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1 © 2019, HFS Research Ltd.
The HFS Hot Vendors Q4 2018
Elena Christopher, Research VP; Madhurparna Banerjee, Knowledge Analyst; Melissa O’Brien, Research VP; Reetika Fleming, Research VP
Defining Future Business Operations
© 2019, HFS Research Ltd. | www.HFSresearch.com | @HFSResearch
2 © 2019, HFS Research Ltd.
The HFS Hot Vendors are an exclusive group of emerging players with a differentiated value proposition for
the Digital OneOfficeTM (Exhibit 1). HFS analysts speak with numerous exciting start-ups and emerging
players. We designate a select group as the HFS Hot Vendors based on their offerings' distinctiveness,
ecosystem robustness, client impact, financial position, and the impact in our OneOffice Framework. The
HFS Hot Vendors may not have the scale and size to be featured in our Blueprint reports, but they have the
vision and strategy to impact and disrupt the market.
Exhibit 1: The HFS Digital OneOffice Framework
In the rapidly changing space of digital operations, enterprises realize they cannot be everything to everyone.
Whether you are an enterprise consuming third-party services, a service provider, or a technology provider,
you will need a smart ecosystem to succeed and survive the future. HFS Hot Vendors are service and
technology providers hand-picked by our analysts to help you flesh out your smart ecosystem with offerings
that solve today's complex business problems and exploit market opportunities. In this increasingly "me too"
world, HFS Hot Vendors display truly differentiated offerings and out-of-the-box thinking that can be both
inspiring and useful.
3 © 2019, HFS Research Ltd.
In this report, we profile five short-listed players (Exhibit 2) who have been designated as HFS Hot Vendors
based on our rigorous five-step assessment over the course of Q4 2018. The HFS Hot Vendor designation for
the following players will remain in place till the end of Q4 2019 (a period of one year), when the same process
will be followed for renewing the HFS Hot Vendors designation.
Exhibit 2: HFS Hot Vendors Q4 2018 Edition (in alphabetical order) Note: The HFS Hot Vendor Designation is valid for a period of one year from Q4 2018 to Q4 2019
Celonis Spearheading the process-mining revolution
CUJO AI Enabling broadband network operators to offer AI-based cybersecurity services for their customers’ connected devices and things
Directly Rethinking and disrupting the traditional customer service model
Magisto AI-powered video editor for marketers
Shanghai i-Search Software Leveraging its background in user and entity behavior analytics to offer localized robotic process automation (RPA) software and services across China
SiriusIQ Seriously applying emerging technologies to streamline business data for IA
4 © 2019, HFS Research Ltd.
Shanghai i-Search Software: Leveraging a background in user and entity behavior analytics to offer localized robotic process automation (RPA) software and services across China Author: Elena Christopher (bio)
Shanghai i-Search Software (i-Search) is a China-based software and services company that offers RPA’s
automation potential to China at a local level. Founded in 2011, the company got its start as a developer of
user and entity behavior analytics (UEBA) software and established a strong client base throughout China
with clients in every province. UEBA software is generally used for fraud detection and to support security
and compliance needs, but due to its cross-business data collection, it also serves as a powerful efficiency
analysis engine. i-Search’s ability to analyze and visualize business processes and function efficiency with its
patented screen-recording technology led it to develop automation tools. In 2017, it launched its User
Behavior Assistant Intelligence (UBAI), which combines machine learning and RPA. Through UEBA’s
processes and efficiency tracking, UBAI learns which processes have consistent steps and offers users the
option to automate these repetitive steps. Its UBAI intelligent automation product has scaled quickly, with
its largest implementation running 10,000 automations.
In early 2018, it launched iS-RPA, an RPA software offering attended and unattended automation. The
company appears to be the first Chinese RPA software provider, competing against global players such as
UiPath, Blue Prism, and Automation Anywhere plus a quickly emerging set of Chinese players that includes
Alibaba. As HFS learned through client reference checks, i-Search differentiates itself through its technology
and the availability of its localized service and support. Clients indicate that when piloted against other RPA
software, i-Search’s video recording and log functionality helped provide critical visibility into
troubleshooting unattended bot performance. It currently has implemented iS-RPA with more than 25
clients, with at least one scaling upwards of 100 bots.
The firm is headquartered in Shanghai; its research and development center is in Nanjing, and various
offices are spread throughout the country. While the company has a sales and services team throughout
China, it is also cultivating regional partnerships to support sales, implementation, maintenance and
support, and training services. These partners are greatly expanding i-Search’s sales and implementation
footprint and forming a powerful network to provide local support to clients.
Continued investment has been a critical component of growth. In 2014, Tongding Group, a Chinese
conglomerate with a strong research and development focus, proffered an initial round of investment that
5 © 2019, HFS Research Ltd.
was seminal in getting its UEBA product off the ground. It also helped propel i-Search’s 2016 addition to
China’s over the counter (OTC) market, National Equities Exchange and Quotations (NEEQ), which is also
known as the "new third board.” i-Search received two more funding rounds from other investors, both in
2017. These funds have been used to expand product development and launch its automation products as
a complement to its UEBA. Its current valuation is purported to be about 550 million Chinese yuan (~$80
million). The company has plans to launch its initial public offering (IPO) in 2020.
HFS’ take
HFS designated i-Search as a Hot Vendor due to its role in offering the value and benefit of RPA software
and services to the underserved, high-potential regional market of China. While the bulk of RPA uptake has
been in North America and Europe, Chinese enterprises, like their western brethren, are wildly interested in
reaping the cost and productivity benefits available through RPA. Reference customers interviewed for this
profile indicated that the familiar objectives of achieving lower cost and higher efficiency of business
operations and improving the quality of work through eliminating repetitive and mundane tasks are their
primary drivers for embracing RPA.
However, competing effectively against established and leading RPA software providers is hard to do. The
only real avenues for this are through offering differentiated technology, such as layering in intelligence
through elements of AI, or through a targeted regional strategy that capitalizes on localization. i-Search is
trying to do both, but its localization strategy is ultimately what will make the company successful.
While iS-RPA is a relatively new tool, i-Search is doing an effective job of riding the hype curve of RPA—
selling into its existing client base in financial services and telecommunications and expanding its partner
network to gain new clients. i-Search is winning in head-to-head competition against the established RPA
software players. Its reference clients cite satisfaction with their tool functionality, particularly around its
screen recording and querying capability to help diagnose issues with unattended bots, their R&D
capabilities and tie-ups with local academia, and the local availability of service, support, and training
resources as key reasons for selecting iS-RPA. This localization is critical as it enables i-Search to support its
clients onsite and in near real-time. The availability of training is also crucial to help clients cultivate RPA
expertise in-house. A recent HFS study on RPA talent found that the lack of local RPA resources contributes
to the inability to scale automation programs.
While i-Search aspires to expand beyond China and has initiated operations in Hong Kong, HFS recommends
that it give a higher priority to first establishing a strong foothold in China. It needs to increase the adoption
6 © 2019, HFS Research Ltd.
of its iS-RPA tool, which was only launched in early 2018. This includes not only increasing the number of
implementations but also ensuring its clients are achieving the desired business benefits post-
implementation. It also needs to ensure it can fulfil its localization claim; being physically present in China is
only part of the success equation. i-Search needs to ensure that not only is it developing strong RPA talent
but that it’s also training and developing the resources of its partner network so that its client base has
access to experienced resources. i-Search should also take a leadership role in China and educate the local
market on best practices for making RPA and automation successful.
i-Search can support its desire for expansion beyond China by proving itself with multinational corporations
that may offer international opportunities. It should also ensure that its expanding partner network
includes the Chinese partner firms of global consultancies.
Vendor factsheet
● Founded in 2011
● i-Search has created a footprint through China with its headquarters in Shanghai, its R&D center in
Nanjing, and branches in Beijing, Guangzhou, Shenzhen, Chengdu, Wuhan, Jinan, Nanjing, and
other cities
● The company was founded by Tang Qisong (Daniel Tang), who is the current chairman and general
manager of the company
● Number of employees: ~150
● Financial backing by investors: Tongding Group initially invested in the company in 2014. Two
additional rounds with other investors followed in 2017. In 2016 i-Search was listed on China’s over
the counter (OTC) market, National Equities Exchange and Quotations (NEEQ), which is also known
as the "new third board.” The company plans to pursue its IPO in 2020.
● Clients: 300+ across all product lines, including approximately 25 for its RPA product. Notable RPA
clients include Pudong Development Bank, China Guangfa Bank, Industrial and Commercial Bank
(Hong Kong), Haitong Securities, China Pacific Insurance, China UnionPay, Sinopec, China Mobile,
and China Telecom.
Industry coverage
i-Search’s RPA toolset is applicable across sectors, but its greatest depth of experience is with the financial
services industry (banking, securities) and telecommunication operators.
7 © 2019, HFS Research Ltd.
Solution portfolio
i-Search offers four product lines and associated services:
• Counter Service Monitor
• User and Entity Behavior Analytics (UEBA)
• User Behavior Assistant Intelligence (UBAI)
• Robotic Process Automation: Its UEBA technology, including screen recording, is integrated into the
iS-RPA toolset. The product suite consists of the following three components:
o Designer: The Python-based designer for designing processes includes various pre-defined
elements for business users and an expert mode for technical resources.
o Control Center: Overarching control center including managing and pushing processes out
to bots, real-time monitoring, log management and playback, and dashboards.
o Robot: Terminal used to deploy and execute assigned tasks.
Partnerships
• Sales and delivery partners: i-Search has developed more than 100 sales and delivery partners
throughout China. The partners are responsible for developing the local market, project
implementation, maintenance, and training.
• Consulting partners: The company has also established industry partnerships with PwC, Deloitte,
EY, Grant Thornton, and other domestic and foreign consulting companies, mainly responsible for
the promotion and implementation of RPA products in the financial services and tax fields.
• Academia: i-Search works with the School of Artificial Intelligence of Nanjing University, where it is
jointly developing the next generation products of RPA+AI.
8 © 2019, HFS Research Ltd.
HFS Hot Vendors Assessment Methodology HFS Hot Vendors undergo a straightforward but rigorous five-step assessment:
1. Pre-selection. We do not consider a player a potential Hot Vendor if it qualifies for any of our
Blueprint Reports. Our Blueprint Reports feature the major and established players across every
dimension of the Digital OneOffice.
2. Analyst briefing. The process starts with a briefing during which we ask vendors to share their story
with our analysts. We typically ask questions around value proposition, potential distinctiveness,
solution details, financial position, and client impact.
3. Client reference. If the HFS analyst sees potential after the briefing, we ask the vendor for a couple
of client references so that we can speak directly with clients. The client conversations help us
understand what is real and what is just marketing spiel. Note that we do not divulge any client details
and these calls are kept strictly confidential.
4. HFS selection. HFS analysts recommend their potential Hot Vendor to the selection committee
(comprising CEO Phil Fersht, Chief Strategy Office Saurabh Gupta, and Chief Data Officer Jamie
Snowdon), which determines if the vendor brings forth a differentiated value proposition for the
Digital OneOffice. We publish the selected vendors on our website.
5. We expect some of the HFS Hot Vendors to progress over time to get featured in Top 10 Reports, be
acquired, or change strategic direction. Consequently, we award the HFS Hot Vendor designation for
one year and follow the same process for renewing a vendor’s place on the HFS Hot Vendor list.
If you think you deserve to be an HFS Hot Vendor, please click here to schedule a briefing.
9 © 2019, HFS Research Ltd.
HFS Research authors
Elena Christopher | Research VP, HFS Research Elena Christopher is Research Vice President, Industry Research and Robotic Process Automation (RPA) at HFS. Elena is responsible for driving the industry-specific research agenda for HFS, digging into the major trends impacting each in-scope industry and the implications for business process and IT services.
Melissa O’Brien | Research VP, HFS Research Melissa O'Brien is Research Vice President, Customer Engagement, Retail and Travel Strategies at HFS Research. Melissa leads HFS’ research initiatives for digital front office services, including customer engagement operations, digital marketing, cognitive agents and CX design and consulting.
Reetika Fleming | Research VP, HFS Research
Reetika Fleming is Research Director, Insurance & Smart Analytics at HFS Research. Her research extends into defining future business operations for property and casualty, life and annuities and reinsurance companies. She studies the broad use of data and analytics within enterprises, with a new research focus on machine learning and AI techniques to improve business decision making.
Madhurparna Banerjee | Knowledge Analyst, HFS Research
Madhuparna Banerjee is a Knowledge Analyst at HFS Research, supporting the business process services. Her responsibilities include collecting and analysing data and information and to create POVs and custom reports. Additionally, she provides insights and analysis for solving client problems.
10 © 2019, HFS Research Ltd.
About HFS Research: Defining future business operations
The HFS mission is to provide visionary insight into major
innovations impacting business operations, including:
automation, artificial intelligence, blockchain, Internet of
things, digital business models, and smart analytics.
HFS defines and visualizes the future of business operations
across key industries with our Digital OneOffice™ Framework.
HFS influences the strategies of enterprise customers to help
them develop OneOffice backbones to be competitive and to
partner with capable services providers, technology suppliers,
and third-party advisors.
Read more about HFS and our initiatives on
www.HFSresearch.com or follow @HFSResearch.