Magic Quadrant for Marketing Resource Management

Transcription

1 G Magic Quadrant for Marketing Resource Management Published: 2 February 2015 Analyst(s): Kimberly Collins We evaluate vendors providing applications that support the management of marketing resources, such as plans, people, budgets, projects, tasks, assets and branded content. This Magic Quadrant will help IT leaders work with marketing to find an MRM solution to better manage their marketing resources. Market Definition/Description Marketing resource management (MRM) is a set of processes and capabilities designed to enhance a company's ability to orchestrate and optimize internal and external marketing resources (see "The Five Competencies of MRM 'Re-' Defined"). MRM applications enable companies to: Plan and budget for marketing activities and programs (strategic planning and financial management). Create and develop marketing programs and content (creative production and project management). Collect and manage content and knowledge (digital asset, content and knowledge management). Fulfill and distribute marketing assets, content and collateral (marketing fulfillment). Measure, analyze and optimize marketing resources (MRM analytics). Vendors in the MRM Magic Quadrant are assessed on their ability to support each of these five MRM competency areas. Although digital asset management (DAM) is one capability of MRM, this Magic Quadrant does not evaluate DAM vendors that do not provide other MRM functionality. Most MRM vendors offer a light DAM capability to support marketing asset management for creative production management and marketing fulfillment, but the focus is on support of MRM capabilities, not on enterprise DAM.

2 Magic Quadrant Figure 1. Magic Quadrant for Marketing Resource Management Source: Gartner (February 2015) Page 2 of 31 Gartner, Inc. G

3 Vendor Strengths and BrandMaker BrandMaker is a Leader for its broad and robust MRM solution; innovative focus; expanding geographical presence in North America, Eastern Europe and parts of Asia; and strong business model. Strengths Growth: BrandMaker stated a more than 19% increase in MRM revenue from 2013 to 2014, and a 52% increase in SaaS recurring revenue. The majority of its revenue is now recurring revenue. The vendor raised $30 million in investment funding in Gartner estimates that BrandMaker's MRM revenue for 2014 was between $15 million and $16 million. It has made significant investments in its direct sales force, doubling its sales capacity in the U.S. market, which will enable it to scale faster. R&D investment: In 2014, BrandMaker acquired advertzoom, and its solution has become BrandMaker's new Digital Marketing Center. The BrandMaker 5.7 release included key investments and improvements in improved financial management, bulk publish changes, new upload and search capabilities for Media Pool, and improvements to its Marketing PIM and event booking functionality in Marketing Shop. Its 5.8 release will focus on connectivity and application integration to integrate online and offline marketing (leveraging advertzoom integrations), as well as to integrate marketing with sales (Salesforce integration). Plans for version 6.0 include a new visual workflow editor with drag-and-drop capabilities and new dashboards. Business model: BrandMaker has a strong business model and focus for sales, geographical expansion and customer success that will enable it to scale the business and grow revenue faster. As a pure-play vendor, it is an attractive option for clients who prefer to work with bestof-breed vendors and are seeking alternatives to large vendors. Deployment models: BrandMaker's enterprise clients can choose between two main deployment options: Enterprise SaaS (hosted) and on-premises. Both are separate instances. It also offers a midmarket SaaS option. Hosting partners include TelemaxX in Germany and Rackspace in the U.S. Functional depth: Clients and prospects have cited issues with functional depth, particularly in planning and financial management, and in flexibility in workflow to make changes and adjust processes quickly. The improved financial management capabilities in the 5.7 release should alleviate some concern in this area, but it is too early for client feedback. BrandMaker is working on a new workflow tool in its 6.0 release. Gartner, Inc. G Page 3 of 31

4 Market visibility: Although BrandMaker is gaining visibility, it does not yet have the market visibility of the other MRM Leaders. It is known more for its brand and asset management capabilities, particularly in Europe. Competition: Market consolidation continues to create larger global MRM vendors. BrandMaker will be increasingly challenged globally, as integrated marketing management (IMM) vendors (such as IBM, Infor, Microsoft, SAP, SAS and Teradata) expand their traction and capabilities in marketing worldwide. Potential acquisition target: The vendor could be an acquisition target for large companies wanting to provide MRM capabilities. Its strong business model, growth and robust MRM solution would make it one of the better acquisition choices for vendors looking to enter the MRM market. BrandSystems BrandSystems is a Visionary for its broad set of MRM capabilities and expanding geographical strategy. Strengths Growth and geographical expansion: BrandSystems reported revenue growth of about 9% from 2013 to 2014, and it added 24 new MRM clients over the past year. The flat revenue growth is primarily due to a shift away from services to focus on software revenue and product development. Gartner estimates the vendor's 2014 MRM revenue is approximately $11 million to $12 million. BrandSystems will continue to expand beyond Europe into the U.S. and Australian markets in Broad MRM solution: BrandSystems provides a broad set of MRM capabilities for planning and budgeting, creative production management and collaboration, graphic production, marketing asset management, supply and distribution, and analysis and reporting. R&D investment: Integration between modules (Creative DAM and Marcom Manager) and with other ERP and CRM/marketing applications is a primary focus for investment. Investments in 2014 included an integrated media generator, an integrated content management system (CMS), an integrated media bank and asset library, and a cloud upgrade tool. Plans for 2015 include an enhanced resource manager with people resource and talent management capabilities, an integrated marketing shop, an enhanced purchase manager, an automated workflow, and a marketing predictor. Deployment options: BrandSystems can be deployed via SaaS, on-premises or hosted by a third party. The vendor has simplified its packaging and pricing. Market visibility: BrandSystems does not have the market visibility of some of the Leaders in the market. Gartner does not see it in as many competitive deals compared with the market leaders. Page 4 of 31 Gartner, Inc. G

5 Increased competition: Consolidation in the marketing application market is creating larger players in the MRM space. BrandSystems will be increasingly challenged by larger IMM vendors (such as IBM, Infor, SAP, SAS and Teradata). Global scale: BrandSystems is leveraging partners to move into new geographies and scale its business. Ultimately, it will need to have more of its own people and offices to sell and support the solution in order to compete with the larger vendors. References reported, on average, over 40% customization of the application, which also impacts a vendor's ability to scale. Large enterprise: BrandSystems' focus is on the midtier market, with revenue between $500 million and $5 billion. It is not actively going after large enterprise accounts. Therefore, BrandSystems will need to win more midmarket deals to grow revenue as fast as those MRM vendors focused on the large enterprise market. Capital ID Capital ID is a Niche Player for its regional clients in Europe (particularly Northern Europe), and its focus on the brand management and marketing fulfillment aspects of MRM. Strengths Growth: In 2013, Capital ID reported an 18% growth in profits, with many of its clients moving to a subscription model and increasing account value. Gartner estimates Capital ID generated between $10 million and $12 million in MRM revenue in Brand management and marketing fulfillment: Capital ID's MRM solution (ID Manager) focuses primarily on brand management and marketing fulfillment components, including creative production management, content management and media planning. R&D: Investments for 2014 included the release of ID Manager 4.0, with a focus on support for branded content in social media, enhancing the publication manager module for offline content, mobile device support for tablets and smartphones, dashboards for external data sources and social media, and a new prepackaged solution. Deployment options: ID Manager is available as an on-premises, hosted or SaaS solution. Rackspace provides third-party hosting. Prepackaged solutions provide short cycle time deployments that allow for customization afterward if clients require. Financial management and customization: The vendor provides some financial management capabilities, but these are not as robust as some of the leading MRM vendors' solutions, and are used primarily for creative projects and marketing content. References for this Magic Quadrant reported that, on average, the solution required over 50% customization. Market visibility: We do not see Capital ID on as many longlists nor in as many competitive deals compared with other MRM providers, including those based in Europe. It has struggled to gain much traction in the North American market. Gartner, Inc. G Page 5 of 31

6 Increased competition in Europe: Consolidation in the marketing application market is creating larger players in the MRM space. Capital ID will be increasingly challenged in its European markets, as larger IMM vendors develop strong MRM client bases in Europe. Market stability: More small vendors are entering the marketing asset management, marketing fulfillment and content marketing areas of MRM. As a small vendor, with less than $15 million in revenue, Capital ID is susceptible to strong fluctuations in a market that is rapidly becoming overcrowded. Code Worldwide Code Worldwide is a Visionary for its innovative focus on the end-to-end process for planning, managing, executing and measuring creative advertising campaigns and promotions. Strengths Growth: Code stated that it had approximately 16% revenue growth in MRM revenue from 2013 to It is a wholly owned subsidiary of Omnicom Group. Code has also established a global partnership with the agency Rapp that will resell adzu, increase implementation capacity and expand its data management services. Focus on creative advertising and branding: The adzu solution from Code places emphasis on the end-to-end and closed-loop process for creative advertising campaigns and promotions. It supports planning, budgeting, creative production, asset management, fulfillment, and measurement and reporting as part of this process. The vendor has one of the more innovative solutions for creative collaboration. R&D investment: Code made numerous improvements across its adzu solution in planning, collaboration, asset management, local marketing fulfillment and dashboard reporting. A key area of investment in 2014 included a significant enhancement to its operating system for faster implementation, a better UI, improved application integration and greater scalability. It also released a local marketing edition targeted at franchise and retail businesses. Deployment options and pricing: The solution can be deployed on-premises or as a hosted, single-tenant application. Code simplified its pricing this year. Agency reliance: Recommendations or reselling by Omnicom Group and Rapp could present at least a perceived agency bias to potential clients and prospects who are looking to separate MRM technology investments from agency-based decisions. Market visibility: Code has less market awareness and visibility than other vendors in the MRM Magic Quadrant. Gartner does not see Code in as many competitive deals as the other leading vendors that sell direct. Financial management, workflow and customization: Although Code provides moreadvanced capabilities for budgeting and planning, compared with other brand-managementfocused vendors, these capabilities are tightly tied to creative advertising and media promotion Page 6 of 31 Gartner, Inc. G

7 campaigns. There is no visual drag-and-drop workflow tool for routing, reviews, approvals and markups. References for the Magic Quadrant reported that, on average, the solution required over 50% customization. Small or midsize businesses (SMBs): Code is focused on selling to large enterprise clients with broad distribution. It does not target adzu to SMBs. Direxxis Direxxis is a Niche Player for its focus on MRM capabilities regarding asset management and fulfillment as part of a distributed marketing process, primarily in the North American market. Strengths Growth: Direxxis stated that it had approximately 13% revenue growth in MRM from 2013 to 2014, with 17 new clients. Gartner estimates Direxxis generated between $15 million and $17 million in MRM revenue in Marketing asset management and marketing fulfillment: The core value proposition for the MRM solution is focused on marketing asset management and marketing fulfillment capabilities, to support a distributed marketing process in decentralized marketing organizations, with local marketing enablement. MRM R&D: Investment in 2014 focused on a new UI, tracking of user actions using Google analytics, expanded capabilities for external linking, a new e-commerce-like multiorder and multichannel cart for marketing fulfillment, a new search engine, and enhanced asset classification management. Its road map includes content provider integration (Forefield/ Broadridge), Salesforce integration, digital media advertising campaign support, a collaboration module, a marketing advisor dashboard and a marketing program dashboard. Deployment options: Direxxis prefers to deploy the application as a multitenant, SaaS solution or as a hosted solution. Its new two-step implementation approach (implement core capabilities and then configure the application) ensures that clients can be up and running with core capabilities within a week of Direxxis receiving the clients' specs. Creative production management: Although Direxxis has added an approval module and has made enhancements in this area, it does not provide a visual drag-and-drop workflow tool and does not support all the project management capabilities and tasks, compared to leading MRM vendors or smaller MRM vendors with a project management focus. Financial management: Although Direxxis has some financial management capabilities, it does not currently have the robust capabilities of the market leaders to support enterprise marketing financial management. On-premises deployment option: This is not a standard option, but is a custom option on request. Gartner, Inc. G Page 7 of 31

8 Competition and acquisition target: Direxxis will face increased competition as European brand management and marketing fulfillment enter the North American MRM market. As consolidation continues, Gartner expects that large, global MRM and IMM players will also acquire stronger marketing fulfillment capabilities, making Direxxis an attractive acquisition target. Elateral Elateral is a Visionary for its innovative focus on marketing fulfillment and brand management, and its track record in global marketing environments. Strengths Growth: Elateral stated an approximately 20% increase in revenue from 2013 to 2014, adding more than 18 clients in Gartner estimates Elateral's MRM revenue for 2014 to be approximately $12 million to $13 million. R&D investment: Elateral has made significant investments in its platform over the past two years to consolidate three separate platforms and code bases down to one more advanced service-oriented architecture that supports both public and private cloud infrastructure as a service (IaaS). Other investments include enhanced support of multimedia content, responsive and animated digital content, 3D marketing displays and packaging, an improved UI/user experience (UX), cloud asset management capabilities, and enhanced reporting and analytics. Elateral has patents pending for its omnichannel bundling, innovative tablet capabilities, content analytics, 3D marketing display and packaging customization. Partner ecosystem: With its advanced service-based software platform, improved IaaS architecture, and new operating methods and service models, Elateral can now better support integrations across its growing vendor partner ecosystem. It is expanding partnerships for infrastructure as well as other business applications (such as campaign management, digital marketing, DAM, content production, delivery and support services). Deployment options: Elateral supports SaaS (public and private cloud options) and onpremises deployments. Its serviced-based architecture enables integration between both cloud and on-premises applications. Planning and financial management: Although Elateral continues to invest in planning and budgeting capabilities, they are not as robust as those offered by the Leaders in this Magic Quadrant. These capabilities lack depth of financial management and advanced features for quoting and procurement. Creative production management: Although Elateral has workflow to support marketing fulfillment, it lacks a robust workflow tool for managing creative projects, generating reviews and approvals, and allocating and managing people, teams and resources for original creative projects. Page 8 of 31 Gartner, Inc. G

9 Increasing competition: Although Elateral is one of the few growing vendors in the marketing fulfillment market, it is still one of the smaller MRM players, and new entrants continue to enter the market. Elateral will need to continue to raise its visibility in this market by fully leveraging its new IaaS platform and expanding partner network for faster deployments and growth. Potential acquisition target: ElateraI's innovative value proposition in marketing fulfillment could make it an attractive acquisition target for other vendors looking to expand their capabilities in this area. IBM IBM is a Challenger in MRM for its broad MRM solution, large client base and potential for continued investments. Strengths Viability and growth: IBM is a large, global company with $99.8 billion in revenue in 2013, making it one of the more viable vendors in this market. It has a large and growing marketing base for its campaign management and digital marketing applications, which it can leverage to cross-sell MRM. Gartner estimates IBM's MRM revenue to be between $30 million and $40 million for Broad solution: IBM provides a broad MRM solution across all five competencies, with strength in planning, financial management and creative production management. It leverages internal partnerships (IBM Enterprise Content Management [ECM] and IBM Exceptional Digital Experience [xdx]) and external partnerships (Elateral, Quark and Saepio) for content management and marketing fulfillment. R&D investment: Key features added in 2014 to IBM Marketing Operations include advanced workflow, mobile approvals, the ability to deactivate and hide projects no longer in use, usability improvements with forms and lists, Google Chrome support, form tasks to manage the entry of project information, and the ability to automatically incorporate the proper workflow steps based on information the user has entered about the project. For IBM Marketing Operations OnDemand, the concept of approvals was expanded beyond creative content to include approvals for anything (e.g., budgets, promotions and campaigns). In early 2015, IBM plans a beta release for its Experience Designer, a cloud-based graphical workflow and marketing storyboard planning tool, with general availability late Deployment options: IBM offers IBM Marketing Operations as an on-premises solution and as a private cloud hosted solution through IBM and third-party vendors (such as Accenture, Acxiom, Merkle and Epsilon). IBM Marketing Operations OnDemand is an on-demand, multitenant SaaS solution. Marketing asset management and marketing fulfillment: IBM relies on partnerships with external vendors like Elateral, Quark and Saepio, and internal partnerships with IBM ECM and Gartner, Inc. G Page 9 of 31

10 IBM xdx, to support marketing asset management and marketing fulfillment capabilities. Clients may prefer to have a fully integrated MRM solution, rather than rely on partnerships or purchase multiple products across a vendor's portfolio. Client feedback: Gartner has received calls from some clients evaluating other MRM vendors as they plan to move off IBM's MRM solution, particularly IBM Marketing Operations OnDemand. Clients state that they do not believe that IBM is investing in MRM and that the solution is outdated, compared to those offered by the Leaders in this Magic Quadrant. In the MRM reference survey for this Magic Quadrant, references that considered, but did not select, IBM stated the following reasons for not selecting its MRM solution: MRM functionality did not meet requirements, pricing, solution lacked robust MRM functionality, lack of MRM expertise and the vendor did not demonstrate an understanding of marketing's business requirements. References for this Magic Quadrant stated, on average, 70% customization of the solution. Innovation in MRM: Compared to other vendors in the MRM market, IBM is not developing innovative capabilities as quickly and tends to follow the market, rather than set the visionary pace. IBM has developed a visual workflow tool with real-time collaboration across its IMM suite. A few leading MRM vendors have had a similar capability in their MRM suites, and other MRM vendors have added it this past year. Hybrid model: IBM has been known to recommend both its on-premises and on-demand MRM solutions, as well as other IBM or partner solutions, when there is a broad set of required MRM capabilities. The new workflow tool will only be available in the cloud, but integrates with IBM's other on-premises MRM modules and campaign management solutions; therefore, many MRM clients wanting a broad solution would need to consider a hybrid deployment model. Infor Infor is a Leader for its broad MRM vision, easy-to-use solution, and robust capabilities for planning, financial management and creative production management. Strengths R&D investment: Infor made a major upgrade to its planning and financial management capabilities, making it more competitive with other leading vendors. It also improved its project management capabilities, introduced a new operational calendar and delivered a new proofing tool that doesn't require Adobe licenses to make annotations. Infor has made significant investments in its UI, continuing to simplify and improve ease of use of the solution. Plans call for more role-based interfaces. Gartner estimates Infor's MRM revenue in 2014 to be between $28 million and $33 million. Deployment models: Infor supports on-premises, multitenant SaaS and separate-instance hosted (by Infor or a third party) models. Pricing enables companies to start small and then expand capabilities. Professional services: Infor has doubled its MRM consultants and applied more rigorous Infor standards to its implementations. Page 10 of 31 Gartner, Inc. G

11 Ease of use: Clients site ease of use as one of the primary reasons for selecting the solution. Marketing fulfillment: Infor provides some capabilities for marketing fulfillment, but these are not as robust as some of the niche/specialty vendors in the market. Market visibility: Infor is not known as an MRM provider. Clients contacting Gartner about MRM are often not familiar with Infor, and have not heard about the Orbis MRM solution. Infor has recently boosted its media coverage for its CRM marketing applications. Market momentum: Gartner is not seeing Infor in as many MRM deals as it did a year ago. However, Infor states that it has seen strong traction within its large customer base. Product management changes: Infor has had some turnover in the management of its marketing application portfolio this past year. Currently, this is a good thing for its MRM solution, with the former Orbis CEO now leading the overall portfolio. At the time of publication, Infor had impending announcements of new appointments in this area. Microsoft Microsoft is a Challenger in the MRM Magic Quadrant for its overall viability, Dynamics opportunity, broad MRM solution and midmarket appeal. Strengths Dynamics opportunity: In 2014, Microsoft generated over $86 billion in revenue. Microsoft Dynamics CRM has growing momentum (80% growth in 4Q14), with over 40,000 customers. Although the bulk of this revenue is generated by sales force automation (SFA) sales, this presents a tremendous cross-sell opportunity for Dynamics Marketing and MRM. Gartner estimates that Microsoft had between $15 million and $20 million in MRM revenue in Broad solution: Microsoft provides a broad set of MRM capabilities for planning, budgeting, procurement, project management, content/asset management, media buying and performance management. R&D investment: Investments in 2014 focused on a new marketing calendar, a new visual workflow designer tool, improved process automation, improved reporting and dashboards, and new collaboration capabilities using "click to call" with Lync. Russian and Japanese were added in language support. Deployment options: Dynamics Marketing is only offered as a public SaaS service. Hosting for the vendor's SaaS solution is managed by Microsoft Data Centers globally. Marketing fulfillment and financial management: Although Microsoft offers some capabilities in this area, they are not as robust as the specialty marketing fulfillment vendors in the Niche Gartner, Inc. G Page 11 of 31

12 Players quadrant. Microsoft Dynamics received low ratings (3 out of 7) from references for this Magic Quadrant for budgeting and financial management capabilities. Large enterprise market: Microsoft's MRM capabilities are not as deep or complex as some of the market leaders, making it more attractive to midmarket buyers than to large enterprise buyers. Although Microsoft has sold to a few large enterprises, in general we do not see Microsoft in competitive deals in the large enterprise market. Part of Dynamics sale: Gartner is seeing less of Microsoft in stand-alone MRM deals where clients are not already Dynamics CRM customers for SFA. To become a Leader in this Magic Quadrant, Microsoft will need to be seen in more competitive and larger, stand-alone MRM deals. Market visibility: Many Gartner clients inquiring about MRM are not aware that Microsoft has a marketing or MRM solution. In fact, some clients may be using SharePoint or other non- Dynamics products and still are not aware. Microsoft Dynamics will need to raise the visibility of its MRM capabilities to get into more best-of-breed deals. North Plains Systems North Plains Systems is a Niche Player for its managing of the digital engagement life cycle. Strengths New leadership and combined product revenue: North Plains has a new management team with a more integrated solution vision focus on digital engagement. Gartner estimates MRM revenue from North Plains' Xinet, Telescope and On Brand products is between $25 million and $30 million. The vendor has over 1,400 installations and added 39 new clients in Focus on the creative marketing life cycle: North Plains offers customers prepackaged solutions for managing the creative marketing life cycle, from idea to fulfillment, across its combined set of products. Xinet is used for managing the production of creative assets. Telescope is the DAM solution responsible for managing visual assets. On Brand is used for managing the fulfillment, distribution and brand compliance of the visual assets. R&D investment: Xinet investments include improved collaborative workflow, UX improvements and a transition to a subscription offering. Telescope improvements include an improved UX for asset discovery and reuse, enhanced mobile experience, and readiness for cloud deployment. On Brand improvements include user base configuration, an integrated mobile and desktop experience, and a true cloud-based capability. Capabilities are being migrated to a new platform as a service (PaaS) architecture for a more integrated application that leverages video management across the platform, provides a responsive touch interface for mobile and tablets, includes improved dashboards and reporting, allows APIs for partner integration, and offers a new media portal for access to assets by casual users. Deployment options: North Plains' solutions are available on-premises, on-demand (SaaS) and via a dedicated hosting environment. Application hosting is supported by partners Amazon, Datapipe and TelecityGroup. Page 12 of 31 Gartner, Inc. G

13 Financial management and customization: Although On Brand provides some planning and budgeting capabilities, it does not offer the same level of complexity and advanced features, compared with the MRM Leaders. Planning and financial management are not strong focus areas for North Plains' R&D. References for the Magic Quadrant stated that, on average, the solution required over 50% customization. Separate products and codebases: Although some integrations have been made between Xinet, Telescope and On Brand, these products remain on separate codebases and are not yet fully integrated. Migration of features and functions to the new PaaS architecture could take two to three years to complete. Clients should evaluate the current capabilities and road map for PaaS if they are looking for an integrated solution. References gave very low ratings for ease of implementation of the software (2 out of 7) and low ratings for account management (3.25 out of 7). Migration: Current customers may eventually require a migration to the new PaaS platform. However, the migration path will provide them with the opportunity to obtain a broader set of integrated features and functions. Increased competition: Gartner expects that the larger IMM vendors will ultimately make an acquisition in the areas of marketing asset management and marketing fulfillment, generating competition from even larger vendors with a fuller set of MRM features. Ricoh (PTI Marketing Technologies) PTI, a Ricoh company, is a Niche Player for its focus on marketing asset management, fulfillment and distribution within the broader MRM context. Strengths Acquisition: PTI Marketing Technologies (aka MarcomCentral) was acquired in December 2014 by Ricoh. PTI is now operating as an independent division, reporting into Ricoh Corp., Limited (Tokyo). Ricoh is a large hardware vendor focused on printers and managed document services. This acquisition should expand PTI's geographical reach over time and provide new opportunities to cross-sell in Ricoh's larger client base. Gartner estimates Ricoh's/PTI's 2014 MRM-related revenue was between $11 million and $13 million. Marketing fulfillment: The MarcomCentral solution provides robust capabilities for marketing fulfillment and marketing personalization, with budgeting, workflow and asset management used to enhance the marketing fulfillment process and capabilities. R&D: Investments for 2014 include enhancements to search and the UI, enhanced PowerPoint capabilities, a new HTML output for , social media output for Twitter, a video bookend product, improved business intelligence and reporting with integration to Birst, and support for data in the cloud using Microsoft Azure. Gartner, Inc. G Page 13 of 31

14 Deployment models: Ricoh (PTI) supports SaaS deployments. It is moving into Azure's cloud for overseas expansion Financial management and workflow: MarcomCentral has some capabilities for budgeting for content and collateral, but does not provide a robust enterprise financial management and planning solution for marketing. The workflow is tied primarily to the customization, fulfillment and distribution of marketing content, and has not been prepackaged for creative reviews. On-premises and hosted deployment: Ricoh (PTI) does not currently support on-premises or single-tenant, hosted models. Transition postacquisition: It typically takes two to three years for a larger company to train sales and consulting staff to recognize the full potential that a global vendor can bring to a smaller, regional vendor. Clients should look for geographical rollout road maps for availability and skills in their areas. Software sales are very different from hardware sales, specifically when the applications are being marketed to business users, like marketing. Ricoh's success in the MRM market will depend on its ability to retain PTI staff (sales, customer service and implementation) and attract new talent. Employees, including high-level executives, will often stay through the initial transition period (about two years). Clients should monitor for signs of employee turnover in about one to two years. Increasing competition: Small vendors targeting the marketing asset management, marketing fulfillment, and content marketing areas of MRM are increasing rapidly. Many of the larger MRM vendors are likely to make acquisitions to expand their MRM capabilities, increasing the competition from larger players. Saepio Saepio is a Niche Player focused on marketing asset management and marketing fulfillment primarily in the U.S. market, with an industry concentration on healthcare, automotive and retail (including restaurants and hospitality). Strengths Bookings and profitability: Saepio reported a more than 50% increase in bookings growth in Also in 2014, it returned to profitability, and is forecasting stronger profitability due to its bookings in Local-marketing-enablement focus: Saepio's MRM solution focuses on sales enablement and brand management in local markets. The vendor's distributed marketing solution provides capabilities focused on the dynamic assembly of localized advertising and marketing communications for use in local markets. R&D investment: Saepio made more than 75 product enhancements to its MarketPort platform in 2014 and released MarketPort 2.0. Enhancements included optimizing the application for tablet users, enhanced workflow and approval processes for local marketers, enhancements to Page 14 of 31 Gartner, Inc. G

15 digital channels, and improved reporting. Integration with Salesforce is now available on the AppExchange. Integrations to IMM solutions continue with IBM ExperienceOne and SAS. Deployment models: Saepio offers hosted and multitenant SaaS options. Declining revenue: Although bookings have increased in 2014, Saepio stated an approximately 10% decline in revenue from 2013 to 2014, due to the lag in revenue recognition with SaaS bookings. Saepio falls just below the minimum revenue criteria for this Magic Quadrant, and will need to continue to improve its bookings and revenue in 2015 to remain in this Magic Quadrant. Given the improving overall financial health of Saepio, we have decided to leave it in the Magic Quadrant in Financial management and creative production: Saepio has some basic financial management capabilities, but they are not as robust or complex as those offered by the leading MRM vendors. Creative production and project management: Saepio has some creative production and workflow capabilities, which are used primarily to support downstream fulfillment and distribution of content. Increased competition: The number of small vendors targeting the marketing asset management, marketing fulfillment and content marketing areas of MRM is rapidly increasing. Larger MRM vendors are likely to make acquisitions in this area of MRM, bringing increased competition from larger players and making Saepio an attractive vendor for acquisition. SAP SAP is a Leader in this Magic Quadrant for its broad and robust set of MRM capabilities and market execution and traction, particularly in its installed client base. Strengths Market momentum: SAP Marketing continues to be an area of growth for SAP CRM, with over 40% of deals including marketing. Over 50% of SAP Marketing customers use its MRM capabilities. Most of its MRM license customers are now in the Asia/Pacific region and EMEA, but MRM has been gaining clients in Latin America. Gartner estimates SAP's MRM-related revenue is between $35 million and $45 million for MRM R&D: New enhancements have focused on end-to-end marketing planning and spend management, with a particular focus on simplicity and visual data manipulation usable on both desktops and tablets. In 1H15, the vendor plans to release a new marketing dashboard. In 1Q15, it plans to release a new multitenant SaaS-based marketing calendar, planning and financial management solution. Gartner, Inc. G Page 15 of 31

16 Partner ecosystem: SAP is extending its partner ecosystem for MRM to include advertising platforms (Facebook), data management platforms (DMPs; Turn) and marketing agencies as independent software vendor partners (Razorfish and SapientNitro). Deployment options and marketing cloud vision: SAP supports on-premises, hosted, ondemand and hybrid deployment options. Most MRM capabilities are deployed on-premises or hosted via private cloud. The new planning and financial management solution scheduled for release in 1Q15 will also be available as a public cloud offering. Multiple solutions: SAP relies on OpenText integration for DAM and marketing fulfillment capabilities. Some clients and prospects have stated that there are differences in the UIs of the SAP and OpenText solutions, and integration is not always seamless. Hybrid solution: Although SAP Jam is a public cloud offering, the vendor does not currently have a multitenant SaaS option across its entire set of MRM functionality. With its release of improved financial management capabilities in a SaaS solution, clients looking for a broad MRM solution will need to consider a hybrid deployment option, particularly if they are considering the OpenText features. Although SAP will add new capabilities to its SaaS-based MRM solution, it will likely take at least one year (and possibly longer) for it to offer the full set of its MRM capabilities in a SaaS model. Workflow: Business rules and workflow remain less flexible than those of the more mainstream MRM vendors, and are areas of concern cited by some clients and prospects. Market perception: Some prospects believe that if they are not considering other areas of CRM and ERP, then it does not make sense to pursue SAP as an option for MRM because they think it is too difficult to engage large vendors for a best-of-breed MRM solution. Gartner does not see SAP in best-of-breed MRM deals where the client is not already an SAP customer. SAS SAS is a Leader in MRM for its broad and robust set of MRM capabilities across the five competencies, and for its vision for next-generation MRM capabilities. Strengths Viability and growth: SAS is a large, privately owned company with approximately $3.2 billion in revenue in Gartner estimates that MRM revenue grew between 10% and 15% from 2013 to 2014, and estimates that SAS had more than $40 million in MRM revenue in The vendor has managed to improve satisfaction of some its at-risk clients with the latest versions of its solution. Clients on the latest versions are more satisfied with the solution, and we see fewer issues with client satisfaction with SAS for MRM this year than in previous years. Robust MRM solution: The Marketing Operations Management solution provides a strong set of capabilities in planning, financial management, creative production management, marketing asset management, marketing performance management and marketing mix optimization. Page 16 of 31 Gartner, Inc. G

17 R&D investment: New features released in Marketing Operations Management 6.3 include platform enhancements (deployment, security, performance and usability), improved reporting with visual analytics, forecasting in the planning module, improved ERP and IMM integration, improvements to DAM, the ability to handle partially available resources, new Korean localization, a new resource planning module, a new PIM module, and a new configuration manager for IT. Deployment options: SAS Marketing Operations Management is primarily deployed via SaaS, but is also available via on-premises, hosted or hybrid models. Marketing fulfillment: SAS provides some marketing fulfillment capabilities, but they are not as robust as the pure-play marketing fulfillment vendors, such as Elateral, Ricoh (PTI), Saepio and Wedia. MRM visibility: There continues to be some confusion in the market regarding SAS's MRM capabilities outside of its installed base. Gartner has noted that SAS is missing in some best-ofbreed MRM deals where it would have been an ideal candidate for the shortlists. Client feedback: References gave very low ratings for geographical support (2 out of 7) and low ratings for pricing (3 out of 7). MRM versions: Gartner anticipates that it will take SAS two to three years to move all its MRM functionality to its next-generation Customer Intelligence platform, which will be introduced in the latter part of In the meantime, clients will need to evaluate whether the latest version 6.x better meets their MRM requirements than the new platform, as both will be supported into the future. As with any new release, capabilities will be limited initially and will be added over time. Gartner expects that once SAS's new version has most of the capabilities of the current suite (Marketing Operations Management), new capabilities will be added to the new version, ultimately requiring customers to migrate to the new platform. Teradata Teradata is a Leader for its broad and deep solution, MRM experience, client maturity, client value focus, and continued market traction. Strengths Viability and growth: Teradata is a large, global company with $2.773 billion in revenue. Gartner estimates MRM-related revenue for 2014 is between $75 million and $85 million. We routinely see Teradata on client shortlists or in contract negotiations. Robust solution with mature implementations: Teradata provides a broad set of MRM functionality, with capabilities in each of the five competency areas, including deep functionality in planning, budgeting and creative production management. The vendor continues to have some of the most advanced MRM clients in the market. Gartner, Inc. G Page 17 of 31

18 R&D investment: Key areas of investment for 2014 in Marketing Operations 9.1 were tighter integrations with Adam Software for integrated content management, an improved UX, industryspecific capabilities for digital signatures on reviews in regulated industries, improved performance and scalability for its core workflow engine, enhanced administrative tools, and a new cloud help solution for user self-education. Road map plans for the next release include a focus on agile marketing capabilities, a next-generation and responsive UI, a new portfolio planner, the ability to dynamically create projects and tasks, the use of Kanban boards to visually organize tasks, and a focus on APIs to support third-party integrations. In 2015, Teradata plans to deliver Marketing Operations Cloud Express, an out-of-the-box offering with packaged implementation and intellectual property, including best practices and predefined workflow templates. Deployment options: Teradata offers on-premises, hosted and SaaS options for its Marketing Operations solution. Its Marketing Operations Cloud is an out-of-the box SaaS solution targeted at the midmarket, or for departmental divisions of enterprise clients that want to implement a simple solution more quickly. Marketing asset management and marketing fulfillment: Teradata has some capabilities for DAM and marketing fulfillment, but they are not as robust as those offered by the niche/ specialty vendors in the market. Teradata has a reseller partnership with Adam Software for DAM and marketing fulfillment capabilities, and has developed tighter integration with its last release. Gartner finds that many clients want one vendor to own the entire solution, which can make partnerships less effective in deals. Partner risk: Adam Software could be an attractive acquisition candidate for its DAM capabilities and growing client base. Teradata's partnership for marketing asset management and fulfillment capabilities could be at risk if another vendor, particularly a competitor, were to buy Adam Software. Increased competition: Teradata has been a longtime Leader in the MRM Magic Quadrant; however, as the market matures, it will find itself increasingly challenged to maintain a commanding lead. It will face increasing competition from larger vendors, such as IBM, Infor, SAS and SAP. Some clients prefer to work with stand-alone MRM vendors, rather than larger enterprise application vendors; thus, smaller vendors, such as Workfront and BrandMaker, will challenge Teradata as well. Client feedback: Gartner has received a few calls from some of Teradata's longtime clients looking to move off its solution and select another vendor. Reasons typically cited include problems with account management, pricing or overengineering of its robust solution. A few customers that bought the solution have complained about it taking too long to implement. Plan to evaluate the Marketing Operations Cloud Express solution once it's available as an option. Wedia Wedia is a Niche Player for its primary focus on creative production, marketing asset management and marketing fulfillment, as well as its predominantly regional focus in Europe. Page 18 of 31 Gartner, Inc. G

19 Strengths Growth: Wedia reports an approximate 13% increase in MRM revenue. It added approximately 18 new customers in Its focus is on large, global companies. Marketing asset management: The vendor's strength is in managing creative projects and review cycles, storing digital assets and marketing content, and fulfilling marketing content to local markets. The Wedia solution was built on a print-plus-web CMS, and was recently extended to DAM The solution provides project management capabilities, and supports fulfillment via mobile, print and the Web. R&D Investment: Wedia enhanced its functionality for DAM, project management and analytics in It also added new planning capabilities and the ability to manage marcom campaigns. In 2015, the vendor plans to continue to improve planning, reporting and dashboard capabilities, as well as to develop integrations for budgeting capabilities. Deployment options: The solution is SaaS-based, but can be deployed in a hosted (singletenant) model on Amazon by customers that do not want to share their infrastructure. Small company: Gartner estimates Wedia's overall revenue for MRM and DAM to be around $10 million, making it one of the smaller vendors in this Magic Quadrant. Focusing primarily on large, global companies that likely have made investments in MRM with other vendors in regions like North America is risky, because such companies look to consolidate MRM vendors across regions. Financial management, creative workflow and customization: Although Wedia provides some cost information and tracking for creative projects, it does not provide an enterprise budgeting and financial management tool for marketing. Visual drag-and-drop workflows, creative review and approval processes are geared to creative content campaign execution as part of marketing fulfillment. References for this Magic Quadrant gave very low ratings (2 out of 7) for reporting and analytics capabilities. References also stated that, on average, the solution required over 50% customization. On-premises: Wedia defaults to a cloud service implementation, but on-site system implementation is an option upon request. Midmarket clients: The vendor is not actively marketing and selling to SMBs. Workfront (formerly AtTask) Workfront (recently rebranded from AtTask) is a Challenger in this Magic Quadrant for its rapid growth, increasing resources for MRM, geographical expansion, and focus on creative project and resource management. Gartner, Inc. G Page 19 of 31

20 Strengths Growth: Workfront is one of the fastest-growing MRM vendors in this Magic Quadrant. It stated that it has doubled its MRM revenue from 2013 to 2014, and now has over 500 MRM clients. Gartner estimates Workfront's 2014 MRM revenue at between $23 million and $25 million. It is accelerating its investments (product and staff) and focus (marketing and sales) on MRM in 2015, including further European expansion beyond the U.K. Resource and project management focus: Workfront's MRM solutions are currently focused on its core competency in project management to meet the needs of creative project and resource management for marketing organizations, which is one of the hottest areas for MRM buying. Its robust people resource management capabilities are a competitive differentiator in the market. R&D: In 2014, Workfront added a new help site and improved tagging, developed a configurable sandbox, added multiobject search, improved its calendar, added capabilities for advanced document management, and created an announcement portal. The vendor has a "build, partner and buy" approach to expanding its MRM capabilities in planning and financial management, marketing asset management, and marketing fulfillment. SaaS: Workfront can be deployed as a multitenant SaaS or single-tenant hosted solution. Ninety-four percent of Workfront customers are using the multitenant SaaS model. Clients with high regulatory or security requirements have the option to deploy an on-premises version. Marketing asset management and marketing fulfillment: The vendor's DAM capabilities are comparatively weak, and it has no marketing fulfillment capabilities. Workfront has DAM integrations with WebDAM and Widen. Financial management: Although Workfront has some nice calendaring and resource planning capabilities, it does not have robust budgeting and financial management capabilities, compared with the Leaders in this Magic Quadrant. Workfront is partnering with Allocadia in this area. Competition: Workfront's core competency in creative production and resource management differentiates it from other specialty MRM vendors that focus on marketing asset and brand management. However, it brings the vendor into more direct competition with some of the larger vendors and Leaders in this Magic Quadrant, such as IBM, Infor, SAS, SAP and Teradata. Partner risk: Workfront has numerous partners, including Allocadia, ProofHQ, WebDAM and Widen, to provide an expanded set of MRM capabilities. If one of these vendors were to be acquired, particularly by a competitor, then Workfront could find itself looking for a new partner in the respective application areas. Gartner finds that MRM prospects often prefer an integrated solution from one vendor. Page 20 of 31 Gartner, Inc. G