Embedded analytics
can be powerful forapps – but should you
buy or build them?
Executive summary
Mobile and desktop applications generate hugeamounts of data based on inputs from the user, as

well as information passively collected. An app that isable to make use of this data in an interesting mannerbrings added value to the end user.

In a highly competitive market, this kind of “stickiness”
is invaluable to app developers, and many are now

providing such features as standard in their tools. But

should independent software vendors (ISVs), systems
integrators (SIs) or companies building internal appsbuild them in-house, or should they buy them from
specialist providers? Let’s explore:

The challenge of modern app development
SaaS models have changed the industry
The proliferation of software-as-a-service (SaaS) subscription-based business models has changed what
people expect from ISVs and SIs and is forcing app developers to up the stakes of user experience. Cloudcomputing has revolutionized how people pay for software and has altered the relationship they have withvendors.

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Today, users tend to pay a subscription on a regular basis and receive constant support and updates,
resulting in consequences for development houses:

Retention is the measure by which success is defined

The industry’s standard of success is measured by churn rate — the number of users
who cancel their subscriptions, or simply stop using an app.
Customer satisfaction is more important than ever

Most ISVs and SIs embed analytics as a way of adding value and increasing customer
satisfaction. They rarely charge a premium for these additional features, and needtheir deployment to be as economical as possible.

There is constant pressure to improve and differentiate the app to reduce churn

In an age of free trials where users often “try before they buy,” the apps that succeed
will be those that are “stickier” — the ones that give users more value the more theyuse the app.

At the same time, these apps are also creating data, which presents a major opportunity for growth that’s
waiting to be realized.

The data opportunity
Individual apps collect large quantities of unstructured data on the back end. Every time a user interacts withyour app, this information can be stored. But to be useful, this data needs to be converted from meaningless
numbers to something users can understand. Embedded analytics tools can convert this information intovisualizations that appear in the user interface.

The proliferation of generated data from apps and the need tocontinually add app value have caused app providers to explore
embedded data visualizations as a means to retain customers, reduce
churn, and differentiate.

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Embedded Data Visualizations as a Solution
What are embedded data visualizations?

Embedded data visualizations make complex information comprehensible by presenting it visually. Theycollect the data that users generate via an embedded analytics processor, and then make it accessible in theform of maps, pie charts, picture and graphs. And because they’re built into the application itself, embedded

visualizations make it easier for the user to view data and gain insights real-time and in context, removing theneed to navigate away from the app.

Customer benefits of embedded analytics
Embedding analytics provides end users with insights. Users expect their apps to help them work smarter andmake better decisions. When the app offers this additional valuable content, it becomes “stickier,” a usefulpart of their everyday life or work.

In the B2B market: A task management app shows the end user how they spend theirtime at the office. By providing embedded visualizations, this kind of app offers

insights into how they could use their time better. For instance, a simple chart can tellthem that they are spending over a third of their time in unproductive meetings.

In the consumer market: A consumer fitness app that tells someone how many

calories they’ve burned today compared with yesterday is much more motivating.

The more data is collected about the user, the more “sticky” the app becomes. Users
become less likely to switch to another app because your app contains informationcollected over time that’s useful for them to see – such as their long-term progress
toward a fitness target.

Inside your own business applications: An integrated dashboard that pulls in datafrom your ERP and CRM systems gives users the information they need to makedecisions quickly, without having to click through disparate applications.

Developer benefits of embedded analytics
Today’s app developers are competing in a crowded market. With all this availability, end users have littlepatience for apps that fail to bring them any particular value. If an app provides only short-term worth, users
are likely to uninstall it fast; this is as true in the enterprise app space as it is in the consumer market.
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Users are keen for apps that continue to provide them with real, lasting value. Increasing numbers ofdevelopers are turning to embedded data visualizations as a means of providing this kind of value,
differentiating their app and reducing churn.

Should you buy or build your analytics platform?
For app development houses whose tools collect data that could be useful for the end user to make decisions
with, there is little excuse not to use embedded analytics and visualizations. However, is it better to build thedata analytics machine yourself or buy a bolt-on solution from a third party?

Why should you build?
Small, fast projects

Creating analytics features in-house can be the best option when working on smaller
projects with limited sets of requirements — especially if the development team inquestion has a relevant skillset and previous experience of developing embedded
analytics and data visualizations.
Total control

Total control: One of the most convincing arguments for building is that it lets

product managers remain fully in control over every aspect of their application:
not just its functionality but the look and feel as well. By keeping all aspects ofdevelopment in-house, product teams can control branding, user experience, andfunctionality. The loss of this control is one of the main disadvantages of buying.
Limitations of support services

Although most providers offer support services, these are not normally includedin the price of the package, and are instead an add-on. However, in the majority ofcases, such support services are in fact effectively a requirement to ensure thevisualization is tailored to the use case and look and feel of the app.
Cost predictability

Standard price entry points for embedded start at anywhere from $30K to $75K peryear. However, behind the upfront pricing structure, there are often multiple levelsof service, as well as limits on usage and number of applications the embedded
analytics can be used in. This can make pricing far less predictable.
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Why should you buy?
Focus on core product

The main disadvantage of the “build” approach is that developers have to switch

their focus away from working on the core product to create complex embedded

analytics features. Buying saves time and money over training a development teamthat may lack previous embedded analytics experience, and eliminates the need fortraining where internal resources are simply not available.
High cost to build

There is a significant cost associated with building embedded analytics, which on

average takes seven months to complete. The estimated average cost is as much as$350k (based on average U.S. salaries).
This includes:• 4 software developers for 7 months• 1 QA professional for 7 months• 2 UX/UI designers for 6 months• 1 data scientist for 1 month
In-house support

Anything built in-house will have to be supported in-house. With the buy option,

support will be provided by the third party, via the cloud, and ISVs will not have toallocate resources to fixing issues if and when they occur. As much as 90%1 of thecost of software during its lifetime is tied to keeping it up and running. Maintenancecosts can be significant.
Faster time to market

With average build-it-yourself times taking seven months or more, many productteams decide to buy a bolt-on analytics solution due to the need to release aproduct as quickly as possible. In a fiercely competitive SaaS market, and with CEOs
demanding quick turnaround, buying a pre-built, off-the-shelf solution drastically
improves time to market.

Source
1NCBI. 2013. Which factors affect software projects maintenance cost more? Available online: https://www.ncbi.nlm.nih.gov/

pubmed/23572866

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Deciding to buy? Key considerations when picking theright vendor
Today there is a huge market of vendors offering application development tools and services. Within thismarket, there are several firms providing specialist analytics and visualization tools. Choosing the right vendor
is extremely important. So, how should you choose between these providers?

Expertise While we can assume any vendor pitching themselves as an embeddedanalytics provider will have good knowledge of this technology, it is worth digging
deeper. Has the company received awards for its work? Are they well-establishedand respected in the community? Third-party review sites are helpful here.

Range of visualizations available Many vendors provide basic visualizations aspart of their product listings (normally alongside many other generic offerings andwidgets). However, in a market where your customers expect ever more powerfulapplications, you need to be able to update your apps with more powerful analytics.

The specialism required to offer this sort of detailed insight will narrow down the field
considerably.

Cost predictability How does the vendor’s pricing model stack up against yourbudget? Obviously, you shouldn’t really be paying any more than what it would cost
you to simply build the visualization in-house, so an affordable vendor is essential.
However, too often, overly complex pricing structures from vendors result in
unpredictable costs, making ROI hard to judge.

Security and transparency How much do you trust the vendor? If you are collecting
sensitive data about, say, your customers’ health, you want to be sure that thevendor isn’t also collecting that information covertly and selling it.

Customization How easy is it to customize the service? Is it easy for you to modify
the look and feel of the analytics tool so it looks and feels like the rest of your app?

Choosing the right partner will allow you to deploy embedded analytics fast, empowering your end users andmaking your app stickier. By including powerful embedded analytics and visualizations, you can differentiate
your app, keeping users engaged.

revealbi.ioIntroducing Reveal Embedded
Reveal Embedded from Infragistics provides organizations with the most powerful, flexible and predictably
priced analytics tools on the market. Reveal Embedded provides developers with a wide range of highly
customizable and easy-to-use embedded analytics tools and data visualizations, which end users canimmediately understand. These tools make your app stickier and allow you to differentiate yourself fromcompetitors.

Reveal Embedded offers one single and simple and affordable price point that enables you to reach an

unlimited number of users per application. Our pricing structure is both affordable and transparent, whichmeans you can predict exactly what you will be paying and therefore better calculate ROI. We believe incollaborating closely with our clients to ensure that their users’ needs are met at all stages.

Our app support offers a range of ongoing support services with no additional costs, in conjunction with afriendly, 24-hour community that can answer any question on our forums.

We believe in collaborating closely with our clients to ensure that their users’ needs are met at all stages.
What’s more, transparency is a key value for our business, and we never collect your customers’ data.

Priority support - 1 embed Reveal app $12,000 a year for 1 app dev contact. Take advantage of 1 day turnaround response. Plus Phone support along with email.
*To be eligible for an embed license pricing you must ship a software application along with the embed Reveal product. This application needs
to be more than the Functionality of Reveal. You may not use Reveal embed for the sole purpose of exposing only its functionality.

To learn more about Reveal Embedded or schedule a demo:
Complete the Demo Request Form I Call us at 1-888-448-1277 I or email sales@infragistics.com

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