The trends for 2015 we identified a year ago have largely come to pass and continue to be a factor in the performance management space. We believe the three new trends described below will have a significant impact on performance management in 2016.
Combination of BPM and BI
This is a natural progression as users of performance management (BPM) systems are demanding more and better analytics and starting to request predictive analytics specifically. Their needs now go beyond just dashboards and data visualization. In addition, IT executives involved in BPM vendor selection projects are looking for BI to address custom use cases related to the core data in the system. What this leads to is a preference for performance management vendors that also offer integrated and robust business intelligence capabilities. While all vendors offer some BI-like functionality and most are built on a platform of BI tools, the need is for access to more complete and exposed BI functionality.
The vendors that benefit most from this trend are those that have acquired or partnered as resellers with BI vendors. These include Adaptive Insights (with Adaptive Discovery based on their myDials acquisition), Centage (with Analytics Maestro based on their BI-Metrix acquisition), Host Analytics with their Birst partnership, Longview with their arcplan merger, and Tagetik with their Qlik relationship. Of course IBM, Oracle, and SAP have significant BI offerings they can bundle in with their performance management solutions as well.
Cloud as the Standard
We have now reached the point where cloud has become the default deployment option in most performance management deals. At BPM Partners we did not encounter a single deal this year where the cloud option was off the table. Every customer we worked with was open to the cloud and the majority had it as their preference. In some instances they would only consider an on-premise solution if it had significantly better pricing or functionality when compared to the cloud-based alternatives. Recognizing this trend a number of vendors have been re-architecting for the cloud, those with multiple deployment options have been leading with the cloud, and even the largest vendors have introduced new cloud-based performance management offerings. We doubt that we will see any vendors left that don't offer a cloud option by the end of 2016.
Vendors that benefit most from this trend include the cloud-based performance management pioneers Adaptive Insights and Host Analytics, as well as the newer cloud vendors focused on large enterprises - Anaplan and Tidemark, and XLerant focused on smaller organizations. Tagetik and Vena Solutions have largely moved away from their on-premise options (unless pressed) and now lead with their cloud versions. SAP and Oracle Hyperion have introduced new native cloud planning solutions in the past year as well.
Availability of Pre-Built Solutions
This is a trend that has really been picking up steam. The idea is to pre-package specific processes or industry-specific needs so as to reduce the time and effort required to configure your new performance management system. The offerings are referred to by many different names. They include: blueprints, shell systems, templates, best practices, apps, starter kits, accelerators, solutions, etc. They have one primary goal - to demonstrate how to set-up the system to accomplish a specific task or series of tasks, and in so doing to reduce the time and cost involved in implementation, shorten the time to payback, and ultimately lower the total cost of ownership. Those benefits help to explain why numerous vendors have recently introduced their own versions of these pre-packaged solution sets.
Vendors that benefit most from this trend include IBM Cognos who led the way with their blueprints, Anaplan with their application models, deFacto Global by including pre-built functionality unique to particular industries in the core product itself, Longview with their Smart Client apps and pre-packaged content, OneStream Software with their self-service app store, and Tidemark with their packaged processes. There are three other vendors with unique approaches worth noting. While most of these packages are free Adaptive Insights charges for theirs. The reason is that to make their solution more useful they bundle in some best practice consulting time. AxiomEPM does something similar by bundling in embedded best practices in the form of management consulting delivering what they call 'software with a point-of-view'. On the other end of the spectrum from these pre-packaged solution sets is Altius. Instead of providing templates for you to follow or bundling in some expert consulting they go quite a bit further. They bundle in all the consulting you may require to customize their product for your particular needs at no additional cost.
While there were many other trends we observed in 2015 that will continue into 2016 we think these three are the most significant. They will help reshape the vendor landscape once again creating new leaders and laggards, and therefore should be taken into consideration when you evaluate solutions.
Posted December 22, 2015 10:10 AM
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