Richard Watson
Analyst
Burton Group
Business Process Management
Infrastructure: Market Profile 2009
rwatson@burtongroup.com
www.burtongroup.com
http://apsblog.burtongroup.com
Twitter: @richwatson
ITANA Screen2Screen Meeting
Thursday 12th November, 2009.
All Contents © 2009 Burton Group. All rights reserved.
BPM Infrastructure Market Profile
2
Agenda
• Defining BPM and the BPM Infrastructure market
• Segmenting the vendors in the market
• Vendor Trends
• Business and Technical Adoption Drivers
• Barriers to mainstream adoption
All Contents © 2009 Burton Group. All rights reserved.
BPM Infrastructure Market Profile
3
Market Definition
• Business Process Management (BPM) is a discipline for managing
business processes explicitly as strategic assets.
• BPM infrastructure provides tools that support the discipline
• But BPM infrastructure is not a prerequisite for doing BPM.
• Process-orientation should come before the tools.
• Enterprises that have attained a sophisticated BPM discipline will
find great value in BPM infrastructure.
• For everyone else there’s a continuing need for tools that lower the barrier to
entry into a BPM discipline.
• The market is populated by two groups
• “stackers” who sell BPM infrastructure to IT as part of a superplatform suite,
• and “pure-plays” who sell empowerment to businesspeople.
All Contents © 2009 Burton Group. All rights reserved.
Increasing sophistication,
decreasing numbers
BPM Infrastructure Market Profile
Types of business processes
Infrastructure, and benefits
Ac hoc
• Phone calls, paper forms,
email, unstructured documents
and spreadsheets.
Drawn
Modeled
• Post-its, whiteboard
• Visio, PowerPoint (can be printed,
shared, changed)
• BP Modeling environment – shared in a
repository (models can be reused, simulated,
and version controlled)
Automated
• Executed according to the model by a process
engine or orchestration layer (process execution
steps can be automated and audited)
Monitored
• Data about the executing process is captured and
visualized (enables visibility into auditable behavior and
identification of improvement opportunities.)
Optimized
4
• Process execution data is fed back to the model (used to improve
both the process, and the entire process architecture.)
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BPM Infrastructure Market Profile
5
Market Definition
• Burton Group defines the BPM infrastructure market as:
• BPM Infrastructure is a suite of tools that supports an enterprise
implementing a BPM discipline
• Comprehensive BPM infrastructure provides tools and
engines to support:
• The entire process lifecycle (i.e. model, simulate, build, deploy, execute,
monitor, analyze, and optimize)
• All process types (collaboration or human-centric, document- or contentcentric, system-integration centric, straight-through-processing, and
decision-centric).
• All business process stakeholders: business or process analysts,
Business Solution Developers and business managers.
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BPM Infrastructure Market Profile
6
Markets related and adjacent to BPM infrastructure
SOA
Infrastructure
BP Analysis
Tools
• Modeling
• Simulation
• Service
containers
• Service
Orchestration
Collaboration/
Workflow
BPM
Infrastructure
ERP/
Packages
Business
Rule
Management
Tools
BP Monitoring
• BI
• Statistic
models
Business and
technical
architecture
modeling
tools
All Contents © 2009 Burton Group. All rights reserved.
BPM Infrastructure Market Profile
7
Market Segmentation
• Burton Group segments the BPM infrastructure market in
three ways:
• By vendor origin (i.e. “stackers”: application platform vendors, “pureplays”: niche BPM vendors, and enterprise content management [ECM]
vendors).
• By license model (i.e. traditional [commercial closed-source],
commercial open source, subscription or pay-as-you-go [PAYG], and
“free”).
• By cloud-readiness (i.e. not ready, planning, process modeling only,
hosted AMIs, or full BPM infrastructure as a service)
All Contents © 2009 Burton Group. All rights reserved.
BPM Infrastructure Market Profile
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Segmenting the BPM Infrastructure market by vendor origin
Business Empowerment
Heritage -”Pure plays”
Integration Heritage
- Platform vendors
(“stackers”)
• e.g. Appian, Pegasystems, Savvion,
Lombardi, etc.
• e.g. Oracle, IBM, Software AG,
TIBCO, SAP, MSFT, Adobe, Red
Hat, etc.
Document workflow
heritage -Enterprise
Content
Management
vendors
• e.g. Adobe, EMC
Documentum, IBM
FileNet, Global360, etc.
BPM
Infrastructure
Market
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BPM Infrastructure Market Profile
9
Acquisitions in BPM and related markets 2002-09
Deal Date
Aug-09
Jul-09
Feb-09
Jul-08
Aug-07
Jun-07
May-07
Apr-07
Aug-06
Aug-06
Acquirer
IBM (Platform)
Software AG (Platform)
Oracle (Platform)
Oracle (Platform)
Metastorm (Workflow)
IBM (Platform)
TIBCO (EAI-Workflow)
Software AG (Platform)
IBM (Platform)
IBM (Platform)
Acquired
ILog (Rules)
IDS Scheer (BP Modeling)
Sun (Platform/inc. CAPS BPM)
BEA (Platform)
Proforma (BP Modeling)
TeleLogic (EA modeling)
Spotfire (BI)
webMethods (Platform)
Webify (Services/MDA)
FileNet (ECM)
Jun-06
Mar-06
Dec-05
Oct-05
Sep-05
Jun-05
Apr-05
Jun-04
Jun-04
Apr-04
Sep-02
Red Hat (Platform)
BEA (Platform)
Intalio (BPM Engine)
Metastorm (Workflow)
Fair Isaac (Rules)
Sun (Platform)
TeleLogic (Modeling)
Oracle (Platform)
TIBCO (EAI)
Adobe (Documents)
IBM (Platform)
JBoss including jBPM (BPM engine)
Fuego (BPM engine)
FiveSight (BPEL)
CommerceQuest (EAI)
RulesPower (Rules)
SeeBeyond (EAI)
Popkin (BP modeling)
Collaxa (BPEL)
Staffware (Workflow)
Q-Link (Workflow)
Holosofx (BP Modeling)
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BPM Infrastructure Market Profile
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BPM Infrastructure market license model segments
Commercial
Closed Source
Commercial
Open Source
Subscription
/SaaS
"Free"
Modeling Tools
Active Endpoints
Red Hat JBoss Lombardi
IBM
Adobe
Intalio
Savvion
Software AG
Appian
Magnolia
Cordys
IDS Scheer*
Fujitsu
Enhydra
Appian
TIBCO
IBM
Lombardi
Metastorm
Microsoft
Oracle
Pegasystems
SAP
Savvion
Software AG
TIBCO
Global360
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BPM Infrastructure Market Profile
11
Cloud-readiness segments in the BPM Infrastructure market
Nothing
Public
Planned
SaaS
Modeling
Environment Hosted as
only
AMIs
Active
Endpoints
Oracle
IBM
Pegasystems
Appian*
Metastorm
SAP
Lombardi
Adobe
Cordys
Red Hat JBoss Savvion
Software AG
Appian*
Intalio*
TIBCO
Signavio
Intalio*
Microsoft
BPM
infrastructure
in the Cloud
IDS Scheer
Fujitsu
Global360
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BPM Infrastructure Market Profile
12
Business and Technology Adoption Drivers
• Customers are turning to BPM to achieve
• process improvements, increased IT and business agility, cost savings through
automation, and a strategic approach to regulatory compliance.
• Process quality theory originated in manufacturing
• But early adopters of BPM are clustered in service-intensive industries such as
banking, insurance, and telecoms. For these service industries “the process is
the product”.
• For all enterprises, process improvement matters
• Improvement goals reflect prevailing economic conditions.
• In recessionary times, saving money by making existing processes more efficient
is a driver.
• With tighter budgets, organizations are looking for better productivity from
their employees and their IT system – i.e., improving their processes.
• In better economic environments optimizing processes to boost competitiveness
and integrating diverse processes from newly acquired companies are more likely
motivations.
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BPM Infrastructure Market Profile
13
Business and Technology Adoption Drivers
• Four technology trends are impacting the BPM
infrastructure market.
• The unstoppable rise in new delivery models enabled by cloud
computing
• The influence of social software and the collaborative use of
technologies in a Web 2.0 style
• The relationship between SOA and BPM
• Clarity in the BPM standards space
All Contents © 2009 Burton Group. All rights reserved.
BPM Infrastructure Market Profile
14
Business processes play a key role in top-down service
identification
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BPM Infrastructure Market Profile
15
The influence of macro trends in the IT industry on BPM
infrastructure market
IT Externalization
- BPM as a service
- Business Process
Outsourcing
IT Consumerization
- Tools that are simple for
businesspeople to acquire and
begin using.
- Process templates available
from an “AppStore”
- Processes spanning enterprise
and personal devices
- Process Mashups
BPM
Infrastructure
Market
IT Democratization
- The business does not need IT
to start pursuing BPM.
- Bottom-up, collaborative
process modelling (if a process
model is a conversation,
everybody has a viewpoint)
- Lowering technology barriers to
entry: e.g. Using SharePoint as
‘good enough’
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BPM Infrastructure Market Profile
16
Barriers to Mainstream Adoption
• Lack of process-orientation within enterprises
• Inadequate business / IT co-operation
• Unsuitable IT Infrastructure
• Lack of effective data management
• Inability to turn departmental projects into enterprise
programs
All Contents © 2009 Burton Group. All rights reserved.