Connie Moore, Kyle McNabb, and Barry Murphy

ForrTel:The Enterprise Content Management Dilemma: Point Solution Or SuiteConnie Moore, Kyle McNabb, and Barry Murphy

Forrester Research

March 16, 2005. Call in at 12:55 p.m. Eastern Time

Theme

ECM suite products are the wave of the future, but point solutions and multi-vendor approaches may

be required in the interim.

Enterprise content management (ECM)

• ECM is the technology category that has emerged from the convergence of:

» Document imaging

» Document management (DM)

» Web content management (WCM)

» Digital asset management (DAM)

» Records management (RM)

» Content integration

• Collaboration and portals are also vitally linked to ECM strategies

• Think of ECM as a strategy, not an off-the-shelf solution

Business drivers for ECM

• Increase productivity

» Required both DM and WCM to power intranets

» Renewed interest in document imaging to provide:

– Reduced labor, reduced storage space, and reduced errors

– Improved business continuity

• Support compliance

» Beyond Sarbanes Oxley

• Support strategic growth initiatives

» Renewed interest in e-commerce

» Customer self-service apps

» Support new products and services

» Reduce product development

IT drivers for ECM

• First brought on by IT consolidation due to the economic downturn in 2001

• Goal: Look at ECM as infrastructure across the enterprise

• Benefits:

» Bigger discounts from enterprise-wide deals

» Reduced costs from server consolidation

» Lower training, development, and maintenance costs

» Ease of managing just one vendor

Consolidation and compliance are priorities“Which of the following initiatives are likely to be one of your

IT organization’s major themes for 2005?”

30%

35%

27%

36%

29%

23%

28%

23%

23%

22%

12%

6%

6%

29%

20%

27%

18%

16%

19%

9%

10%

7%

6%

7%

3%

2%

Critical priority Priority

Move more of our systems onto Linux

Move IT development or maintenance activities offshore

Look seriouslyat IT outsourcing alternatives

Implement a services-based architecture

Move more ITto an IP based environment

UpgradeyourWindows desktop operating system

Replace or upgradeyour PCs

Replace proprietary or legacy systems

Consolidate IT infrastructure

Significantly upgrade our security environment

Support changes incorporate governance (e.g. Sarbanes-Oxley)

Upgrade disasterrecovery capabilities

Deploy or upgrade a major application software package

Rank2005 2004*

3

2

6

1

7

8

4

5

10

9

11

12

13

1

2

3

4

5

6

7

8

9

10

11

12

13

Base: 868 decision-makers at North American enterprises

*Source: Business Technographics® November 2003 North American Benchmark Study

The promise of ECM

• In a word: Simplicity

» Deal with one single vendor

» Single administration user interface and module

» Consistent end-user experiences

» Single installation on one server

» One security component

» Fewer custom integrations with apps

The reality of ECM

• In a word: Complexity

» Broad scope of ECM

– Electronic documents

– Scanned images

– Rich media

– Instant messages

» Constantly shifting, rapidly evolving vendor marketplace

– Suite vendors must digest acquisitions

No one vendor has it all yet

Source: Forrester Research, Inc.

Best of Breed comes from suites and point solutions


Match content needs to business requirements

Transactionalcontent

Business content

Persuasive content

•Scanned images•Computer reports•E-forms•Fax•Workflow/BPM•Corporate records

Examples:•Invoices•Loans•Claims•Tax returns

•Office documents•Web content•Messages•Workflow/BPM

Examples:•Sales proposals•Technical documentation•Business plans•Contracts

•Web content•Personalization•Analytics•Product catalogs•Rich media

Examples:•Product descriptions•Product photos•Logos•Marketing materials

Enterprise content management spectrum

Business stakeholders demand best-of-breed functionality


Challenges to ECM suite adoption

• Vertical industries gravitate to specific content technologies

» Retail multi-channel delivery

» Pharma meeting FDA requirements through DM

» Insurance document imaging to streamline claims

» Government management of physical and electronic records


• Existing systems are too valuable to replace

» Retail multi-channel output

» Pharma meeting FDA requirements for DM

» Insurance document imaging to streamline claims

» Government e-gov and management of physical and electronic records

• Installed point solutions still offer value

» Enterprises are expanding those implementations regardless of vendors’ holistic ECM capabilities


• ECM suites are still under construction

» Vendors tend to be strongest in the technology from which they emerged, i.e. Interwoven and Vignette having core strengths in WCM

• Vendors continue to make the build versus buy decisions

» Consolidation will continue, which will mean more integration challenges for vendors

Why point solutions still matter

• New Internet initiatives drive the need for robust WCM capabilities

• Enterprise content integration (ECI) can extend the life of legacy content systems

• Need to satisfy multiple stakeholders; many of which prioritize one technology over another

• ROI may not justify investment across the breadth of ECM technologies

• Strategic content vendors may not offer the full breadth of ECM functionality

What enterprises should do about ECM

• Develop a comprehensive ECM strategy before buying products

» Think about corporate needs across the enterprise

» Minimize duplicate functionality and number of separate content repositories

» Think beyond content when developing the strategy

– Relationship between content, collaboration, portals, and BPM

» Incorporate ECI into the strategy

– Pragmatic means of sharing content across enterprise

What enterprises should do about ECM

When evaluating products:

» Give preference to ECM suite vendors

– Point solutions will disappear over the next three years

» Let business strategy and ROI determine the pace

– Don’t invest until it makes sense

» When in doubt, delay

– Further market consolidation is likely; by delaying, the market disruption can be avoided

Connie [email protected]

Kyle [email protected]

Barry [email protected]

www.forrester.com

Thank you

Entire contents © 2005 Forrester Research, Inc. All rights reserved.

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Connie Moore, Kyle McNabb, and Barry Murphy