Industry News – Summer 2010
IT Jobs Are Growing: Where is Business Intelligence?
The Bureau of Labor Statistics (BLS) is a fascinating organization, especially if you are a business intelligence (BI) practitioner. A part of the Department of Labor, it is the place where you go to look for labor economics and statistics within the federal government. The BLS not only “collects, processes, analyzes, and disseminates essential statistical data” but it supplies this data the other federal agencies, state and local governments and to the public at large.
Furthermore, periodically the BLS produces and publishes statistics that make businesses blink and the markets shudder. Who is unaware, these days, of the importance of the latest unemployment numbers as reported in the Current Population Survey , or consumer buying statistics as reported in the Consumer Expenditure Survey, or the rate of inflation as reported in the Consumer Price Index. All these, of course, are key deliverables of the Bureau of Labor Statistics.
Occasionally BLS reports on the state of labor – jobs – in certain industries or parts of the economy. It does this every two years through the publication of the Occupational Outlook Handbook, which includes a lot of information about the type of jobs, working conditions, employment outlook, wage projections, etc. for a large number of occupations. The latest version of the Occupational Outlook Handbook was released in December 2009 and covers the period 2008-2018.
With unemployment near the 10% mark, the Obama Administration has placed substantial emphasis on job creation. This is also politically important given the need to measure the impact of the stimulus package on this all-important indicator of economic growth. As a result, experts have been going over the Handbook with a fine-tooth comb as they look to identify the industries with the highest prospects for job creation. You can imagine that there still is much interest in clean energy and in healthcare.
Yet one of the most remarkable stories that the Handbook data is telling us has to do with the importance that information technology (IT) has had in job creation. What’s more, if you are to believe the BLS, not only have IT jobs grown rapidly in the period observed in the latest Occupational Employment Survey (1999-2008), but it is quite likely that there will be continued robust growth in IT jobs in the decade ahead.
According to the BLS, 688,000 new IT jobs were created between 1999 and 2008. That is an increase of 26% over the previous period. In addition, if you consider that overall employment grew 6.2% during the same period, it means that IT employment grew over four times as fast. Hence, it is important that we continue investing in this area at a healthy clip.
Now, to truly understand what is happening in IT jobs, you must be able to decipher BLS-speak and their interesting occupational classification. IT jobs are included under the major occupational group named “Professional and Related,” which includes architects, engineers, lawyers, social workers, physicians, nurses and the like. This occupational group, by the way, is projected to be the fastest growing major occupational group (17%) and is forecasted to add about 5.2 million new jobs to the economy in the 2008-2018 decade.
The specific category we want to focus on is that called “computer and mathematical science,” which, as mentioned, is projected to add almost 785,700 new jobs as a group. The BLS states that it is expected to grow at over twice the rate of all other occupations. Why? Because “Demand for workers in computer and mathematical occupations will be driven by the continuing need for businesses, government agencies, and other organizations to adopt and utilize the latest technologies.”
So far so good, but what exactly are these professions? The BLS has integrated the following into the “computer and mathematical science” grouping: actuaries, computer network, systems and database administrators, computer scientists, computer software engineers and computer programmers, computer support specialists, computer systems analysts, mathematicians, operations research analysts and statisticians.
Business intelligence practitioners apparently may fall into any one of a combination of these including the operations research analyst or statistician professions. Given the nature of business intelligence, it is quite understandable, but it may be something the emerging BI community may want to ponder at some point in the future.
That said let’s comment on two other aspects of the IT jobs forecast. The first is that apparently the strong showing caught a number of labor analysts by surprise. There seems to have been many who were concerned that the offshoring phenomenon and the tail of the dot-com bubble bursting would have a much more significant impact. While it is clear that some IT jobs have been outsourced overseas, these were somewhat limited to the programming area, where jobs declined 25% in the last ten years. But the tremendous growth in jobs in two other IT occupation types substantially attenuated that decline. First is jobs that require workers to be either on site or close by, such as network administrators and comput¬er support specialists. The other type includes the higher skilled jobs, such as computer engineers or software and application engineers. These, by the way, also happen to be higher paying and hence also accounted for a new increase in average earnings for IT jobs.
Second, where exactly are the new jobs going to be created? Well, “network systems and data communications analysts” as a group are forecasted to be the second fastest growing occupation (53%) in the 2008-2018 period and “computer software engineers, applications” is also in the Top 20 chart with an expected 34% growth rate. But in terms of actual job contribution to the economy, the BLS projects the following from the full roster of IT professions:

Source: Projections data from the National Employment Matrix, Bureau of Labor Statistics
It is also important to note that BLS does talk to the fact that the public sector at all levels – federal, state and local governments – will play a role through the establishment of policies that will increase demand for IT jobs. Already in 2008 and 2009, the stimulus package and health reform had a strong influence.
In summary, as we BI practitioners look to the job market as a factor in economic or social analysis, it is important to have a sense of how the IT professions themselves are performing in these times.
This BI Insight news item contains information from an article by Dr. Barquin. Dr. Barquin is the President of Barquin International, a consulting firm, since 1994. He specializes in developing information systems strategies, particularly data warehousing, customer relationship management, business intelligence and knowledge management, for public and private sector enterprises. He has consulted for the U.S. Military, many government agencies and international governments and corporations.
Dr. Barquin is a member of the E-Gov (Electronic Government) Advisory Board, and chair of its knowledge management conference series; member of the Digital Government Institute Advisory Board; and has been the Program Chair for E-Government and Knowledge Management programs at the Brookings Institution. He was also the co-founder and first president of The Data Warehousing Institute, and president of the Computer Ethics Institute. His PhD is from MIT. Dr. Barquin can be reached at rbarquin@barquin.com
Integration of Performance Module for Google AdWords with NetSuite’s Cloud Computing Platform Announced by myDials
myDIALS, a provider of SaaS performance management solutions, recently announced the integration of its myDIALS Performance Module for Google AdWords with the NetSuite cloud computing platform. The myDIALS Performance Module, which measures the effectiveness of AdWords paid search campaigns, is an extension of the myDIALS operational business intelligence solution that was integrated with NetSuite this past April. Built using NetSuite’s SuiteCloud development platform, the combined solution helps online marketers see the true ROI of their Google AdWords campaigns by combining performance metrics from NetSuite Ecommerce, CRM, and ERP, with metrics from Google AdWords. This leads to better marketing decisions and can boost Ecommerce sales.
“By combining AdWords metrics with the performance metrics contained in the myDIALS Performance Modules for NetSuite, we’re allowing joint customers to tune their marketing campaigns to deliver higher revenue and profits,” said Wayne Morris, CEO of myDIALS. “Because these myDIALS Performance Modules can be deployed so quickly, the improved ROI of marketing campaigns – and the ROI of operational business intelligence – begin almost immediately.”
The myDIALS Performance Module for Google AdWords lets online marketers deploy in a single day the capability to see and analyze revenue and gross profits from their AdWords paid search campaigns. Results are presented within the NetSuite environment through the tightly integrated myDIALS dashboards. By applying myDIALS analytical capabilities and scenario analysis to the combined metrics, the combined solution helps executives make better business decisions based on more detailed and relevant information.
Working With NetSuite
The myDIALS Performance Module for Google AdWords and the associated myDIALS Connector for Google AdWords can be deployed in a single day to add functionality to the myDIALS Performance Module for NetSuite announced in April. Together, they analyze Google AdWords metrics, along with operational Key Performance Indicators (KPIs). The integrated solution extends NetSuite to help companies increase business efficiencies, business performance, and ROI on their marketing campaigns.
“As more companies spend ever greater amounts of money on paid search, it becomes increasingly important that they can determine the true ROI of AdWords marketing campaigns,” said Guido Haarmans, NetSuite’s Vice President Developer Programs. “The combination of myDIALS, NetSuite, and Google AdWords provides the ability to track costs from impression to profit so that AdWords become an integral part of a highly optimized marketing effort.”
This BI Insight news item contains information from a recent press release by the company mentioned.
Informatica Platform Provides Competitive Advantage for Dean Health Plan
Informatica Corporation, an independent provider of data integration software, announced that Dean Health Plan, one of the largest and most diversified health maintenance organization (HMO) in the Midwest, has standardized on the Informatica Platform.
Dean Health Plan is implementing a single integrated claims administration system to streamline claims management, adjudication and reporting. The implementation has reduced latency of critical information from a matter of weeks to a day or less. Dean Health Plan now enjoys quicker reaction time, effective claims trends and information requests across a network of more than 2,000 healthcare practitioners, 80 clinic sites and 26 plan hospitals.
After their initial data warehouse deployment in 2001, Dean Health Plan has selected the Informatica Platform as “the solution of choice” for data integration, movement and synchronization.
The Informatica Platform powers the successful, low-risk migration of claims data from a legacy mainframe environment to a modern HIPAA-ready EDS Metavance claims system.
The business benefits for Dean Health Plan include a faster, more efficient process for submitting patient referral requests that has helped enhance practitioner efficiency; reduced administrative costs; and improved patient satisfaction. The IT benefits include increased IT agility in the face of business and regulatory change requests from the government for new types of information within frequently tight timeframes. The Informatica Platform also enables the company to respond quickly and cost-effectively to requests through the extensive use of reusability and automation built into the Informatica Platform.
This BI Insight news item contains information from a recent press release by the company mentioned.
