Germany lags behind most of Europe in digital transformation and the use of advanced analytics services but is gradually gaining momentum, according to two new research reports published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2021 ISG Provider Lens™ Analytics Services and Analytics – Platforms and Solutions reports for Germany find that although emerging data analytics capabilities can make companies more efficient and innovative, several factors have slowed their adoption by German enterprises. These barriers include a shortage of skilled labor, a backlog of investment priorities and problems with infrastructure—for instance, an inability to constantly track vehicles for logistics analysis.
“Enterprises in a growing number of industries are recognizing the value of putting advanced analytics in the hands of employees at every level,” said Andrea Spiegelhoff, partner, ISG EMEA, in Germany. “While this has happened more slowly in Germany, some new trends are accelerating the use of analytics in this market.”
For example, startups are generating momentum with attractive individual solution approaches, which may overtake the use of comprehensive portfolios from established full-service providers, the reports say. In addition, innovation support programs such as the Research Promotion Act can partially fund analytics projects.
Meanwhile, analytics service providers are addressing skilled labor shortages through highly staffed nearshore and offshore operations, according to the reports. Indian providers hold a sizable market share in Germany, and other global suppliers have grown significantly. These international players should now adapt to the specific needs of German customers by hiring adequate local staff, increasing their use of German as a negotiating language and learning to better understand local companies’ needs, ISG says.
While the COVID-19 crisis caused some enterprises in Germany and other markets to postpone digital transformation projects, in some cases, data analytics solutions have helped organizations manage the impact of the pandemic, the reports say. For example, providers have delivered services that helped clients analyze and take countermeasures against risks such as supply chain disruptions.
As in other countries, enterprises in Germany stand to improve both business results and competitiveness by democratizing access to data analytics, according to ISG. Those involved in a project should be able to perform data analysis tasks appropriate to their role, such as analyzing scenarios and enterprise-wide metrics, using low-code or no-code development environments. Some providers already offer these environments, allowing end users to collect and present data through drag-and-drop, point-and-click, natural-language query and other tools.
Globally, enterprises in a growing number of industries are seeking advanced analytics tools to improve revenue and the bottom line, ISG says. While the use of analytics was once concentrated in banks, insurance companies, financial service providers and large enterprises with specialized needs, companies in health care, retail, consumer packaged goods, manufacturing and other fields have also begun to adopt data analytics more broadly.
The 2021 ISG Provider Lens™ Analytics Services report for Germany evaluates the capabilities of 37 providers across three quadrants: Data Lifecycle Management Services, Data Science Services and Data Engineering Services.
The report names Accenture, Alexander Thamm, Atos, Capgemini, DXC Technology and IBM as Leaders in all three quadrants. It names *um (Orange Business Services), Cognizant, Deloitte, Infosys, PwC and STATWORX as Leaders in two quadrants each. GFT, Infomotion, NTT DATA and Tech Mahindra are named as Leaders in one quadrant each.
In addition, Blue Yonder, Data Insights and Wipro are named as Rising Stars—companies with a “promising portfolio” and “high future potential” by ISG’s definition—in one quadrant each.
Customized versions of the report are available from Capgemini and *um (Orange Business Services).
The 2021 ISG Provider Lens™ Analytics – Platforms and Solutions report for Germany evaluates the capabilities of 32 providers across two quadrants: Data Preparation & Integration Platforms and Self-Service & BI Solutions.
The report names SAP, SAS and TIBCO as Leaders in both quadrants. It names Alteryx, datapine, eoda, Hitachi Vantara, IBM, Informatica, Microsoft, Qlik, Tableau, Talend and Teradata as Leaders in one quadrant each.
In addition, Altair and Denodo are named as Rising Stars in one quadrant each.
The 2021 ISG Provider Lens™ Analytics Services and Analytics – Platforms and Solutions reports for Germany are available to subscribers or for one-time purchase.