idc market analysis what end users need from application providers in 2009

8/6/2019 IDC Market Analysis What End Users Need From Application Providers in 2009

1/23

Mar-09 2009 IDC 1

InterSystems DEVCON 2009

Sandra Rogers, IDCMarch 22, 2009

What End Users Need FromApplication Providers


2/23

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?


3/23

Mar-09 2009 IDC 3

0 10 20 30 40 50 60

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


4/23

Mar-09 2009 IDC 4

0 10 20 30 40 50 60

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


Resource and Organizational Concerns:How Can Vendors Help?

IT processes inform

Business users

associate value

the information itself


5/23

Mar-09 2009 IDC 5

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


6/23

Mar-09 2009 IDC 6

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


7/23Mar-09 2009 IDC 7

Decisions Decisions


8/23Mar-09 2009 IDC 8

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


9/23Mar-09 2009 IDC 9

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?


10/23Mar-09 2009 IDC 10

0 4 8 12 16 20

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


Mixed IT Activities:Most Prominent Mode is Leverage


11/23Mar-09 2009 IDC 11

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


Application Plans: Extend and LeverageCurrent

Opportunity

Future

Risk


12/23Mar-09 2009 IDC 12

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


13/23Mar-09 2009 IDC 13

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


Application Vendor Decision Criteria:3 Rs Requirements, Relationship, & Risk Mgt

How run the

business

The product

and service

Incumbency and size

= guarantee


14/23Mar-09 2009 IDC 14

0 10 20 30 40 50

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


Application Selection PrioritiesOnus on Vendors to Solve Integration Needs

Integration

Tops Cost!


15/23Mar-09 2009 IDC 15

0 10 20 30 40 50 60

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


Critical Concerns for App Purchases:Performance/Scalability; Extendibility, and Integration

Investing for the

future .. Todays

solutions need to

evolve much more

gracefully


16/23Mar-09 2009 IDC 16

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


17/23Mar-09 2009 IDC 17

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


Embedded Capabilities within ApplicationsIntegration and Real-time Business Intelligence


18/23Mar-09 2009 IDC 18

0 10 20 30 40

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


Value of Embedded Integration:Cost and Efficiencies First and Foremost


19/23Mar-09 2009 IDC 19

0 10 20 30 40 50

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


Value of Embedded Business Intelligence:Think Operationally


20/23Mar-09 2009 IDC 20

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


Still Addressing Building Blocks:Information Access and Process Insight

C


21/23Mar-09 2009 IDC 21

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


22/23Mar-09 2009 IDC 22

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


23/23

InterSystems DEVCON 2009

Sandra Rogers, IDCMarch 22, 2009

What End Users Need FromApplication Providers

idc market analysis what end users need from application providers in 2009

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