Choosing Among Vendors

There are many opinions about the consolidation that has enveloped the BPM software industry. Critics say the independent vendors will have time to innovate, while the platform and warehouse players will spend the next few years focused on integrating multiple technologies into a solution suite. Supporters of the M&A feel the deep development resources of the platform and warehouse vendors will take BPM solutions to levels beyond those an independent vendor could reach.

Both points are valid. The first step a vendor usually takes after an acquisition is to increase interoperability between the disparate products within its newly formed suite. Some of the large BPM vendors say this process is complete -- but customers see a difference between simple interoperability and complete integration, and feel there is more work to be done to realize the gains in administration and reconciliation that the platform vendors are promising. In some cases, the large BPM vendors are also dealing with overlapping shelf space in the form of products that do similar things or technologies that are incompatible. They face difficult choices for their product direction, choices about which technologies to move forward with and whether to cannibalize multiple systems to create something completely new. They must weigh the benefits of progress in these areas with the risk of alienating their existing customers or making them feel like they have a dead-end product.

Meanwhile, independent BPM vendors who are free from these decisions can focus on features and functions that their customers demand. Independents will likely form alliances with vendors that provide framework and content management solutions, and in some cases they may create their own innovative solutions. They will also almost certainly see an appeal in meeting the unique needs of the major industry verticals. As independent vendors look for niches to differentiate their offerings from the mass-appeal product suites, the larger vendors will counter with industry templates or custom features. This overall trend should result in more versatile solutions that also require less customization and offer faster implementation.

As the marketplace sorts itself out, choosing the right vendor will require prospective buyers to evaluate their business technology assets and objectives. Obviously, companies that have a strong foundation with one of the platform or warehouse vendors may want to deploy that vendor's BPM offerings as part of their overall solution. This would enable them to leverage the IT assets they've already invested in as the vendor's product integration comes to fruition. Alternatively, companies that are bringing together disparate data sources or that have unique business requirements can make a strong case for considering the independent vendors.

Another consideration, which many organizations overlook in evaluating their BPM options, is the skill set and culture of their knowledge workers. Training and ease of use are important factors that can ensure the long-term viability of a performance management solution. Products that are very easy to use have much higher adoption rates than those that are complex or confusing for the end user. This sometimes gives the edge to the independent vendors, as their solutions are often newer and simpler technologies.

Finally, organizations shopping for performance management solutions must consider the cost and strategic fit of the products on their shortlist. Some companies implement an independent BPM product to serve as an interim or bridge solution that fills strategic gaps while the company performs a multiyear platform or warehouse implementation. An independent vendor may be able to provide a low-cost solution that remedies the immediate pains of a division, or of the entire enterprise, but will eventually be replaced with the company's standard.