OPINION & ANALYSIS TRACK

SMART PROCESS APPS--SERVICING

CUSTOMERS IN A DYNAMIC WORLD

Tuesday 3:30 - 4:30 PM

Craig Le Clair

Vice President, Principal Analyst

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Something is wrong when there is 70%

Fortune 1000 turnover within the last decade

*Built to Change Edward Lawler, Christopher Wiley

65%

30%

35% 70%

1973 - 1983 2003-2013

New companies

on F1000 in

decade New companies

on F1000 in

decade

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(Performed adequately)

(Performed adequately)

(Performed adequately)

(Only company on list to outperform)

Seven characteristics to go from “good to great“ are not enough

Investing in the portfolio of those 11 great companies covered in 2001 would

result in underperforming the S&P 500

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And focus –without the ability to adapt – is not sufficient

(Absorbed by DHL)

(Underperforming – missed mobile market)

(Revenues declining, 2014 loss of $3B)

(Underperforming in segment)

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Stable

Competitive

Advantage Agility Advantage

Being Good At What You Do Is Essential – But No Longer Enough

Enterprises Need To Be Agile In Two Ways - Awareness and Execution

Aw

are

ne

ss

Execution

Paralyzed Formidable

Clueless Dangerous

Business Agility Requires Excellence In Ten Dimensions That Cover The Entire Enterprise

Awareness and Execution scores lag for most companies…

PA I

SI

DP

CI

PA

BI

IE

SC

SI

KD

CM

DP

CI

MR

…but not all - Discover Financial Services scored highly across all dimensions

PA

BI

IE

SC

SI

KD DP

PA

DP CI

MR

PA

BI

IE CM

SI

SC KD

And performance did not disappoint

Consumer

finance

industry

Discover

Card

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Process Agility Requires Awareness And

Execution in ECM, BPM, Dynamic Case

Management, Business Intelligence, And

Deployment Of Smart Process Apps.

See the March 26, 2013, “Selecting Tools That Enable Agility” report.

Business intelligence is not connecting with the business

BI

› High Awareness – Strong investment in skills and

technology

› Low Execution –Analytics not exploited by the

business

But in some cases it’s connecting – big time - even oil tankers can be agile

and software innovation is also dangerous

SI

› Low Awareness – Gaining real-time feedback

› High Execution - Improved ability to develop

and deploy software

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Emerging Content Platform Will Require BPM, Capture, ECM and Content Analytics

15

Production

On Demand

Multi-ChannelCapture

DCM

BPM Market

Inte

gra

tion

Tra

ditio

nal

Mobile

Enterprise Content

Management

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FIX HL7

UCCNET

Dynamic apps

SCM

PLM CRM

ERP

Unstructured and semi-structured

Master data management

Data warehouse

Context and meaning

Structured and

complex data

Data exchange

Content

Analytics

Technologies push scope beyond documents

Email

PDF

XML

Word

Fax

Exce

l

A Vision Of Domain-Specific And Eventually Transparent Content Services

January 2013 “Trends In Mobility, Cloud Computing, and Analytics Shake Up ECM”

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Related Markets In Different Phases of Growth And decline

18

Profit

Time

Emerging Phase Growth Phase Mature Phase Decline Phase

Production

On Demand

Content

Transformation Mobile

Smart

Process

Apps

BPM

Business Process Management Suites Become A

Platform For Smart Process Apps

Production

Straight through follows the happy path

75-80%

Ad hoc Requires ad hoc interactions to resolve exceptions 2-4%

Unique problem, requiring supervision 1-2% Opportunity for

differentiation

Limitation of packaged

apps

The cost of doing business

Enterprises Attack The Top Of The Pyramid

Structured

Collaboration Requires interaction with colleagues 15-18% Custom

Extensions

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Source: Forrester Research SPA Market Forecast, November 2012

Globally, the SPA Market Shows Growth Across Verticals

2010 2011 2012 2013(F) 2014(F) 2015(F) CAGR

Industrial & Energy Products $ 709.47 $ 843.79 $ 1,004.12 $ 1,200.32 $ 1,418.87 $ 1,649.75 18.39%

Transportation & Logistics $ 446.94 $ 535.20 $ 619.90 $ 751.85 $ 880.59 $1,113.54 20.03%

Utilities $ 358.33 $ 415.46 $ 527.89 $ 655.51 $ 777.30 $ 945.24 21.41%

Financial Services $ 1,368.89 $1,553.71 $ 1,899.15 $2,399.67 $2,872.44 $ 3,257.30 18.93%

Insurance $ 651.78 $ 723.77 $ 833.13 $1,050.88 $ 1,291.56 $ 1,531.18 18.63%

Healthcare $ 422.24 $ 506.51 $ 602.47 $ 764.56 $ 954.65 $ 1,157.63 22.35%

Government $ 1,204.21 $ 1,433.53 $ 1,680.42 $ 2,021.13 $ 2,458.97 $ 2,952.51 19.65%

I&E Products

Trans & Log

Financial

Services

Utilities

Insurance

Smart

Process App

Market

(US$ millions)

21

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Government

Healthcare

Multi-channel Communications of relevant information

Image Source: Forrester Research

Smart process apps will emerge that are designed for

people and built for change

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Top Content Use Cases In Financial Services

Source: Forrsights Budgets And Priorities Tracker Survey, Q4 2011

1. Retail Customer Service

2. Account Opening

3. Risk Management

4. Product Processing

5. Regulatory Reporting

“What are your company's three most important industry

priorities?” [Banking industry]

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Top Content Use Cases In Government

1. Constituent Communications

2. Citizen Self Service

3. Candidate Management

4. Contracts Management

5. Care/Service Coordination

Source: Forrsights Budgets And Priorities Tracker Survey, Q4 2011

“What are your company's three most important industry

priorities?” [Federal government]

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Top Content Use Cases In Healthcare

1. Virtual Repository for Health Information

2. Discharge Summary and Management

3. Collections Case Management

4. Case-based Care Coordination

5. Investigative Case Management (RAC

Audits)

Source: Forrsights Budgets And Priorities Tracker Survey, Q4 2011

“What are your company's three most important industry

priorities?” [Healthcare industry]

Digital Disruption Generates Better Ideas, Faster

October 2011 “The Disruptor’s Handbook”

Embrace Simplicity And Focus On Primary Needs

“ Simple can be harder than

complex: You have to work

hard to get your thinking

clean to make it simple. But

it’s worth it in the end

because once you get there,

you can move mountains.”

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Key Take-aways

› Business Agility Is The Foundation For Sustained Competitive Advantage

› Agile Businesses Excel Across Ten Dimensions That Cover The Entire Enterprise

› Process Capabilities ECM, BPM, DCM, and BI Can Help Master Process Agility Dimensions

› SPAs – Where Focus Beats Scope - Will Lead The Software Industry

Thank you Craig LeClair

cleclair@forrester.com