TECHNOLOGY VALUE MATRIX FIRST HALF 2014 ECM

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1 RESEARCH NOTE April 2014 TECHNOLOGY VALUE MATRIX FIRST HALF 2014 ECM THE BOTTOM LINE As the enterprise content management (ECM) market continues to mature, vendors are aligning solution development strategies around simplification and integration, facilitating broader adoption among users and delivering content in the applications where it is most needed. This Value Matrix evaluates vendors ability to deliver value based on usability and functionality, and how they are innovating to compete within the changing ECM market dynamic. As the volume of content within the enterprise continues to grow, companies continue to invest in ECM solutions to manage the lifecycle of content to ensure that information does not slip through the cracks and potential enterprise value is not lost. Despite the relative maturity of the ECM market, vendors continue to develop and enhance offerings for cloud and hybrid deployments as users increasingly turn to these environments to produce a higher ROI. Nucleus has identified three driving forces that are being integrated into the product roadmap for ECM vendors moving into the second half of 2014, including: Simplification. Nucleus is seeing an increased vendor focus on developing solutions with a higher priority on the user experience, reducing clutter in the user interface, automating more processes to reduce training times and increase the productivity for daily users as well as users that have infrequent interaction with the solution. Integration. ECM solutions are moving away from stand-alone solutions within the enterprise. There is a growing trend to integrate the access and management of content directly into other enterprise applications, such as CRM and HCM solutions, to provide a more streamlined and efficient experience for the user. These integrations are reducing time spent switching between interfaces and increasing the accuracy of content that is entered into the system. Mobility and collaboration. These functions continue to be strong focal points in the functionality road map for vendors to enable employees to create and access secure content from mobile devices and share that information with team members and customers in a more fluid, office-like experience. Nucleus Research Inc. 100 State Street Boston, MA Phone:

2 Usability April 2014 Leaders in this Matrix are focusing their efforts to provide broad, unified solutions that are easily deployed either on-premise or in the cloud to provide a depth and breadth of functionality that can be easily embraced by all users. Nucleus expects greater vendor attention to delivering deeper content management integration with applications in other enterprise markets, such as CRM and HCM, to create a more cohesive and fluid user experience by delivering content within the application user interface. ECM VALUE MATRIX 1H2014 Facilitator Leader Oracle Microsoft OnBase HP Autonomy Kofax Perceptive OpenText EMC IBM Digitech M-Files SpringCM Laserfiche Alfresco EverTeam Systemware Core Provider Expert Functionality ECM vendors are expanding the reach of enterprise content beyond the office, continuing to add secure mobile tools and social collaboration features to offer access to information across the enterprise regardless of location. In addition, vendors are moving toward more holistic solutions that can manage ECM needs without multiple layers of software to achieve end-to-end functionality within a single solution. ECM user interface integrations across platforms and applications continue to grow, reducing the number of steps necessary for users to enter, access, and manage content. Page 2

3 LEADERS Leaders in this Matrix include OpenText, Oracle, IBM, OnBase, EMC, HP Autonomy, Perceptive Software, and SpringCM. OPENTEXT OpenText s portfolio of enterprise information management systems continues to grow in depth and breadth offering services to enterprise organizations across all industries. Transitioning from 2013 into the first half of 2014 OpenText has a continued focus on improving the usability of its solution offerings to make it easier and more convenient for users across the enterprise to collaborate, share, and access content. The company is also working to strengthen its collaboration and sharing capabilities in mobile applications to meet demands for more powerful mobile collaboration tools. Users remark that OpenText stands out in its ability to listen to users and respond to needs of individual businesses and broad industry categories. OpenText has brought together five product suites intended to provide a bundle of necessary functionality that can be quickly and easily deployed across the enterprise. The five suits include the Content Suite, Process Suite, Experience Suite, Information Exchange Suite, and Discovery Suite. Over time, ECM systems have evolved into large, complex systems with high levels of functionality, but also require complex and expensive deployments. OpenText is looking to address these complexities by offering a bundled offering that is easier to deploy and use, making it more accessible and cost effective for the enterprise. OpenText is also strengthening its integrations with other vendor offerings to create a more fluid user experience regardless of existing systems that an enterprise may be using. In November 2013, it released OpenText Extended ECM for Oracle E-Business Suite, allowing companies to combine Oracle ERP processes with ECM functionality to streamline content sharing and process efficiencies. In March it released SharePoint Services for OpenText Extended Enterprise Content Management for SAP Solutions, to help tie together more enterprise systems to enable users to be more productive and provide more transparency into enterprise content. In February it also announced new features and capabilities for its OpenText Tempo product offerings, providing new features for more secure collaboration, social, and file sync capabilities. The social and collaboration features create more powerful ways for users to take advantage of mobile applications to be able to work and share while away from the office, creating smoother collaboration among remote teams and increasing productivity for employees outside the office. Page 3

4 Nucleus expects OpenText to continue to streamline its product offerings and introduce new social and mobile functionality to increase the ease of deployment and overall usability of its solutions. ORACLE Oracle has taken a two-prong approach to develop both the functionality and usability of its WebCenter offerings. The depth of Oracle s application infrastructure makes WebCenter an easily integrated, complimentary content management application for Oracle systems. However, users have also remarked that it is easily deployed across environments and integrates smoothly across enterprise processes. Oracle is extending the functionality of its content management integrations with other applications, including CRM and ERP, to make it easier for users to capture, manage, and collaborate with content directly from the application s user interface. These application integrations increase productivity for users by reducing time spent screen switching between UIs and increasing the accuracy of information as it is entered (Nucleus Research, o62 SpringCM announces Salesforce integrations, April 2014). It has also introduced more functionality in its mobile applications, keeping pace with other vendors by providing a secure mobile experience to keep employees engaged and empowered with the full range of enterprise content while working from a range of tablets and smartphones. In 2013 Oracle redesigned the WebCenter UI to create a simpler, more intuitive user experience, driving greater adoption among users at all levels of the enterprise and increasing the overall use of the available functionality. Oracle s planned addition this year of Documents Cloud Service will integrate file sharing and sync capabilities to provide secure cloud-based file sharing and collaboration for WebCenter users. Nucleus expects that Oracle will continue to improve the usability of its solutions with a continued focus on the user experience with improved UI design and deeper content management integrations with other applications, including CRM and HCM, to create a more streamlined and continuous experience for users. IBM IBM s ECM offerings continue to reflect a strong industry base of knowledge of content management for large and small enterprise organizations across industries and deployed environments. IBM continues to innovate deeper functionality anticipating new industry use cases as businesses create new demands to generate greater value with content. IBM s $1.2 billion dollar investment to further develop cloud offerings reflects a strategy to strengthen its interoperability among different environments to keep pace with shifting content from on-premise, cloud, and hybrid environments. In keeping with the ECM Page 4

5 industry and the demands of businesses that are embracing an increasingly mobile workforce, IBM added new collaboration and content security functions to its MobileFirst platform. The latest release of Content Navigator has a streamlined user interface to provide users a more intuitive search experience. The search capabilities move across systems and environments, providing a more productive and accurate search experience. Looking at content integration among applications, IBM is investing heavily in cloud-based developer platforms to empower users to innovate and customize its solutions to meet their needs. This developer empowerment will strengthen the intersection between ECM and other applications, putting IBM in a unique position to empower content management in new, integrated formats. While IBM s offerings are divided among many solutions, the integration and ease of use across the solutions makes it easy for users to share content in and among the different pieces. Nucleus expects that as IBM continues to develop its integrations in its analytics and data offerings, those functions and services will start to merge into its ECM offerings, creating more cohesive offerings that will offer deeper functionality on-premise and in the cloud. ONBASE BY HYLAND Rebranded this year after the name of its flagship product, OnBase by Hyland continues to offer comprehensive ECM functionality for document-intensive business processes. Users can deploy on-premise or through OnBase Cloud, Hyland s cloud service. Previous acquisitions have grown OnBase s offerings, broadening its functionality and giving it the scalability and depth of functionality to serve large organizations. The company s focus on customer service means that while it continues to grow its solution functionality, its primary focus is ensuring that the solution is intuitive and easily customizable to meet the needs of small and large businesses across industries. OnBase makes deployment and customization simple for mid-size companies by employing menu-driven configuration wizards that make it easy for an enterprise to customize the solution even if there is no developer on staff. The do-it-yourself approach to customization makes it easy for users to deploy the software at a lower cost without the help of developers and IT personnel to customize features and integrations. It also makes the software highly scalable for any size enterprise by allowing users to change features and functions as necessary with the growing or shrinking demands of the business throughout the year and throughout the solution lifetime. The company has built an industry expertise in the healthcare sector with a strong deployment history that has grown in recent years. Building industry expertise through Page 5

6 experience and associations, healthcare deployments now make up approximately 48 percent of OnBase s revenue. While cloud deployments are available, it has not become a central strategic focus for growth within OnBase because customers still prefer to deploy on-premise. Because a growing number of its customers are moving individual departments, such as human resources, to the cloud while maintaining other content on-premise, OnBase has developed seamless integrations for content access and management between those environments. In the next year Nucleus expects OnBase to strengthen its functionality around business intelligence and analytics to enable users to further leverage the value of their content and streamline business processes. EMC EMC Documentum offers a full suite of ECM solutions to handle the lifecycle of content from capture to archiving and information governance. In January 2014, EMC made a major release of new functions and features demonstrating a strong focus on content management integrations with other systems to increase usability making it easier to access, manage, and collaborate with content across platforms and devices. New Documentum features included: Documentum Connector for Microsoft SharePoint 7.1. This integration brings Documentum s content and process management capabilities into SharePoint. The integration includes improved content collaboration and enhanced search capabilities within SharePoint that still take advantage of Documentum s content management functionality. Syncplicity Connector for Documentum 1.1. This release includes improved document sharing capabilities once a document has been edited and saved. It also offers stronger scalability and a simplified installation and administration process to reduce deployment and maintenance time required by IT. Documentum InfoArchive. InfoArchive allows companies to archive and search content from a single location. Both structured and unstructured data can be stored in the single repository, reducing the number of archives required for content to speed the search and use of content. Documentum Services for SAP 7.0. Includes archive, content, and process services for SAP, further integrating a broad number of Documentum functions into SAP environments. EMC is working on broader integrations to embed Documentum functionality more prominently in existing systems, making it easier for users to incorporate greater content management into legacy systems that are not yet ready to be retired. The greater availability of Documentum functions across platforms reduces barriers to adoption and Page 6

7 allows companies to test-drive specific functionality before adopting the entire Documentum suite across the enterprise. InfoArchive provides a single archive structure to store both structured and unstructured data, reducing complex storage methods and increasing access to data for the enterprise. Consolidating content archiving will also reduce the number of systems required to manage and retrieve stored content repositories, reducing software layers and licensing costs (Nucleus Research, o15 EMC Documentum InfoArchive release, January 2014). Nucleus expects that EMC will continue to expand its integration offerings to make it easier for organizations to incorporate Documentum capabilities, increasing the usability and adoptability of its systems. HP AUTONOMY HP Autonomy offers a broad set of ECM capabilities for companies to manage content in on-premise, cloud-based, and hybrid environments. In the last year it has developed a core focus around information governance, integrating its ECM offerings into its information governance portfolio enabling companies to create consistency and accuracy as it becomes a more pervasive element in enterprise content management. In August 2013, HP Autonomy released HP Records Manager 8.0, integrating broad information governance capabilities within its records management solution, making it easier for companies to incorporate information governance capabilities into existing records management practices to automate and integrate the process. In February it launched HP Healthcare Analytics to enable healthcare providers to leverage unstructured patient data to provide a more holistic picture of patient information to enable faster and more accurate diagnosis. HP Autonomy also announced in February an extension of its ediscovery Platform that would make it available in cloud environments for legal practices and businesses to manage and scale content discovery based on the size of the enterprise and content requested via the HP Autonomy secure private cloud. The healthcare and legal verticals are experiencing greater growth as electronic records and documents become a more common practice. The new functionality in those industries puts HP Autonomy in a strong position to take advantage of the growth in those segments. Integrating information governance functionality into its broader set of ECM offerings, HP Autonomy is leading an approach to automate and integrate the process to reduce layers of additional software and to allow organizations to focus resources on business processes rather than retroactive content management (Nucleus Research, o57 Automating information governance, March 2014). Page 7

8 PERCEPTIVE SOFTWARE A stand-alone division of Lexmark International, Perceptive Software continues to demonstrate strong growth, including double-digit revenue growth in the last quarter of Perceptive s aggressive acquisition strategy during 2012 and 2013 expanded the individual functionality of its solution base and enlarged its global market reach. Perceptive is leveraging its acquired functionality to become an end-to-end ECM provider with its capabilities consolidated into solution packages to reduce complex software layers within the enterprise. Perceptive s most notable acquisitions include: PACSGEAR. The acquisition added specialized functionality in medical imaging capture and management. Saperion. A European provider of document archive and workflow capabilities, the acquisition added new functionality and broadened Perceptive s market penetration in the European market. ISYS. Provided improved enterprise-wide search, text mining, and mobile capabilities. Nolij. Web-based provider that included document imaging and workflow capabilities. Perceptive s most recent release, Content 7, reflects the functionality gains made through its strategic acquisitions. It is a fully integrated ECM solution that offers functionality for the entire life-cycle of content from capture to archiving. Companies will be able to retire legacy systems and deploy a single solution that integrates across platforms, creating a more efficient and streamlined content management process. The solution also offers process automation that will reduce the amount of human intervention necessary to manage content, and improve productivity by focusing employees on business processes rather than managing the solution (Nucleus Research, o71 Two ECM vendors to watch in 2014, April 2014). Perceptive users consistently commented that the ease of customization was a key factor for choosing the solution over other vendors. Following through with its strategic approach to add more functionality in solution packages that emphasize the user experience, Perceptive will continue to grow in industries that require more complex ECM functionality that is also easily adopted and understood by users at all levels of the enterprise. SPRINGCM SpringCM is the only ECM vendor in the Value Matrix that is an exclusively cloud-based solution. While organizations remained wary of moving to the cloud in the past, it is gaining wider acceptance as a safe and secure environment to store and manage content that provides a higher ROI when compared with traditional on-premise deployments (Nucleus Research, m108 Cloud delivers 1.7 times more ROI, September 2012). SpringCM s history in the cloud environment puts it in a good position to leverage that experience with new customers. Page 8

9 Taking advantage of its experience in cloud ECM, SpringCM is developing stronger integrations to share content and functionality in other cloud-based applications and platforms. In the last year SpringCM has had several announcements around expanding its functionality and application integrations: File It! and Get It! for Salesforce applications integrates content management capabilities in the Salesforce UI. Content Cloud Services for the Oracle Cloud Marketplace and the Oracle Sales Cloud to provide deeper integration across platforms. Share It! provides secure content sharing outside the SpringCM system to give the enterprise more control over sensitive content. To encourage adoption of its cloud-based ECM solution, SpringCM is making strategic investments to continue to grow its integrations to embed its ECM capabilities within other cloud-based applications. SpringCM has experienced the greatest success with its Salesforce integrations, and expects to continue to grow its content sharing integrations for Salesforce and other cloud-based applications. The content integrations can be applied to a wide array of applications, including Oracle Fusion CRM, making it a flexible, scalable solution that assimilates smoothly into enterprise business processes. SpringCM is poised to experience continued growth throughout 2014 as companies in all industries continue to move to the cloud. EXPERT Experts in this Matrix include Laserfiche, Alfresco, and Systemware. LASERFICHE Laserfiche approaches ECM with the view that content needs to be shared across each department of the enterprise, but displayed in a way that is efficient, flexible, and unique to the needs and business practices of the individual department. It also incorporates business process management functionality into its base ECM offerings to provide a greater depth of functionality out of the box that can be easily deployed among small and mid-size companies. Laserfiche combines its document imaging, document management, business process management, and records management in its core offerings, making the out of the box solution a powerful tool for small and mid-size companies. Its additional feature packages, including Laserfiche Rio, provide deeper functionality and scalability to meet the needs of larger organizations. The ability to scale the depth and breadth of offerings with unique solution packages makes Laserfiche a solution for businesses that want a cost effective ECM solution that provides ECM and BPM functionality, but can be easily scaled to meet the growing complexity of a business. Page 9

10 Its improved social BPM functionality provides a more in depth collaboration environment for teams and departments to utilize business processes for document management, increasing productivity by providing a single, secure environment to collaborate. Laserfiche has also grown its mobile offerings to include Android devices, accommodating the growing popularity of bring your own device (BYOD) business practices that need to support a wide range of devices while still providing secure, broad access to enterprise content. Laserfiche intends to continue to develop its mobile offerings to cover more devices and provide more powerful content management and business process functionality. ALFRESCO Alfresco continues to develop its cloud and mobile offerings to accommodate new demands among organizations moving to multiple environments. The open-source solution continues to provide a highly customizable solution with end-to-end functionality for companies in a wide range of industries. Alfresco promotes ease of adoption, low deployment and operation cost, and broad functionality as key features of the solution. The company s open-source model makes it highly customizable, especially when paired with its deep partner network, giving users the flexibility to change and mold the solution with the business as it grows and evolves. Its greatest successes have been with government entities that rely on its feature customization and highly developed awareness for content security in cloud environments. Alfresco s mobile offerings are also highly secure, including preset expiration periods for content that is shared with outside parties and full-time data encryption ensuring that security is not sacrificed when users are collaborating and sharing from mobile devices away from the office. Its partner network provides users a tremendous resource to help deploy, develop, and customize the systems and integrations to enhance the solutions overall functionality. Alfresco has a global network of partners to provide services around the world, enabling global enterprise adoption that can be tailored to unique markets and locations. Nucleus expects Alfresco to continue to grow its mobile offerings as part of a growing commitment to provide greater, secure access to content. SYSTEMWARE Systemware is a self-described boutique vendor serving the content management and storage needs of large companies, including Fortune 500 companies. It offers a range of ECM capabilities, including capture, and document and process management, but its core differentiator is its highly specialized archiving and records management systems. Page 10

11 Its Content Cloud utilizes distributed and centralized servers allowing companies to leverage the value of existing on-premise hardware to connect and share data across existing platforms with immediate availability and a high level of security that does not require backup servers to protect data. The Content Cloud utilizes a private cloud environment to ensure safety and security of the data while also giving users unfettered access across networks and devices. Systemware s solutions can be customized to meet the demands of the most regulated industries and can be easily scaled and modified based on changing regulatory environments. Its resiliency and security for data storage is a primary reason it is deployed among large financial institutions throughout the United States. Nucleus expects that Systemware will continue to develop functionality around business process management and archiving to further serve the increasingly complex regulatory environment and growing body of content generated in the financial and healthcare industries. FACILITATOR Facilitators in this Matrix include Microsoft, Kofax, and M-Files. MICROSOFT Microsoft SharePoint continues to have a deep presence as the central link for content management practices within organizations. Microsoft applications, including Microsoft Office, are still the standard for many of the world s businesses, making the addition of SharePoint another powerful link for companies that have deep knowledge and experience with Microsoft products and user interfaces. Speaking with users regarding ECM systems, SharePoint has a strong presence as the interface that is used to access, manage, and distribute content. Microsoft is making efforts to add additional content management functionality around SharePoint. Service Pack 1 for on-premise SharePoint customers will help them integrate OneDrive for Business as part of the content cloud, broadening Microsoft s content management capabilities. This is still a limited integration that does not fully integrate with existing ECM applications and cloud deployments, limiting its application in larger organizations. ECM vendors continue to develop integrations with SharePoint to incorporate with the solution because it is so firmly entrenched among enterprise systems. The flip side is that SharePoint has still not developed the functionality to exist as a stand-alone ECM solution, requiring additional systems to integrate with SharePoint to manage the full life cycle of enterprise content and to facilitate the sharing of content among other applications. Page 11

12 KOFAX Kofax is developing a stronger presence in the ECM market with its smart process applications being used to help businesses capture, extract, and deliver content quickly and effectively to speed the business process and reduce human intervention to get data and content where it needs to be. In January 2014 Kofax released its Mobile Capture Platform to help companies bridge the gap between the business and their customers. The Platform enables customers to capture content that will be automatically extracted and distributed to the appropriate systems within the enterprise. Companies will be able to develop mobile apps to leverage the solution to enhance their relationship with customers by giving them more control over their experience and interaction with the enterprise. It will also speed business processes around the utilization of content. While Kofax is best known for its capture technology, it is working towards become a more horizontal solution providing more ECM, BPM, mobility, and analytics functionality to go beyond capture. Its acquisition of Altosoft in March 2013 added business intelligence and analytics functionality to provide users an additional layer of value that can be derived from enterprise data within a single set of solutions. In July 2013 Kofax acquired Kapow Technologies, providing data integration functionality to extract and deliver data from multiple sources without the need for additional coding. Kofax has developed highly specialized functionality in the capture and distribution of content and continues to leverage those expertise with new functionality to help businesses further engage with their customers. Nucleus expects that it will continue to grow, organically and through acquisition, to provide deeper ECM functionality in the next year. M-FILES M-Files s enterprise content management solutions are based on a folder-less document management system that employs metadata to search, process, and archive content. M- Files has a growing global presence as an enterprise content management system that is easily deployed, quickly adopted, and offers a high level of regulatory compliance out of the box. Users have found that it is easily adopted, and provides a high level of document and information management functionality at a lower price than other ECM vendors (Nucleus Research, o67 M-Files ROI case study Booth & Associates, LLC, April 2014). M-Files focuses its solution offerings in three key areas: document management (DMS), quality management (QMS), and enterprise asset management (EAM). These solutions are offered with flexible deployment options on-premise, in the cloud, or in hybrid environments, giving users the flexibility to implement in their current environment with the option to expand over time. M-Files s can be deployed in any enterprise, but it Page 12

13 primarily serves organizations in manufacturing, life sciences, pharmaceuticals, medical devices, law, architecture, engineering, accounting, finance, and real estate. Its solutions also support a range of regulatory compliance needs, including ISO 9000/9001 for manufacturing, FDA rules for pharmaceutical, medical device, biotech companies, and Sarbanes-Oxley for accounting and financial services. Additional customization is available if additional regulatory demands need to be met. Users in technical fields, including engineering and manufacturing, rely heavily on M-Files to manage complex schematics, utilizing its versioning and check-out capabilities to improve productivity by reducing time spent searching for the latest version of documents. CORE PROVIDER Core Providers in this Matrix include Digitech and EVER TEAM. DIGITECH Digitech s focus is to provide intuitive, easy to use, and cost effective content management functions out of the box for businesses. It is currently working to create a more automated ECM experience that can be easily deployed and utilized by small and mid-size organizations in an array of industries. Its latest releases have added deeper functionality in distinct areas to grow its overall functional base while maintaining ease of use. PaperVision Enterprise R77, released in February 2014, added e-form and e-signature functionality to further reduce reliance on paper forms within the enterprise and increase user productivity with fast delivery of forms and signatures within workflows. The use of e-forms also reduces the potential for human error in data entry, making the point of entry for content more accurate (Nucleus Research, o23 - Digitech PaperVision Enterprise R77, February 2014). Nucleus expects that Digitech will continue to automate processes for the capture, delivery, and management of content to reduce the number of touches required to move content throughout the enterprise. Digitech also expects to offer new capabilities around capture and workflow technologies in 2014 to provide a more comprehensive system for capture and content routing. EVER TEAM EVER TEAM continues to have a strong presence as a comprehensive ECM provider in Europe, the Middle East, and Africa. EVER TEAM s integrations and strategic partnerships give it a stronger presence in the market to provide greater usability for users. It offers wide-ranging integrations with SharePoint, allowing companies to manage the life cycle of content while leveraging an existing system that is widely adopted across organizations. Page 13

14 Its strategic partnership with Konica Minolta Business Solutions Europe GmbH in March 2013 provides greater ECM capabilities for Konica Minolta customers while giving EVER TEAM a greater presence in the market. There is no indication that EVER TEAM has plans to release new functionality in 2014 or to update its user interface to make it easier for users to take advantage of the full functionality of the solution. As its market presence continues to grow, new application integrations and greater mobile capabilities could further develop EVER TEAM s usability and functionality. METHODOLOGY The Value Matrix is based on functionality and usability, the two core measures that Nucleus has found indicate an application s ability to deliver initial ROI and, ultimately, maximum value over time (Nucleus Research m106 Understanding the value matrix, October 2012). Usability composite scores are based on a number of factors, including intuitiveness of the application, availability of role-based interfaces, training requirements, and productivity impact on users. Functionality composite scores are based on the breadth and repeatability of functionality in the core application, the availability and ease of integration of add-on functionality that delivers additional benefit, and the vendor s investment in innovative functionality outside the application that will deliver additional benefits. The Matrix is divided into four quadrants: Leaders, Experts, Facilitators, and Core Providers: Vendors in the Leaders quadrant have invested in both functionality and usability features likely to deliver the greatest potential returns. Vendors in the Experts quadrant have invested in deep functional capabilities that, by nature, make the application more complex and thus require more training and expertise to use than Leaders. Vendors in the Facilitators quadrant have invested in making their applications intuitive and easy to use, driving rapid adoption with limited training requirements. Vendors in the Core Providers quadrant are point solutions or those that provide limited functionality at a relatively low cost, giving them a high value proposition when limited functionality is needed. Companies can use this Matrix to assess their investment short list as well as to evaluate the case for maintaining an existing product that may lag behind the value offered by other options. Nucleus expects the center point of the Matrix, which represents the composite average point in the market, will move up and to the right over time as vendors make more investments in functionality and usability effectively increasing the average value delivered across all products. Page 14

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