Domo Delivers on Managing Business Performance

Over the last four years Domo, a new brand in cloud-based data and analytics software, has worked to enable its customers to understand, collaborate and act on data to achieve business results. Led by its founder and CEO, Josh James, the company has worked to deliver software that provides both a good user experience and business value. Recently, at its 2015 customer conference Domopalooza, the company presented itself and its products to the general public. I had a chance to meet with company executives, employees and customers and view its products at this high-energy event and entertainment that I have not seen in years.

I believe that the key to what Domo has done is its having designed into its offerings how people need to work with data to effectively support decision-making, enable actions and stay informed on the state of the business. Domo takes a different approach than vendors that focus on visual discovery for analysts or try to create the perfect dashboard. Its simpler approach aligns to how people actually work in business. This is a major reason the company received Ventana Research Overall Business Technology Innovation Award for 2015.  VR2015_InnovationAwardWinner

We see five areas where the Domo product stands out from others and has attracted its substantial customer following. Here is a look at each of them.

First, its design reflects an understanding that business people do not have countless hours to navigate through charts looking for information. Instead Domo notifies them of critical changes throughAlerts – a feature that is missing in most other analytics tools that are mostly aimed at analysts. The notifications and alerts can be sent as SMS or email and through the mobile devices that many business people now rely on.

Second is a collaborative feature I really like called DomoBuzz. It provides contextual discussions and enables interactions with others in the same view as the analytics. This is much better than the many minimal approaches to collaboration through email and discussions outside of the context of the actual data. DomoBuzz enables people to have open or closed discussions about what is happening with the data, do root-cause analysis or examine new opportunities. Collaboration within analytics applications has long been a priority for business, but vendors designing products for IT use ignored it. Here again, Domo ensures that this capability works across the Web and mobile devices.

Third, Card Builder enables rapid assembly of information in an easy-to-understand tile that is a visual rectangle used to contain information that is presented and is interactive and collaborative. It automatically interprets data the user selects and suggests the proper visualization and presentation. These “cards” can be assembled into pages and slide shows and can be gone through by gestures on mobile devices. I think these cards could easily be expanded into a summary paragraph that anyone can read to get a high-level view of the business.

Fourth, Domo extends analytics through Tasks, which enables users to create projects, add participants and set checklists that track progress and results. Domo is the only provider I know of that has embedded the ability to assign, track and complete any range of tasks and projects within the analytics environment. And let’s be honest: Analytics generates so many potential actions and tasks that we must create lists of items to follow up on, and these usually are done in email or a document and easily set aside.

Fifth is Profiles, which provides information on Domo users that is essential for effective collaboration and assigning roles and responsibilities. It also provides the means to contact them and even connect with them on social media. This enhances personalization and enables dialogue to interact and improve, and is an excellent complement to DomoBuzz.

vr_DAC_20_justification_for_data_preparationTo utilize Domo requires gathering data from any necessary application, system or source, and the company has invested to ensure that data access is not a barrier.

Domo Magic shortens the time from data to insight and action by enabling users to transform the data. Our data and analytics in the cloud benchmark research finds that the most common impediment to efficiency in using analytics is the time spent on data-related tasks like preparing data (cited by 55%) and reviewing data for quality and consistency issues (48%). Domo Magic allows business professionals to click on and connect to data sources and extract data without IT involvement. It takes a visual approach to data mashups and what we call data preparation that blends the selection, merging and flow of data in ways much easier to use than standard ETL or data integration.

It’s simple to connect to specific data sources through a variety of connectors that can mash up data from many application sources, social media and Internet information sources, which our research reveals as the top three most important external data sources, each cited by more than 40 percent of organizations. Domo also easily connects to IT integration tools such as those from Informatica, which I saw demonstrated, and other enterprise data sources from its cloud-based environment.

To help new users get started, Domo VR2015_LeadershipAwardWinnersupplies a range of QuickStart Apps that facilitate connecting to data sources and role- and industry-based applications. All of these apps are available on the Web and mobile devices so there is little or no load on IT to support Domo.

At Domopalooza the company showcased customers that have found the Domo approach easy to use. We heard testimony from SAB Miller, Schneider Electric, Stance and dozens of others. Our firm was so impressed that we selected SAB Miller (led by Ross Moncur, group head of business analytics) for the 2015 Ventana Research Leadership Award in Business Analytics. The overview video provides a glimpse of the dynamics of what SAB Miller has done with Domo and how it is using analytics to business advantage. It harnessed a significant number of data sources into a single application to guide and execute on business performance.

Domo has created a new generation of software to help organizations manage their business to optimal performance using analytics, collaboration, personalization, presentation and project and task management, all in an application that helps people optimize their processes and improve their actions and decisions. It is not a typical analytics or visualization product but cloud-based software that accelerates the time to gain insights from data, take action and achieve desired outcomes in a new way. Timing in the market for software is always essential for success, and in this case Domo has arrived during a transformation in how businesses will use information and technology to manage and optimize their efforts. They are looking for more than dashboards and pretty visualization but at the same time want software that any of their employees can use, not just analysts or data scientists. If you have not taken a look at Domo, now is a good time to do so.


Mark Smith

CEO and Chief Research Officer

Salesforce Struggles to Deliver on the Dream of Analytics

I was at the Dreamforce conference this week to hear about the latest advancements from the cloud computing software giant. Salesforce has helped revolutionize cloud computing for business, and its social media and collaborative technologies help advance business processes in sales, customer service and improve the interactions between employees, partners and customers. Salesforce has made great advancements in cloud, social and mobile technology, as I have assessed and my colleague did too.

I thought Dreamforce would be a good time to investigate the state of its analytics that have been evolving since last year. I have spent the last couple of decades in the analytics industry across business and IT and thought it might be useful to provide objective analysis on Salesforce Analytics so I went to educational sessions on the products and demonstrations of their software and use by customers. I also has noted in my analysis from the 2011 Dreamforce event that they needed to improve and was not one of its strengths. The role of business analytics is critical for Salesforce’s entire software portfolio, and especially for software within sales organizations, of which almost two-thirds (64%) plan to improve their sales analytics.

Salesforce has improved its dashboards and reports, making them easier to create and simpler to navigate. It has hired expertise from other business intelligence companies to energize its efforts. The company’s Summer ’12 release included key technical advancement in joining reports, filters and bucketing data for analysis and presentation. It included calculated columns, which let users create new derived metrics more easily than they could if they had to work with a database analyst. What Salesforce outlined for the future, some of which it says will be available in the Winter ’13 release, is more filtering and sorting on aggregates. Users will be able to lay out charts in a dashboard from built reports and create combination charts with line over bar charts or specifically laid-out matrix reports. It also is planning to provide trending analytics through storing the changed data but only plans to store for up to one year. Salesforce was proud to provide shared folders across devices, but subfolders are not planned, which for anyone managing BI content across teams or categories is not acceptable.

A significant number of issues point to a lack of maturity in its efforts; for instance, users cannot change colors and related themes in business charts. As one customer said, having lots of charts on the screen with the same color array does not work. If you read my recent rant on the pathetic state of dashboards then you should realize that the current practice of placing a series of charts on a screen is now antiquated and ineffective at informing business. It fails to provide the intelligence business needs to have the information spell out in English what is the changing metrics and provide guidance on what is most important to act on and is not contextual to a specific role. Salesforce laid out plans to expand dashboards across mobile technologies to ensure those devices can keep pace with its overall platform and accessibility advancements. But Salesforce must focus on its presentation and its metrics and make sure to not fixate on key performance indicators, which is not the only or best presentation approach, as I have written.

I stepped back and thought about our research, which found a high priority on simpler and more intuitive analytics, according to 89 percent of the more than 2,800 organizations we researched in our business analytics benchmark. Business is also looking for methods to search for specific information within business analytics (83% of organizations) and visual and data discovery in (78%). In addition, 69 percent of analysts across line-of-business areas spend the majority of their time with data-related tasks. The requirement to blend data across sources is still a major inhibitor; 88 percent of organizations use spreadsheets universally or regularly. Salesforce is not focusing closely enough on overcoming these issues, which is an indicator of their understanding the market and resources available to address them.

While Salesforce struggles to advance its basic business intelligence capabilities and develop the analytics its customers want, its partners in business intelligence have a great opportunity to meet the demand for intuitiveness and capabilities. Integrating independent business intelligence providers into Salesforce is not always easy but most have provided a way to have it seamlessly be part of the application. The challenge is more around direct access to the Salesforce data that requires development and use of its proprietary API and is not a standard database connectivity method. I walked the Cloud Expo at Salesforce Dreamforce conference and sat in on these vendors demonstrations and it was clear that the size of the audience and capabilities presented that they are addressing the gaps in Salesforce analytics.

Nevertheless, a large number of business intelligence and analytics providers are partnering with Salesforce to capitalizing on this gap of sophistication. The list of certified partners on the AppExchange includes BIRST, Cloud9 Analytics, Domo, Gooddata, InetSoft, QlikView and RoamBI, along with vendors I could not find in AppExchange, including MicroStrategy and Tableau, though they were at Dreamforce demonstrating capabilities that are not yet certified or listed in the AppExchange. Even KXEN was demonstrating how to apply predictive analytics to help guide sales opportunities through its predictive lead scoring.Our firm has been tracking these vendors, and many can plug the gaps in Salesforce’s offerings, but it requires effort to integrate them and make them easily accessible from within Salesforce. Among those business intelligence vendors that do not have direct API access to Salesforce, some have partnered with data integration vendors such as Informatica, Information Builder iway and SnapLogic, who can help get data from Salesforce and place into a database. This need for improving access to data in the cloud was a critical factor for investment according to our research.

Salesforce makes it difficult for users to find their partners. The AppExchange lacks a category for analytics or business intelligence, but if you’re smart enough to navigate into the sales category you can find the vendors, which indicates the company assumes that everyone is just looking for sales analytics though those have a lot of room for improvement. If you navigate into customer service, marketing or other business and technology areas you cannot find any categorization to make it easier to find analytics vendors. This is a sad state of affairs for a company whose platforms, including and, are being used to generate a broad range of applications that need analytics, including those from its partners.

I am not sure how Salesforce’s efforts in analytics are going to evolve, but it’s not keeping pace with about a dozen of other providers it partners with and should be addressing the part of our Value Index assessment including usability, manageability and adaptability. This means customers either must be very patient and wait to get capabilities in the coming years that other vendors already provide, or they can transition to Salesforce partners sooner rather than later. Salesforce has had a rough go in trying to make analytics a separate product to charge for, then realizing analytics is just a set of feature it can provide in the premium editions of its products, as communicated in its own product blog. Nevertheless, Salesforce needs to better present its portfolio of partners to keep its customers satisfied and not ignore partners in its presentations and communications.

The pressure for better analytics will get larger, not smaller. If it does not make an acquisition to advance its analytics technology, Salesforce may have a rough ride ahead.


Mark Smith

CEO & Chief Research Officer