Data analytics continues to gain ground within companies and has evolved from an attractive add-on to becoming an indispensable element for decision-making and business operations.
In this context, CRM and ERP product developers face the need to integrate data analytics into their solutions. Independent Software Vendors (ISVs) must therefore choose between building an in-house solution or integrating third-party tools, which we call embedded analytics.
In many cases, in-house development is ruled out because it is not cost-efficient and takes longer. It also requires dedicating internal resources to ongoing development and support.
Integrating third-party tools or components improves delivery times and allows the ISV to focus on developing and supporting its own products.
What is embedded analytics?
Embedded analytics refers to analytics built into tools or solutions whose primary purpose is not data analysis, for example, a CRM or an ERP. This allows users to access analytics without leaving the product. From the user’s perspective, charts, reports, and dashboards feel like a native part of the software.
What are its main advantages?
Using embedded analytics in your products directly impacts competitiveness and increases perceived value. Here are its key advantages:
1. Improved perceived product value
Integrated analytics makes the software no longer seen just as a management tool but also as a decision-making support tool. This empowers users to extract value from data within the tools and applications they already use. The increase in perceived value can also open the door to creating premium pricing options with advanced features.
2. Increased engagement, loyalty, and reduced churn rate
Expanding the product’s scope from management to decision-making means users rely on it for more critical tasks, such as marketing budget allocation, stock strategy, etc. As a result, usage frequency increases and the likelihood of switching to another product decreases.
3. Faster decision-making
Without embedded analytics, the process of leveraging data for decisions can be as long as exporting, cleaning, analyzing, and finally deciding. With embedded analytics, users can view key information within the application and quickly move into analysis and decision-making.
4. Reduced friction and improved user experience
With an integrated analytics solution, everything retains the same look, design, and flow as your main application. There are no new interfaces or learning curves—allowing for a smooth, simple, and intuitive experience.
5. Improved core product functionalities
By delegating data analysis to expert companies with mature products, ISVs can devote 100% of their resources to developing new features that keep their product competitive in an increasingly fast-evolving market.
What challenges may arise when using embedded analytics?
We’ve already covered the benefits for both ISVs and end users. Now let’s look at some challenges that may arise—and how to overcome them.
What should you consider when choosing an embedded analytics solution?
There are many providers offering embedded analytics solutions. Here are some criteria to help you make the best choice:
Easy integration
Choose options that allow integration without unnecessary additional steps and that make it easy to embed data analytics into your product.
Customization level
Another key factor is how flexible the tool is when integrating into your user interface. This helps reduce friction and improve user experience.
Licensing flexibility
Every business model has specific needs, so we recommend choosing a licensing model that fits your model—or can adapt to it. This gives you the freedom to make product decisions that keep it competitive.
What is the outlook for embedded analytics?
Embedded analytics will continue to gain traction, as reflected in the Data, BI and Analytic Trend Monitor 2025 survey conducted by BARC. In this survey, 30% of companies reported already using embedded analytics, and 16% said they are planning to implement it within the next 12 months.
With BI4Web, you can enjoy easy integration, world-class features, and the licensing flexibility you need. Contact us, and our team will help you begin your journey into embedded analytics.