Magic Quadrant for Intelligent Business Process Management Suites

Transcription

1 G Magic Quadrant for Intelligent Business Process Management Suites Published: 18 March 2015 Analyst(s): Rob Dunie, W. Roy Schulte, Michele Cantara, Marc Kerremans Intelligent business process management suites compress the observationto-action-to-outcome cycle, and help business transformation leaders, business process directors and solution architects establish a fluid capability to handle big change. This Magic Quadrant evaluates 15 ibpms vendors. Market Definition/Description The intelligent business process management suite (ibpms) market is the natural evolution of the earlier BPMS market, adding more emphasis on support for greater system and human intelligence within business processes. Capabilities such as "what if" process simulation, optimization and the ability to gain insight into process performance have been included in many BPMS offerings for several years. ibpmss have added enhanced support for human collaboration, integration with social media, mobile access to processes, more analytics and real-time decision management. For a more detailed description of business process management (BPM) platforms, see "Select the Right Type of BPM Platform to Achieve Your Application Development, Business Transformation or Digital Business Goals." For a more detailed description of technologies that help make processes more intelligent, see "Practical Ways to Make Business Operations More Intelligent." An ibpms orchestrates work to produce business outcomes that go far beyond typical process efficiency and performance measures. For Gartner's 2015 ibpms Magic Quadrant, we evaluated platforms based on their ability to orchestrate increasingly complex work styles. We see this ability to address a wider variety of styles as increasingly important, particularly in the context of digitalized processes which require greater insight into context, are executed at an increasingly rapid pace, and span the virtual and physical worlds for both contextual insight and work execution. Greater process insight manifests itself at two levels: At the macro level, using on-demand analytics, such as critical path and workload volume analysis, to drive improvements in the process design, which is often useful in continuous process improvement and business transformation efforts. At the micro level, using real-time analytics to drive improvements in the execution of a particular process instance, which is useful in ways that go beyond traditional business transformation to the execution of digitalized processes.

2 Essential Elements of an ibpms An ibpms provides a seamlessly integrated suite of capabilities. While some products are more tightly integrated than others, ibpmss have all of the following elements: Process Orchestration Engine This coordinates the interactions of all types of actors (people, devices and computer systems) for structured and unstructured flows, and also supports case management and dynamic processes for example, by having a rule-driven workflow that can include predetermined process snippets, but also support ad hoc (unplanned or unstructured) process flows, and responses to both human- and system-initiated events. It manages short-term and long-running processes; logs changes to the state of the coordinated resources; adjusts priorities and the order of execution of process instances; terminates, updates or suspends in-flight processes; and schedules future work (processes and activities). Graphical Model-Driven Composition Environment This provides authoring/development tools and runtime support for heterogeneous composite applications. Process flow (and, optionally, rules) must be explicit objects in the models. This supports user interface (UI) composition for building portlets, portal pages, and rich-client and mobile UIs. This also covers process model validation, such as domain checks, completion checks and warnings on inconsistent patterns. Content Interaction Environment This capability natively manages or integrates with enterprise content management (ECM) tools to manage documents and (optionally) other types of content (such as graphical images, audio or video). It creates, reads, routes and updates content managed by third-party content repositories. Human Interactions This supports personalized workbenches for participants (based on factors such as role, preferences and access rights), and provides interactive access to tasks, content and other resources. User experience can be tailored to organization unit, role, skills and/or the individual. There is Web and multichannel support with forms, portlets and rich UIs, leveraging personalization. There is also native or HTML5-based support for one or more mobile devices, and collaboration capabilities to help people exchange data and ideas about a process in a flexible, user-controlled manner. On-Demand Analytics This provides analytic services that run on request to help a person, application or device make an informed decision. Process Simulation and Optimization Services that improve the business process model or how it is being executed. This includes capabilities such as: A runtime process logging facility to collect process execution performance history Offline tools to simulate processes and improve process design Visual testing and process heat maps Critical-path and value-chain analysis Goal-oriented formulas in process modeling Process design tools that give explicit assistance to identify optimal process design Page 2 of 31 Gartner, Inc. G

3 Dynamic runtime process simulation (discrete and continuous) and animation Business scenario description, capture and persistence for later reuse and comparison Predictive Analytics Services that use mathematical models and logic to calculate likely future events or other unknown facts. This includes capabilities such as: Development-time integration with external predictive analytics for example, importing a PMML model to run in the ibpms rule engine or as a scoring service Interfaces from ibpms components to invoke internal or external analytic services at runtime Process Intelligence and Business Activity Monitoring (BAM) This provides active analytics, which supplies instant, continuous feedback to drive the course of work, to ensure that you generate the desired outcome via process intelligence and BAM to facilitate: Continuous intelligence (including monitoring, alerting and maintaining context awareness). Monitoring metrics related to processes (interactions and resources) coordinated by the tool's orchestration engine. Interactive monitoring dashboards, detecting threats, opportunities and other anomalies, which raise alerts for at-risk process instances and activities. Automatic trigger responses to threat and opportunity situations through messages, service calls or other interfaces. Ability to log process and/or other events into a process performance warehouse/audit trail or event log. Data intelligence BAM, including adapters to capture events from outside of the ibpms process orchestration engine. In addition, continuous analytics are required to display key performance indicators (KPIs) and other metrics on business dashboards, and to send alerts and trigger responses. On-demand analytic capabilities (that is, services that run on request to help a person, application or device make an informed decision), as well as offline tools to simulate processes, and improve process design and how the process is executed. Business Rule Processing Software-based reasoning that infers logical consequences from a set of facts or axioms. It manages and executes rules that represent business policies. At a minimum, it must support forward chaining/deductive reasoning. Connectivity There is support for HTTP, REST, SOAP, WSDL and ODBC or JDBC, and usually the ability to connect to mainstream commercial off-the-shelf (COTS) applications. Management and Administration This includes: Gartner, Inc. G Page 3 of 31

4 Configuration and Management This includes configuring, deploying and administering the ibpms platform and application artifacts, as well as version control in conjunction with the registry/repository, and security by application, user, role, group, department and function. Management and Monitoring This includes the capability to start, stop and manage the performance of processes and their associated components, as well as log and manage audit trails. Registry/Repository This stores and manages process-related runtime and design time metadata and artifacts. There are reporting and query (browse and search) capabilities, as well as version control (often working in conjunction with administrative tools). A holistic information model covers all essential aspects of the process but is also extensible. There are security controls on the registry/repository. To support faster time to solution and subsequent rapid changes to business processes, an ibpms uses a metadata- and model-driven approach. A graphical business process and rule modeling capability is used to model the behavior of the solution. Some ibpmss execute this model at runtime (they are interpretive), while others generate code that is compiled at development time (see "Systems of Differentiation and Innovation Require Different Types of Model-Driven Application Platforms"). ibpms Use Cases Evaluated We evaluated how well vendors were able to support the orchestration of work to produce business outcomes across four use cases. These uses cases (which are not mutually exclusive) are: Composition of intelligent, process-centric applications: In this situation, a business manager recognizes the need to coordinate a long-running process, and needs to improve business performance through broader and better coordination of a mission-critical, industryspecific or company-specific process. Solutions to these process domains are often unavailable as commercial packaged applications because the area is often a differentiating or innovative process. However, since buyers have some existing software assets for the process domain, they choose to implement an end-to-end solution using the business process management suite (BPMS) as a composition platform, which is often complemented by a process template from the provider. We see this pattern often in governments, charitable organizations, education and utilities. Examples of processes in this pattern are grant and charitable funds management, research and prevention of disease, and student life cycle management. Continuous process improvement (CPI): In this pattern, the business (rather than the IT organization) has pursued process thinking for a while and has advanced to a CPI mentality. CPI stems from well-understood process methodologies, such as lean and Six Sigma, which have been extensively adopted by manufacturing industries for years. However, in the past decade, many companies in industries such as financial services, healthcare and telecommunications have brought their BPM programs to a CPI level, often adopting Lean Six Sigma as a methodology. Business transformation: In this scenario, senior business executives want to make a "game changing" play by rethinking one or more business processes. We see this scenario in Page 4 of 31 Gartner, Inc. G

5 organizations worldwide that are strained by significant industry changes brought about by regulatory changes and the global economic recession. BPM technology buyers involved in such transformative initiatives are seeking to redefine their businesses for survival. In recent years, we have seen this BPM scenario in industries such as financial services, real estate development and automobile manufacturing. Organizations pursuing this usage scenario may describe it as "business process re-engineering" or "business transformation." Digitalized process: In this scenario, a digitalized process compresses the time it takes to go from contextual insight to action to deliver a unique customer experience, or a response to the confluence of input from the Internet of Things (IoT). A highly intelligent process optimally responds to the unique context presented by business moments (see "Rethink 'Work' to Unleash the Value of a Digitalized Process"). By incorporating intelligent business operations (IBO) technologies such as monitoring and alerting tools, predictive and prescriptive analytics, complex-event processing (CEP), social media and mobile devices into the process orchestration, process participants have better real-time situation awareness and can tailor their response most appropriately to emerging business threats and opportunities (see "Practical Ways to Make Business Operations More Intelligent"). Further, the support for ad hoc, event-driven processes, along with deeper integration with operational technologies such as robots, smart machines and sensors, enables ibpmss to orchestrate and instrument increasingly complex digital business usage scenarios brokering context for quickly actionable insights, and then providing the means to orchestrate the execution of the process by physical and virtual actors. Gartner, Inc. G Page 5 of 31

6 Magic Quadrant Figure 1. Magic Quadrant for Intelligent Business Process Management Suites Source: Gartner (March 2015) Vendor Strengths and Cautions AgilePoint AgilePoint ibpms is a Microsoft-centric platform that consists of five core components (Server, Designer, Portal, Forms and Reports) used to create mission-critical business applications. Page 6 of 31 Gartner, Inc. G

7 Together, they provide an application development framework that enables business and IT to collaborate throughout the development life cycle. The following analysis refers to AgilePoint ibpms v.5.0 R2 SP1, which is available on-premises as well as in the cloud. Strengths Because of its strong integration with the Microsoft stack, AgilePoint ibpms v.5 is a natural fit for organizations with a heavy investment in Microsoft technologies. In addition to providing ibpms support for SharePoint and Office 365, AgilePoint's ibpms adaptor allows you to add robust ibpms capabilities to the Microsoft Dynamics CRM platform and Salesforce. AgilePoint uses a directly executable model that is interpreted at runtime, enabling highly dynamic workflows that adapt to a changing business context. Customers view AgilePoint as a cost-effective option for organizations that want all of the essential capabilities of an ibpms. Cautions While AgilePoint v.6 release will adopt HTML5 and JavaScript, which will reduce its dependency on Microsoft technologies, AgilePoint v.5 works best when constrained to a Microsoft environment. This version features deep integration with Microsoft tools, including Microsoft Visio for process design. AgilePoint provides only basic analytics capabilities. It is not suited for implementations that require complex business rules, CEP and complicated reports. AgilePoint has few examples of customers implementing complex intelligent business operations (IBO) and digitalized process usage scenarios. Appian Appian is a process-centric application development platform that enables IT and citizen developers to construct process-centric applications, continually improve processes, support intelligent business processes and dynamically alter processes in response to digital business moments. The following analysis refers to Appian v.7.6. Strengths Appian supports all routine and nonroutine process styles, but differentiates itself through its social centricity, allowing rapid innovation and discovery, as well as ad hoc and improvisational collaboration between customers, workers, partners and suppliers. An intuitive ad hoc data integration feature, which is accessible from this social interface, acts as a context broker and enables IBO. Appian customer references indicated a higher degree of satisfaction with the Appian platform, compared with other vendors surveyed. This finding underscores Appian's reputation as a very Gartner, Inc. G Page 7 of 31

8 business-user-friendly ibpms. Further analysis of customer reference data shows that Appian projects are agile, its time to solution is the fastest among all vendors analyzed for this Magic Quadrant, and its projects require fewer internal and external resources. Appian leads the BPMS and ibpms markets in production deployments in the public cloud, and it is one of the few cloud platforms that can manage business outcomes as well as process orchestration of hybrid processes spanning on-premises and cloud environments. Cautions While a high-performance database provides rapid access to real-time process intelligence, and facilitates active and on-demand analytics, the ibpms does not have full CEP and analytics capabilities to drive high-volume predictive analytics, where complicated pattern matching is a requirement. Most Appian customers implement business transformation from the bottom-up, one iteration at a time. The platform offers less support for top-down transformation initiatives, where change agents need to visually link strategic objectives, performance outcomes and operational outcomes. Appian has successfully gone to market as a BPMS/iBPMS vendor, and is now also focusing on competing in the application development platform market. Appian will be challenged to be successful in both markets. AuraPortal AuraPortal, a.net-based ibpms, may be one of the best-kept secrets in the ibpms market, largely because it chose to become a strong player in smaller, emerging and less process-mature markets (mostly in Latin America, the Middle East and Europe). Although it is considered a smaller player, it has proved its scalability in large implementations (for example, the National Insurance Institute in Costa Rica has 2 million active users). This analysis pertains to the AuraPortal Helium version. Strengths AuraPortal has kept up with its tradition of introducing some of the latest process-managementrelated innovations. Besides its distributed task control (Dynamically Activated Divisions), it provides role- and needs-based access to specified parts of the process at execution time (Secure Rooms). Further, it has integrated priority and task scheduling. It makes use of a containerized approach to cases, in which contextual details can be exchanged between cases (even ones that have not yet been defined). Finally, it has predictive analysis that can be based on forward chaining reasoning and contextual awareness. According to our reference checks, AuraPortal's customer satisfaction is consistently very high. Because of the modular structure of AuraPortal's Helium, the ibpms is attractive to midsize organizations. Helium brings high-end capabilities to these organizations, while remaining capable of growing with the maturity level of the organization. Page 8 of 31 Gartner, Inc. G

9 Cautions Although AuraPortal has many partners, most of these partnerships are not deep. AuraPortal has only recently entered new geographies, such as North America a very mature market where its success will depend on the successful execution of both strong marketing and partner strategies. If AuraPortal delivers on its ambitious growth strategy, it will have to extend its predominantly family-driven management team. BP Logix BP Logix Process Director is a.net-based ibpms featuring workflow automation, smart forms and reusable business rules without programming. Fully Web-based, mobile-capable and browseragnostic, Process Director's point-and-click interface enables business or IT users to easily create complex, robust processes. Electronic forms are built using Microsoft Word. The following analysis refers to Process Director v Strengths BP Logix's Process Timeline technology provides the process owner with key insights into the behavior of each process instance. If, at any point, it determines that any future task or the process as a whole is in danger of running late, then Process Director can take action directly, or notify the process owner to intercede manually. Process Timeline is easy to use and flexible. Tasks can be linked dynamically using rules or by identifying predecessors. Ad hoc and improvisational tasks can easily be added to a process as needed. BP Logix Elastic BPM cloud is offered in single-tenant and multitenant deployments. The multitenant offering provides an attractive entry point for smaller applications, while the singletenant offering supports more robust enterprise requirements. Cautions BP Logix has basic analytics capabilities. Advanced analytics are limited to the Process Timeline. The platform has little in the way of simulation and process optimization capabilities. BP Logix is one of the smaller vendors included in this evaluation. It has a limited partner network and offers little in the way of solution accelerators. BP Logix uses a unique approach to process design and execution through a combination of Process Timeline and workflow. This novel approach can be confusing to practitioners experienced with more traditional process modeling approaches. Gartner, Inc. G Page 9 of 31

10 DST DST offers AWD, which is in use in more than 400 organizations in over 20 countries. The product is available as a stand-alone ibpms or as a hosted managed service. AWD also provides the foundation for DST's more than $2 billion business process outsourcing and managed solution business. This analysis pertains to AWD10 service pack 7. Strengths AWD is a mature product with a very intuitive authoring environment that results in short project durations and a fast time to solution. The authoring environment is based on configuration models, which help technical and business roles compress the time it takes to change business processes. DST's extensive domain expertise in financial services and healthcare payer processes is evident in prebuilt solution frameworks to accelerate AWD implementations, and these are available free of charge. The platform features extensive content capture capabilities and supports multichannel communication. As a result, AWD can help digitalize processes for digital marketing initiatives. AWD customers in North America, Europe and Australia are unlikely to experience the skills shortages facing customers on other ibpms platforms. DST has an extensive pool of professional services resources, as well as partnerships with other vendors. Its Value Management Practice helps financial services, insurance and healthcare payer clients develop process prioritization road maps, governance policies, metrics continuums and business process competency centers in order to evolve their business process improvement and transformation capabilities. Clients also can take advantage of AWD University to ramp up their own BPM capabilities. Cautions Buyers in enterprises outside of the investment services; life, property and casualty insurance providers; and healthcare payer industries may find that DST has limited understanding of their process domains. AWD integrates with collaboration tools and software, but organizations that are looking to exploit these technologies in order to support and evolve unstructured improvisational process styles should look for an ibpms that treats collaborative and social interactions as primary rather than secondary interactions in driving the process forward. AWD has fewer advanced analytics and operational decision management, optimization, and simulation capabilities compared with leading ibpmss, and most customers are not currently using IoT integration or pursuing a digital business strategy. IBM IBM is steadily expanding beyond its traditional systematic, on-premises approach to BPM in order to address cloud-based deployment and more-agile, lightweight projects. IBM's Smarter Process initiative provides a marketing and sales umbrella across the many product teams that support Page 10 of 31 Gartner, Inc. G

11 related products. This review centers on IBM Business Process Manager v.8.5.5, Blueworks Live, Operational Decision Manager (ODM) Advanced v.8.6 and Business Monitor v ibpms projects also may include IBM Analytical Decision Management, IBM Bluemix, IBM InfoSphere Streams, IBM FileNet Content Manager, IBM Integration Bus, IBM MobileFirst Platform and other products. Strengths IBM offers a very complete set of capabilities and features. Its products support most BPMrelevant industry standards, so developers also can readily mix and match IBM products with software from other vendors. Blueworks Live and IBM Business Process Manager's design, development, governance and administrative features are broad and deep. Process Designer supports integrated analysis, simulation and testing, and Process Center provides extensive version control with collaboration and dependency management. Process "Coach" UIs guide end users through unfamiliar or complex runtime tasks. IBM is a leader in decision management and analytics, including rule processing and event processing (in IBM ODM Advanced and IBM InfoSphere Streams), and offers several marketleading BAM products. Smarter Process solutions may optionally leverage capabilities from the IBM business analytics portfolio. Cautions IBM Business Process Manager solutions are relatively hard to configure and deploy; this is because most applications require the combination of many different products and the setting of many parameters and options. IBM products overlap in content management, business rule processing, BAM, CEP, portal, workflow/orchestration, alerting and other capabilities. Users provide tepid feedback on overall satisfaction relative to some other ibpms vendors. Customers report that IBM Business Process Manager requires a high level of skills, and people with those skills can be hard to find. This is a challenge, particularly in low-end to midsize onpremises IBM Business Process Manager projects that require a fast time to solution. K2 K2 offers blackpearl, a Microsoft-centric ibpms that features easy integration with Microsoft technologies as well as other enterprise applications. Blackpearl allows citizen developers to build and run business applications, including forms, workflow, data and reports. Out of the box, K2 integrates with SharePoint, Active Directory, Exchange, Office 365, Dynamics CRM, SQL Server, Oracle, SAP, Salesforce and more. The following analysis refers to K2 blackpearl v Strengths Using visual tools to build reusable components that use line-of-business and Web-based data, K2's SmartObjects provides a single view of business entities both in workflows and via their Gartner, Inc. G Page 11 of 31

12 model-driven user interface experience (K2 smartforms), and is easily configured to integrate with other systems within an enterprise or on the Web. Because of its Microsoft centricity, blackpearl is a natural choice for organizations that have a deep investment in Microsoft technologies such as Windows Server and Microsoft SQL Server. Although it is among the more expensive Microsoft-centric ibpms platform options that Gartner evaluated, given the capabilities provided, K2 blackpearl has a relatively modest cost compared with leading ibpms vendors. Cautions For more advanced use cases requiring complex analytics and reporting, K2 blackpearl must be augmented with third-party business intelligence tools. However, this can be done leveraging the out-of-the-box integration capabilities of the platform. The development experience is not as citizen-developer-friendly as many of the other ibpms platforms evaluated. For example, the wizards often did not expose configuration details necessary to achieve the desired outcomes without using the advanced options, which are not as easily understood by non-it developers. K2 does not offer a BPM platform as a service (bpmpaas) that supports ibpms capabilities. Kofax Kofax entered the ibpms market via the acquisition of Singularity in 2011, and added further process intelligence and integration capabilities to its portfolio via the 2013 acquisitions of Altosoft and Kapow Technologies. In use by almost 600 distinct organizations in 30 different countries, TotalAgility is a.net-centric product that is available on-premises and via bpmpaas on Microsoft Azure. The TotalAgility ibpms is most appropriate for process-centric model-driven application development, continuous process improvement and case management usage scenarios involving moderately unstructured processes. This analysis pertains to TotalAgility v.7.1, Kofax Altosoft Insight v.5.0 and Kapow v.9.3. Strengths TotalAgility features strong integration to systems, including SharePoint 2013, Microsoft Exchange and Microsoft Dynamics, and connectors are available to a large number of wellknown content management and other systems. Synthetic APIs (provided by Kapow) expedite integration with legacy applications that are not accessible via published APIs. Kofax has a strong heritage in capture, BPM, case management and content management, which, when combined with its mobile platform, provides solid support for digitizing manual, paper-based processes. For customers that require multiple variants of a process, "process skins" are a way of customizing a common process to an individual audience. Page 12 of 31 Gartner, Inc. G

13 Cautions Many Altosoft analytics capabilities have been embedded in TotalAgility, but Kofax lacks some of the simulation, optimization and predictive analytics capabilities necessary to support advanced IBO usage scenarios. Furthermore, an additional license for Kofax Altosoft Insight is needed for IBO usage scenarios where external data (not orchestrated by TotalAgility) needs to be analyzed in real time in combination with TotalAgility process instance data. While TotalAgility provides strong support for content-intensive and document-intensive processes involving routine and semiroutine work, it is less adept at supporting unstructured processes that require a high degree of improvisational actions. Social interactions can be incorporated into a process at design time by integrating social media with the forms designer, but they are not available out of the box. Collaborative interactions are handled via integration with Microsoft Lync, but there is no native integration with third-party collaborative workspace tools. Kofax customers are largely pursuing a digitization strategy to enable digital marketing solutions, and few have used TotalAgility as part of their digital business strategy to reinvent and digitalize business processes to exploit business moments. Newgen Software Newgen Software's platform has its roots in document-centric processes, but has evolved to add ibpms capabilities. Newgen ibps v.10 SP 5 (launched in April 2014) is composed of OmniDocs, OmniFlow and, its mobile capture offering, ZapIn. The suite uses some third-party components such as EsperTech's CEP engine, Jaspersoft for advanced analytics, and the Drools open-source rule engine as its business rule management system (BRMS). The following analysis refers to Newgen ibps v.10 SP 5. Strengths Newgen manages mobile interactions with processes, allowing process initiation and process participation from mobile devices. (Native ios and Android apps are available.) The UI also is available via an HTML5 responsive Web interface. Newgen ibps offers tight integration with the company's own ECM and customer communication management suites. In addition, the suite provides adaptors for Microsoft SharePoint and other mainstream ECM offerings. Newgen supports the rapid creation of a master process with multiple variants. For example, in departmental approval workflows, multiple types of approvals use the same main process. The platform enables collaboration around a process at design time. Cautions Most customers are using Newgen's products in content-centric and document-centric processes, such as new-client onboarding and in simple case-style processes (service requests Gartner, Inc. G Page 13 of 31

14 and form-driven workflows). There are a few examples of customers using the platform to address the needs of more complex process styles involving nonroutine work. Examples of their use in more-advanced scenarios that require sophisticated analytics to drive the execution of work are infrequent. Compared with leading ibpms vendors, Newgen's products are still less business-user-friendly than other ibpms platforms included in this evaluation, and customers often need to rely on professional services from Newgen or its partners. There are many separate Newgen products, some more tightly integrated than others, that must be used together in order to support the full requirements of an ibpms. Newgen has a heavy dependence on third-party tools for more advanced analytics and operational decision management, social interactions and collaboration, compared with leading ibpmss, and its customers are not currently using IoT integration and pursuing a digital business strategy. Oracle Oracle Business Process Management Suite is a single, comprehensive platform with a single design-time and unified engine for processes, cases, rules, human tasks, forms, analytics and integration. It is integrated with Oracle WebCenter Content and Oracle WebCenter Portal (which are both included as part of the Unified Business Process Management Suite package). The following analysis refers to Oracle BPM Suite v (available as of June 2014). Strengths Oracle's Business Process Management Suite features strong analytic capabilities that increase visibility into process performance through real-time analytics and event handling (through Oracle Event Processing), and simplify compliance by providing transparent data. The BPM Suite can easily be integrated with other parts of Oracle's stack, including Oracle WebCenter and Oracle SOA Suite. Case management capabilities have been added to address unstructured, case-style work needs. Cautions While Oracle analytic tools are powerful, there is room for improvement around the ease of use of the streaming analytics (Stream Navigator); they are targeted more toward IT-centric developers and data scientists. Oracle has a strong focus on moving its entire product stack to cloud-native services. Major enhancements will be made to the cloud version of the BPM Suite first. While some of these enhancements may be available for the on-premises version of the suite simultaneously, others may lag behind. Customers must be cautious of which new capabilities they leverage if they wish to maintain portability between the cloud and on-premises versions of the software. Page 14 of 31 Gartner, Inc. G

15 While case management capabilities have been introduced in more recent versions of the Oracle Business Process Management Suite, most customers are still focused on using the product for structured process. Pegasystems Pegasystems is the largest, best-known pure-play ibpms vendor. Its ibpms handles all usage scenarios analyzed in this Magic Quadrant, and is typically used for large BPM initiatives involving complex, interdependent and dynamic processes. In the past two years, Pega has ramped up its focus on digital business transformation, and has become a preferred implementation partner for the digital business strategy practices of consultancies such as Accenture, BCG, Capgemini and McKinsey & Company. This analysis is based on Pega v Strengths Pega's primary strength is its unified architecture based on a powerful BRMS and predictive analytics decision management engine. The platform combines process flow definitions, rule processing, data handling, cross-platform UIs, a mobile application development platform, BAM, content management, case management, application integration, and other functions in one model-based development and runtime architecture that supports structured and unstructured process styles. Pegasystems' Directly Capture Objectives (DCO) methodology, which is baked into its software, ensures collaboration between business and IT people, and helps to overcome organizational roadblocks that can derail BPM initiatives. DCO helps teams establish process governance, and also helps organizations link the business outcomes of strategic business capabilities to processes, activities and individual tasks. Thus, the Pega platform is well-suited to top-down, large-scale business transformation initiatives. Pega 7 offers advanced IBO capabilities, including CEP, operational decision management, predictive analytics and IoT integration. Its "data pages" capability is a highly flexible data structure that acts as a context broker to enrich process instance data with contextually relevant information from outside the ibpms. Pega has successfully implemented more digital business solutions for dynamically responding to business moments than any other ibpms vendor. Cautions Pegasystems has not been competitive in most low-end and midsize accounts because its sales and pricing model has been better suited to larger enterprises. Although Pegasystems has publicly communicated its intent to "open the aperture" and broaden its market reach, its pricing model and its high-end functionality may continue to deter midsize buyers. Pegasystems' methodology and programming model is powerful, but unique. Customers must learn a new development paradigm, which involves educating and changing the roles of businesspeople, analysts and IT staff members. Although Pegasystems continues to add Gartner, Inc. G Page 15 of 31

16 consultants, expand alliances with third-party integrators, and expand the reach of Pega Academy, some customers report having difficulty finding sufficient resources with Pega expertise. Although Pega's unified architecture is a strength, it can also be a drawback when customers want the ibpms to integrate as a peer with third-party tools and applications that duplicate aspects of Pega's functionality. Pega offers standard integration interfaces (for example, to Salesforce), but the Pega platform works best when it controls the overall application. PNMsoft PNMsoft, a Microsoft.NET-based platform, has consistently been one of the strongest Niche Players capitalizing on its ability to integrate with SharePoint and Dynamics CRM, as well as non- Microsoft technologies. This analysis covers Sequence v.7.7, although PNMsoft will be moving away from discrete versions aligned with its "cloud first" focus. Strengths PNMsoft's HotChange architecture has matured well in recent years. This ability to rapidly change processes and even to "swap" process elements in-flight or while processes are being executed continues to be most differentiating capability of PNMsoft's platform. Because of its low-threshold pricing strategy with a wide range of pricing options, and its strong cloud focus, PNMsoft provides an excellent alternative for starting small with less sophisticated requirements, and then growing with the BPM maturity of the organization. This will result in a rightsized approach to leverage the more complex ibpms capabilities without outgrowing the organization's maturity. Compared with 2014, PNMsoft has enhanced its mobile offering by improving Sequence Process To Go Mobile capabilities. Cautions PNMsoft is an EMEA-based vendor that has expanded into the North American market, and its continued success will depend on the execution of a strong marketing and partner strategy. With the focus on a customer base that is situated more in the "late majority" segment of the market, PNMsoft should aim its marketing messages toward this segment and explain its proprietary terminology in easy-to-grasp customer-familiar terms. Although PNMsoft has expanded its number of partnerships, it should build deeper partnerships with some global consulting and system integration firms. Software AG Software AG has bundled its webmethods Business Process Management Suite (BPMS) into a "digital business platform" that provides a feature-rich middleware stack in a unified, coherent form (webmethods Business Process Management Platform may also still be acquired separately). This Page 16 of 31 Gartner, Inc. G

17 analysis centers on webmethods BPMS v.9, Apama Streaming Analytics v.5.2, Aris v.9.7, webmethods Mobile Suite, AgileApps Cloud and webmethods AgileApps Platform v.10. Strengths Software AG has a very good product strategy for addressing the diverse requirements of modern BPM and digital business usage scenarios. Its offerings target demanding, systematic, enterprise-level solutions; lighter, fast time-to-solution projects (through AgileApps); mobile and cloud-based applications; and IoT and other event-driven applications. webmethods BPMS and related products are particularly strong in their in-memory computing, CEP (Apama), enterprise architecture and business process analysis (Alfabet and Aris), message-oriented middleware and BAM capabilities. Software AG has low business risk. It is profitable and has more than 1,700 customers of its current BPM products, and more than 8,000 BPM customers of all versions. Cautions Numerous Software AG technologies originated in software companies that it acquired within the past three years. Although the company has made significant progress toward integrating these offerings, the products are not fully integrated yet, so some overlaps and seams persist. Software AG's pricing, sales and marketing execution are less effective than those of many of its ibpms competitors. Software AG's partner program for third-party service providers is not as broad and deep as those of other leading vendors in this market. Tibco Software Tibco Software is a leading middleware "stack" vendor with a substantial and growing BPM business. Tibco was acquired in 4Q14 by Vista Equity Partners, a private equity firm. This analysis centers on Tibco ActiveMatrix (AMX) BPM 3.0, Tibco Business Studio v.3.8, AMX BPM Spotfire v. 6.5, BusinessEvents v.5.1.3, AMX BusinessWorks v.6.0, tibbr v and Nimbus v.9.3. Strengths Tibco's April 2014 acquisition of Jaspersoft, a business intelligence vendor, reinforced its already-strong analytics portfolio. Tibco offers first-rate real-time decision management and analytics, including process intelligence BAM (AMX BPM); business intelligence BAM, data discovery and predictive analytics (Spotfire and R); business rule processing (BusinessEvents); two CEP platforms (BusinessEvents and StreamBase); and other capabilities. Tibco is a leader in message-oriented middleware (Enterprise Message Service and FTL), enterprise service bus (AMX BusinessWorks) and other middleware technology. It offers multiple ways to implement sophisticated forms of event-driven BPM, leveraging combinations Gartner, Inc. G Page 17 of 31

18 of business rules, CEP, and AMX BPM for a variety of demanding digital business and IoT applications. Tibco's separation of the organization model from the workflow and UI models is a competitive differentiator that enhances work and resource management. For example, this enables analysis of workloads across processes, not just within one process. Cautions Tibco is in the throes of a major corporate transition following its acquisition. It has experienced high personnel turnover, although Tibco has stated that the core BPM team has not been affected significantly. Changes in its product strategy are expected in the first half of 2015, but there is no indication that Tibco will alter its commitment to AMX BPM and the related products that are evaluated here. The AMX BPM authoring (development) environment is best suited for systematic, IT-centric development projects. Businesspeople typically are involved in AMX BPM projects less directly than in BPM projects that use competitive products (although projects that leverage Tibco Nimbus tend to have considerable business participation). Tibco sells a high-functionality product set at premium prices. It generally is not a great fit for small, one-shot projects or routine BPM applications that do not require analytics or event processing. Whitestein Technologies Whitestein Technologies is one of the vendors that brings higher-maturity-level capabilities into the ibpms game, such as goal-driven process management that intersects process automation and self-adaptive process optimization. This analysis is based on Whitestein Living Systems Process Suite (LSPS) v.2.7. Strengths On top of general Business Process Model and Notation (BPMN) modeling, LSPS uses a hierarchical representation of business goals to drive, measure, track and adapt processes during their execution. This encapsulation of power, flexibility and intelligence into LSPS is extremely valuable to support processes that need a high degree of agility and real-time improvement. Other capabilities within LSPS, such as intersecting process automation, BAM and optimization, are all connected to the progress and realization of business objectives represented by the hierarchical goals. LSPS raises the bar by providing "governance goals," which continuously monitor states and events within or outside the process. The LSPS Process Engine pursues process goals by adaptively selecting and executing the activities that will most optimally achieve or maintain them. This autonomous optimization of process flow is accompanied by end-user steering that allows application users to redirect flow and inject ad hoc activities or processes. Page 18 of 31 Gartner, Inc. G

19 LSPS process applications are designed to be deployed as libraries with its engine as an Enterprise Archive to a Java Platform, Enterprise Edition (Java EE)-compliant Application Server. This can be combined with business logic, functionality and screens from a third-party application, making LSPS attractive in its architectural modularity, and in its licensing and pricing to OEM deployments where process functionality is needed to augment an existing, independent software product. Cautions Under the modeling layers, LSPS is a Java EE, Eclipse-based environment that is most appropriate for programmers. Its expression language is technically oriented. Business role participation is appropriate only for goal modeling, BPMN modeling, and business object modeling. Because it introduces higher-level capabilities based on new technologies, in certain custom applications LSPS may require higher-level implementation skills that are not always available, and Whitestein's support resources are currently limited. This factor serves to lower Whitestein's Ability to Execute rating. A stronger execution on the partnership strategy can be a turning point. Whitestein remains one of the smaller ibpms companies; it maintains a strong focus on OEM partnerships, thereby adding to the shortage of direct support. However, we expect to see improvement in 2015 based on its planned expansion strategy. Vendors Added and Dropped We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor's appearance in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria, or of a change of focus by that vendor. Added AgilePoint AuraPortal BP Logix K2 Dropped Bosch Software Innovations The BPM component inubit now is an integral part of the Bosch IoT Suite, which also includes other components like business rule management, machine-tomachine and big data processing. Because it focuses on IoT, and not the other usage scenarios Gartner, Inc. G Page 19 of 31

20 for an ibpms, Gartner decided to exclude Bosch Software Innovations from the ibpms Magic Quadrant (see Note 2). OpenText OpenText does not offer an ibpms solution, and it does not mention the term "intelligent business process management suite" in any marketing collateral. Although OpenText regularly competes against vendors that do offer an ibpms, it does not compete against them on the aspects of intelligence and predictive functionality. Vitria Upon review of Vitria's market direction and technology capabilities, focusing primarily on the "Orient," "Observe" and "Decide" phases of the OODA loop, we determined that Vitria was best characterized as a commercial operational intelligence platform rather than an ibpms. Inclusion and Exclusion Criteria To be included in this research, each provider had to meet the following criteria: The provider offers an ibpms that is, the product provides the technical feature requirements of an ibpms listed in the section titled Essential Elements of an ibpms, regularly competes against other ibpms vendors, is used to support business operations improvement, and is marketed either as software or as a platform as a service (bpmpaas). The provider has demonstrated a focus on its ibpms, and the offering has been available and actively marketed to buyers for at least 12 months prior to the start of our product evaluation (31 August 2014). The provider has 20 paying customers for the product being evaluated. These customers must be from distinctly different companies with solutions being used in production. At least 10 customers must have demonstrated production deployments on the version being evaluated. The provider must be one of the top 15 in terms of software license, subscription and services revenue related specifically to the ibpms platform. The provider's product is widely deployed in at least two of the following geographic areas: (1) North America, (2) EMEA, (3) Latin America/Central America and (4) Asia/Pacific. In addition, the provider has many customers in these geographic areas, and is experiencing growth in these regions (although the provider's headquarters may be elsewhere). The provider markets its products across multiple industries, rather than focusing on being a specialist for just a few industries. While the platform should not be specialized, additional industry-specific or cross-industry solutions offered by the provider will be considered as part of the evaluation. The provider's platform has been leveraged to implement all four of the main use cases of an ibpms: (1) composition of intelligent process-centric applications, (2) CPI, (3) business transformation and (4) digitalized process. The following vendors are not included in this research because they do not meet one or more inclusion criteria; however, they are appropriate for certain situations and sometimes compete against the vendors covered in this Magic Quadrant: Page 20 of 31 Gartner, Inc. G