Magic Quadrant for Business Process Analysis Tools, 2H07-1H08

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1 Magic Quadrant for Business Process Analysis Tools, 2H07-1H08 Gartner RAS Core Research Note G , Michael J. Blechar, 8 June 2007, R Business process analysis tools continue to grow in importance as business managers, process architects and process analysts seek to better understand, streamline and automate their business processes, and communicate their needs to IT professionals. WHAT YOU NEED TO KNOW Business process analysis (BPA) tools are key components of business process (BP) improvement and BP management (BPM) initiatives. Process modeling is a key capability of a BPM suite (BPMS). In this capacity, BPA tools complement BPMS tools by enabling deeper, multilevel modeling (conceptual, logical and physical in greater detail and relationship mapping) than the modeling component of a BPMS. BPA tools are primarily intended for use by BP architects, who are responsible for redesigning business processes at a conceptual level, and BP analysts, who redesign processes at a more detailed level and are responsible for coordinating the implementation of the new processes as part of BPM projects, IT development projects or package purchase acquisitions. Although these two roles increasingly are being staffed in end-user business units, in many organizations, IT analysts fill these roles today. BPA tools can be used by other roles in the organization as well for example, business users and data, enterprise and technical architects looking to understand business processes in the context of their disciplines. More specifically, BPA tools enable BP architects to document, analyze and streamline complex processes, thereby allowing business areas to become more agile and effective. BP analysts, in turn, redesign BP models and refine them to a more detailed level to ensure the processes are properly communicated to those implementing them through development, package purchase or applications hosted by partners or third parties. Gartner sees an increasing interest by IT organizations wanting to better understand how the business processes relate to, and are designed and implemented in, service-oriented architectures (SOAs). Also, IT organizations show increasing interest to have better integration across roles through the use of integrated or best-in-breed suites of tools which support modeling for business process, object-oriented and data/database analysis and design and requirements management. As a best practice, organizations are defining business processes, events and workflows in BPA tools and bridging this information into IT modeling tools and BPMSs where more-detailed software and data service analysis, design and development occurs. BPA is also becoming a starting point for BPM projects and compliance activities. Linkage to the workflow assembly and orchestration engines and business activity monitoring (BAM) tools is driving BPA into the mainstream for BP improvement initiatives. Understanding complex business processes is a significant challenge. The assistance of a tool with visualization and other features such as simulation and activity-based costing (ABC) helps to optimize business processes and realize BPM cost and time savings. BPA tools help define the business architecture portion

2 2 of the enterprise architecture. Many BPA tools can also be used by technical, application and data architects to define the technical and information architectures. And, because most BPA tools have a shared repository for these models, it is possible to do change impact analysis across organizations and roles based on the inter-relationships of their models. Still, BPA tools are primarily focused on the BP architect and analyst roles. BPA tools are not only bought from a top-down perspective of BP improvement, the majority of customers who initiate BPM projects in a bottomup manner (that is, first focus on implementing a BPMS tool to improve a human-to-human process) add a BPA tool within 12 to 18 months thereafter. BPA tools enable the architects and analysts to diagram their processes, noting (generally abstracted) rules or specifications to promote understanding and to validate this information using standard methodologies and best practices enabled by the software. Ideally, organizations use the knowledge captured in these BPA tools to automate the models into deployable applications that leverage the analytical efforts and ensure compliance of the execution environment with the BP rules. Generally, this is accomplished via bridges from the BPA tools to other BPM or IT development technologies. Figure 1. Magic Quadrant for Business Process Analysis Tools, 2H07-1H08 ability to execute challengers Savvion Ultimus leaders Proforma igrafx IDS Scheer Mega International Telelogic Casewise IBM Microsoft EMC Sybase Tibco Software What has been the growth rate for BPA tools during the past three to four years? Based on Gartner revenue estimates, the market revenue has consistently grown an average of 15% during the past several years and sits at approximately $400 million in new product license and maintenance revenue. A large follow-on market also exists for consulting and services in implementing these tools and the methods to use them. When calculating the $400 million BPA market revenue, we did not include any consulting or service revenue including those related to product implementation. Source: Gartner niche players visionaries completeness of vision As of June 2007 opportunities for selling increased BPA consulting services and open up more cross-product marketing to vendors with multiple tool offerings as part of their BPMSs. What is their projected growth during the next few years? Expanding demand for BP modeling tools will result in at least a 10% compound annual growth rate in market revenue through 2010 (0.8 probability). Growth rates for the BPA leaders that provide more return on investment because of functional and service differentiation and offerings from successful specialty/niche vendors will continue to be at the 15% rate. However, the number of BPA users will grow at significantly faster rates than BPA market revenue because BPM vendors offer lowcost modeling extensions to their tools. This will create greater Do you expect the BPA market to disappear at some point because of the vendor consolidations and emergence of BPMSs? If so, when do you expect that to happen? We do not see the BPA market disappearing even in the long term (that is, through at least 2012) although market consolidation of vendors has already begun. The stability of BPA tool vendors is not just based on product sales. Most BPA vendors have a complementary set of consulting service offerings in areas such as BP methods and disciplines that can generate revenue at five The Magic Quadrant is copyrighted June 2007 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. 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3 times the BPA tool rate; therefore, the stability of the BPA tool market including smaller specialty/niche BPA vendors is greater than may appear at first glance. Still, of the nine markets leaders, five have 2% to 4% of market share Casewise, EMC, igrafx, Mega International and Proforma. Others include Microsoft with 30%, IDS Scheer with 15%, IBM with 9% and Telelogic with 7%. Therefore, we are a long way from market consolidation, yet many of the leaders could be strong candidates for acquisition. The BPA tool market will continue to attract a number of new players, especially BPM vendors extending their tools to provide some limited BPA capabilities and other vendors, such as those in the object-oriented analysis and design and data modeling/database design markets extending their tools to support BPA. At the same time, we expect consolidation in an overcrowded market. Many small players, especially those coming late to the market or failing to address alliance partnerships and distribution channels, will be bought, fall to niche status or slowly disappear. However, the overall BPA tool adoption rate will accelerate as mainstream organizations get more involved with BP modeling in support of SOAs and look to address compliance issues with models based on government mandates. Because BPMSs include BPA technology as a key component, many organizations will look to implement an integrated singlevendor solution from their strategic partners during the long term. Today, however, the BPMS and BPA tools markets are dominated by best-of-breed technology vendors. With the exception of IBM and Fujitsu, the other major software infrastructure vendors have not yet directly entered these markets; they compete only through partnerships and OEM relationships. Therefore, there will continue to be opportunities for specialty generally niche BPA vendors to flourish (see the vendors listed in Honorable Mention as examples). MAGIC QUADRANT Market Overview Dozens of vendors are in the BPA market. In this Magic Quadrant, we examine in detail the 13 vendors with the greatest amount of revenue and highest-rated functionality. We have included five others in the category of Honorable Mention. At first glance, it may appear that there is a larger than normal number of market leaders. This is because this market Magic Quadrant contains only 13 vendors (Gartner guidelines are 12 to 15) most with highly competitive solutions. Vendors that did not meet the minimum inclusion and exclusion criteria we used would have been nonleaders, with most appearing in the Niche Players quadrant generally due to weaker financial execution and vision than the leaders. Because BPA tools support a diverse audience of users, it is important to understand that we elected to weight our requirements based on the use of the tools by BP architects and analysts doing BP improvement projects and rank the vendors accordingly based on those weightings. Therefore, organizations with different will want to rank the vendors based on the intended use by the organization, when niche vendors or secondary leaders may be the best alternative. In this research, we provide high-level bullets about the strengths and weaknesses of each vendor in the Magic Quadrant. Three Categories of BPA Tool Buyer Focus To help readers relate their buying decisions to the offerings in this market, we provide a categorization of these tools based on the most frequent types of buying decision Gartner clients mention. We see three different types of mind-sets and focuses from the BPA tools prospects we talked with. We categorize these tool buyers in support of Architects, BP Modelers and BPMS Modelers. Although most leading BPA tools address at least two of these categories, no one product meets the need of all potential users. Therefore, it is common to see more than one type of BPA tool purchased from one or more vendors to meet these needs. For example, with about a 30% of market share, the most widely used tool for BP modeling is Microsoft Visio. With a Gartner estimate of more than $500 million in new product and maintenance license revenue in 2006, many customers use Visio as simply a drawing tool. We have included about 20% of Visio users in the BPA tool category, including those business users and analysts that do modeling as part of BP improvement initiatives. Visio is low cost, easy-to-use and has good integration with Microsoft Office including process information stored in Microsoft Word, Excel and PowerPoint. However, most BPA tool buyers report that they need to complement the process modeling capabilities of Visio with more robust functionality. Not surprisingly, all the other leading BPA tools have a bridge from Visio to them. This allows the more sophisticated BP modelers in the organization using the more robust BPA tools to enhance the work previously done in Visio by less-sophisticated business users or analysts. We will examine these three types of buyer focus in more detail. Note: The sum of percentages exceeds 100% because many buyers are looking to satisfy multiple needs. Architects Close to half of buyers are primarily looking to do BP modeling in a coordinated manner with others who are modeling the enterprise architecture or doing IT modeling in support of application development, package purchase or BPMS projects. Those in this category are looking for a model-driven systematic approach to BP improvement. There is a greater concern about the rigor of methodology being used, adherence to architectural standards and industry-specific frameworks, correctness of the models, and how the models are moved forward in the design and implementation process than in the other two categories. As a result, this category of tool is the most complex and costly but with higher quality models comes a greater ability to leverage analytical efforts and relate BP and service deployments to the requirements identified by the models. Enterprise architects, data architects, IT modelers who are familiar with development methodologies, and BP architects and analysts who are a bit more sophisticated and seeking more rigor in process modeling than those in the other two categories will gravitate toward these solutions. Those in this architect buyer category are generally looking for tools that support formal methodologies (for example, Six Sigma and Lean) and frameworks (TOGAF, DoDAF, FEAF and IT Infrastructure Library). BP Modelers This represents the primary focus for about a third of buyers. The BPA tools focused on the BP modelers category in this category generally want more than just a drawing tool, but neither are they looking for tools that are complex, costly and use rigorous systematic approaches to modeling. In many cases, they are looking to model only selected business processes (that is, the processes of 3

4 4 one business unit or project). These are BP architects and analysts (whether they reside in the business unit or IT) who are focused on modeling the business processes to improve understanding and look for process improvements without an immediate concern on how those processes will be (or have been) implemented in IT systems or BPMSs. Generally, they are just focused on their own immediate modeling needs and assume that the tools they buy will provide the necessary bridges to other IT and BPMS technologies at a later date. Many organizations find this an acceptable approach, especially when there is a need to get started with a BPA tool (before a BPM one) based on business drivers. Many BP modeler buyers start with Microsoft Visio because of its ease of use, low cost and integration with Microsoft Office especially when business users and less-sophisticated business analysts will be creating the models. But most BP architects and analysts in this category generally look to add BPA tools that offer more functionality than Visio. Many BP modelers are increasingly looking for tools that have pre-defined cross-industry, industry-specific and application package models and content to jumpstart their modeling efforts. BPMS Modelers BPMS modelers are the approximately one-third of buyers who are primarily looking for a BPA tool that is tightly integrated with their BPM tool of choice. The ability to understand a BP from concept through assembly and automation of services as part of a BPMS is the primary objective. Some architect buyers want to front-end BPM with a robust BPA tool, and using a rigorous systematic approach to designing and implementing business services. However, the BPMS modeler is generally willing to accept a less functional modeling tool from its BPMS vendor to stay within the BPMS. Most organizations implement BPM tools first, and later add BPA tools. So, it is a natural progression to use the BPA tool of the BPM and only consider alternative BPA tools if/when the one from the BPM vendor proves insufficient to meet the needs of the organization. Virtually every leading BPA tool has bridges into the leading BPM tools, generally by generating Business Process Execution Language (BPEL) that can be imported into the BPM tool. This is not an ideal solution, because BPEL is not fully expressive on all elements that can be modeled. Some have tighter bridges to selected BPM tools generally a better solution. Bidirectional bridges, which allow changes in either the BPA or BPM tool be reflected in the other, are better than a unidirectional bridge from the BPA tool to the BPM one. Most of these aforementioned bridges are unidirectional. Many of the BPM tool vendors have their own modeling tools, and many sell them as a separate product. Although the BPA offerings from the BPM tool vendors tend to have better integration, in most cases, they do not have leading functionality. We attribute about 11% of market share ($45 million in revenue), or about 5% of overall BPMS revenue, to the BPA tool market for those modeling tools embedded in the BPMSs that are not sold separately as products. The remaining 18% is attributed to BPM and BPMS vendors that sell their BPA tools separately that is, where it is possible to buy and use the BPA tool without buying the BPM tool of the vendor, although most buyers also purchase the vendor s BPM tool. Honorable Mention Some technologies do not cleanly fall within the BPA market categories, but are worthy of mentioning. Here are five new or complementary technologies that you may be interested in: Embarcadero EA/Studio: Embarcadero Technologies has a leading data modeling/database design tool, ER/Studio and a good (IT) object-oriented analysis and design tool: Describe is based on Object Management Group s Unified Modeling Language (UML) standard. The release of a BPA tool, EA/Studio, on 15 March 2007 completed Embarcadero s modeling suite, providing BP modelers with a low-cost companion tool that supports the Business Process Modeling Notation (BPMN) standard. The initial release of EA/Studio is focused on ease of use. It lacks some of the more-robust capabilities of BPA tool market leaders, but for many organizations it s a good alternative to Microsoft s Visio especially for ER/Studio customers looking to integrate and leverage models and requirements across the business and data analyst roles. Global Enterprise Managers GEMWorX FlowModeler: Many times, we speak to Visio customers who want to use Visio better with just a little more robustness in support of BP modeling. Others are concerned with training their employees on new and changed business processes. Global Enterprise Managers GEMWorX FlowModeler extends Visio modeling capabilities (that is, it merely pops up in the Visio user interface environment in a transparent way to modelers) and propagates changes to processes out to impacted training materials. FlowModeler is part of the GEMWorX suite of integrated BP analysis and elearning tools. GEMWorX is repository based, and includes support for versioning and team-sharing of model information. It is possible to capture processes in FlowModeler and quickly do Web publication of the process models. Analytical reports can be used to structure the training courses for those performing the BP using the integrated e-learning and training tools in GEMWorX. Like other BPA tools, FlowModeler performs (lightweight) simulation with animation, for ABC. FlowModeler also includes pre-formatted reports, readily enables users to query the data repository, and provides flexible search capabilities (via the workflow explorer) that support the maintenance and updating of process diagrams. FlowModeler/Visio diagrams can be published via Web-conferencing and leveraged by geographically distributed teams that are able to use process knowledge resources and e-learning assets to interactively test and confirm changes on-thespot. Although Global Enterprise Managers is a small emerging company, the potential value of GEMWorX can be high. Organizations that need to produce end-user learning materials in coordination with model-based new development, package acquisition and BP improvement projects including those by large external service providers (consulting) and ERP (application package) vendors will find GEMWorX worth considering, as will those expecting high levels of personnel turnover requiring training of new employees. Lombardi Blueprint: Lombardi is best known for its BPMS technology, Teamworks. It released a new business planning and modeling tool, Blueprint, on 30 April The main purpose of Blueprint is to enable users to develop business plans and business cases; relate them to key performance goals, indicators and business processes; and view this information in a variety of ways including as a balanced scorecard. Blueprint also helps facilitate broader user involvement in modeling at an earlier stage in the decision-making process, thereby increasing buy-in by stakeholders. Although Blueprint contains some lightweight process modeling capabilities, it is not intended to be a direct competitor to leading BPA tools, but can be used with them as a complementary planning and analysis tool with simple process modeling capabilities. Lombardi and Mega International (a leading BPA tool vendor) announced an integration between their technologies to forge a best-in-breed BPMS. Blueprint software executes on servers

5 5 managed by Internet hosting provider, Rackspace, which enables business analysts to get started immediately with Blueprint, as opposed to waiting for IT personnel to install and manage the software and data. It is possible to start with a free personal account version of Blueprint for a single project or process and later upgrade to a team account version for $500. Nimbus Control-ES: Like BPA tools, Control-ES (which will be renamed Control 2007 from the mid-2007 release) enables process design via modeling, process collaboration and communications. Its storyboard view provides a visual training medium for end-user process walkthroughs and can be used as the online operational manual for the organization. However, Nimbus goes beyond these capabilities, linking the resulting operational manual to the actual systems used and capturing process performance data to populate its metrics. This operational manual is presented to users through a Web-based portal, personalized according to the user s role. In this way, execution is linked to the explicit process model, synchronizing the model with its implementation. Control-ES has strong publishing capabilities (including approval workflow and versioning). Control-ES customers can also leverage content from other BPA tools, such as IDS Scheer s ARIS and Microsoft s Visio, through the BPM-X bridge supplied by HRW Consulting. For example, SAP process models can be imported to Control-ES through its SAP interface to use Control- ES s strong publishing capabilities. Nimbus plans to integrate Control- ES with SharePoint 2007, making SharePoint 2007 the delivery portal. Troux Technologies Metis: Troux Technologies is a leading vendor in the enterprise architecture tools market. Gartner receives many calls in the BPA market about Troux s Metis product (which has process modeling capabilities in it), although Troux does not market Metis sales to BPA prospects. Troux describes Metis as business intelligence for the CIO a repository-based EA platform which includes support for strategic planning and analytics based on scenarios. It supports process modeling of current and future solution states, and has enterprise architecture frameworks, such as TOGAF, FEAF and DoDAF. However, based on Troux s architecture focus, Metis lacks some common functions and features found in most BPA tools, like simulation, ABC and BAM. As such, it is an excellent tool for those focused on enterprise architecture or wanting to work at the conceptual/planning and analysis levels of the business architecture. It can also be interesting to BP and BPMS modelers looking to complement their current BPA tools with an enterprise architecture solution. Market Definition/Description BPA is a Gartner term that defines the business modeling space where business professionals and IT designers collaborate on BP designs and architecture frameworks. Inclusion and Exclusion Criteria We have chosen to include vendors meeting one or more of the following criteria in the BPA tool market: $12 million or more in new product and maintenance license revenue in 2006 Greater or equal frequency of appearance in inquiries by Gartner customers in comparison to competitors listed in the Magic Quadrant Greater or equal frequency of appearance on Gartner customer evaluation shortlists in comparison to competitors listed in the Magic Quadrant BPA tools that do not meet the aforementioned criteria, but have some niche or specialty characteristic that we thought would be of interest to Gartner customers (for example, a lightweight or perhaps good enough BPA tool that is sold as part of a suite by a leading BPM vendor). Added Tibco Software Dropped Fuego was acquired by BEA, which now sells FuegoBPM as the AquaLogic BPM Designer, and which was not included in this year s Magic Quadrant due to not meeting our minimum criteria for inclusion. Table 1. Ability to Execute Evaluation Criteria Evaluation Criteria Product/Service Overall Viability (Business Unit, Financial, Strategy, Organization) Sales Execution/Pricing Market Responsiveness and Track Record Marketing Execution Customer Experience Operations Weighting high standard high Source: Gartner

6 6 Note: ProActivity, which appeared in last year s BPA MQ, was acquired by EMC, and appears in this Magic Quadrant as part of EMC s Documentum Process Suite. Evaluation Criteria Ability to Execute We have selected three major criteria to evaluate the ability of the vendor to execute in the BPA tool market. Others not selected explicitly are factored into the three selected (for example, sales and marketing execution and operations is subsumed as part of Overall Viability). First, we have identified Customer Experience as the highest rated evaluation criteria. What we are evaluating is the vendor s and product s ability to enable the success of the BP architects and analysts in their jobs versus their competitors. Second, we rate highly the product breadth and depth of functions and features, because many organizations are looking for the most robust, best or innovative technology. The technology with the best functions and features is not always the one that makes the process architects and analysts the most successful. Third, we rate as slightly less important the Overall (current) Viability of the vendor and tool in the BPA market. Completeness of Vision During the next five years as the acquisition of BPA tools grows by mainstream and generally more risk-averse organizations, we see vendor viability becoming an increasing concern to buyers. Therefore, we rate the business model vision as the most important aspect of completeness of vision criteria. For rating purposes, we include in the business model vision rating related criteria such as market understanding, market strategy, sales strategy and geographic strategy. We rate Offering (Product) Strategy highly not so much because of shortcomings in the current leading tools, but rather because we see opportunities to use improving functions and features, such as BAM and business rules, as well as new diagram types as standards continue to emerge to further leverage the work of process architects and analysts. We include innovation in the rating for Offering (Product) strategy. Finally, we included Vertical/Industry Strategy as a lesser weighted criteria but one that we see growing in importance as less sophisticated (more mainstream) BP architects and analysts look to jumpstart modeling efforts, buy models to save time, acquire strawman examples of best-practice business processes from leading third parties, and better understand purchased applications. Some key function/feature differences we used to rate tool functionality in this Magic Quadrant include the ability to support process simulation, ABC, BAM, industry standards and frameworks, bridges from/to other leading BPMS and IT tools, and pre-built/pre-populated models and content. Leaders These are high-viability vendors with proven track records in BPA tools with high degrees of functionality or market penetration, as well as vision and business investment. They are also wellpositioned for the future because of completeness of vision due to financial commitment and market share, technological differentiation or both. Leaders do not necessarily offer the best products for every customer project or role. However, they provide solutions that offer relatively lower risk. Current leaders include Casewise, EMC, IBM, IDS Scheer, igrafx, Mega International, Microsoft, Proforma and Telelogic. At first glance, it may appear that there is a larger than normal number of market leaders. This is because this market Magic Quadrant contains only 13 vendors (Gartner guidelines are 12 to 15) most with highly competitive solutions. Vendors that did not meet the minimum inclusion and exclusion criteria we used would have been nonleaders, with most appearing in the Niche Players quadrant generally due to weaker financial execution and vision than the leaders. Challengers Challengers are well-executing vendors that have less completeness of vision than the leaders. Because of the inclusion and exclusion criteria we used, and the fact that this market Magic Quadrant contains only 13 vendors, there were no Challengers among the set of vendors analyzed. Visionaries These vendors are differentiated by innovation in terms of technological innovation or sales and marketing innovation. But, they have not achieved the record of execution required to reach a Table 2. Completeness of Vision Evaluation Criteria Evaluation Criteria Weighting Market Understanding More on Functionality Criteria In Consider Eight Functionality Selection Criteria When Choosing BPA Tools, we examined the following types BPA tool functionality: Business model analysis Integration and automation Business model drawing/development Ease of use in operation/development and administration Multiuser support/versioning and extensibility Methodology and use Performance and scalability Vertical industry and horizontal cross-industry template support Marketing Strategy Sales Strategy Offering (Product) Strategy Business Model Vertical/Industry Strategy Innovation Geographic Strategy Source: Gartner high high low

7 7 leadership position. Because of the inclusion and exclusion criteria we used, and the fact that this Magic Quadrant contains only 13 vendors, there were no Visionaries among the set of vendors analyzed. Niche Players These vendors products can solve problems, although the vendors vision and execution are relatively narrow in focus or they lag leaders in some aspects of vision and execution. Customers that are aligned with the focus of a niche vendor will often find that such providers offerings are the best fit for their specialty needs. Current niche players include Savvion, Sybase, Tibco Software and Ultimus. Vendor and Casewise Based on a Gartner estimates, Casewise Corporate Modeler new product license and maintenance revenue grew more than 20% in Corporate Modeler will most appeal to buyers in the Architect category. BP architects will like the large number pre-defined process models and best practices frameworks Casewise has introduced an innovative solution to managing the complex overlaps between multiple regulatory compliances, ISO standards and best-practice frameworks that it calls Compliance Cartography. Casewise can be an excellent alternative to more-complex and expensive tools especially IDS Scheer s ARIS. Casewise has about 3% of market share. Like other companies with similar-sized market share, Casewise must continue to deliver on client success and increase partnerships and distribution channels to improve its position in the Leaders quadrant. EMC EMC is well-positioned with the Documentum Process Suite to sell its BPA tools into its existing BPM and content management customer base. BEA OEMs the EMC BPA and BAM products in conjunction with WebLogic Integration. EMC and Microsoft have a joint sales partnership focused on BPA, allowing organizations to import and transform Visio process diagrams into complete process models within the EMC BPA environment. EMC is working with its thousands of sales and consulting groups to sell BPA along with focused solutions. EMC s BPA tools are robust, with rich analysis, reporting and simulation capabilities, and will appeal to those in the architects category of buyer. BP and BPMS modelers will also see benefits from a number of free pre-built models (industry-specific and horizontal solutions) and integration with the broader EMC BPMS. EMC has about 2% of market share, having acquired its BPA tool capability in 2006 with the acquisition of ProActivity Enterprise Hub BPA. EMC needs to deliver in 2007 on its plans to fully support the BPMN (defacto) standard for process modeling and add features such as user customization and advanced reporting using Business Objects Crystal Reports. igrafx igrafx s BPA tools hit the sweet spot of buyers as they focus on the BP modelers category, with some additional capabilities for those in the Architect and BPMS Modeler categories. -igrafx s BPA tools are repository-based and come with collaboration and communication functionality, and strong analysis, change and configuration management capabilities that support compliance and coordination of teams across the enterprise. Organizations looking for a solution from a single vendor, which includes Visio-like capabilities as well as support for business process architects and analysts, should consider the igrafx suite of tools. igrafx FlowCharter can be used to meet the modeling needs of business users and less-skilled business modelers. igrafx Process addresses the needs of business process analysts. igrafx Enterprise Modeler and igrafx Process for Six Sigma address the needs of business process architects, with the robust methods and leading-edge functionality they require. igrafx had a Gartner-estimated 3% of market share. Like other companies with a similar size of market share, igrafx must continue to deliver on client success and increase partnerships and distribution channels to improve its position in the Leaders quadrant. IBM IBM is a leading company in BPM with its breadth of technology, including WebSphere Business Modeler (WBM), WebSphere Process Server, FileNet BPM and WebSphere Business Monitor. IBM is also a leader in the areas of business requirements management and IT (object-oriented analysis and design) modeling. data modeling/database design and Java application development with tools. IBM offers an integrated modeling suite solution that will appeal to architect category buyers and has value for both business user and IT modelers. IBM is also a BPM company with WebSphere Process Server and FileNet BPM. So, WBM is also appealing to IBM-centric customers with a BPMS modeler category of focus. WBM has functions and features that are of interest to all types of BPA prospects, including process definition and visualization, business analysis and reporting, requirements life cycle tracking, simulation, BAM and key performance indicators and metrics. IBM has a Gartner-estimated 9% of BPA tool market share.

8 8 IBM-centric customers focused on the architect and BPMS categories of BPA will need to decide how important it is to use WBM as part of IBM s integrated SOA (IT) and BPMS tool suites versus considering other integrated suite solutions. Vendors focused on the just the BP modeler category and those that are not IBM-centric in terms of their IT platforms, will want to do a best-in-breed BPA tool comparison of WBM against other similar products. IDS Scheer IDS Scheer has been a leader for years and has one of the most comprehensive toolsets in the BPA Magic Quadrant ARIS. ARIS is one of the most comprehensive enterprise and BP architecture toolsets in the market; and SAP and Oracle are OEMs for ARIS. ARIS includes features such as ABC, balanced scorecard, key indicator management and business rule design, while BAM capabilities are offered in IDS Scheer s Process Performance Manager and simulation in ARIS Business Simulator. ARIS tends to be the leading tool of choice by companies in the Architect category of buyer. Vendors in the BP modelers category will find that ARIS provides added value to them in the form of extensive predefined industry-specific content and horizontal reference models to jumpstart BP modeling efforts. IDS Scheer has 15% of market share nearly five times that of most of its nearest competitors. Vendors in the BP Modelers category tend to find ARIS overly complex and costly for their needs although it is possible to deploy ARIS in a manner where less-sophisticated modelers can be productive. Those focused on the BPMS Modeler category should consider augmenting the modeling tools of their BPM vendors with ARIS for the architects in their organizations. Mega International Mega International has a comprehensive set of tools for modeling in its repository-based Mega Suite that will appeal to the Architect category of buyer. As part of MegaSuite, it also has tools focused on the BP Modeler category of buyer, including Mega Process and Mega Simulation for BP modeling and simulation. Newly released Mega GRC Platform which deals with governance and compliance issues (that is, Sarbanes-Oxley and Basel II requirements) and Mega Advisor provide business users with dynamic Web access to enterprise blueprints and operational data about process performance and risk. Mega Suite can perform a variety of modeling and specification tasks to enable more sophisticated modelers and architects yet, Mega s platform parameterization, filters and options enable each user to benefit from the simplest interface, customized to their own needs. Mega generally has deep and long-term relationships with its clients through successful engagements, and as a result its customer service ratings are among the highest reported to us in the BPA tool market. Mega Process generates BPEL for use by rule engines and BPM tools, and MegSuite integrates with the tools of a number of BPM tool vendors. Mega has a Gartner-estimated 4% of BPA tool market share. Like other vendors with a similar size of market share, Mega needs to demonstrate that it can execute on its vision for improving its business model to improve its position in the Leaders quadrant. Microsoft Microsoft Visio is focused on enabling the visual documentation, analysis and design of a range of systems and business processes and is a core component of Microsoft s process management disciplines, including those related to quality, compliance and BPM. Visio s ability to use Word, Excel and PowerPoint files from Microsoft Office where most organizations store their knowledge about their business processes makes Visio very popular with the average business user. The low cost and ease of use have resulted in Microsoft having, by far, the largest number of actual implementations of any process modeling tool. Gartner estimates Visio revenue in the BPA tool market to be about $120 million (30% of market share). BP and BPMS modelers can transform Visio diagrams into a graphical front end for line of business data, visualize information stored in Visio in multiple formats, including being able to view key performance indicators on top of business process diagrams or in the context of data s source, and view process and production data in the form of value stream maps, or cause and effect diagrams. Visio includes pre-built process templates for use by business architects and analysts to jumpstart process modeling efforts such as those for the factory floor process, PC assembly process flow, supply chain workflow and fault tree analysis. Microsoft has a strong partnering strategy with Visio, including BPM partners such as Simul8 and Ascentn. If and when Visio customers reach the point where they need greater functionality for enterprise and BP architects, they should look to Visio partners or consider acquiring a complementary BPA tool with a Visio bridge. Proforma Gartner estimates 65% of ProVision sales are focused on BP architects, 20% on business analysts and 15% on enterprise architects making it well-positioned to meet the needs of multiple BPA roles.

9 9 There is a high degree of market awareness of Proforma; it is one of the vendors for which we get the most inquiries by name (only Visio and IDS Scheer ARIS are greater), and ProVision appears on the largest number of finalist lists of customers we speak to. Based on Gartner customer feedback, it also has one of the highest customer satisfaction ratings in the BPA market. Proforma is a leading enterprise architecture tool vendor, yet BP architects and analysts say ProVision is one of the easiest BPA tools to use. ProVision has robust features, such as simulation, ABC and the ability to take execution data back into its analytics dashboard. Proforma has an aggressive partnering strategy that has attracted many leading BPM vendors. Proforma has a Gartner-estimated 3% of BPA tool market share. Like other vendors with a similar size of market share, Proforma must continue to deliver on client success and increase partnerships and distribution channels to improve its position in the Leaders quadrant. Savvion Savvion reports that there have been more than 75,000 downloads of its free Savvion Process Modeler release 6.8 including 50,000 in 2006 so there is obvious interest in this product. Effective 15 December 2006, a new upgraded version 7.0 of Process Modeler was available for which Savvion charges an average price per seat of $500. A purchasable Process Asset Management repository is also available for $50,000 to share the process models and associated artifacts such as documentation, layout of user interfaces, and subprocesses. Savvion provides BPA functionality for the first two groups of buyers (BP modelers and architects), which can seed the market for follow-on sales of the broader Savvion BPMS. Savvion also provides BPA functionality as a part of its process design studio (automation studio) for the third category of buyers (BPMS Modelers). By providing BPA and BPM products that can be used independently, as well as together, Savvion meets the requirements of a broad community of users. Savvion needs to demonstrate during the next 24 to 36 months that it can sell process modeler to BP modelers and architects independent of its BPMS. It is likely that the long-term success of the process modeler in the BPA market will be tightly tied to the market penetration of Savvion s combined BPA and BPM offerings. Sybase Sybase PowerDesigner is best known as the leading data modeling/database design tool, but also includes objectoriented analysis and design capabilities for Architects and BP modelers. Customers generally highlight PowerDesigner s strengths as intermodel integration and traceability, ability to rapidly add new model types and artifacts and relate them to existing ones, and ease of extracting and formatting captured information for dissemination. PowerDesigner supports simulation and ABC through partner product, Simul8. PowerDesigner has a fully integrated Requirements model that can be used to capture requirements, store and manage business rules definitions, business goals and more. PowerDesigner is able to link the goals, rules and requirements not only to each other from multiple document views, but also to any design artifact from BP models to logical and physical data models, IT object-oriented/uml models, and so on. PowerDesigner lacks some things found in market leading products including BAM, pre-defined architectural frameworks and vertical market models and content. Sybase has a Gartner-estimated 3% of BPA tool revenue. Like other vendors with a similar size of market share, Sybase needs to demonstrate it can execute on its vision for improving its business model to improve its position in the Magic Quadrant. Telelogic Telelogic is a leading vendor in the areas of business requirements management and IT (object-oriented analysis and design) modeling and code generation with tools such as DOORS, TAU, Telelogic Modeler and Rhapsody. Telelogic acquired a leading BPA tool in Popkin s System Architect in 2005 and has been integrating it into its portfolio in support of enterprise architecture, application development, and business process optimization. System Architect (SA) and Telelogic s other tools appeal to the architect category of buyers, yet, SA also appeals to the BP and BPMS modeler categories of buyers. The requirements management capabilities of DOORS, coupled with the ability to feed models from SA to TAU or other leading IT modeling tools and BPM tools makes it an interesting alternative sitting in the sweet spot between all three BPA categories of buyers. Also, unlike most BPA tools, SA has full life cycle data modeling/database design and schema generation capabilities, which assists BP architects and analysts in relating processes to data at multiple levels and promotes better understanding between business and IT personnel.

10 10 With about 7% of market revenue, Telelogic has better business model execution and vision than most other BPA leaders. To improve its position in the Leaders quadrant, Telelogic will need to increase its focus on sales to BP and BPMS modelers including providing more out-of-the-box support for a greater number of BP methods, frameworks and content. Telelogic also needs to provide a more business user-friendly interface to SA and increase the number of partnerships with BPM vendors in terms of getting them to use SA as part of a best-in-breed BPMS. Tibco Software Tibco Software is a leading provider of business integration and process management software and has a BPMS, iprocess Suite with a BPA tool, Business Studio, which will appeal most to those in the BPMS Modelers category. Tibco Software s vision for Business Studio is to enable seamless collaboration between business and IT users to develop executable process models. First released in February 2006, Business Studio is available for free (or with maintenance for $500) and can serve as a good starting point for a full blown BPM implementation. Through April 2007 there have been more than 10,000 downloads of the software. Tibco Software has built an extensive support network through its developer site for Business Studio and provides periodic webinars, tutorials and white papers to encourage users to get familiar with all aspects of the product. Business Studio comes with simulation and BAM capabilities, support for rules and analytics it is one of the better offerings from BPMS tool vendors. Tibco Software has a Gartner-estimated 2% of BPA tool market share. Tibco Software needs to demonstrate during the next months that its strategy to seed organizations with a free or low-cost version of Business Studio as a stalking horse means of selling its BPM tool is working. Ultimus Ultimus is a BPMS vendor whose focus is on delivering a complete set of capabilities to enable business optimization by analyzing, modeling, automating, managing and optimizing an organization s business processes. The Ultimus BPA solution is one of the better ones in the BPMS Modeler buyer category. Ultimus BPM Suite provides BPA capabilities in Process Designer which comes in two versions a stand-alone version, which lists for $995, and a multiuser version as part of the Ultimus BPM Studio in the $25,000 to $150,000 range. Acronym Key and Glossary Terms ABC activity-based costing BAM business activity monitoring BP business process BPA business process analysis BPEL business process execution language BPM business process management BPMN business process management notation BPMS business process management suite DoDAF Department of Defense Architecture Framework FEAF Federal Enterprise Architecture Framework SA System Architecture SOA service-oriented architecture TOGAF The Open Group Architecture Framework Process Designer includes features such as simulation and ABC and comes with many people-centric capabilities. Ultimus has a complementary BAM tool the IBAM Suite which captures and displays key performance indicators from live process data and third-party applications, and supports deep dive analytics. When using the Ultimus ibam Suite that leverages the Ultimus Adaptive Discovery technology in conjunction with Process Designer, complete roundtrip optimization of processes is enabled; thereby, making it possible to dynamically complete a feedback loop for process improvement. The Ultimus BPA tools should be primarily viewed as a complementary and natural extension for those starting with Ultimus BPM Suite and wanting to add integrated process modeling. The Ultimus BPA technologies can be a viable option for those in the BP and BPMS Modelers categories of buyers, but unless the organization plans to use the Ultimus BPMS including the IBAM Suite -other alternatives are arguably better choices. Ultimus has a Gartner-estimated 2% of market share. Like other vendors with a similar size of market share, Ultimus needs to demonstrate that it can execute on its vision for improving its business model to improve its position in the Magic Quadrant. Vendors Added or 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 appearing 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. This may be a reflection of a change in the market and, therefore, changed evaluation criteria, or a change of focus by a vendor.

11 11 Evaluation Criteria Definitions Ability to Execute Product/Service: Core goods and services offered by the vendor that compete in/serve the defined market. This includes current product/service capabilities, quality, feature sets and skills, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria. Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an assessment of the overall organization s financial health, the financial and practical success of the business unit, and the likelihood of the individual business unit to continue investing in the product, to continue offering the product and to advance the state of the art within the organization s portfolio of products. Sales Execution/Pricing: The vendor s capabilities in all pre-sales activities and the structure that supports them. This includes deal management, pricing and negotiation, pre-sales support and the overall effectiveness of the sales channel. Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor s history of responsiveness. Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization s message in order to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This mind share can be driven by a combination of publicity, promotional, thought leadership, word-of-mouth and sales activities. Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups and service-level agreements. Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis. Completeness of Vision Market Understanding: Ability of the vendor to understand buyers wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen and understand buyers wants and needs, and can shape or enhance those with their added vision. Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the Web site, advertising, customer programs and positioning statements. Sales Strategy: The strategy for selling product that uses the appropriate network of direct and indirect sales, marketing, service and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base. Offering (Product) Strategy: The vendor s approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature set as they map to current and future requirements. Business Model: The soundness and logic of the vendor s underlying business proposition. Vertical/Industry Strategy: The vendor s strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including verticals. Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes. Geographic Strategy: The vendor s strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the home or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.