January 17, 2008 The Forrester Wave : Enterprise Marketing Platforms, Q1 2008

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1 January 17, 2008 The Forrester Wave : Enterprise Marketing Platforms, Q by Suresh Vittal for Direct Marketing Professionals Making Leaders Successful Every Day

2 Includes a Forrester Wave January 17, 2008 The Forrester Wave : Enterprise Marketing Platforms, Q Unica And Aprimo Are Leaders; Oracle (Siebel) Leads A Pack Of Strong Performers by Suresh Vittal with William Band, Jennifer Joseph, and Sarah Glass EXECUTIVE SUMMARY Eighty-three percent of marketers, a significant majority, tell us that they need a comprehensive marketing suite to improve their effectiveness. Enterprise marketing platform vendors that aspire to deliver this solution suite are currently unable to completely fill this need. To assess the state of the market, Forrester evaluated leading enterprise marketing platform vendors across 160 criteria and three scenarios. Each scenario focuses on a marketing role: marketing leadership, relationship marketing, and marketing operations. Our lab-based evaluation revealed that although the overall market is maturing, no vendor gets top marks across the board. Our analysis identifies Unica as a Leader in marketing leadership and relationship marketing scenarios, and Aprimo as a Leader in the marketing operations scenario. Oracle (Siebel) delivers the broadest overall solution, and SAS offers a strong, analytically driven solution for relationship marketing. New to our ranking this year, Alterian and SAP show promise, having emerged as Strong Performers in all our scenarios. TABLE OF CONTENTS 2 Demand For Enterprise Marketing Platforms Continues To Rise 4 Enterprise Marketing Platform Evaluation Overview 8 The Enterprise Marketing Platform Remains A Work In Progress 16 Vendor Profiles 19 Supplemental Material NOTES & RESOURCES Forrester conducted lab-based evaluations in October 2007 with eight vendors including Alterian, Aprimo, Infor, Oracle, SAP, SAS, Teradata, and Unica. We also collected, via an online survey and telephone interviews, information from more than 100 client companies including Abbott Labs, AutoDesk, Bank of Montreal, BT, HSBC, Kimberly Clark, Princess Cruises, and Sprint. Related Research Documents Forecast: Global Enterprise Marketing Platforms: 2007 To 2013 August 27, 2007 The Enterprise Marketing Software Landscape May 7, 2007 The Forrester Wave: Enterprise Marketing Platforms Q February 3, , Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Forrester clients may make one attributed copy or slide of each figure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage information, go to Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. To purchase reprints of this document, please resourcecenter@forrester.com.

3 2 The Forrester Wave : Enterprise Marketing Platforms, Q DEMAND FOR ENTERPRISE MARKETING PLATFORMS CONTINUES TO RISE Forrester s recent forecast of enterprise marketing platform solutions projects annual growth in excess of 20% over the next five years. 1 What will fuel this growth? Marketers focus on delivering differentiated customer experiences, increasing efficiency, integrating customer communications across channels, and unifying customer data and insight. A growing majority of marketers, 83%, increasingly believes that a comprehensive marketing suite that supports the entire marketing organization can be a difference maker. 2 Forrester refers to this as the enterprise marketing platform (EMP). Today s evolving platforms are focused on six core applications: 1) campaign management; 2) customer analytics; 3) interaction management; 4) marketing resource management (MRM); 5) marketing asset management (MAM); and 6) lead management (see Figure 1). 3 Marketers Want Platforms That Meet The Needs Of Their Role Despite healthy growth rates, organizations struggle to implement and utilize marketing platforms effectively. A recent Forrester survey of 73 marketers and technologists reveals that more than 40% of respondents struggle with campaign design, offer management, and customer segmentation. Nearly 60% of respondents lack the ability to manage marketing processes and resources and coordinate interaction management across channels (see Figure 2). 4 This suggests that although organizations are investing heavily in marketing technologies, user adoption and organizational acceptance are lukewarm. To understand how marketers select, implement, and adopt marketing technology platforms, we spoke to more than 100 marketers who told us that: Marketers prefer vendors that focus on their discipline. Decisions about which marketing platform to select often come down to how closely a vendor s strengths match the marketer s needs. As a senior direct marketer for a large financial services firm told us, We looked for solutions with strong segmentation, offer management, and analytics capabilities. Contrast this with the CPG and automotive marketers we spoke with, who were much more interested in asset and trade promotion management and collaboration tools. Costs affect selection, rollout, and adoption. In 2006, marketers told us that total cost of ownership was one of the most important factors driving technology decisions. 5 Not much has changed since then: marketers continue to rank cost as a significant factor. As the VP of marketing for an insurance company that selected its second choice vendor for a large campaign and lead management implementation explained, The winning vendor met most of our criteria and was able to do this for 30% less. This made our decision much simpler. Service providers wield plenty of influence. More than 80% of the marketers we spoke with rely on a marketing service provider or consulting organization to help them build or manage their database and perform campaign design and segmentation tasks. Marketers turn to service providers to limit IT s involvement, augment existing staff, and reduce time to market. Not surprisingly, the service providers influence the technology selection process, and are often responsible for bringing individual vendors to the table. January 17, , Forrester Research, Inc. Reproduction Prohibited

4 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 1 Six Applications Dominate Today s Enterprise Marketing Platform Enterprise marketing platform Marketing management Brand management Relationship marketing Interactive marketing Marketing resource management (MRM) Marketing asset management (MAM) Campaign management Marketing performance management Scenario planning Design software Interaction management Lead management Marketing reporting and analytics marketing Web interaction management Contact optimization Site optimization Marketing software categories Applications currently integrated with EMP Web analytics Application yet to be integrated with EMP... Source: Forrester Research, Inc. 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

5 4 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 2 Strength Of Best Practices Capabilities For Marketing Please rate your company s performance relative to each of the following marketing subcategories. (1 [Poor] to 5 [Outstanding]) Marketing resource management (n=348) Poor/below average Average Very good/outstanding Don t know 38% 33% 24% 5% Average score 2.9 Marketing campaign design (n=267) 26% 28% 38% 9% 3.1 Customer selection and segmentation for marketing campaigns (n=197) 40% 23% 27% 2.7 Marketing campaign offer management (n=206) 36% 25% 33% 6% 2.9 Marketing campaign execution and tracking (n=139) 32% 32% 32% 5% 3.0 Outbound and inbound marketing customer interaction management (n=202) 57% 26% 8% 2.2 Marketing support for lead management (n=123) 31% 26% 27% 16% 3.0 Base: 73 business and IT decision-makers (percentages may not total 100 because of rounding) Source: August 2007 North American Marketing, ecommerce, And Direct Sales Online Survey ENTERPRISE MARKETING PLATFORMS EVALUATION OVERVIEW Source: Forrester Research, Inc. To assess the state of the enterprise marketing platform market and see how the vendors stack up against each other, Forrester evaluated the strengths and weaknesses of top enterprise marketing platform vendors. Evaluation Criteria After examining past research and user need assessments as well as vendor and expert interviews, we developed a comprehensive set of evaluation criteria (see Figure 3). We evaluated vendors against approximately 160 criteria grouped into three high-level buckets: Current offering. To assess product strength, we evaluated each vendor s application suite along nine dimensions: marketing resource management, marketing asset management, campaign January 17, , Forrester Research, Inc. Reproduction Prohibited

6 The Forrester Wave : Enterprise Marketing Platforms, Q management, interaction management, lead management, analytics and reporting, other functional and vertical capabilities, application usability, and architecture. Strategy. We compared the product and go-to-market strategies of each vendor with Forrester s forward-looking vision of the enterprise marketing platform market to assess how well each vendor is positioned for future success. We also evaluated solution costs and vendor delivery models. Market presence. Nearly 60% of marketers say their firms prefer to buy best-of-breed technologies to support their marketing efforts. 6 To support this marketing imperative, we balanced information about the company s focus on enterprise marketing software with the company overall in terms of products and revenues. We combined information about each vendor s installed base, recent sales momentum, revenues, employee numbers, and partnerships to determine current market presence. Four Marketing Technology Buying Centers Emerge Organization s and their marketing departments address decisions about marketing platforms based on their business models, selling approach, customer base, and staff skills. Most marketing organizations have four buying centers, each with a unique set of expectations from a technology platform. They are: Marketing leadership role: focus on strategy, measurement, and marketing optimization. CMOs and marketing VPs have responsibility for the overall marketing strategy and budget. Given the scope of their responsibility, marketing leaders look for platforms that integrate processes across the department, deliver tools that enhance collaboration and productivity, measure overall performance, and deliver on the promise of integrating marketing across channels. As the CMO of a large consumer electronics firm explained, I need a system that provides visibility into all marketing activities across channels and regions. Relationship marketing role: emphasizes customer insight and value management. Relationship marketers are responsible for developing targeted marketing programs aimed at sustaining and growing customers or prospects interest in a firm s products or services. Marketers responsible for nurturing relationships are often found in the direct and database marketing organization and have a voracious appetite for technology. The earliest marketing platforms emerged to serve these roles, and consequently focused on delivering functionality that supports segmentation, campaign management, and customer analysis. Increasingly, relationship marketers are looking for platforms that extend capabilities to offer personalization, dialog marketing, event triggers, and contact optimization , Forrester Research, Inc. Reproduction Prohibited January 17, 2008

7 6 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 3 Evaluation Criteria CURRENT OFFERING Background information Marketing resource management Marketing asset management Campaign management Interaction management Lead management Analytics and reporting What product modules and versions were evaluated? How well does the product support marketing planning and management activities? How well does the product support marketing asset management activities? How robust and flexible are the product s tools for defining marketing communications? How strong are the product s capabilities for making marketing communications decisions within the context of a customer interaction? How strong are the product s lead scoring and routing tools for use in conjunction with a direct sales force? How strong are the product s reporting, analysis, data mining, and predictive modeling tools? Other functional and vertical capabilities What vertical capabilities and other major related functions does the vendor offer? Application usability Architecture STRATEGY Product strategy Corporate strategy Cost MARKET PRESENCE Installed base Customer references Financials Employees Partnerships How easy to use and consistent is the vendor s solution? Does the system provide a scalable, extensible, standards-based environment, including support for international data and common operating systems, programming environments, and databases? How strong is the vendor s product strategy? How committed is the vendor to delivering technology to improve the marketing process? What is the cost of this product? How strong is the vendor s installed base of customers for this product and for all products? How strong are the vendor s references? How strong is the vendor s financial position? How many engineers does the vendor have dedicated to this product? How big is the vendor s sales presence? How strong are the vendor s partner relationships? Source: Forrester Research, Inc. January 17, , Forrester Research, Inc. Reproduction Prohibited

8 The Forrester Wave : Enterprise Marketing Platforms, Q Marketing operations role: focuses on budgets, processes, and fulfillment. Many organizations, to tackle the growing complexity of marketing, increase in campaign volumes, and compliance requirements, have created a central function called marketing operations. The marketing operations role is responsible for managing marketing budgets, establishing standards, and closing the measurement loop as well as managing and maintaining marketing content. The marketing operations role also manages and coordinates relationships with the broader marketing ecosystem of vendors, suppliers, distributors, and service providers. The growing ubiquity of this function means that any platform that supports this role should have simple, intuitive user interfaces that support many users with varying levels of analytical and marketing demands. Interactive marketing role: focuses on integrating interactive channels. As this role focuses on new and emerging channels, technology solutions are mostly delivered by smaller, niche vendors focused on specific areas of expertise like search marketing, Web analytics, , and ad targeting. This means that interactive marketers struggle to coordinate internal and external activities, centralize measurement, and optimize spend. 8 Evaluated Vendors Show Promise On Two Key Dimensions Forrester included eight vendors in the assessment: Alterian, Aprimo, Infor, Oracle (Siebel), SAP, SAS, Teradata, and Unica. Together, these vendors account for more than 2,000 enterprise deployments of marketing technologies, and, by Forrester s estimates, for slightly more than one third of worldwide marketing platform revenues for Each of these vendors has (see Figure 4): Broad functional coverage of the enterprise marketing platform. Our primary selection criteria were breadth of functionality and support for the entire marketing life cycle. All vendors that made the cut have: 1) strong data management capabilities; 2) some level of functionality to address each of the functional dimensions we evaluated; and 3) a product roadmap that extends the platform to new and emerging channels. Significant market presence. We were also looking for vendors with considerable market share and exposure, which we defined as: 1) annual revenues greater than $25 million, and 2) an installed base of more than 150 enterprise customers using multiple platform modules. Three vendors Neolane, Pivotal Software, and Responsys barely missed the cut, primarily due to lack of significant market presence. However, all three show a healthy growth rate, and, if this trend continues, we expect to include them in future evaluations. 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

9 8 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 4 Evaluated Vendors: Product Information And Selection Criteria Vendor Product evaluated Product version evaluated Version release date Alterian Alterian Marketing Suite 2.2 July 2007 Aprimo Aprimo Enterprise 8 October 2007 Infor CRM Epiphany Marketing Suite June 2007 Oracle s Siebel Siebel Enterprise Marketing Suite 8 January 2007 SAP SAP CRM Marketing 2006s August 2007 SAS Customer Intelligence Platform 4.4 October 2006 Teradata Teradata Customer Management (CRM 5.2) 5.2 December 2006 Unica Affinium Marketing Management 7 June 2006 Vendor qualification criteria Broad functional coverage of the enterprise marketing platform. Our primary selection criteria were breadth of functionality and support for the entire marketing life cycle. Significant market presence. We defined this as: 1) annual revenues greater than $25 million, and 2) an installed base of more than 150 enterprise customers using multiple platform modules. Source: Forrester Research, Inc. THE ENTERPRISE MARKETING PLATFORM REMAINS A WORK IN PROGRESS Our analysis of current vendor offerings and strategies for future success yields results strikingly similar to those of our previous evaluation in Individual vendors made progress, but the market overall continues to struggle to deliver a comprehensive solution. To match the different expectations of each role, we scored the vendors against three role-based scenarios: Marketing leadership. This scenario focuses on core marketing applications like MRM, campaign management, and analytics and reporting, and stresses the importance of user interfaces and application architecture. The scenario is useful for marketing organizations focused on overall platform integration, measurement, and execution of strategy. Relationship marketing. This scenario emphasizes two functional areas that direct and relationship marketers care about: campaign management, and analytics and reporting. Marketing operations. This scenario highlights two applications, MRM and MAM, that support workflow creation and finance management and promote reusability and best practices. January 17, , Forrester Research, Inc. Reproduction Prohibited

10 The Forrester Wave : Enterprise Marketing Platforms, Q The scenario is useful for marketing organizations that have a distributed footprint and many complex projects, and that extend beyond direct marketing. The interactive marketing technology and services market is extremely fragmented, and no vendors currently focus on a platform to support this role. Marketing Leadership Platform Vision Remains Unrealized Our evaluation finds Unica to be the sole Leader in the marketing leadership scenario. But other vendors, led by Oracle (Siebel) and Aprimo, are closing the gap. The evaluation revealed that (see Figure 5): Performance management tools leave a lot to be desired. Although all vendors are focused on improving their tools for measuring marketing performance, much work remains to be done, as the tools are still centered on measuring performance of direct marketing programs. Marketers bemoan the lack of templates; lamented one, We need strong online analytical processing (OLAP) and business intelligence (BI) skills to use these interfaces effectively. These skills aren t widely available in most marketing organizations. Interactive capabilities continue to be neglected. None of the platforms offer much for the interactive marketer beyond support for marketing and Web analytics. These offerings are neither comprehensive nor best-of-breed, and our diligence process revealed that most vendors are only just beginning to account for the interactive marketer s technology requirements. Application usability has improved, but vendors still have a long way to go. Since our last evaluation in early 2006, multiple vendors have made improving the application user interface their highest priority. But marketers continue to express frustration with the pace of end user adoption and on-boarding. These marketers place most of the blame on application UI. Remarked one senior marketer, Our application UI looks like it was designed for call center agents or sales teams. I can t get my team to embrace these applications. This evaluation of the enterprise marketing platform market is intended to be a starting point only. Readers are encouraged to view detailed product evaluations and adapt the criteria weightings to fit their individual needs using the Forrester Wave Excel-based vendor comparison tool. The Platform For Relationship Marketers Is Mature Our evaluation shows Unica to be the Leader in the relationship marketing scenario largely on the strength of a deep campaign management application praised by many marketers. Oracle (Siebel) and SAS are right behind, leading a pack of Strong Performers. Marketers were also positive about Oracle, specifically, its strength in B2B marketing. Overall, the evaluation revealed that (see Figure 6): 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

11 10 The Forrester Wave : Enterprise Marketing Platforms, Q Campaign management tools lack differentiation. Segmentation and complex campaign management are table stakes in this market. Campaign management tools are now differentiating on dialog capabilities, event triggered marketing, offer management, and analysis. Contact optimization is still largely underserved. Direct marketers tell us that contact optimization is near the top of their wish list of technologies. 10 However, with the exception of Alterian, SAS, and Unica, most vendors offer either simple, rules-based tools aimed at managing frequency of contact or just focus on optimizing offers within campaigns. Why is contact optimization so hard to deliver? True contact optimization capabilities are elusive because most vendors are challenged to combine complicated mathematical algorithms with the intuitive scenario planning capabilities that marketers desire. This evaluation of the enterprise marketing platform market is intended to be a starting point only. Readers are encouraged to view detailed product evaluations and adapt the criteria weightings to fit their individual needs using the Forrester Wave Excel-based vendor comparison tool. Platform Support For Marketing Operations Is Growing Our evaluation shows Aprimo to be the Leader in the marketing operations scenario. Alterian, Oracle, SAP, and Unica lead the Strong Performer category. Our evaluation revealed that (see Figure 7): Vendors are investing aggressively in adding functionality. The increasing complexity of marketing means that operations-centric platforms that focus on improving efficiency are set to grow in popularity. To meet growing market demands, vendors on both sides of the spectrum tell us they are aggressively adding functionality to support project management, workflow definition, and financial management. Marketing asset management is not a core competence. Although all vendors provide functionality for defining and managing marketing assets, particularly in the digital channel, these capabilities aren t very deep. Specifically, most vendors lack: 1) deep integration with creative development tools like Adobe; 2) proofing tools that enable marketers to collaborate efficiently; and 3) localization and brand consistency management capabilities to support large, global organizations. Financial management tools are complicated. Multiple marketers told us that their platform s financial management modules provided capabilities to define and manage budgets, but struggled to deliver budget reconciliation, invoicing, and supplier management as well as integration with the organization s financial and back-office systems without adding significant complexity to the marketing process. The net result? Most marketing organizations struggle to adopt and institutionalize the use of financial management tools. This evaluation of the enterprise marketing platform market is intended to be a starting point only. Readers are encouraged to view detailed product evaluations and adapt the criteria weightings to fit their individual needs using the Forrester Wave Excel-based vendor comparison tool. January 17, , Forrester Research, Inc. Reproduction Prohibited

12 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 5 Forrester Wave : Enterprise Marketing Platforms, Marketing Leadership, Q1 08 Strong Risky Strong Bets Contenders Performers Leaders Go online to download Current offering Oracle s Siebel SAP SAS Teradata Infor Unica Aprimo Alterian the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Market presence Weak Full vendor participation Weak Strategy Strong Source: Forrester Research, Inc. 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

13 12 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 5 Forrester Wave : Enterprise Marketing Platforms, Marketing Leadership, Q1 08 (Cont.) Forrester s Weighting Alterian Aprimo Infor Oracle s Siebel SAP SAS Teradata Unica CURRENT OFFERING Background information Marketing resource management Marketing asset management Campaign management Interaction management Lead management Analytics and reporting Other functional and vertical capabilities Application usability Architecture 50% 0% 15% 15% 15% 0% 15% STRATEGY Product strategy Corporate strategy Cost 50% 50% 40% MARKET PRESENCE Installed base Customer references Financials Employees Partnerships 0% 30% 30% 15% 15% All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. January 17, , Forrester Research, Inc. Reproduction Prohibited

14 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 6 Forrester Wave : Enterprise Marketing Platforms, Relationship Marketing, Q1 08 Strong Risky Strong Bets Contenders Performers Leaders Oracle s Siebel SAS SAP Teradata Infor Alterian Unica Aprimo Go online to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Current offering Market presence Weak Full vendor participation Weak Strategy Strong Source: Forrester Research, Inc. 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

15 14 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 6 Forrester Wave : Enterprise Marketing Platforms, Relationship Marketing, Q1 08 (Cont.) Forrester s Weighting Alterian Aprimo Infor Oracle s Siebel SAP SAS Teradata Unica CURRENT OFFERING Background information Marketing resource management Marketing asset management Campaign management Interaction management Lead management Analytics and reporting Other functional and vertical capabilities Application usability Architecture 50% 0% 5% 0% 35% 5% 5% 25% 5% STRATEGY Product strategy Corporate strategy Cost 50% 50% 40% MARKET PRESENCE Installed base Customer references Financials Employees Partnerships 0% 30% 30% 15% 15% All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. January 17, , Forrester Research, Inc. Reproduction Prohibited

16 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 7 Forrester Wave : Enterprise Marketing Platforms, Marketing Operations, Q1 08 Strong Risky Strong Bets Contenders Performers Leaders Oracle s Siebel Aprimo Go online to download the Forrester Wave tool for more detailed product evaluations, feature Current offering SAP Teradata SAS Alterian Unica comparisons, and customizable rankings. Infor Market presence Weak Full vendor participation Weak Strategy Strong Source: Forrester Research, Inc. 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

17 16 The Forrester Wave : Enterprise Marketing Platforms, Q Figure 7 Forrester Wave : Enterprise Marketing Platforms, Marketing Operations, Q1 08 Forrester s Weighting Alterian Aprimo Infor Oracle s Siebel SAP SAS Teradata Unica CURRENT OFFERING Background information Marketing resource management Marketing asset management Campaign management Interaction management Lead management Analytics and reporting Other functional and vertical capabilities Application usability Architecture 50% 0% 40% 20% 5% 0% 0% 5% 5% 15% STRATEGY Product strategy Corporate strategy Cost 50% 50% 40% MARKET PRESENCE Installed base Customer references Financials Employees Partnerships 0% 30% 30% 15% 15% All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. VENDOR PROFILES Leaders Unica: Comprehensive Vision + Functionality = Market Leadership. Unica has been delivering a broad set of analytical and marketing software for more than a decade. As one of the earliest champions of the enterprise marketing vision, Unica has consistently focused its strategy on meeting the needs of the marketing organization. Unica is a Leader because it has combined strong campaign management functionality with a growing planning and management platform while judiciously adding advanced analytical capabilities like optimization, event detection, and interaction management. Unica also has the strongest strategic vision, which reflects its intent to build out the platform to support all January 17, , Forrester Research, Inc. Reproduction Prohibited

18 The Forrester Wave : Enterprise Marketing Platforms, Q marketing roles. However, Unica isn t without shortcomings. Its cross application integration still needs work, as does its strategy for interactive marketers. Customer references complain about the high license and implementation costs as well as significant variability in professional services skills. Aprimo: MRM leadership and platform improvements make a compelling case. Aprimo, which entered the marketing platform market in 1998, has always been focused on developing tools for managing marketing processes. The firm is best known for its leadership in the MRM segment. Version 8 is a major release that extends the capabilities of the technology acquired from the SmartPath and DoubleClick acquisition, which was fully integrated into their last major release. Two factors catapult Aprimo into the Leader category: 1) continued leadership in MRM and 2) across the board improvements to campaign management, application usability, and overall product strategy. To continue to penetrate the relationship marketing role, Aprimo needs to improve its analytics chops for segmentation, data discovery to support campaign analysts, and marketing performance management. Aprimo also needs to extend its integration workbench and support organization as its client base ventures to integrate the platform with back-office applications. Strong Performers Oracle (Siebel): Broadest overall functionality makes Oracle a fit for all verticals. Oracle released version 8 shortly after acquiring Siebel in January Since our last Forrester Wave evaluation of Siebel s marketing capabilities in 2006, Oracle has further clarified its product strategy, settling on the Siebel product suite as the de facto standard for marketing and loyalty. Our last Forrester Wave found Oracle (Siebel) to provide the broadest functionality in the market, a trend that continues in this Forrester Wave, with Oracle (Siebel) ranked as the solution with the deepest product capability. The Oracle (Siebel) marketing suite offers top notch MRM, MAM, campaign management, and lead management capabilities. Although Oracle continues to target and win some high volume B2C customers, this segment remains under-penetrated. Clients we spoke with often find the breadth of functionality overwhelming and caution against too much customization. The marketing suite remains a fit for marketers looking to integrate marketing with significant existing investments in Oracle ERP and CRM. SAP: Stable marketing platform, check; now focus on marketers. The third largest software organization in the world, SAP got into marketing applications through the broader CRM platform. SAP delivers good MRM, segmentation, and scenario management capabilities built on top of a pre-defined business data warehouse. 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

19 18 The Forrester Wave : Enterprise Marketing Platforms, Q We found that SAP, which currently has few high volume direct marketing clients, is working hard to recruit them. Overall, SAP is a good fit for: 1) organizations with an end-to-end SAP strategy, and 2) B2B and B2B2C firms. The complexity of SAP s application makes IT involvement a necessity for configuring the product to fit a marketer s process. Not surprisingly, most client references we spoke to were in the IT organization that supports the marketing function. To make more shortlists, SAP must focus on building credibility and recognition with marketing organizations. SAS: The focus on data driven marketing must extend to other marketing disciplines. SAS s Customer Intelligence platform offers the data driven marketing organization several important modules including Marketing Automation, Marketing Optimization, and Digital Marketing. SAS s platform offers best-in-class data mining and customer analytics capabilities. They also have significantly improved the performance and usability of its campaign management application. Customer references we spoke with were complimentary about the performance of the current version of Marketing Automation and Optimization. Recent improvements in workflow, configuration, and analytics were designed to make the application more usable and support the casual marketer. SAS s platform still offers only limited support for MRM, MAM, and Interaction Management. SAS reports that its SAS Customer Intelligence 5.1 released after our Forrester Wave evaluation addresses gaps in real-time interaction management, and significantly enhances interactive marketing and marketing optimization capabilities. Alterian: Innovative delivery model and singular focus lead to gains in market share. UKbased Alterian, founded in 1997 and a new entrant to our evaluation, is focused on delivering marketing platforms through a strong network of marketing service providers and agencies. Alterian has significantly extended its marketing platform through the acquisition of an platform, Dynamics Direct; contact optimization technology through The Customer Partnership; and an MRM software and solutions provider, Nvigorate. Alterian s Data Discovery and Visualization module gets rave reviews from marketers for its ease of use and support for campaign design. Alterian has also successfully integrated most of the acquired IP into the core platform. But Alterian offers only limited support for interaction and lead management. Alterian also needs to revamp its application user interfaces. Infor: Excels at interaction management; must renew commitment to the platform. Infor acquired SSA Global in May 2006, shortly after the latter s August 2005 acquisition of Epiphany CRM. Infor has since generated the most significant release of interaction management. Infor remains the best-in-class interaction management technology, with more than 100 live implementations supporting multichannel inbound marketing. Infor also offers solid campaign management capabilities with good marketer friendly analytics. But it falls short on MRM and January 17, , Forrester Research, Inc. Reproduction Prohibited

20 The Forrester Wave : Enterprise Marketing Platforms, Q MAM. Infor reports that its: 1) 7.1 release will extend outbound marketing significantly; 2) next release, due in March 2008, will include basic MRM capabilities; and 3) planned Q release will add additional inbound marketing capabilities. Teradata: Viable marketing platform for its warehouse customers. Teradata, formerly a division of NCR, entered the marketing software category in 1999, having beefed up its capabilities by acquiring campaign management vendor Ceres in It was spun off as a publicly traded company on October 1, Teradata CRM (TCRM) version 5.2 delivers strong functionality for analytics and customer segmentation, but the application focuses only on direct marketers, specifically, those on a Teradata data warehouse. TRM version 6, delayed by more than two years, was finally released on December 2007, after our Forrester Wave evaluation. Several existing clients we spoke with hope that version 6 will help TRM catch up to the market requirements for campaign management. Teradata reports that version 6 offers feature and functionality enhancements along with an architecture and GUI overhaul that should help its existing customers catch up. To fix its interaction management and MRM limitations, Teradata has, in the last six months, established OEM relationships with Infor and Assetlink, respectively. SUPPLEMENTAL MATERIAL Online Resource The online version of Figures 5, 6, and 7 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. Data Sources Used In This Forrester Wave Forrester used a combination of four data sources to assess the strengths and weaknesses of each solution: Hands-on lab evaluations. Vendors spent one day with a team of analysts who performed hands-on evaluations of their products using a scenario-based testing methodology. We evaluated each product using the same scenarios, creating a level playing field by evaluating every product on the same criteria. Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation criteria. After analyzing the completed vendor surveys, we conducted vendor calls as necessary to gather details of vendor qualifications. Product demos. We asked vendors to conduct demonstrations of their product s functionality. We used findings from these product demos to validate details of each vendor s product capabilities. 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

21 20 The Forrester Wave : Enterprise Marketing Platforms, Q Customer reference calls. To validate product and vendor qualifications, Forrester also conducted reference calls with more than six of each vendor s current customers. The Forrester Wave Methodology We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. From that initial pool of vendors, we then narrow our final list. We choose these vendors based on: 1) product fit; 2) customer success; and 3) Forrester client demand. We eliminate vendors that have limited customer references and products that don t fit the scope of our evaluation. After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we gather details of product qualifications through a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies. We set default weightings to reflect our analysis of the needs of large user companies and/or other scenarios as outlined in the Forrester Wave document and then score the vendors based on a clearly defined scale. These default weightings are intended only as a starting point, and readers are encouraged to adapt the weightings to fit their individual needs through the Excel-based tool. The final scores generate the graphical depiction of the market based on current offering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. ENDNOTES 1 Forrester uses a proven forecasting technique known as logistic modeling to forecast adoption. Three growth parameters saturation level, takeover time, and hypergrowth year drive the model. Forrester forecasts that the worldwide EMP market, including software license and maintenance revenues, will grow from more than $1.7 billion in 2007 to nearly $5.5 billion in Forrester expects this market to grow at a healthy clip, just under 20% annually, until See the August 27, 2007, Forecast: Global Enterprise Marketing Platforms: 2007 To 2013 report. 2 In 2005, more than three out of four marketers said that marketing needs a comprehensive, integrated application suite to improve its effectiveness. They reiterated this a year later, 83% of marketers surveyed agreeing with the statement. Forrester refers to this broader suite as the Marketing Technology Backbone, and we call its application layer the enterprise marketing platform (EMP). See the June 28, 2006, Marketing Technology Adoption 2006, and the April 26, 2007, Marketing Technology Adoption 2007 reports. 3 The EMP is maturing as vendors move to add functional breadth and depth to support channel and vertical requirements. Six core applications are tightly integrated to form the platform today. See the August 27, 2007, Forecast: Global Enterprise Marketing Platforms: 2007 To 2013 report. January 17, , Forrester Research, Inc. Reproduction Prohibited

22 The Forrester Wave : Enterprise Marketing Platforms, Q Forrester developed a framework that includes 150 best practice CRM capabilities organized into four categories: strategy, process, technology, and people. To understand how organizations execute on marketing programs, Forrester survey 73 organizations to discover their strengths and weaknesses compared to 22 marketing best practices capabilities. We found that adopting marketing best practices challenges many organizations. Organizations report significant deficiencies in the areas of: marketing resource management, marketing campaign offer management, and outbound and inbound customer interaction management. See the January 10, 2008, Marketing Best Practices Adoption report. 5 How do marketers select which vendors they work with? A majority of our respondents focus on five key factors: 1) functional alignment; 2) scalability and flexibility; 3) total cost of ownership; 4) industry expertise; and 5) architectural fit. See the April 26, 2007, Marketing Technology Adoption 2007 report. 6 Although respondents believe a more comprehensive suite would make them more effective, they are almost equally unwilling to give up best-of-breed functionality that offers them a competitive edge. A full 70% of respondents report that their firms currently prefer to purchase marketing software as discrete bestof-breed products from multiple vendors. See the June 28, 2007, Marketing Technology Adoption 2006 report. 7 To adapt to the changing needs of marketers, vendors have extended their core campaign management solutions to deliver event-based marketing, interaction management, lead management, optimization, and advanced analytics for customer value management and cross-sell. See the May 7, 2007, The Enterprise Marketing Software Landscape report. 8 Today, interactive marketing is a fragmented discipline in which marketers work with many different vendors to develop and execute marketing programs. But as the number of channels and programs grows, this situation becomes untenable. Today s interactive marketers have few options, as neither enterprise marketing suites nor interactive specialists address their needs. Forrester believes that the time is right for the online marketing suite to emerge. This suite, the eventual destiny for all online marketing technology, underpinned by a central hub, will enable a single view of the customer across channels, provide process tools to support collaboration, centralize optimization, and support a partner ecosystem. 9 To assess the state of the EMP market, Forrester evaluated the strengths and weaknesses of top EMP vendors across 168 criteria. We found that although there are pockets of excellence in areas like campaign management and process management, solutions fall short of delivering a comprehensive suite. See the February 3, 2006, The Forrester Wave : Enterprise Marketing Platforms, Q report. 10 Optimization technologies continue to intrigue marketers. Site optimization, contact optimization, interaction management, and Web interaction optimization all help marketers increase the relevance of customer interactions and communications, and all are among the top five planned technologies for See the April 26, 2007, Marketing Technology Adoption 2007 report. 2008, Forrester Research, Inc. Reproduction Prohibited January 17, 2008

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