Client reporting and business intelligence (BI) tools continue to evolve to meet the rapidly growing demands for increased information access and high-end reporting. Before we address this rapid evolution, however, some definitions are in order

As the term implies, client reporting tools focus on the production of high quality, pixel-perfect reports, combining data with commentary and graphics. Most solutions accomplish this task well. These tools typically have limited capabilities for gathering, vetting, and storing required data. Instead, they rely on data warehouses or similar repositories. They also tend to be limited in ad-hoc capabilities and in the management of report production. Client reporting tools used by investment managers typically have been created for providing hard copy reports on a periodic basis. Sample client reporting tools are PAGES and FundWorks.

BI tools, on the other hand, have a larger focus – the overall management, analysis, and presentation of data. They have strong capabilities in areas where client reporting tool are weak, including data gathering and real-time delivery of data. Unlike client reporting tools, BI tools can reach out and extract the data they require. Most BI tools are sold across a wide range of industries, not just investment management. Examples of BI tools are Cognos and Business Objects.

The following chart provides a comparison of the typical functionality of these tools: