idc market analysis what end users need from application providers in 2009
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8/6/2019 IDC Market Analysis What End Users Need From Application Providers in 2009
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InterSystems DEVCON 2009
Sandra Rogers, IDCMarch 22, 2009
What End Users Need FromApplication Providers
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Mar-09 2009 IDC 2
Application Needs Study
Primary research and analysis
What are top strategic goals of end-user organizations
What are organizations looking for from theirapplications and application providers
What types of investments are being planned
What are critical vendor and application decisioncriteria
What are application ISVs experiencing and hearingfrom customers?
What should vendors focus on most?
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Attend to Merger & Acquisition Activity
Restructure Organization or Business Lines
Address Compliance, Fraud, and/or Risk Management
Optimize Supply Chain
Increase Market Visibility and Awareness
Drive Product Innovation
Increase Speed to Market with New/Changed Product Offerings
Enable Greater Employee Productivity
Improve Customer Relations
Increase Process Efficiency
Improve Technology Infrastructure
Better Manage Costs
Q. Which of the following relate to your organizations top strategic business goals for the next 12-24 months? Select Top 3
Source: IDC, March 2009
Top Strategic Business Goals:Cost Control, Tech, and Process Efficiency
N=105
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Staff skill set may not be adequate for required tasks
Getting stakeholders the right access to current information
Ability to keep up with changing business rules and
requirements
Need for cross-enterprise information agreement and
consistency
Large number of disconnected processes and applications to
be integrated and optimized
Addressing compliance and regulatory concerns
Navigating organizational issues and dynamics
Resource and budget constraints
Q. What are your organization's most critical concerns in achieving these goals? Select Top 3
N=105
Source: IDC, March 2009
Resource and Organizational Concerns:How Can Vendors Help?
IT processes inform
Business users
associate value
the information itself
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Close the Gap!
Pressure to Change Barriers to Change
Economy
Competition
Heightened CustomerExpectations
Globalization
Regulatory Compliance
Shifting Worker Dynamics
Budget andResources
Culture
DecipheringWhere to Focus
Lack of Managementand Governance Best
Practices
Regulatory Compliance
Uncertainty Quotient Risk Aversion
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Overcoming Slow Rate of Change
Acknowledge Need to Change however must ...
Free Up RESOURCES So They Can ADDRESS Change
Reduce COMPLEXITY of Change
Provide GREATER INSIGHT as to WHERE to Change
Navigate ORGANIZATIONAL BARRIERS to Change
Provide INCREMENTAL AVENUES for Change
Reduce RISK of Change
Increase VALUE of Change
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Decisions Decisions
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Easy to integrate software
Excellent support andcompetitive pricing
Ways for monitorproductivity and reduce
costs
Desperately Seeking
Q: Please tell us what your organization will look for most from your
application vendors in the next 12 to 24 months?
High speed, accuracy,dependable, reliable
Cost effectiveness,reliability, security
More bang for the buck and betterintegration with existing apps
The ability to integrate separate applicationstogether to reduce the number of systems
needed and the amount of training required toget work done
Improved reliability, bettervisibility into our business withinapplication, better integration with
other apps
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Desperately Seeking
In this economy it's really
going to come down to costfor the most part
Great customer serviceskills
Feature set that meets our requirements,flexibility, scalability, cost, infrastructure,
etc.
Lower costs, application stability
and support more time betweenupgrades
make their databases or information more compatible or easilyimportable into other applications so that we can process the data as weneed to, when we need to, without having to divest large amounts of time to be
able to decipher
Financial stability. Ability to assist integration of information acrossplatforms and geographies anticipate regulatory requirements and
changes be somewhat cost effective in doing so a low price
customization to improve productivity
Q: Please tell us what your organization will look for most from your
application vendors in the next 12 to 24 months?
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Develop new custom applications
Enhance/customize packaged applications
Address information access, reporting, and businessintelligence projects
Implement new packaged applications
Upgrade to new versions of existing apps
Integrate existing applications and processes
Maintain/enhance existing custom app code
Q. Please distribute your organization's current IT efforts among the following activities in terms of overall resource hours (mean)
N=105
Source: IDC, March 2009
Mixed IT Activities:Most Prominent Mode is Leverage
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0% 20% 40% 60% 80% 100%
Replace vendor-based apps with custom-built applications
Replace vendor-based apps with different vendors' offerings
Maintain vendor-based apps exactly as they exist today
Consolidate vendor-based apps
Replace custom-build with vendor-based apps
Maintain/ex tend custom-build applications with value-added
capabilities
Upgrade vendor-based apps to newer versions
Extend existing vendor-based apps with value-added
capabilities
Currently Implementing Planning Implementation in next 12-24 months Investigating No Plans
Q. Which of the following does your organization plan to start or continue in the next 12-24 months?
N=105
Source: IDC, March 2009
Application Plans: Extend and LeverageCurrent
Opportunity
Future
Risk
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Where and How to Add Value?
As a business partner as well as through product offerings
Listen to their needs and treat them as individual entities
Be flexible in pricing, packaging, and support
Incremental change can lead to greater change overall
Be careful about promises
Extend overt value to their end customers
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0 10 20 30 40 50
Has a s trong ecosystem of partners
Provides an integrated suite of offerings
Pre-existing relationship with vendor
Strong technical knowledge
Product roadmap best fits our needs
Strong understanding of my specific industry and business environment
Long-term vendor viability/financial s tability
Better service/support than competitors
Better or more flexible pricing and l icensing terms
Better features/functionality than competitors
Q. When you evaluate one enterprise application vendor against another, which of the following criteria are likely to be the most
important in your buying decisions over the next 12-24 months? Select Top 3
N=105
Source: IDC, March 2009
Application Vendor Decision Criteria:3 Rs Requirements, Relationship, & Risk Mgt
How run the
business
The product
and service
Incumbency and size
= guarantee
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Ability to handle complex data types
Ability to use existing skill sets with IT department
Strong vendor reputation
Provides industry specific configurations
Faster to implement
Runs on our preferred platforms/technologies
Scalability and high performance capabilities
Ease of use
Easy to customize to our changing needs
Most cost effective
Easy to integrate with existing systems
Q. Which of the following features will be most important to your application selection process over the next 12-24 months (aside from specifi
business logic functionality)? Select Top 3
N=105
Source: IDC, March 2009
Application Selection PrioritiesOnus on Vendors to Solve Integration Needs
Integration
Tops Cost!
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Specialized skills required to work with the vendor'sproprietary tools and languages
Lack of visibility and control of underlying data structures
Ability to address different application client interfaces anddevices
Architecture needed to address web and service-basedcomputing requirements
Challenge of integrating application with external applications
Challenge of integrating application with internal applications
Challenge in extending business logic or lack of flexibility withapplication parameters
Performance and scalability of the application to meet growing
and changing business needs
Q. Which of the following are the most critical concerns regarding the purchase of packaged application? Select Top 3
N=105
Source: IDC, March 2009
Critical Concerns for App Purchases:Performance/Scalability; Extendibility, and Integration
Investing for the
future .. Todays
solutions need to
evolve much more
gracefully
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Embedding Capabilities for Value
Decrease amount of technical integration and interoperability barriers by
moving capabilities INTO the application
Address manual steps and desktop maneuvers
Think beyond information processed to thevalue of the artifacts from the systems and
processes themselves
Gain control of focus and activities of the
end user become the go to place for the
intersection of information & processes
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0 10 20 30 40 50 60 70 80
Configurable workflow engine
to automate and optimizeprocesses
Configurable custom or role-based views for users
Configurable business rulesengine to easily changepolicies and parameters
Real-time businessintelligence (i.e., views ofcurrent operational data)
Native integration capabilitiesto easily connect with otherapplications and systems
Extremely Important 9 8
Q. Please rate how important it is to your organization that each of the following features be an embedded capability within your
application vendors transactional applications -- Top 3 Ranking on Scale of 10
N=105
Source: IDC, March 2009
Embedded Capabilities within ApplicationsIntegration and Real-time Business Intelligence
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Better customer care
Ability to address business change more readily
Ability to better collaborate with partners or suppliers
Easier application customization
Better enterprise-level busines s ins ight and visibility
Ability to gain a more unified view of the customer, product, etc.
Address new business opportunities and models
Faster application deployment
Better information quality
More efficient business processes
Greater cost efficiencies
Q. If your transactional applications could automatically embed integration capabilities, meaning they would easily connect to other systems,
which of the following would be the most valuable benefits to your organization? Select Top 3
N=105
Source: IDC, March 2009
Value of Embedded Integration:Cost and Efficiencies First and Foremost
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Ability to share current business intelligence with partners or customers
Support for collaborative or project-based knowledge s haring activities
Regulatory/compliance-related auditing or reporting
Automated exception management embedded in applications
Address management policy or best practice guidance
Leverage and integrate structured data and uns tructured data
Real-time performance, risk , and/or fraud notifications
Unified view of customers, business performance, etc.
Perform interactive analysis on real-time data
Data quality improvements
Operational efficiencies
Faster/enhanced operational decision-making capabilities
Q. If your transactional applications could provide users with real-time operational business intelligence as an embedded feature,
which of the following would be the most valuable benefits to your organization? Select Top 3
N=105
Source: IDC, March 2009
Value of Embedded Business Intelligence:Think Operationally
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7 7.2 7.4 7.6 7.8 8 8.2 8.4
Informati on mashups
KPIs and/or scorecard views
Interactive information vis ualizati on
Predictive analytical views
Event-driven analytical views
Interactiv e dashboards
Event-driv en notifications based on business rules
Business activi ty monitoring
Informati on sear ch and mining
Q Please indicate the criticality of leveraging the following capabilities within your operational applications over the next 12-24 months
N=105
Source: IDC, March 2009
Still Addressing Building Blocks:Information Access and Process Insight
C
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INCREMENTALLYDrive Change To Overcome Barriers
Package and position solutions to help:
Address change on all fronts organizationally as well as technically
Empower end-users to influence, accept, innovate, and change on their own
terms
Address user workspaces bring the desktop into the application
Target small, incremental process changes that can
produce big rewards
Advise and guide businesses on where to focus
Optimize versus merely automate
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Staying Relevant During Turbulent Times
Help customers drive greater value from existing
investments
Simplify technical complexities of deployment and
integration
Ensure credibility and viability during times of change
Support flexible pricing and deployment options
Eliminate the burden and reduce the risk Develop and showcase preconfigured views, data models, processmodels, integration templates, and more
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InterSystems DEVCON 2009
Sandra Rogers, IDCMarch 22, 2009
What End Users Need FromApplication Providers