Enterprise Social Software Market - Outlook ( ) for Financial Services
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1 Enterprise Social Software Market - Outlook ( ) for Financial Services explore@researchfox.com
2 ResearchFox Consulting is an Indian market research and consulting firm based in Bangalore. We strive to provide our clients with research data and reports which they can trust and analyze. Insights gleaned from our detailed and comprehensive research reports helps our clients stay ahead of trends. ResearchFox serves clients with services from data collection to analysis and reports. ResearchFox has extensive sector expertise and its consultants are abreast of global trends and issues across industries. Our areas of expertise include Manufacturing, IT, FMCG, Healthcare, Automotive, Government Sector and NGO, BFSI and Retail. Disclaimer : This report is furnished to the recipient for information purposes only. Each recipient should conduct their own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of ResearchFox Consulting Pvt.Ltd. contained in this report for any purpose. ResearchFox Consulting Pvt. Ltd. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions therefrom. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of ResearchFox Consulting Pvt.Ltd. Copyright ResearchFox Consulting Private Limited 2
3 Table of Contents 1. Introduction 1.1. Report Description 1.2. Objective 1.3. Scope of the Research 1.4. Regions Covered 1.5. Key Takeaways 1.6. Key Stakeholders 1.7. Key Terminologies 1.8. List of Abbreviations 2. Executive Summary 2.1. Executive Overview 3. Research and Forecasting 3.1. Research Methodology 3.2. Forecasting Methodology 4. Industry Landscape 4.1. Market Size and Growth 4.2. Competitive Landscape 4.3. Market Share 4.4. Company Classification 4.5. Region Outlook 4.6. Market Metrics 4.7. Porter's Five Forces Model 4.8. Key Drivers Analysis 4.9. Key Constraints Analysis Key Opportunities Identified Key Challenges Identified 5. Market Segmentation 5.1. Industry Financial Services Market Size and Forecasting Key Drivers Analysis Key Constraints Analysis Key Opportunities Identified Key Challenges Identified Sub Segments Region : North America Region : Europe Region : APAC Region : South America Region : RoW 3
4 dfgfd dfgfdh dfgfh dfhgf Introduction 01 4
5 1. Introduction 1.1. Report Description It is a known fact that businesses are growing worldwide and are seeking new technologies to simplify their operations. Along with this, companies are concentrating on improving their social media profile. And as a part of this, organizations especially large enterprises are investing in social media tools like Enterprise social software to provide employees with a social networking medium to share information and data internally. Use of enterprise social software would enable companies to maintain transparency within the organization and would also enhance the productivity of organizations. Enterprise social software would save the time and resources of the organization as the employees can share information in real time and avoid sending s to each and every individual. This report presents interpretative and easy-to-understand facts on how the current enterprise social software market is segmented based on end-user, verticals, deployment type and geographies. It cuts through several facets of the enterprise social software market such as market size, market share for each segment, the drivers and constraints of enterprise social software marketplace. It also throws light on various verticals where ESS is being rigorously implemented and the deployment type that is being preferred. Report also provides information on the challenges and opportunities that lie ahead for these solutions Objective 1. To understand the enterprise social software market across the globe by addressing the challenges faced by the industry with regards to the adoption of enterprise social software. 2. To estimate the size of present global enterprise social software market and to forecast its future values Scope of the Research Scope of the research was limited to understanding the market share across segments. Key drivers, constraints and challenges along with their impact on various business functions in both short term and long term were addressed. Segmentations and forecasting were done based on: 1. End-user 2. Verticals 3. Deployment Type (on-premise vs cloud) 4. Region based segmentation 1.4. Regions Covered 1. North America (US, Canada and Mexico) 2. Europe (United Kingdom, France, Germany, Italy, Spain) 3. APAC (Australia, India, China, Japan, Singapore and others) 4. South America (Brazil, Argentina and others) 5. RoW (Middle East and Africa, South America, Russia and other countries) 5
6 1.5. Key Takeaways The research conducted to understand enterprise social software market in different regions of the globe has revealed some valuable insights. Some of the key take away points involve information given below: 1. North America has the highest market share whereas Europe has the highest growth rate. 2. The market for enterprise social software was USD million in 2014 and is expected to grow at a CAGR of close to 22.26% till Adoption of enterprise social software is more among enterprises who have larger workforce and require solutions which help them to improve efficiency and productivity. 4. On-premise solutions are more preferred over cloud based as the enterprise businesses want more control over their data 5. IT & Telecom companies have emerged as the largest consumers of enterprise social software solutions as they have lot of employees serving at client?s place and would require to co-ordinate with the internal team during any project management Key Stakeholders 1.Enterprise social software solution and product providers: Enterprise social software solution providers will be able to gauge the market more accurately as this will assist them in better decision making. Also, the product developers would be able to develop products according to the requirement of the customers. 2. End-User companies:report will provide the end-users, a more clear picture on the solution provider demographics so that they can choose among the best. 3.Global Investors:Those investors who look to fund new and budding enterprise social software provider startups will get clear picture about the market and its trends. 4.Industry Watchers:Industry and trend watchers are always referred to as trusted advisors who follow markets. The report would add to their knowledge repository, creating value for their know-how. 6
7 1.7. Key Terminologies 1. Enterprise: Companies with an employee headcount above Mid-Size: Companies with an employee headcount between 501? Small-Business: Companies with an employee up to North America: North America includes countries? USA (United States Of America), Mexico and Canada. 5. Europe: Europe includes countries? UK (United Kingdom), France, Italy, Germany and Spain. 6. APAC (Asia Pacific): Asia Pacific includes countries? India, China, Japan, Philippines and Australia. 7. RoW (Rest of World): Rest of World includes Africa, Middle East Asia, UAE (United Arab Emirates) and Israel 8. South America: South America includes Brazil, Argentina, Chile and other countries 9. Enterprise Social Software: A networking and collaboration tool used within organizations to communicate, share and exchange data, information and other resources using intranet. 10. Enterprise Social Network (ESN): refers to use of social networking among the people of an organization in order to share business related information internally. 7
8 1.8. List of Abbreviations 1. APAC: Asia-Pacific 2. CAGR: Compound Annual Growth Rate 3. USA: United States of America 4. UK: United Kingdom 5. USD: United States Dollar 6. IT: Information Technology 7. ESS: Enterprise Social Software 8. HR: Human Resources 9. R&D: Research and Development 10. ESN: Enterprise Social Network 11. RoW: Rest of World 12. BRICS: Brazil, Russia, India, China and South Africa 13. YoY: Year on Year 8
9 dfgfd dfgfdh dfgfh dfhgf Executive Summary 02 9
10 2. Executive Summary 2.1. Executive Overview In today?s world, businesses are growing smart and seek new technologies to achieve more at optimum use of resources. It is a known fact that, in order to achieve greater effectiveness, business needs to grow more productive and more productivity can be achieved only when the organization becomes more transparent and each and every individual in the company is aware of what exactly are his or her responsibilities and duties. It has been observed in the past that lack of co-ordination has resulted in businesses suffering both financially and in terms of reputation. So, it becomes important that there is close co-ordination among employees and every individual is in sync with the company so that he or she can deliver the best. Enterprise social software or ESS is one such solution that is emerging as the new innovative tool to improve co-ordination among employees. ESS is an extended version of collaborative tools that existed from a long time. ESS is now being integrated with traditional and other communication tools existing in the organization. The problem with having only as a networking medium is that, it reaches only a few in the organization and if one does not have access to or accidentally misses the , he or she can never know what is being conveyed. In case of ESS, those who have subscribed get the message real time and the recipient can immediately respond back which gets conveyed to everybody in the group without any delays. With more and more businesses inclined towards social media tools like social networking sites, blogs, content sharing websites, the overall usage of ESS is set to grow in the coming years and the end-user companies are expected to adopt these solutions in more numbers. Europe and APAC are emerging as show stealers No doubt, North America still holds the larger market share and most of the customers are still from this region. But, in terms of combined annual growth rate, both Europe and APAC are ahead of North America. This is obvious because, in North America, most of the businesses have already been using enterprise social software and the ESS market here is mature. Whereas, in Europe and APAC, the adoption is picking up and the same trend is expected to continue at least till Businesses in both these regions are growing and expanding their presence and in this scenario, they are likely to invest in smarter IT tools like ESS to improve the collaboration and productivity. Enterprises are the major users; IT and Telecom industry are the prime adopters Enterprises generally consist of larger workforce and their employees are spread across the globe serving clients in different parts of the world. In this case, both the internal employees and those serving outside require to co-ordinate and collaborate more frequently for better execution of projects. Thus, enterprises are going for those solutions which are not just a collaborative tool but also a solution where employees can share their ideas and responses. Among the verticals, the IT andtelecom companies have emerged as the largest consumers of these solutions. The main reason being that most of the employees in this industry serve at the client?s place and require to interact with their companies on a daily basis. This has prompted them to adopt ESS. Other than 10
11 these, ESS is finding its place even in healthcare, manufacturing, e-commerce and others. Going forward, it is expected that ESS will see a comprehensive adoption irrespective of the industry or the business nature. On-premise adoption rate is high, but cloud catching up As of now, use of on-premise enterprise social software is high and this segment contributes more to the market share when compared to the cloud based solution. As enterprises form the larger end-user group of this solution, they prefer more control on their data and information and hence we see more use of onpremise enterprise social software. But, going forward, it is expected that the cloud based adoption will start overtaking the on-premise solutions. This is because, all enterprises, mid-size and small companies will start adopting these solutions to enjoy greater cost advantage. Challenges Although enterprise social software is being implemented across developed economies, the level of knowledge about the solution in other developing and under-developed countries is still low. The service providers are faced with the task of educating businesses about the benefits of such solutions. Moreover, businesses here are not keen to adopt such solutions and see them just as an extra investment. They also have limited themselves to usage of old techniques and are reluctant to switch to new technologies. Added to this, the employees where these solutions are implemented avoid usage of this solution as they feel that their privacy and data integrity would be at stake. Overcoming of these challenges would enable the growth of ESS in the coming years. 11
12 dfgfd dfgfdh dfgfh dfhgf Research and Forecasting 03 12
13 3.1. Research Methodology Base Year: 2014 Forecasting Period: Sampling The leading suppliers of each end-user product categories that were chosen to provide a larger representative sample. Purposive unit sampling was adopted for every service segment such as verticals, regions, end-users and others. This was resorted to, in order to elicit the appropriate inputs with regard to the qualitative growth aspects of the market Secondary Research The research methodology that was carried out was desk research through various journals, association reports, and in house database to build a knowledge base on various market service segments, product categories and industry trends. Various fact based data was analyzed. Some of the sources included: a. ResearchFox Knowledge Base: Previous data on the market has been put through a rigorous and comprehensive analysis to analyze the current state. b. Desk Research: Industry reports, annual reports, press releases, webinars, journals and publication, independent rating agencies and government statistics Primary Research Primary interviews were conducted among various stakeholders: Product and service companies Members of associations and alliances Subject Matter Experts and Evangelists Consultants and Strategists 13
14 Industry Information It was essential to understand the current industry landscape, market dynamics, security ecosystem and competitor metrics. To estimate the global market, Chief Experience Officers (CXOs), Marketing Heads, Sales Managers and product stakeholders were interviewed Technical Information In addition to the interviews with leading participants for industry-related information, ResearchFox conducted interviews with Research and Development (R&D) and Design and Development teams to understand the current usage of the products by service type and also to find out the emerging trends. Finally, interviews with suppliers were conducted to cross check the validity of information and also to understand the emerging trends in the end-user segment. The detailed methodology for primary research is outlined below Primary Interview Questionnaire Design ResearchFox developed a detailed questionnaire, which was used by the analysts as a guide for their discussions. This process ensured the collection of all necessary data. The questionnaire was designed to elicit unbiased industry level data (market size, production, sales, and others), that had check points (questions such as company level information and their position in the industry acted as check points) to ensure accuracy of the data. The questionnaire included the following sections: 1. Industry level information 2. Characteristics and Dynamics 3. Company-specific information 4. Market segmentation data Interview Questionnaire Test and Validation Following the design of the questionnaire, ResearchFox carried out some initial interviews to verify that the appropriate market and technology data was generated. After the final design of the questionnaire, ResearchFox began full scale primary research. Specific companies targeted for primary research interviews were selected based upon market participation. Higher was the entity's profile, more attractive was the entity. 14
15 Interview Process As participants respond in the course of an interview, ResearchFox analysts are trained to move from lower priority and/ or sensitive topics to increasingly key and/or sensitive topics in response to the interviewee's behavior. This responsive and reflective interview process, combined with the analysts' ability to discuss the industry and technical issues in an open and sharing environment, allows ResearchFox to probe for key data, operations, and competitive information. Multiple contacts within a single organization and with an individual are often planned and/or staged in order to optimize and complete the information gathering process Research Validation At a point, when 20 percent of the research interviews and/or data collection had been completed, ResearchFox consultants evaluated the preliminary findings to assure that up-to-date results are in line with project objectives. The analyst team analyzed the information from the interviews and information was validated through a combination of the following validation techniques: Cross checking with other primary data and previously developed in-house research Review of secondary information, such as trade journals, annual reports and industry directories 15
16 3.2. Forecasting Methodology Step-by-Step Methodology for Market Estimation and Forecasting Market Estimation and Forecast Methodology, 2015 Step 1 Method Understand the market mechanism for the market through structured, systematic and theoretically established norms of analyzing, designing, introducing and quality assurance of the market estimation 2 Measuring the various market drivers, constraints, opportunities and challenges at regular intervals of time 3 Integrate expert-opinion of discussions in consultation with the ResearchFox Analyst team 4 Market estimation and forecast calculation 5 Delphi method and Causal Analysis used as and when required 6 Rigorous quality check with heads of Research Team, Subject Matter Experts and Consultants before final publication Source: ResearchFox Significance and Importance of the Market Forecast, 2015 Sr. No. Significance and Importance 1 Helps revisit on the company's R&D investments 2 Keeps the Sales and Marketing team posted on the market prospects 3 Strategize investment and expansion plans 4 Improve business planning 5 Helps create business aims and set sales figures within the company 6 Aware of the current market competition 7 Support plans for Merger and Acquisition (M&A) Source: ResearchFox 16
17 About ResearchFox WHAT WE STAND FOR We strive towards helping our customers take informed decisions by providing different perspectives for business. We don't believe in flashing LOGOs but are proud to mention that we have been helping all sizes of businesses since our inception. We are glad to have contributed in our own little way towards making a business successful. Whether you are a start-up or a large enterprise, we assure equal treatment to all, after all "Customer is King"! THE TEAM We are a bunch of 25 people with handful of grey hair between us. Our humble experience of around 75 man years in market research and business consulting has led us to believe that this industry is ripe for disruption. With the advent of enterprise consumerization and rapid digitization across industries, days are numbered for traditional business models of market research and consulting services. We make all efforts to bring different (fresh) perspectives to Market, Competition, and Growth of your business. Contact Us: Suggest a Report Topic: Report topics are approved based on number of users with the same suggestion and users are notified when the topic is approved. If you prefer to customize a report, or would like to get your report done exclusively in less than a months time! Bangalore Hyderabad Pune Philippines # 4 & 5, 1st & 2nd Floor, # 104 & 105, 1st Floor, 6th Floor Pentagon P-2, L29 Joy Nostalg Centre, 1st Cross, Bhuvana Towers, Magarpatta City, 17 ADB Avenue, Krishna Reddy Colony, CMR Building, Hadapsar, Ortigas Center, Domlur Layout, Sarojini Devi Road, Pune , Pasig City, Manila, Bangalore , Secunderabad , India Philippines India India Phone: explore@researchfox.com Phone: explore@researchfox.com Phone: explore@researchfox.com explore@researchfox.com The information contained here in is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. 17
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