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January 1, 2003

The Dozen 2003

SAS Institute Inc.

Cary, N.C.

Breadth or depth? Vertical or horizontal? These are the conundrums facing BI software vendors. Is it better to specialize in custom analytics tailored to key decision makers' roles in vertical industries, business processes, or functions? Or should BI vendors strive instead to supply broad-based tools and data warehouse/data mart systems applicable to any number of contexts?

With BI tools such as Enterprise Guide, analytic packages designed for corporate officers, and a leading data warehousing and integration package, SAS Institute has established a strong reputation for "horizontal" software. However, a visit to a SAS user group conference (SUGI) will tell you that the company's 25-year run has been successful due to its ability to close in on custom needs in statistics, analytics, and data integration. "We're not talking about BI," said Jim Goodnight, SAS cofounder, chairman, and CEO at a 2002 SUGI. "We're talking about heavy-duty analytical needs — how companies can get the most out of their massive investment in data."

Depth is what continues to make SAS an exciting company. Responding to the credibility challenges facing CEOs and corporate financial managers, SAS pulled together Financial Management Solution. SAS also saw the trouble manufacturers and suppliers have interpreting data coming from supply and demand chains. In response, SAS is gunning to become a prominent player in supplier relationship management and optimization, hinting that it might compete with the likes of i2 Technologies and Manugistics. SAS is already on the way to leadership in intelligent marketing automation, perhaps ultimately subsuming the role of operational products from vendors such as Siebel Systems.

The Power To Wait

SAS was on track to go public; it was busily building brand recognition around a trademark phrase, "the power to know," and a compelling vision of what makes an intelligent enterprise tick. The stock market fell off a cliff: but SAS didn't go with it, remaining private instead. As it evolves toward solutions, its next IPO encounter may come as a different kind of company, with more services and thus a deeper involvement in the customer life cycle of its products.

Business performance management (BPM) is a key crossover point between analytics and operations — and an area of concentration for many systems integration and ERP providers. SAS is elbowing in on this turf: The company's acquisition of ABC Technologies immediately made it a player in tools for activity-based management and Balanced Scorecard-style metrics. Supplying analytical depth, SAS is enabling customers to raise intelligence across the breadth of their enterprises.