2018

STATE OF
EMBEDDED
ANALYTICS
REPORT
The Sixth Annual Review of Embedded
Analytics Trends and Tactics
TABLE OF
CONTENTS
Foreword by Jen Underwood, Principal Consultant, Impact Analytix...........................................1
Introduction.............................................................................................................................................. 3
About the State of Embedded Analytics................................................................................ 3
Why Embedded Analytics Is Crucial for Software................................................................ 4
How Companies Capitalize on Analytics............................................................................... 6
Part 1: The Value of Embedded Analytics........................................................................................... 7
Part 2: Analytics Capabilities Are Evolving.........................................................................................11
Part 3: Analytics Development Platforms Keep Applications Ahead of the Market................. 14
Conclusion: Three Steps to Winning With Analytics......................................................................22
About Logi Analytics..............................................................................................................................25
Appendix..................................................................................................................................................26

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT

FOREWORD
Jen Underwood, Principal Consultant, Impact Analytix

Analytics is everywhere. From consumer gadgets, intelligent things and applications to the rapidly expanding
Everything as a Service (XaaS) subscription economy, analytics has been ubiquitously embedded into all areas
of our lives.

In a digital era fueled by data and automation, analytics has evolved from an afterthought to a necessity.
Companies no longer have the time or luxury to treat analytics as a standalone project. To survive and thrive,
intelligence needs to be pervasively integrated into the entire customer journey, operations, products, and
services.

I’ve seen the importance of embedded analytics firsthand in my experience working for one of the largest
technology firms in the world. The company was making a shift to a SaaS (Software as a Service) model—
which requires adopting new ways of thinking, changing organizational models, constantly measuring, and
adapting swiftly to subscriber usage signals. Adopting a nimble SaaS mindset helps companies innovate
quickly.

While I was at this company, new cloud services were developed in weeks and upgraded daily. We would
profit or perish by our ability to grow an active subscriber base and increase monetization over time. Reduced
barriers to experiment with on-demand cloud technologies combined with lower switching pains forced us
to be proactive. Customer success, not field sales, drove the most revenue.

We needed to make our SaaS app “sticky”—to deliver more value with every single subscriber interaction.
One of the most significant ways we did this was with embedded analytics. By embedding analytics into

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 1

the foundation of our app, customer success, technical support, product teams, marketing, investors, and
our delighted subscribers all reaped continuous rewards. I can’t imagine how we would have ever survived
without it.

That’s one reason I’m pleased to present the annual State of Embedded Analytics Report from Logi Analytics.
This year’s report explores the top benefits of embedded analytics, the latest trends, advantages of different
development methods, and what the future of analytics looks like.

An interesting finding this year is the ability to slash the time from insight to action. Embedded analytics
informs decision makers while they’re in the flow of current thought processes within apps—without losing
focus or context—and makes every moment count. In the 2017 State of Analytics Adoption Report, over
83 percent of business professionals expressed a strong desire to stay in one application, when and where
a decision is needed, instead of wasting precious time by switching apps. In this 2018 State of Embedded
Analytics Report, survey participants reiterated those sentiments.

Another key finding in this year’s survey: 90 percent of respondents indicated that embedded analytics
has allowed them to increase adoption. Why? People resist change. By embedding analytics invisibly into
applications people already know, use, and love, change is minimized and value is maximized. The elusive,
magical adoption formula is simple: When applications deliver more value, they get more usage.

Embedded analytics also helps companies master efficient customer acquisition and retention. This is crucial.
According to a recent McKinsey study1, “Grow Fast or Die Slow,” company growth yields greater returns and
matters more than margins or cost structure. If a software company grows less than 20 percent annually,
there is a 92 percent chance of failure.

Of course, growth isn’t the only important measure of company success. Keeping your existing customers is
just as critical. Depending on your industry, acquiring a new customer can be anywhere from five to 25 times
more expensive than retaining an existing one2.

In terms of customer acquisition and retention, embedded analytics unquestionably boosts business.
According to this year’s survey, 92 percent of respondents reported an increase in competitive differentiation,
90 percent reduced customer churn, and 91 percent improved win rates.

Finally, this year’s report delves into participants’ decisions to buy or build embedded analytics. Logi examined
three different approaches: “bolt-on” analytics solutions, custom code, and a combined development
approach. Ultimately, the combined approach outperformed bolt-on and pure custom development across
nearly every evaluated measure. That insight alone is a key lesson learned.

Never underestimate the value of embedding analytics or providing customers an option to dig deeper into
their data in the digital era. Deliver the best of both.

1 https://www.mckinsey.com/industries/high-tech/our-insights/grow-fast-or-die-slow
2 https://hbr.org/2014/10/the-value-of-keeping-the-right-customers

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 2

INTRODUCTION
About the State of Embedded Analytics
Every year since 2013, Logi Analytics has set out to independently discover the state of embedded analytics.
The sixth annual State of Embedded Analytics Report provides insights for those that care about the future
of analytic applications.

This year, we again surveyed more than 500 people who shared their perspectives on how they are
embedding analytic capabilities to meet ever-changing market needs. Respondents included members of
product management, product development, software engineering, IT, and executives from both commercial
software vendors as well as non-commercial IT-managed applications used by internal staff and partners.

The majority (73 percent) of respondents are from North America, while 26 percent are from the United
Kingdom. Less than 7 percent identified themselves as customers of Logi Analytics.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 3

Why Embedded Analytics Is Embedded
Crucial for Software analytics
This year’s survey shows analytics has become a foundational makes up
requirement for any application. More than 85 percent of
respondents say they have embedded analytics within their 51% of an
applications. In fact, it’s increasingly difficult for applications to
compete without offering analytics. application’s
Why? Because embedding reduces the insight-to-action gap
total value.
by weaving analytics into the context of business applications
on which users already rely. In turn, this drives user satisfaction,
application stickiness, and revenue.

Embedded analytics has become so important that teams estimate it contributes 51 percent of an application’s
total value. As a result, the pace of innovation has vastly accelerated as companies seek the next great feature
to differentiate their software and drive customer value—leading to seismic shifts in analytics.

This year’s survey points to three major trends in the world of analytics.

1: Application teams see substantial business benefits from embedded

analytics
Every application team today—whether they’re an Independent Software Vendor (ISV) working on a commercial
application or an IT team working on an internal application—faces the challenge of delivering more valuable
software to end users. One way to do this is with embedded analytics. But does it work?

According to this year’s survey results, yes. Embedded analytics leads to increased user satisfaction, improved
user experiences, stickier applications, and (especially crucial for ISVs) higher revenue.

2: Leading companies are evolving analytics beyond basic features

While every application has a minimum requirement to “offer analytics,” forward-thinking companies
recognize the opportunity to differentiate themselves. They’re going beyond basic capabilities, like interactive
dashboards and data visualizations, and embedding sophisticated features such as predictive analytics.

As this year’s survey shows, when an application includes unique capabilities, it’s able to further differentiate
itself from competitors and drive more value. This trend shows no sign of slowing down. We expect more
innovative features will emerge and the gap will continue to widen between applications evolving their
analytics and those sticking with the basics.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 4

3: Building analytics without help is no longer an option
Application teams have three options when it comes to embedding analytics; build in house, buy a solution,
or take a combined approach. Each approach comes with some benefits and drawbacks.

• BUILD: By relying on open-source components and custom code, build solutions empower developers
to create sophisticated applications that surpass the capabilities of other solutions. But the costs and
resources of maintaining and updating the analytics over the long term are unsustainable for anyone
except extremely large companies.

• BUY: Buying a solution and bolting it onto your product means you can deliver basic analytics
features quickly. But most of the out-of-the-box data discovery solutions fail to deliver the breadth of
capabilities of build or combined approaches.

• COMBINED APPROACH (BUY AND BUILD): Taking a combined approach involves purchasing an
analytics development platform and customizing it. Compared to building, application teams taking
a combined approach are able to get to market faster and reduce the long-term resources needed
for maintenance and updates. Compared to buying a bolt-on solution, teams are able to completely
integrate the look and feel of their analytics with their existing application and deploy sophisticated
capabilities.

Historically, if an application team chose an approach that failed to deliver results (advanced features, more
revenue, customer satisfaction), they could refactor their application and start over. However, this year’s
survey indicates that companies no longer have time for do-overs. New capabilities are being integrated (and
commoditized) faster than ever before, and the competition is creating enormous pressure—making it nearly
impossible to monetize late-to-market capabilities.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 5

How Companies Capitalize on Analytics
This report will examine the latest survey results and outline how teams should approach developing their
analytics.

Part 1 explores the key benefits of embedding analytics.

Part 2 examines how companies are evolving their analytics to offer the most value to customers while
standing out in the market.

Part 3 looks at how the development approach a company chooses affects its ability to increase value and
remain competitive.

The Conclusion provides three action items you can follow to jump-start your analytics initiatives.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 6

PART 1:
THE VALUE OF
EMBEDDED ANALYTICS
Today, every application team is tasked with creating useful, immersive products that reduce or eliminate the
need for users to leave the application.

As this year’s State of Embedded Analytics survey demonstrates, most applications are turning to embedded
analytics to meet this goal. Read on to discover the key benefits of embedding analytics.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 7

Benefit 1: Make End Users Happy
Survey respondents indicate that embedded analytics has overwhelmingly allowed them to satisfy their end
users by improving the user experience, boosting satisfaction, and increasing adoption.

To what extent has embedded analytics helped you...

2%
Increase End-User
Adoption 47% 44% 8%

2%
Improve User
Experience 60% 33% 5%

1%
Improve Customer
Satisfaction 63% 31% 5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Strongly Agree Slightly Agree Slightly Disagree Strongly Disagree

Application teams are often asked to add new capabilities and features without knowing how users will
receive them. The survey results confirm that embedding analytics is well worth the investment.

Benefit 2: Gain a Competitive Edge

This year’s survey finds more than 85 percent of respondents offer embedded analytics in some form. It’s
nearly impossible to ensure user adoption or compete in a broader market without it.

To what extent has embedded analytics helped you...

2%
Improve Win Rate 53% 38% 7%

2%
Reduce Churn 47% 43% 8%

1%
Differentiate Your
Offering 56% 36% 7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Strongly Agree Slightly Agree Slightly Disagree Strongly Disagree

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 8

Ninety-two percent of respondents report an increase in competitive differentiation because of embedded
analytics. Most companies also see benefits in reducing customer churn (90 percent) and improving win rates
(91 percent).

Benefit 3: Free Up Development Resources

Inevitably, giving end users more information means they’ll eventually ask for new visualizations or more
data sources in the application. When users can’t answer their own questions, they send ad-hoc requests to
application teams and IT departments. This eats up developers’ time and resources, distracting them from the
core Intellectual Property (IP).

By embedding self-service analytics, organizations can empower users to get the information they need
without asking for help. This year’s results show that nearly 50 percent of respondents have reduced the
number of ad-hoc requests they receive by embedding self-service analytics.

How has embedding self-service analytics affected the

number of ad-hoc requests you receive?
1%
20% 29% 31% 20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Requests Have Gone Down Significantly We’ve Seen Some Drop No Change Requests Have Increased Not Applicable

51%
Benefit 4: Boost Value and Revenue
Survey respondents report that more than half of their applications’ value comes
from embedded analytics. What’s more, 96 percent say embedded analytics has application value
helped them increase overall revenue. And 68 percent say they’re able to charge attributed to
more for their products because of the value embedded analytics brings. embedded analytics

Unfortunately, stagnant analytics fails to drive either value or revenue. To maintain increased value, companies
must continue to invest in analytics. Fortunately, this year’s survey shows they are:

78%
continue to invest

• Seventy-eight percent of companies plan to either increase or maintain
spending on embedded analytics in the next year.

in embedded • For companies that are not currently embedding analytics, 29 percent
analytics have decided to increase their investments in the next year.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 9

Benefit 5: Differentiate With Sophisticated Features
While the majority of applications today deliver basic analytics features—dashboards, reports, and
visualizations—more advanced innovations, such as predictive analytics, are on the horizon. We asked
respondents about a range of features, including five capabilities that are especially forward looking:

• Advanced or predictive analytics

• Ability to kick off a new workflow

• Natural language generation

• Ability to write back to the database

• Artificial intelligence (AI)

Application teams embedding these sophisticated capabilities become stronger competitors in their markets.
They’re able to differentiate their applications from the competition, improve win rates, and reduce customer
churn better than products offering only basic features.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 10

PART 2
ANALYTICS CAPABILITIES
ARE EVOLVING
The baseline requirements for embedded analytics are rapidly evolving. Where applications used to get
away with offering basic capabilities in separate tabs or even separate apps, they now have to—at a
minimum—embed analytics features in their software.

This year’s survey shows the capabilities ceiling is continuing to rise. More applications are delivering
innovative features such as workflow capabilities, predictive analytics, and artificial intelligence. And
companies that deliver advanced capabilities see higher user satisfaction, increased user adoption, and
more revenue opportunities.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 11

Applications with sophisticated features see
substantial business benefits
When embedding analytics, application teams can choose to include a range of capabilities—from interactive
dashboards and data visualizations all the way up to embedded workflows and predictive analytics. Innovative
features usually take more time to deliver than basic ones, but they’re also the capabilities that will deliver
substantial business benefits.

As shown in this year’s survey, applications with sophisticated functions have a solid advantage over basic
applications. They’re more able to differentiate their software, reduce customer churn, and increase overall
revenue, among other benefits.

Business Effects: “I strongly agree embedded analytics

helps our company...”
80%

70%

60%

50%

40%

30%

20%

10%
71% 60% 62% 52% 57% 49% 53% 42%
0%
Increase Overall Differentiate Your Improve Your Reduce Customer
Revenue Product Win Rate Churn

Applications with Sophisticated Capabilities Applications with Basic Capabilities

Embedding sophisticated features improves user satisfaction and increases adoption (as shown on the next
page). As customers increasingly rely on the application, companies can then justify premium pricing tiers.
Another benefit of innovative analytics is the competitive differentiation. Modern features set your application
apart and make it nearly impossible for competitors to catch up.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 12

Improving the user experience
This year, we see a clear difference in the abilities of applications with sophisticated capabilities to satisfy
users, as compared to applications with basic features.

User Experience Effects: “I strongly agree embedded

analytics helps our company...”
70%

60%

50%

40%

30%

20%

10% 51% 43% 59% 50% 64% 56% 65% 60%

0%
Increase End User Attract New Users Improve User Increase Customer
Adoption Experience Satisfaction

Applications with Sophisticated Capabilities Applications with Basic Capabilities

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 13

PART 3:
ANALYTICS DEVELOPMENT
PLATFORMS KEEP
APPLICATIONS AHEAD OF
THE MARKET
When starting a new embedded analytics project, application teams can choose to build a solution themselves;
buy a bolt-on solution from a data discovery vendor; or take a combined approach by buying an analytics
platform and customizing it. As we outlined in the introduction:

• BUILD: By relying on open-source components and custom code, build solutions empower developers
to create sophisticated applications that surpass the capabilities of other solutions. But the costs and
resources of maintaining and updating the analytics long term are unsustainable for anyone except
the largest companies.

• BUY: Third-party solutions provide speed to market and support basic analytics features. But without
customization, they fail to deliver the breadth of capabilities of build or combined approaches.

• COMBINED APPROACH (BUY AND BUILD): Taking a combined approach involves purchasing an
analytics development platform and customizing it. This method lets companies get to market faster
than building and supports more sophisticated capabilities than buying a bolt-on solution.

According to survey respondents, the combined approach leads to a more successful and sustainable analytics
solution compared to building yourself or buying a bolt-on tool.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 14

Homegrown solutions limit applications today and
in the future
The first instinct for many software teams is to build exactly what they want using open-source code libraries
and charting components. This worked just fine until customers began expecting more sophisticated
capabilities. Today, homegrown solutions are failing to keep up with market innovation. Of this year’s survey
respondents, teams that build a solution on their own are less likely to offer advanced capabilities versus
those that take a combined approach. They’re also at a disadvantage when offering mobile responsiveness,
predictive analytics, natural language generation, and the ability to kick off a workflow.

Companies with a combined approach currently offer

more robust functionality than homegrown solutions
77%
Data Visualizations
66%

65%
Interactive Dashboards and Reports
62%

63%
Embedded Self-Service Analysis 53%

43%
Advanced or Predictive Analytics 42%

Tailored Experiences Based on User 61%

Rights and Roles 46%

Real-Time Analytics Powered by 59%

Instant Data Connections 49%

60%
Mobile Responsive
46%

53%
Ability to Kick Off a Workflow
44%

Data Preparation 63%

58%

Natural Language Generation 49%

41%

Connections to Additional 54%

Data Sources 50%

Ability to Write-Back to 54%

the Database 45%

41%
Artificial Intelligence 34%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Combined Approach Built Our Own

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 15

It’s clear companies leveraging an analytics development platform are ahead of homegrown solutions today—
and will continue moving ahead. Of the respondents who haven’t added specific features yet, those leveraging a
platform will more quickly add them in the coming year. This is true across nearly every feature category.

Combined approaches have more aggressive roadmaps:

Of those companies not supporting these features today, how
many plan to add them in the next 12 months?

88%
Data Visualizations
82%

97%
Interactive Dashboards and Reports
80%

80%
Embedded Self-Service Analysis 68%

79%
Advanced or Predictive Analytics 78%

Tailored Experiences Based on User 77%

Rights and Roles 76%

Real-Time Analytics Powered by 72%

Instant Data Connections 73%

Mobile Responsive 84%

74%

Ability to Kick Off a New Workflow 67%

Within the Analytics Interface 68%

Data Preparation 73%

64%

Natural Language Generation 54%

62%

Connections to Additional 76%

Data Sources 66%

Ability to Write-Back to 69%

the Database 65%

65%
Artificial Intelligence 62%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Combined Approach Built Our Own

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 16

Homegrown solutions result in fewer
business benefits
According to survey respondents, end users are less satisfied with homegrown analytics. And application
teams that build analytics on their own using custom code and components see worse results in terms of
user experience, differentiation from the competition, and attracting new users.

“I strongly agree embedded analytics helps me...”

55%
Increase End User Adoption
44%

71%
Improve User Experience
55%

Differentiate Our Offering 65%

50%

Improve Customer Satisfaction 68%

61%

Attract New Users 66%

48%

Improve Win Rate 59%

51%

Reduce Churn 50%

46%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Combined Approach Built Our Own

Successful embedded analytics requires a level of sophistication that companies choosing to build on their
own simply cannot offer. Despite offering a lot of freedom, build approaches make it impossible to maintain
and scale analytics over time. Customers will inevitably ask for more functionality, flexibility, and insights. If
your analytics solution is built and maintained entirely in house, those requests are going to distract your
development team from focusing on the core application.

On the other hand, using an analytics development platform means application teams need fewer resources
for ongoing improvements. After an application launches, they can go back to focusing on core application
development. This supports sustainable innovation for years to come, as the platform delivers the latest
capabilities and empowers developers to customize the solution for unique requirements.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 17

When you can’t build, what’s the solution?
This year’s survey proves building analytics on your own is no longer a realistic option for long-term success.
In that case, application teams must buy a solution. But they still have two choices: Either embed a bolt-on
data discovery tool or take a combined approach and leverage an analytics development platform.

Buying a bolt-on solution may seem like the perfect way to quickly update analytics, especially if you’ve
fallen behind the market. However, this year’s survey shows when companies buy bolt-on analytics solutions,
they’re less likely to offer robust capabilities across nearly every category.

Combined approaches lead to more robust functionality

than bolt-on
77%
Data Visualizations
62%

65%
Interactive Dashboards and Reports
67%

63%
Embedded Self-Service Analysis 56%

43%
Advanced or Predictive Analytics 41%

Tailored Experiences Based on User 61%

Rights and Roles 46%

Real-Time Analytics Powered by 59%

Instant Data Connections 45%

Mobile Responsive 60%

44%

Ability to Kick Off a New Workflow 53%

Within the Analytics Interface 39%

Data Preparation 63%

51%

Natural Language Generation 49%

34%

Connections to Additional 54%

Data Sources 46%

Ability to Write-Back to 54%

the Database 43%

41%
Artificial Intelligence 28%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Combined Approach Buy (Bolt-On) Approach

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 18

Teams that take a combined approach offer more capabilities—including advanced features such as AI—
versus those that use a bolt-on solution.

Bolt-on solutions see fewer business benefits and

inferior user experiences
The combined approach surpasses buying bolt-on products in terms of functionality. But how does that
impact users and the overall business?

Compared to buying a bolt-on solution, a combined approach supports a more differentiated product,
improves win rates, reduces customer churn, and boosts overall revenue. It also positively impacts the end
users, resulting in better user adoption, user satisfaction, and user experiences.

“I strongly agree that embedded analytics helps

our company...”
68%
Improve Customer Satisfaction
62%

65%
Differentiate Our Offering
55%

Increase End User Adoption 55%

43%

Improve User Experience 71%

58%

Attract New Users 66%

54%

Improve Win Rate 59%

51%

Reduce Churn 50%

44%

Increase Overall Revenue 75%

56%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Combined Approach Buy (Bolt-On) Approach

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 19

A particularly large gap exists when it comes to increasing Application
overall revenue. Application teams that took a combined
approach when embedding analytics were 19 percentage teams that took
points more likely to increase revenue than those that bought
a bolt-on solution.
a combined
approach when
Companies with the most successful applications have one
thing in common: They leverage an analytics development embedding
platform to quickly deliver the most robust capabilities to analytics were 19
the market.
percentage points
more likely to
increase revenue
Bolt-on solutions create an than those that use
unintended price cap a bolt-on solution.
Overall, 74 percent of commercial applications taking a
combined approach are able to charge higher for their
analytics. This is significantly more than the 60 percent of commercial companies that bought a solution and
are able to charge more.

Why does a combined approach enable companies to charge more? Because, as we saw earlier, buying
a bolt-on solution tends to support only limited capabilities and focus on commoditized features such as
standard interactive dashboards and data visualizations.

Commercial applications that charge more for

embedded analytics

Combined
Approach 74%

Buy (Bolt-On)
Approach 60%

20% 30% 40% 50% 60% 70% 80% 90% 100%

This has an unintended consequence. When an application offers fewer capabilities and is less differentiated
than others in the market, it’s nearly impossible for that company to charge more. It also opens up an
opportunity for competitors to capitalize on the gap. This causes the application team to set a low price for
their analytics, and establishes an artificial price ceiling with their customers. Even if they eventually replace

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 20

their bolt-on solution with something more robust, their customers will resist paying a dramatically higher
price because they’ve already established a ceiling.

Over the long term, the choice between buying a bolt-on solution and taking a combined (buy and build)
approach can significantly impact the business. The time spent implementing a bolt-on solution—even if it’s
only meant to be a short-term bridge—then ripping and replacing it when it fails to support innovation, puts
an application woefully behind the market and makes it incredibly difficult to remain viable.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 21

CONCLUSION
THREE STEPS TO WINNING
WITH ANALYTICS
As this year’s State of Embedded Analytics survey proves, application teams leveraging an analytics
development platform are the most successful. They see higher application adoption and more competitive
differentiation than companies that buy a bolt-on solution or build something themselves. It’s telling that
nearly every application now offers embedded analytics, and more than half of an application’s value is tied
directly to analytics.

How can you get there? Take these steps to jump-start your analytics initiatives:

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 22

Step 1: Invest in Embedded
The value is clear. More than 80 percent of survey respondents that have already embedded analytics say
they will continue to invest in the coming year. For companies that have not yet embedded analytics, nearly
30 percent plan to increase their investments in the next year.

Companies that do not invest in embedded analytics aren’t doing themselves any favors. Continued investment
is key in order to beat the competition, enhance offerings with the latest features, and keep up with shifting
market standards.

Do you plan to increase investment in embedded

analytics in the next 12 months?
Companies
Without Embedded 29% 24% 32% 15%
Analytics Today

Companies
With Embedded 63% 20% 11% 6%
Analytics Today

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes Keep Spend the Same No Not Sure

Step 2: Set Realistic Priorities

Successful application teams realize every embedded analytics project has to start somewhere. Providing
minimum viable analytics to customers is necessary before offering more differentiated experiences. In fact,
nearly 90 percent of survey respondents that do not currently offer basic features like interactive dashboards
and reports say they plan to add them in the next 12 months.

Don’t be afraid to start with the basics. Just be careful not to stop there. By setting realistic priorities, you
can gradually layer in more sophisticated analytics features that will drive long-term value and adoption. In
the next year, expect sophisticated capabilities such as predictive and real-time analytics to become more
prevalent.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 23

Step 3: Use an Analytics Development Platform
As we concluded in Part 3 of this report, companies that either build their own analytics or buy a bolt-on
solution find these are simply not sustainable ways to provide useful applications now or in the future. Both
methods fail to support customization or long- term innovation.

Mission-critical applications—those essential to running a business—need more than minimum viable

analytics. By using an analytics development platform, you can:

• Offer the widest range of robust features and capabilities

• Support the most differentiated user experience

• Dramatically increase user adoption

• Boost revenue

The bottom line: Solutions from build or buy approaches are already surpassed by a combined approach
today—and the gap will continue to widen in the next year.

Don’t lose focus on your core application development. Leverage third-party analytics solutions that will help
you embed the capabilities that are not core to your value.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 24

ABOUT LOGI
ANALYTICS
Logi Analytics aims to solve a fundamental, persistent problem: Most people still don’t have the information
they need to make better business decisions. Why? Because standalone analytics tools mean switching
between one application to another—which wastes time. The best way to deliver information to people
is in context of the applications where they already spend their time. Logi Analytics is focused on helping
organizations build analytic applications so their users can make decisions and take action immediately.

More than 1,800 customers worldwide have relied on Logi. The company is headquartered in McLean,
Virginia. Logi Analytics is a privately held, venture-backed firm. For more information, visit LogiAnalytics.com.

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 25

APPENDIX
SURVEY METHODOLOGY
Logi Analytics fielded our 2018 State of Embedded Analytics Survey in November/December 2017 through an
online survey. We received responses from 500+ business and technology professionals.

Survey respondents included people in product management, product development, software engineering,
IT, and executives at companies of all different sizes.

Seventy-three percent of respondents were from North America, and 26 percent were from the UK. Less than
seven percent of respondents identified themselves as customers of Logi Analytics.

To request further information about the design or methodology of this survey-based study, please contact
us at [email protected].

Which best describes the application you spend most

of your time on?
An internal application or portal used exclusively by
17%
company staff or partners

An external-facing complimentary or free application/

33%
portal used by customers, partners, and/or others

A commercial application for customers

50%
who have purchased it

0% 10% 20% 30% 40% 50% 60%

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 26

 Your job role

IT Manager / Director / VP 31%

CEO 21%

Product Development / Software Engineering 17%

CTO / CIO 10%

Product Management 8%

Project Manager 6%

Professional or Consulting Services 5%

Other 3%

0% 5% 10% 15% 20% 25% 30% 35%

Number of employees

1-10 10%

11-25 7%

26-50 8%

51-100 12%

101-250 11%

251-500 13%

501-2500 18%

2501-5000 8%

5001+ 13%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

| 2018 LOGI AN ALY TI CS S TATE OF E MBE DDED A N A LY TI CS RE P ORT 27