Enterprise Content Management:
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1 Heini Booysen Program Manager, Software & Consulting IDC MEA Enterprise Content Management: an IDC Perspective
2 Coming Up: Regional IT Markets Overview Information Chaos IDC Definition and Methodology Market sizing Drivers/inhibitors End users Future trends
3 Worldwide IT spending, 2004 North America $420.7 bn (43.7%) Western Europe $289.7 bn (30.1%) CEE $23.3 bn (2.4%) Asia Pacific $184.4 bn (19.1%) MEA $21.1 bn (2.1%) Total 2004 = $ billion
4 Bright Spots in IT Demand: Some Emerging Markets Growth Rate Over Prior Year 30% 25% 20% 15% 10% China India Central/Eastern Europe MEA 5% 0%
5 IT spending WE vs MEA, 2004 Hardware 34% Hardware 53% Services 31% Services 46% Software 20% WE Total = $289.7 billion Software 16% MEA Total = $21.1 billion
6 IT spending in the Gulf, 2004 KSA Spending = $1.94 bn Services 29% Hardware 53% UAE 30% Software 18% Gulf Total = $4.15 billion KSA 47% OGCC 23%
7 State of Enterprise: Sea of Content Collaborative Technologies CRM Office Suites Supply Chain Management Business Intelligence ERP ecommerce Portals Vertical Applications Search and Data mining Middleware
8 Information Chaos Wrong information Old information Scattered information Too much information Missing and incomplete information
9 Capacity Growth Accelerates While Revenue Increases Only Modestly 67% CAGR 1.4% CAGR Western European Disk Storage Systems 3,500PBs $10.0B 3,000PBs 2,500PBs 2,000PBs 1,500PBs 1,000PBs 500PBs 0PBs $8.0B $6.0B $4.0B $2.0B $0.0B Petabytes Customer Revenue US$B
10 Anticipated Capacity Growth over the Next 12 Months by Company Size N = 599 Source: Survey of IT Managers' Storage Buying Intentions: January 2004
11 Drivers of Storage Spending
12 Cost of Not Finding Information Time spent searching Searching success rate Cost of rework Opportunity cost Lost ecommerce revenue Additional self-help and customer support costs Source: IDC, 2003 $M ? Search Opportunity ecommerce Lost $$$ per year
13 An integration challenge looms 60% Degree of Integration 50% 40% With Internal Systems With External Systems 30% 20% 10% 0% Not at All Great Deal Not at All Great Deal Source: IDC eworld 2002 and 2003: 2,500 Companies in 10 Countries
14 ECM an IDC Definition Content management software builds, organizes, manages, and stores collections of digital works in any medium or format. Content management forms the foundation or the infrastructure for knowledge management. ECM Records mgmt Imaging Archiving Doc mgmt Web CM
15 Solving the Content Crisis ERP Vertical Applications Collaborative Technologies Business Intelligence Supply Chain Management Portals Office Suites Middleware ecommerce Search and Data mining CRM Content Infrastructure Content Management and Database Applications Unstructured Media Information Structured Data
16 Market size and growth, 2004 NA = $1.88 bn CAGR = 14% WE = $700 m CAGR = 16% MEA = $80m CAGR 24% GCC = $40m CAGR 30%
17 Today s Market: Business Drivers Towards Order Drive for a single point of access Need for improved ecommerce revenue Need to control customer support costs Regulatory compliance Corporate governance
18 Today s Market: Business Drivers Towards Order egovernment initiatives Government commitment to: Better public access to information Better intelligence gathering and analysis Ensure privacy Demand from paper-heavy industries
19 Today s Market: Inhibitors to Growth User concerns (implementation time, ROI) Competition with other enterprise IT needs Competition from homegrown, internal solutions Fear of creating more IT complexity Small vendors struggle to increase awareness Fear of lock-in to non-standardized applications Lack of advertising buzz
20 End user benefits from ECM Large co s SMBs Improved info accuracy Improved staff efficiency Reduced duplication of content Improved sharing of content Enterprisewide cost reduction Reduced customer support costs Reduced legal exposure Regulation compliance (% of respondents) Source: Content Management Systems: End-User Adoption, Implementation Benefits and Challenges, Jan 2004
21 End user ECM challenges Regulations Security Integration ROI and revenue generation Interoperability Performance and scalability Management support and buy-in Prioritization of project Customization Staffing issues (% of respondents) Source: Content Management Systems: End-User Adoption, Implementation Benefits and Challenges, Jan 2004
22 ECM Vision vs Reality Vision Supply the complete package/soln. ECM enterprisewide, fully integrated, interoperable, and seamless. Unify/integrate access to all content. Eliminate duplicate repositories. Content management is central to the functioning of the organization. They are Web services based Reality Many vendors are still acquiring the pieces It is not enterprisewide; mostly loosely coupled parts and discrete (not seamless) Multiple ways to integrate information; CM not seen as primary Separate repositories are jealously guarded. CEOs still don't see ECM as central to the business process It is still the early days for Web services
23 ECM into the Future Gap between vendor vision and reality closing Workflow,archiving, search embedded in apps Enterprise and personal computing set to change user interaction will simplify Consolidation will continue but niche players can survive Regulatory compliance
24 Questions or Comments? Heini Booysen Program Manager IDC Middle East & Africa
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