align to reality: trends and opportunitiesin the world of ecm, capture, and bpm, docville
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Align to reality: Trends and opportunitiesin the world of ECM, Capture, and BPM Docville.net Global Directions 2013TRANSCRIPT
Align to Reality: Trends & Opportunities in the world of
ECM, Capture & BPM
Michael Ziegler, Managing Director, DocVille
Washington, Global Directions Conference – September 24, 2013
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Enabling Conversations that Matter
Internationally-focused networking community
For Information Management (IM) executives
Network Exchange
Collaborate Expand
The DocVille Concept
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DocVille Community Meetings
Regular community meetings
Moderated and themed roundtable discussions
Insight into market trends, threats and opportunities
Foster better international business collaboration and market insights
Look at: www.docville.net
Online Groupe on: DocVille LinkedIn community
Email me: [email protected]
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Gartner: Enterprise IT spending in 2013 will be 1.2% over 2012
Long term expected CAGR of 3.6 % through 2017, (to reach $4,4 bn in 2017)
Enterprise Software market CAGR of 10% expected through 2016
ECM, BPM & Document Capture software markets
About 10% CAGR (between 8-12%) through 2016
IDC: business analytics market to grow at 9.8 % CAGR through 2016 (generating nearly $51 billion in revenue).
Forrester: smart process apps (SPA) to grow by 18% CAGR through 2015 (reaching $34 Billion)
About IT-Spending & Market Growth
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Vertical Market IT Spending (Gartner)
Total WW market will rise 1.2% in 2013
Slowdown in government IT spending and a new downward adjustment in healthcare.
Resilient IT spending leaders : transportation, insurance, banking and securities.
↓ public-sector industries (e.g. government and education)
↘ healthcare industry is also affected by the cuts (in Europe, where it is largely public)
↗ banking and securities industry has instead decelerated its rate of decline
→ insurance industry is now implementing cuts that it has tried to avoid during the year,
↘ communications, media and services industry is suffering from the general deceleration of investments in the cloud sector.
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Our Challenge
Choose verticals you understand & provide skilled resources
Convince CIOs to fund and implement ECM, Capture , BPM solutions and services to become more competitive and survive
Bring out the right solutions that respond to upcoming market trends and demand
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Changing Information Management Solutions
During the next few years IM-solutions will include Mobile apps BPM & DCM (Dynamic Case management) Advanced analytics Tighter integration with enterprise production
platforms Available in the cloud & on premise Different pricing models
Expected areas of growth
On-demand solutions Multi-Channel Engagement solutions
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Content
• Forums • Other • Invoices • Contracts • CVs • Claims • Receipts
• SMS • Metadata +GPS • Video • Audio rec
• Social interaction • Feeds • Forums • News
Multiple channels
• Capture • Recognise • Classify • Extract • Validate Analysis • IDR
• Semantic Content Understanding
• Sentiment Analysis • Advanced Analytics • Predictive Analytics
Enterprise IT processing
BPM ERP CRM ECM/SP LOB Apps Databases RM
Recipients
• Customer service • HR • Logistics • Finance • IT • Legal • Marketing
Straight-through & touchless processing
Quick – Feedback & Acknowledgement – Response & Confirmation
Customers Suppliers Staff & Partners
Positive experience
Sem
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ruct
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d
Stru
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U
n s
t r
u c
t u
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d
Multichannel Engagement –Changing Platforms
!
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Unstructured Big Data (incl.Transactions + Interactions + Observations)
Petabytes
Terabytes
Gigabytes
Megabytes
Increasing Data Variety, Complexity & Unstructuredness
ERP
Payment record
Purchase record
Purchase detail
Customer Touches
LOB
Segmentation
Offer details
Support Contacts
Affiliate Networks
Behavioral Targeting
E-Business
Web logs
Dynamic Funnels
Offer history
A/B testing
Search Marketing
Dynamic Pricing
User Generated Content
HD Video, Audio, Images
Spatial & GPS Coordinates User Click Stream
Product/Service Logs
Social Interactions
& Feeds
Business Data Feeds
Mobile Web
SMS/MMS
Sentiment
BIG DATA Speech to Text
Sensors/RFID/Devices
External Demographics
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Classification & Analysis Technologies deployed include:
IDR, Natural Language Processing, neutral networks, pattern recognition, sentiment analysis, data mining…
Natural-Language Processing (NLP):
To identify and Extract meta data, names, facts, relationships, sentiment, and other information
In documents, blogs, forums, news, customer conversations, social network discussions, e-mails and a range of enterprise sources
Typical apps : document classification, automated response management, customer service center & support, e-discovery, brand-reputation management, market research, competitive intelligence, classification for taxonomy
Natural language user interfaces to ease the interaction with the IT system (e.g. at the point of engagement)
!
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Scan to Process- Opportunities
Change management needed process by process
Ongoing projects means good business (up to millions of $/£/€), but high start-up costs
Reduction in the paper-based volume and an increase in other types of electronic content
Huge gap in new media for data classification and extraction from social media, SMS, tweets, blogs…
Integration into enterprise systems: an issue & an opportunity (e.g. AP processing moving to P2P-E-invoicing)
!
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DMR, Cloud & NLP
TCO for mailroom applications still high but decreasing
Semantic analytics expected to decrease the complexity of implementation regarding classification and extraction
Increasing demand through Cloud, distributed & on-demand capture (watch out for BPO offerings)
Break through into SMB’s to be expected as TCO is decreasing
New pricing models affected by volume, use and velocity
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Outsourcing
Innovative DPO players are trying to make their offering as vertical/horizontal as possible, where more automation should pave the way for higher margins
Difficult Transformation: Invoice Processing , Mail Room, Claims Processing, Mortgage Loan processing…
Building up the right skills & having the right technology in critical vertical and horizontal business processes
Sell high value business critical Annuity Services and Applications (day forward scanning, active file management, services in the cloud…)
Leverage Cloud-, Distributed-& On-Demand-Capture A number of large international deals: building new
partnerships with BPOs in other countries
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Incorporating Analytics into BPM
Integrating real-time analytics to make business processes more "intelligent” and trigger the best possible next steps.
Performance analytics, e.g. processes can automatically re-prioritize work queues to ensure that the best customers are receiving the best service.
Social media analytics,e.g. processes involved in marketing and 1-1 selling can improve their recommendations and targeting. Sentiment analysis and trend analysis can guide automated
marketing processes toward hot products
Signals from sensor tagged equipment to automatically decide which spare parts or services to order which field engineer to schedule
Let computers make decisions that are structured and repeatable in predictable rules-based processses to conserve people's time and attention for the thinking and actions that computers can not do.
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Dynamic Case Management (DCM) to manage the Unpredictable
Need to support more unstructured, unpredictable &
flexible processes in a world of multichannel engagement
Based upon human judgment and interaction between experts, the customers and the organization
Allows knowledge workers to be flexible in defining the right "next step and best action" in the process
decide who should be involved in performing the next activities.
allows customers to participate effectively in every process they need or want to, anytime, anyplace.
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Number of apps users will grow at a CAGR 30%, to reach 5 billion users by the end of 2017
Worldwide app revenues to grow from USD$20.4 B in 2013 to reachUS$63;5B in 2017 (33% CAGR) (Portio Reasearch)
84% of organisations have a remote workforce (mobile and distributed)
Worldwide mobile worker population will be 1.3 billion by 2015 (IDC)
Companies under pressure to offer remote working provisions - become as self-sufficient and efficient as possible + be closer to the customer
Leading to a complete change of architecture. Traditional software providers need to rewrite their applications for these tablet-based environments + BYOD Security strategy
Mobile Apps & Mobile Workforce
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Mobile Use Cases
Remote repository access to documents (DMS)
Participation in process approvals and exception handling (worklow)
Remote Image Capture : mobile capture with mobile doc scanners, smartphones & tablets Will boost capture-cloud services
Initiating a business process with a picture scan
Capturing Meta Data: when, where and by whom the capture was done
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(Source: DICOM White Paper “Mobile Document Capture: Gaining a Competitive Edge”)
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ECM, Capture & BPM Consolidation
ECM, BPM & Capture deployment more and more as critical part of an infrastructure
Owning the enduser is key to sell more technology from infrastructure and the vendor ecosystem
Trend back to platforms , away from hotchpotch of best-of-breed mix of products from different vendors
Impacted cloud computing, BPM, enterprise social networking, BI & analytics, mobility, MS SharePoint…
Opt for a strategic partner that can provide a platform that can do more than one thing for the organization. Copyright
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Very large ecosystem
Millions of licenses out in the market
SharePoint to further penetrate the SMB space (hard for other infrastructure vendors)
Many 3rd-party software vendors are building extensions
System integrators are generating big business around deployments and customisations
Focus of SharePoint 2013
Social – has micro blogging, news feeds and other social features (thanks to Yammer)
Cloud – works with other Microsoft cloud products such as SkyDrive Pro
Price point
continues to decline – especially for Sharepoint Online
Microsoft will be able to blanket all markets at all price points
Pervasiveness of MS SharePoint
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Cloudy Concerns
Security concerns: Cross border hosting remains cultural & emotional within Europe
Stricter regulatory environment in Europe requires data architectures that assure European customers
Snowden revelations will cost U.S. cloud providers a 20% reduction in revenues, or $35 billion in 2013
For U.S. providers of cloud and software-as-a-service offerings, will need to develop EU-based operations
Performance, architecture & scalability issues
Switching to the PAYG model can be painful from a cash flow perspective
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Drivers for Cloud Adoption
Cloud-based document service platforms are driving a high adoption of cloud solutions
Example: Google Docs, Office Drop, Evernote or Dropbox Usage rate to grow from millions to billions
More and more companies are deploying cloud solutions for their mobile workforce & SMBs
Solutions to be offered in hybrid models (on premise and in the cloud) to fulfill customer demands and for maximising the chance to win projects
ECM, BPM & Capture in the Cloud No software install, upgrade or IT staff needed Users are up and operational in seconds Truly easy-to-deploy and reducing TCO Attractive pricing models
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Changing Software Licensing & Delivery Models
Traditional model of charging a one-time license fee and an annual maintenance fee is under pressure
Contraints within IT budgets Customers judge software by its ability to contribute
value to the organisation Reducing the willingness to pay for large upfront
license fees for software
Increased focus on ROI for software solutions Ability to obtain software very cheaply (open
source) or as service in the Cloud (SaaS)
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Changing software Licensing & Delivery Models
Alternative pricing and delivery models are becoming more appealing to customers
Up‐front-Periodic –SaaS-OpenSource- Hybrid ?? Cost/Click/User/Document or fixed license or mix?? Outcome-Based Billing (paid to agreed service results)
Concerns of solution providers Understanding of different pricing models, but no knowledge
about consequences for their company fear of the impact on revenue and cash flow when changing to
different licensing business models
Building a hybrid business modell where products are offered in both models for some period of time
Solution providers need to react, adopt and improve
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The Capture-ECM-BPM markets continue to grow
The increase of electronic documents, the mobility, the social media and the rapid growth of unstructured Big Data will create a high demand to capture , classify and process this unstructured BIG CONTENT
New IM Platforms & solutions are evolving that respond to the needs
Multi-channel input & output & Content in multi-formats
Point-of engagement, mobile & on-demand
Big data analysis, processing & understanding
Automating the large number of content driven processes
Key Take-Away’s
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Key Take-Away’s
Allowing BPOs to offer high value business critical annuity services and applications
Allowing VARs and SIs to offer and implement new vertical solutions with highest growth potential to be expected in transportation, insurance, banking and securities.
Advanced Analytics, NLC & BPM technologies help to build solutions that address these challenges and to
reduce the complexity of it’s implementation
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The Consolidation & Commoditisation of the Information Management is a challenge and an opportunity.
MS Sharepoint offers lots of opportunities to VARs and SIs to add services and components in the MS Sharepoint Ecosystem
Alternative delivery and pricing models are becoming more appealing to customers mostly driven by mobility, cloud and hybrid modells.
Solution providers need to react, adopt and improve to
sustain growth.
Key Take-Away’s
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Thank you for your attention
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