and customization.

BOTTOM LINE

Embedded analytics platform that empower companies to provide intelligent analytics functionality to their end users.

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Slemma
VENDOR NAME: Slemma
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GOOD

Integrates with many common third-party solutions and disparate data sources.

BAD

With databases and warehouses, Slemma often requires someone knowledgable in SQL to perform table-joins and create new views for visualization.

BOTTOM LINE

A simple business analytics and data visualization tool that uses interactive dashboards to share information.

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Spotfire
VENDOR NAME: Cloud Software Group
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GOOD

Ability to perform statistical analysis, automatically run reports and analysis at set times, ability to drill down to find root causes of business issues.

BAD

Challenging learning curve for new users.

BOTTOM LINE

Ideal for companies looking to improve their sales and marketing practices and their customer experience.

READ REVIEW
Tableau
VENDOR NAME: Tableau Software
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GOOD

Robust drill-down and visualization tools make data understandable for all types of users.

BAD

Customers have mentioned a steep learning curve for executives, and the system tends to be slow at times when dealing with large datasets.

BOTTOM LINE

Tableau provides users with intuitive BI tools to enhance data discovery and understanding.

READ REVIEW

GOOD

Automatic alerts, all BI tools in one platform, real-time dashboards.

BAD

Difficulty in setting up calculations within reports.

BOTTOM LINE

TARGIT allows non-expert end-users to create and access reports and analysis easily and efficiently.

READ REVIEW
Tellius
VENDOR NAME: Tellius Inc.
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GOOD

Accessible for all users regardless of technical expertise, natural language feature that suggests recommended answers as a user types in a question, predictive modeling functionality.

BAD

Automatic analytics may be a challenge for those who use manual analytics.

BOTTOM LINE

Business intelligence solution that uses machine-learning algorithms to find trends, patterns and answers in a matter of seconds.

READ REVIEW
Yellowfin
VENDOR NAME: Yellowfin
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GOOD

Yellowfin Signals that provides automated analysis to the user based on data patterns and outliers, Yellowfin Data Storytelling that combines data reports into one narrative, five components that can be used individually or all together.

BAD

Does not include financial forecasting or profit analysis.

BOTTOM LINE

Yellowfin Analytics Suite offers automated analysis, storytelling and collaboration.

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Zoho Analytics
VENDOR NAME: Zoho
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GOOD

Robust features, flexible deployment, integration with over 500 third-party applications, scalable pricing.

BAD

Some users would like additional types of charts and widgets, as well as business app connectors (e.g., SAP).

BOTTOM LINE

Self-service BI software with AI and other features for creating, sharing and tracking important metrics.

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