CIOs must navigate obscure product differentiation, technology evolution, and market transition

The characteristic most commonly shared among business process management suite (BPMS) buyers, according to META Group, a leading provider of information technology (IT) research, advisory services, and strategic consulting, is confusion. Although CIOs are largely aware of the strategic imperative of business process innovation and optimisation, they must navigate a tumultuous market characterised by over 140 vendors, continued acquisitions, and new market entrants.

To help buyers more effectively navigate this complex marketplace, META Group today announced the availability of a METAspectrum report on the BPMS market. Due to the proliferation of vendors and the significant confusion regarding what constitutes a BPMS product, the report is limited to a subset of providers - Java-based, pure-play BPMS tool vendors. METAspectrum evaluations for additional segments of the marketplace will be released throughout 2005.

"Despite the fragmented market, one principle applies to all business process management technology - its importance to organizations seeking to gain control over processes, integrate business silos, foster business/IT partnerships, and increase business adaptability," said Janelle Hill, vice president and research practice lead for business process management at META Group. "However, while the benefits of BPMS are undeniable, the current market landscape poses more questions than answers for CIOs."

Foremost among the questions is, "When?" As the adaptive organization concept matures, the BPMS market will transition into a more broadly defined service-oriented architecture (SOA)-enabling software infrastructure market, challenging the longevity of many of today`s BPMS vendors beyond 2006. Therefore, organizations must be aware that investing in BPMS tools now will likely require some rework and reinvestment later. However, as with many emerging technologies, META Group advises that the benefits of current investment outweigh the risks of waiting until standards and products mature.

"Today`s global business climate, with its increasing compliance mandates and organizational risk, justifies early BPMS investment," continued Hill. "The question CIOs should be asking is not when, but where, how, and with whom."

The METAspectrum report, which evaluated 13 vendors that go to market as BPMS product providers, found no one dominant market leader and obscure differentiation. The vendors evaluated are segregated into three categories: leaders, challengers, and followers. Those in the leader category have several characteristics in common: an international presence, competitive offerings in all suite components, and more than 50 clients with strong references. In addition, they have a strong focus on end-user modeling and a strategic view that recognizes the transition to a broader long-term software infrastructure platform.

Companies in the challenger category are fierce competitors with little perceived differentiation to the average buyer. On the whole, this group will remain vulnerable through 2006 if they are unable to increase their customer base by clearly defining their value-add relative to the leaders. Followers will face an even more difficult struggle to survive unless they establish a viable alternative business model, are acquired, or identify a defensible market niche.

Beyond the competitive landscape, META Group suggests that CIOs consider specific product offerings as they decide how to invest their BPMS dollars. Specifically, buyers should develop a shortlist of BPMS tools, considering each of the following six criteria in addition to technical functionality:

1. The tool`s fit with enterprise development skills and environment 2. The tool`s support for the company`s initial BPMS use case(s) 3. The ease of integration across business silos 4. The ease of modelling 5. 5. Cost 6. 6. The potential stability of the vendor

"CIOs will need to do substantial homework and due diligence before investing in this evolving marketplace," concluded Hill. "Investment in BPMS is, nevertheless, critical for companies to remain competitive in this complex operating environment."