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Software Vendors Recognize Increasing Importance of Analytics

3874959445 68bdaf4dda mAnalytics are playing an increasingly important role in business decisions across the enterprise, because as we have touched upon before, data has value if you can translate it into meaningful action.

As this reality becomes clear, more and more companies are purchasing analytics vendors as part of their portfolio. In fact, earlier this month, Twitter bought analytics vendor Back-Type. Twitter is an excellent example of a tremendous source of data, but the problem is there is just so much. How do you get at the data that matters to you?

In Back-Type's case, they have a product called BackTweets that in their words, "was created to help publishers understand the reach of their tweets and content, who they are reaching, and how Tweets convert to web traffic, sales and other KPIs."

And that's the key right there, it's taking data and trying to link it to key metrics to help you understand your business better --  and it's not just Twitter of course. IBM has been sucking up analytics companies like it's nobody's business buying Coremetrics, Unica, Netezza among others over the last several years.

And don't forget, Adobe's purchase of Omniture in 2009 for a hefty $1.9 billion.

What are these companies thinking? Well, they see the value of collecting and understanding data, whether that's related to web site visitors, social media traffic or sales and marketing information. The more you understand your customers and business processes and how they relate to your business's success the better off you are going to be.

When big companies get involved in an area in this way, you know there's something to it. Instead of creating a product and looking for market. These vendors saw a problem looking for a solution, so they went out and purchased the pieces they needed to get a piece of a growing market.

The problem from and IT standpoint is trying to sort through all of these different offerings and finding a solution that works for your company's data analysis needs. Whether you want to understand which web site design attracts more visitors or figure out what people are saying about you on social networks or understanding the qualities of your best customers, these tools can help.

But with so many companies clamoring for your attention, you may want to work with consultants to help you find the best solution for your company and your market. The last thing you want to do is to make a big investment, only to find you made the wrong choice or that  it takes a lot of work to make it compatible with the systems you need to pull data from.

Analytics has a growing role inside organizations, and choosing the right tools the first time is becoming more imperative than ever. And when big companies are paying attention to this, it probably means there's something to it.
Photo by dumbledad on Flickr. Used under Creative Commons License.
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