Skip to main content

BPM market Growing Rapidly but still Maturing and changing

Why SOA is implemented by more enterprises than BPM
SOA is an Architecture, so an enterprise may use an Architecture or not. 
Many Enterprises without any architecture, begin their SOA initiative, when SOA was only Hype and buzzword. Other Enterprises followed when it matured. Some realized measurable SOA benefits. 
Unfortunately, many of them executed it wrongly, and therefore their SOA benefits were limited or even non-existent. 

Managing Business Processes is not an option it is a must. Therefore Enterprises managed their Processes manually or by usage of code embedded in Systems' Business Logic Layer.

It is difficult to convince them to change their Process Management practices by implementing BPM.
The company's management team may use the slogan: If it is not broken do not fix it.  

The significant value of BPM is not Business Process Automation. It is Business Process Change or Improvement or Flexibility.
In order to change a Business Process, usually you need to automate it before changing it. Therefore BPM benefits are Long Term benefits.

It is more difficult to convince managers to spend resources when the predicted Return on Investment and the predicted benefits are Long Term.

SOA is already a Mainstream architecture, while BPM is still a rapidly growing and evolving market in 2011 and 2012. 
According to Ovum's Research Note, published in December 2011 "BPM is a rapidly growing  market and high double digit revenues growth figures are very common among leading vendors profiled in this report". 

I recommend reading the full report written by Somak Roy and titled:Decision matrix: Selecting a Business Process Management Vendor. 

In this post, I will discuss a limited number of topics appearing in that report.

The Vendors
Ovum view is that there are twelve leading vendors. Ovum divides them to the following categories:

1. Shortlist: Appian, IBM, Oracle and Pegasystems

2. Consider: Tibco,Cordys, Active Endpoints, Newgen, AuraPortal 

3. Explore: SAP, EMC, Bonitasoft

There are new vendors in the list, replacing vendors appearing in previous similar Research Note.  The change of the leaders list could be a sign of limited maturity of the BPM market. 

Case Management  
According to Ovum, Case Management is a major Focus area for most vendors.
It is not surprising. Vendors solutions, as well as BPM implementations, begin with handling automated Processes (SOA Processes). The next phase is adressing Human Processes and finally the less structured Processes, i.e. Case Management Processes, are the focus area.

SaaS  
BPM is not the best fit for SaaS. BPM Engine infrastructure requirements are limited. Usually, BPM implementations invoke Systems and/or Services and the amount of code and data in them is minimal.
The main issue is Business Alignment, which has nothing to do with Cloud Computing
Ovum believes that Cloud Computing will not be the dominant delivery model.

Social Software Concepts
Social is trendy, so it is possible to find Social concepts in most of the BPM products. However, currently they are important mainly in Case Management context.

Open Source
Bonitasoft is the only Open Source vendor included in Ovum list. Intalio, the Open Source BPM traditional leader is not included. According to Ovum, most vendors did not mentioned it as a competitor.
If Ovum's view will be verified by other sources, then the emergence of a new Open Source BPM leader could be an indication of BPM immaturity. 
   

MY Take

  • The question: Which BPMS Vendors were not included in Ovum's analysis? is as interesting as listing and comparing the twelve vendors included. I was surprised that Software AG was not included. I usually find it among the Leaders in Gartner's Magic Quadrant and in Forrester's BPMS Wave.
I was not surprised at all that Microsoft was not included. Traditionally, Microsft's BPM products are limited. However, Ovum did not include any of Microsoft's major BPMs partners, namely OpenText (acquired Metastorm and Global 360), K2 and Agile Point.

  • Cloud based BPM could be a major deleivery model
I agree with Ovum view that SaaS delivery model is more adequate to CRM or HR applications than to BPM. However, SaaS Delivery model is a natural choice for Enterprises which use the SaaS delivery model for the majority of their systems (SMBs for the following years 5 years). 

  • Not all BPMs products were created equal
Some of the BPMs products included by Ovum and some of the BPMs products not included are Niche products. 
For some use cases they will be better fit than the Leaders or Shortlist vendors in Ovum terminology.

For example, Active Endpoints's ActiveVOS suite is excellent solution for Straight-through Processes
Fujitsu's Interstage could be a good fit for large enterprises especially in the Japanese market.
Even SAP's BPM suite is mostly used in Enterprises deploying SAP's ERP.


Comments

Avi Rosenthal said…
LinkedIn Groups

Group: Israel High Tech (10,000+ members)
Discussion: BPM market Growing Rapidly but still Maturing and changing
SOA is an architecture/technology done by the IT without real involvement of the business.
BPM requires real business involvement and commitment to succeed.
SOA by itself may or may not succeed by chance, depending how much the CIO knows the business or if he can find here and there some guy in the business who wiil add some local BPM to the work.

That's all Folks!!

as Disney used to day.
Posted by Adrian Horodniceanu
Avi Rosenthal said…
Adrian, thanks for your comment.
I do not agree with the SOA description provided in your comment. It is true that this wrong attitude is the reason of many SOA initiatives failures, I refered to in my post as "Unfortunately, many of them executed it wrongly, and therefore their SOA benefits were limited or even non-existent."
SOA as well as BPM requires real business involvment.
Avi Rosenthal said…
I agree with the following comment posted in Linkedin

LinkedIn Groups

Group: Israel High Tech (10,000+ members)
Discussion: BPM market Growing Rapidly but still Maturing and changing
You are right . What I meant is that it depends who defines the "Services".
If they are a result of a real BPM than it is OK . if not they are just technical with no real impact to the business .

Service Oriented Architecture ( SOA ) - the big question is Services for whom !!!!! required BT whom !!!! needed for WHAT !!!!
When those questions are really answered that you have a good implementation .
But if you have a good invovement and commitment of the management and the business the rest is easy regardless ( almost) the technology and architecture . Agree ? ( They will make sure to get a good project manager ......)
Posted by Adrian Horodniceanu

Popular posts from this blog

The mainframe: still alive and kicking

Recently, I was interviewed by  Pcon   (unfortunately the link points to an Hebrew only site) as part of debriefing on Legacy Systems.  Pcon is an Israeli company investigating IT topics by quoting professional articles and interviewing experts. They publish the results of the investigations including practical recommendations. This post is mainly about topics raised by me during the interview, but not included in the debriefing, which will be published.    What are Legacy Systems? The term Legacy Systems refers to old application systems and/or veteran technologies still in use.  Usually, the term Legacy Systems is associated with: 1. Mainframe Hardware e.g. IBM System z and its Operating Systems or Proprietary Servers and Operating Systems such as HP Alpha and OpenVMS Operating System, IBM AS/400 and OS/400   Operating System. 2. Development and Production Environments, e.g. COBOL , Natural and DBMS systems such as Adabas  ...

Will Business and IT Aligned?

For decades we are talking about closing the gap between business and IT , but the gap is still as wide as it was. In the beginning of the ERP era, we focused on aligning Business Processes and Core Systems, but in most enterprises we failed. SOA was the next alignment promise: defining the SOA Services in Business boundaries instead of Technical boundaries, should narrow the gap. However, despite of SOA Business Value ( Agility and Reuse )  in most enterprises,  the large Business-IT Gap remained as large as it was.  The IT Community aimed at the next alignment attempt: SOA is technical and BPM is its Business related complement.  Will the current BPM based alignment attempt succeed? I do not know, but Nick Heath's article  titled: Stop doing what the vendors tell you, CIOs told , published in  Tech Republic , suggests that the root of the problem is not Technological .   Stop Doing What the vendors Tell You Nick Heath's article is based ...

Vendors Survival: Will Software AG Survive until 2019?

This post is another post in the Vendors Survival series following posts on Microsoft , Google , HP , Sun and EMC . On July 14 th Software AG and IDS Scheer announced that Software AG is going to take over IDS Scheer . The intended acquisition is an opportunity to add another post in my Vendors Survival posts series. A brief history of Software AG Mainframe products Software AG is larger than any German software company except SAP . It was established in the Mainframe age (in 1969). I worked with many customers, who used and some of them are still using, its two flagship products Adabas and Natural . Although these products support many platforms, their main platform is IBM Mainframe. Adabas is a database and Natural is a development environment. Like other pairs of Database and Development Environment in the mainframe environment (e.g. Ideal and Datacom , Mantis and Supra) build by the same vendor, they are tied together. As a result, although it is possible t...