Thursday, January 24, 2008

Are Vendors Ignoring Users in Business Process?

So among the many things crossing my Google alerts in the past week is this little gem posted on ZDNet and referring to recent Butler Group research which suggests that Business Process Management vendors are tech-obsessed, creating features at the expense of users needs.
According to the article.

BPM typically allows business professionals to develop operational processes which reflect their business requirements, according to a Butler Group report, with application development, modelling and integration services driving the users' need for the technology.

However, vendors tend to get carried away with technical aspects of BPM rather than responding to users' real needs, Butler Group said: "One worrying issue is that BPM has a history of hooking into the latest and greatest technology wave."

While users focus more on the human interaction angle of BPM, vendors prefer to see the system as a "technology sell" — a standpoint which can negatively affect communication, according to Butler.

No issue with what BPM is and what drives it. However, I am not sure why anyone should be surprised to find that when integration services are potentially an important part of the equation, then vendors might look for more features. The fact that BPM is often a technology sell speaks both to who the buyers are (at least 50% of the time in IT) and maybe more importantly, who is selling it.

When you view the summary of the Butler report, you find that their recommended short list for vendors in the current state of the market includes BEA (soon to be Oracle), Pegasystems, Metastorm, TIBCO, and Software AG. There are many things I could take issue with regardng this leader short list and I can only assume they have a very European centric view of the market, but the reality is that 4-5 of those vendors, if not 5-5 of those vendors are focused on and have built their business on IT driven sales. So the idea that IT vendors selling with an IT slant a particular technology that is also applicable to business people might cause issues with the communication of value of said solution is a surprise why?

The simple reality here is that all these vendors have arrived at the BPM party by trying to come up-stack to include business analyst and senior management related tools like stand alone process modeling, condition logic, business activity monitoring, custom forms, dashboards, etc to capitalize on the growing interest in BPM. This also helps them compete with pure play leaders in the space (Savvion, Appian, Lombardi) who focus more on the business side of the value equation. Core to BPM's rapid growth and success as a category is that the value proposition is easy to understand: rapidly develop process solutions (usually sub 90 days for the first application) which are easy for business users to specify, define, and then manage once implemented. The fact that these solutions help close the gaps between existing legacy applications and work with whatever the organization has in the back office is very compelling to both business and IT. Often the business value and ROI is very high.

Both the article and the research summary also suggest that SOA is a threat to BPM. This is not likely unless a BPM project gets caught up in the wheels of SOA strategy and never gets executed. The reality is that companies who are smart about BPM use the capabilities around modeling and rapid solution development to scope and execute on enterprise wide SOA strategies which deliver both high value in terms of business readiness and lowered cost. That would be a great topic for more research and much more helpful then the suggestion in the article, which is obviously incorrect, that SOA is a new feature of BPM. Yawn. However it does a pose a threat to business value when one of the big platform or IT guys sells BPM as one more thing on the price list while they are trying to sell integration technology or application servers. In that scenario, everyone loses.

4 comments:

Russell said...

Hi Pat,

Reading my copy of the Buter Report on Pegasystems -- the company that I (full disclosure) work for -- they write: "The solution has been designed to deliver easy-to-use (targeted
towards business specialists rather than technologists)
, highly-configurable, process-centric business
solutions."

Not quite aligned with your view I think. From our perspective, the business user is of paramount importance. We think the guys at Butler did a terrific and thorough job and have a pretty good grasp on things on both sides of the pond.

Your representation that the success of BPM is driven solely by IT is, at least from where i sit, incorrect.

Take care.

Pat said...
This post has been removed by the author.
Pat said...

Russell

Thanks for the note and comment. Pegasystems is a well respected company with an industry leading product - a fact backed up not just by Butler, but by other leading research groups like Gartner and Forrester. And I don't disagree that SmartBPM is targeted to business specialists and is highly configurable. However, your organization has a long history (and plenty of success) selling to IT - be it with CRM, business rules, or BPM, as well as reselling IBM. And while the business user is always of paramount importance in BPMS, it takes a lot of training and professional services hours to install, deploy and operate a Pega solution. Most of those hours are on the IT side of the house. This likely explains the high percentage of services revenue compared to license revenue in your financial statements.

My perspective is not that BPM is driven solely by IT. In fact, it takes both IT and business partnership to truly unlock the power BPM. I just think the Butler analysis of both the market and companies gives too much weight to IT both short term and longer term.

Best of luck for another strong year at Pegasystems.

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