Magic Quadrant for Marketing Resource Management

Transcription

1 G Magic Quadrant for Marketing Resource Management Published: 8 February 2016 Analyst(s): Kimberly Collins This Magic Quadrant evaluates vendors of applications that support the management of marketing resources, such as people, plans, budgets, projects, tasks, assets and branded content. It will help IT leaders work with marketing leaders to find an MRM solution. Market Definition/Description Marketing resource management (MRM) improves companies' ability to orchestrate and optimize internal and external marketing resources by using a set of processes and capabilities (see "The Five Competencies of MRM 'Re-' Defined"). MRM applications enable companies to: Plan and budget for marketing activities and programs (strategic planning and financial management) Create and develop marketing programs and content (creative production and project management) Collect and manage content and knowledge (digital asset, content and knowledge management) Fulfill and distribute marketing assets, content and collateral (marketing fulfillment) Measure, analyze and optimize marketing resources (analytics) Vendors in this Magic Quadrant are assessed on their ability to support each of these five MRM competency areas. Although digital asset management (DAM) is an aspect of MRM, this Magic Quadrant does not evaluate DAM vendors that do not also provide other MRM functionality. Most MRM vendors offer a light DAM capability to support marketing asset management for creative production management and marketing fulfillment, but their focus is on supporting MRM capabilities, not enterprise DAM.

2 Magic Quadrant Figure 1. Magic Quadrant for Marketing Resource Management Source: Gartner (February 2016) Page 2 of 30 Gartner, Inc. G

3 Vendor and Cautions BrandMaker BrandMaker is a Leader on the basis of its broad and robust MRM solution, commitment to MRM, innovative focus, broad vision, expanding geographical presence and strong business model for future growth. Growth: BrandMaker states that its MRM revenue grew by over 30% in euros from 2014 to 2015, with 82% of this revenue being recurring revenue (the lower exchange rate between the euro and the U.S. dollar reduced its growth in dollar terms). Thirty-four percent of its revenue now comes from North America, compared with 39% from Germany. Gartner estimates that BrandMaker's MRM revenue for 2014 was between $15 million and $20 million. R&D investment: In 2015, BrandMaker focused its development on connectivity, with online/ offline integration, Salesforce integration and integration with social media (Facebook, Twitter and YouTube). Investments included a "do it yourself" importer that eliminates dependency on the IT organization for importing Microsoft Excel spreadsheets; real-time spending management to enable quick adjustments; and linkage between the global calendar and the social media calendar to connect strategic planning with content planning. BrandMaker has integrated its solution with Adobe Marketing Cloud and Adobe Creative Cloud for key clients, and it will extend its integrations to other vendors in In 2015, it began building a business template library with preconfigured templates, workflow and creative briefs. In 2016, it will work on a media advisor tool that enables improved budget allocations. Business model: BrandMaker has a strong business model for, and focus on, sales, geographical expansion and customer success, which will enable it to scale its business and increase its revenue more quickly. As a "pure play" MRM vendor, it is an attractive option for clients who favor best-of-breed vendors and are seeking alternatives to large vendors. In 2016, BrandMaker will shift most of its budget, resources and decision-making responsibility to North America. Deployment models: BrandMaker's enterprise clients can choose between two main deployment options: enterprise SaaS (hosted) and on-premises. Both take the form of separate instances. BrandMaker also offers a SaaS option for the midmarket. Hosting with cloud-based applications is carried out by Equinix. Cautions Functional depth: Existing and prospective BrandMaker clients have identified issues with functional depth, especially the flexibility of the workflow to enable changes and make quick adjustments to processes. BrandMaker is working on preconfigured templates in this area. Gartner, Inc. G Page 3 of 30

4 Market visibility: Although BrandMaker is gaining more market visibility, it is still less visible than other MRM Leaders. It is known more for its brand and asset management capabilities, particularly in Europe. Competition: BrandMaker will increasingly be challenged globally, as integrated marketing management vendors such as IBM, Infor, Microsoft, SAP, SAS and Teradata increase their traction and marketing capabilities worldwide. Potential acquisition target: BrandMaker could be an acquisition target for large companies wanting to provide MRM capabilities. Its strong business model, growth and robust MRM solution would make it one of the better acquisitions for vendors looking to enter this market. BrandSystems BrandSystems is a Visionary on the basis of its broad and deepening set of MRM capabilities and its expanding geographical strategy. Growth and geographical expansion: Gartner estimates that BrandSystems' MRM revenue was between $12 million and $13 million in It added 24 new clients in that year, and now has over 400 clients in total. In 2015, BrandSystems expanded beyond Europe into the U.S., and Australian markets. It plans to expand into India in 2016, and into South America in Broad MRM solution: BrandSystems provides a broad set of MRM capabilities for planning and budgeting, creative production management and collaboration, graphic production, marketing asset management, marketing fulfillment, and analysis and reporting. R&D investment: BrandSystems' investments in 2015 and 2016 focused on integrating its media generator solution and content management system; automated workflow (with a visual drag-and-drop, Web-based editor); an enhanced resource manager for managing people and tasks (with calendar views); an enhanced purchase manager; an enhanced widget library; and improvements to its marketing shop. BrandSystems is also integrating its solution with that of ConceptShare for proofing and annotation capabilities. Deployment options: BrandSystems' software can be deployed as SaaS, on-premises or hosted by a third party. BrandSystems is in the process of moving from SaaS delivery with assisted setup to an approach that, by 2017, will enable clients to buy and set up its software online. Cautions Market visibility: BrandSystems lacks the market visibility of some of the Leaders in this Magic Quadrant. Gartner does not see it in as many competitive deals as the Leaders. Increased competition: Consolidation in the marketing application market is creating larger players in the MRM sector. BrandSystems will increasingly be challenged by larger integrated marketing management vendors (such as IBM, Infor, SAP, SAS and Teradata). Page 4 of 30 Gartner, Inc. G

5 Geographical expansion and customization: BrandSystems is using partners to enter new geographies and scale its business. Ultimately, it will need to have more of its own people and offices selling and supporting its solution in order to compete with the larger vendors. It will also need to rely less on customization. Reference customers and other clients report that its software requires a high degree of customization. Large enterprises: BrandSystems lacks the depth of functionality of some of the Leaders and is better positioned to serve the midmarket than large enterprises. BrandSystems' focus is on midsize businesses with revenue of between $500 million and $5 billion. It is not actively pursuing large-enterprise accounts. BrandSystems will need to win more midmarket deals to grow its revenue as quickly as MRM vendors that focus on the large-enterprise market. Capital ID Capital ID is a Niche Player on the basis of its focus on Europe (particularly Northern Europe). Its core competency is in the brand management and marketing fulfillment aspects of MRM. Growth in recurring revenue: Capital ID continues to move its clients to a subscription model, which is increasing its recurring revenue. Gartner estimates that Capital ID generated between $9 million and $11 million in MRM revenue in It is increasing its staff numbers, particularly in consulting. Brand management and marketing fulfillment: The core competency of Capital ID's MRM solution, ID Manager, is brand management and marketing fulfillment, including creative production management, content management and media planning. R&D: Capital ID's investments in 2015 included ID Manager 4.03, which was launched with a focus on support for branded content in social media, support for tablets and smartphones, dashboards for external data sources and social media, a "mobile first" user experience framework, responsive design, and integration with third-party channels. Capital ID has also developed capabilities in areas adjacent to MRM, such as reputation and crisis management. Deployment options: ID Manager is available as an on-premises, hosted or SaaS solution. Rackspace provides third-party hosting. Prepackaged "jump-start" solutions enable shortcycle-time deployments that allow for subsequent customization. Cautions Financial management capabilities: Capital ID provides some financial management capabilities, but these are less robust than those of some of the leading MRM vendors. They are used primarily for creative projects and marketing content. Market visibility: We do not see Capital ID on as many longlists or in as many competitive deals as other MRM providers in this Magic Quadrant. It has struggled to gain much recognition and traction in the North American market. Gartner, Inc. G Page 5 of 30

6 Increased competition in Europe: Consolidation has created larger players in the MRM sector, which are also targeting Europe. Market stability: More small vendors, particularly in Europe, are entering the marketing asset management and marketing fulfillment areas of the MRM sector. As a small vendor, with less than $15 million in annual revenue, Capital ID is susceptible to strong fluctuations in a market that is rapidly becoming overcrowded. Code Worldwide Code Worldwide is a Visionary on the basis of its broad solution and innovative focus on the end-toend process for planning, managing, executing, and measuring creative advertising campaigns and promotions. Growth: Code is a wholly owned subsidiary of Omnicom Group. Its MRM revenue and client numbers continue to increase. Gartner estimates that Code's MRM revenue for 2015 was between $14 million and $16 million. Focus on creative advertising and branding: Code's adzu solution focuses on the end-toend and closed-loop process for creative advertising campaigns and promotions. It supports planning, budgeting, creative production, asset management, fulfillment, and measurement and reporting as part of this process. R&D investment: Code has made improvements across its adzu solution by extending its predictive financial analytics, rebuilding its content management component, adding new channels for digital fulfillment, enhancing its measurement and analytics capabilities, and adding integration with Domo and Tableau software for analytics. Deployment options: Code's solution can be deployed on-premises, hosted or purchased as a public cloud service (multitenant SaaS). The cloud is Code's preferred option. Cautions Agency reliance: Recommendations or reselling by Omnicom Group and Rapp could present at least a perceived agency bias to potential clients and those looking to separate MRM technology investments from agency-based decisions. Market visibility: Code is less visible and less well known than other vendors in this Magic Quadrant. Gartner does not see it in as many competitive deals as the other leading vendors that sell directly to customers. Financial management and workflow capabilities: Although Code provides more advanced capabilities for budgeting and planning than other vendors focused on brand management, these capabilities are tightly linked to creative advertising and media promotion campaigns. There is no visual drag-and-drop workflow tool for routing, reviews, approvals and markups. Page 6 of 30 Gartner, Inc. G

7 Small and midsize businesses (SMBs): Code focuses on selling to large enterprises. It does not aim adzu at SMBs. Direxxis Direxxis, a Broadridge company, is a Challenger due to its improved viability and continued strong growth following its acquisition by Broadridge. Its focus on MRM capabilities for asset management and fulfillment as part of a distributed marketing process also contributes. Growth: Direxxis grew strongly in this market from 2014 to 2015 its MRM revenue almost doubled. Gartner estimates that Direxxis generated between $25 million and $35 million in MRM revenue in The acquisition by Broadridge gives Direxxis improved viability, opportunity for global expansion, access to data centers and infrastructure, and potential to integrate with Broadridge's existing software and services. Marketing asset management and marketing fulfillment capabilities: The core value proposition for Direxxis' MRM solution focuses on marketing asset management and marketing fulfillment capabilities to support a distributed marketing process in decentralized marketing organizations, with local marketing enablement. The acquisition by Broadridge expands Direxxis' marketing capabilities beyond MRM to campaign management, lead management, event management and presales support. R&D in MRM: Investment in 2015 focused on using Broadridge's capabilities for marketing fulfillment in relation to print production and distribution, and for marketing asset management with access to prebuilt content and the ability to satisfy Financial Industry Regulatory Authority (FINRA) requirements. Improvements were made to analytics and dashboards for user metrics and marketing performance. Deployment options: Direxxis prefers to deploy its application as a multitenant, SaaS solution or as a hosted solution. It plans to use Broadridge's data centers for hosting. Cautions Creative production management capabilities: Although Direxxis has added an approval module and has made enhancements in this area, it does not provide a visual drag-and-drop workflow tool. Nor does it support all project management capabilities and tasks, as do other MRM vendors. Financial management capabilities: Although Direxxis offers some financial management capabilities, it does not currently have the Leaders' robust capabilities to support enterprise marketing financial management. On-premises deployment: This is not a standard option, but only a custom option available on request. Gartner, Inc. G Page 7 of 30

8 Industry focus: Direxxis focuses on the financial services industry, including banks, investment firms and insurance companies, although it does have some clients in the consumer packaged goods sector. Broadridge has a similar focus on the financial services industry. Organizations in other industries should consider alternative providers. Elateral Elateral is a Visionary on the basis of its innovative focus on marketing fulfillment and brand management. The expanding business opportunities that arise from its new infrastructure as a service (IaaS) platform and growing partner network also contribute. Significant growth potential and customer satisfaction: Elateral now has a scalable IaaS platform and a growing network of partners that can sell, refer, implement and service its MRM solution, so it is poised for significant growth in Gartner estimates that Elateral's MRM revenue in 2015 was between $12 million and $13 million. In addition, reference customers gave Elateral some of the highest customer satisfaction ratings in this Magic Quadrant. R&D investment and innovation: Elateral has completed its transition to a public and private cloud IaaS offering, and migrated all its customers to this new platform. The new platform has resulted in a 65% reduction in the total cost of ownership and a higher level of performance; it has also given Elateral greater scalability. All seven of Elateral's pending patents have cleared the Patent Cooperation Treaty (PCT) filing stage, and several will be issued over the next few months. More patents are expected to be filed later in Other investments include enhancements to advanced analytics, value scorecards, and expansion of integration points (such as to Domo and Oracle Eloqua software). Partner ecosystem: Elateral is expanding its partnerships for infrastructure and other business applications (such as campaign management, digital marketing, DAM, content production, delivery and support services). It has added several large agencies as strategic platform partners. Deployment options: Elateral supports public and private cloud options, with support from Microsoft (Azure). Cautions Planning and financial management capabilities: Although Elateral offers some planning and budgeting capabilities, they are not as robust as those offered by the Leaders in this Magic Quadrant. Its capabilities lack depth in terms of financial management and advanced features for quoting and procurement. Creative production management capabilities: Although Elateral offers workflow capabilities to support marketing fulfillment, it lacks a robust workflow tool for managing creative projects, generating reviews and approvals, and allocating and managing people, teams and resources. On-premises deployment: Elateral does not offer an on-premises deployment option. Page 8 of 30 Gartner, Inc. G

9 Potential acquisition target and competition: ElateraI's innovative value proposition in marketing fulfillment could make it an attractive acquisition target for vendors looking to expand their capabilities in this area. Elateral is one of the smaller MRM vendors, and it faces competition from new entrants. It will need to continue to raise its visibility by making full use of its new IaaS platform and expanding its partner network to enable faster deployments and growth. IBM IBM is a Challenger on the basis of its broad MRM solution, large client base and renewed MRM investments. In 2015, it launched the IBM Marketing Cloud with new embedded MRM features, but it is too early to tell how this new SaaS solution will impact its execution. Financial viability: IBM is a global company that generated $92.8 billion in overall revenue in Gartner estimates that IBM's MRM revenue was between $35 million and $45 million in Such figures make IBM one of the most financially viable vendors. Broad solution: IBM provides a broad MRM solution that covers all five MRM competencies, with strengths in planning, financial management and creative production management. It uses internal teams (IBM Enterprise Content Management [ECM] and IBM Digital Experience) and external partnerships (with Elateral, Quark and Saepio) for content management and marketing fulfillment. R&D investment: In 2015, IBM launched the IBM Marketing Cloud with embedded MRM features, drawing on its Silverpop SaaS architecture. In 2016, it will continue to embed MRM capabilities for creative production in this new cloud-based platform. Investments in 2015 included the introduction of new workflow features (work requests and approval requests) as part of Journey Designer. IBM also launched a partnership with Allocadia for planning and financial management capabilities, which are available both on a stand-alone basis and as part of the Enterprise Edition of IBM Marketing Cloud. For its on-premises marketing operations solution, IBM has extended cross-device support for viewing and acting on approval requests. Deployment options: IBM offers on-premises, private cloud hosted and on-demand deployment options via two different solutions. IBM Marketing Operations is an on-premises or hosted solution. IBM Marketing Cloud is an on-demand, multitenant SaaS solution that includes Journey Designer and planning and budgeting capabilities powered by Allocadia. Cautions Marketing asset management and marketing fulfillment capabilities: IBM relies on partnerships with external vendors like Elateral, Quark and Saepio, and internal partnerships with IBM ECM and IBM Digital Experience, to support these capabilities. Clients typically prefer to have a fully integrated MRM solution, rather than rely on partnerships or purchase multiple products from a vendor's portfolio. Gartner, Inc. G Page 9 of 30

10 Market perception: Over the past two years, clients have stated that they do not believe IBM is investing in MRM, and that its solutions are outdated, especially the SaaS solution. IBM must promote its new cloud-based solution to overcome this perception and keep developing its product. Reference customers gave IBM low satisfaction ratings for pricing, and clients have informed Gartner that the cost-to-value ratio for IBM's MRM capabilities is high, compared with other vendors. Reliance on Allocadia: IBM relies on its partnership with Allocadia for planning and financial management capabilities in its cloud-based solution. Allocadia is a fast-growing company in an attractive area for new MRM growth. If a competitor were to buy Allocadia, this would jeopardize its partnership with IBM. Hybrid model: IBM will promote both its on-premises and on-demand MRM solutions, as well as other IBM or partner solutions, when a broad set of MRM capabilities is required. Many new capabilities for MRM will be available as shared services between its cloud and on-premises solutions. Therefore, many MRM customers that want a broad solution will need to consider a hybrid deployment model. Infor Infor is a Leader on the basis of its broad MRM vision, scalable pricing and robust capabilities for planning, financial management and creative production management. Growth: Infor is nearly doubling its salesforce to sell marketing applications, and using the value-added reseller channel it acquired with Saleslogix. Gartner estimates that Infor's MRM revenue in 2015 was between $30 million and $35 million. Infor plans to have an additional 50 resources by the end of March R&D investment: Infor is investing in its product organization by adding nearly 170 development resources dedicated to customer experience and digital transformation. It has enhanced its marketing asset management capabilities (better file management and easier signoffs), collaboration capabilities (improved in-app and external collaboration features, a new request form and a requester portal) and marketing insights (role-based dashboards with greater visualization). It is moving to a responsive HTML5 design and UI that will be more consistent with other marketing applications. Areas of focus in 2016 include new role-based home screens, improved calendaring and scheduling, and in-context/in-line reporting and dashboarding. Infor will integrate with Infor Ming.le to improve collaboration. Pricing: Clients state that Infor's pricing for functionality is lower than that of other Leaders. Deployment models: Infor supports on-premises, multitenant SaaS and separate-instance hosted (private cloud) deployments. Its current hosting partner is Rackspace, but all hosting will move to Amazon Web Services in the first half of Page 10 of 30 Gartner, Inc. G

11 Cautions Marketing fulfillment capabilities: Infor's capabilities for marketing fulfillment are still not as robust as those of some of the niche/specialty vendors. Market visibility: Despite increasing media coverage of its CRM marketing applications in 2015, Infor is still not well-known as an MRM provider. Clients contacting Gartner about MRM are often unfamiliar with Infor, and frequently have not heard about the Orbis MRM solution. Product management changes: Infor saw significant turnover in the senior management of its marketing application portfolio in It recently announced new managers. Market momentum: Gartner is not seeing Infor in as many competitive MRM deals as it did a year or two ago. Infor also received lower satisfaction scores from reference customers, particularly in the following areas: performance and scalability, ongoing R&D investment, ability to meet current and future requirements, ease of use, workflow, reporting, ease of installation, and integration with other business applications. MarcomCentral MarcomCentral, a Ricoh company, is a Niche Player on the basis of its focus on marketing asset management, fulfillment and distribution within the MRM sector. Customer base and geographical expansion: MarcomCentral reports that it has over 400 MRM clients, with more than 70 added in Gartner estimates that MarcomCentral's 2015 MRM-related revenue was between $12 million and $13 million. It is using Microsoft's Azure cloud for overseas expansion into Europe and Japan. Marketing fulfillment capabilities: MarcomCentral's solution provides robust capabilities for marketing fulfillment and personalization. Budgeting, workflow and asset management features are used to enhance the marketing fulfillment process and capabilities. Key use cases for the solution include brand and regulatory compliance, local-area marketing and sales enablement. R&D: Investments in 2015 included enhancements to search, HTML output for , DAM, Salesforce integration, and reporting and analytics, as well as a new video bookend product. MarcomCentral has also moved from a waterfall development process to an agile/scrum method using Microsoft Azure. Deployment models: MarcomCentral supports SaaS and hosted single-instance deployments. Hosting is by Microsoft, ScaleMatrix and XO Communications. Cautions Financial management and workflow capabilities: MarcomCentral has some capabilities for budgeting for content and collateral, but does not provide a robust enterprise financial management solution for marketing. Workflow is tied primarily to the customization, fulfillment Gartner, Inc. G Page 11 of 30

12 and distribution of marketing content, and has not been prepackaged for the creative production and review process. MarcomCentral does not offer project management capabilities. On-premises deployment: MarcomCentral does not currently support the on-premises model. Transition after Ricoh acquisition: Software sales are very different from hardware sales, particularly when applications are marketed to business users, such as those in marketing. Ricoh's success in the MRM market will depend on its ability to retain MarcomCentral staff (in the areas of sales, customer service and implementation) and attract new talent. It also depends on Ricoh enabling MarcomCentral to continue to operate independently. Third-party sellers: Some customers who bought MarcomCentral software through third-party agencies and service providers have identified difficulties with these third parties in terms of expanding product capabilities beyond print production. Prospective customers looking for capabilities beyond print production should buy the solution direct from MarcomCentral, not via a third party. Microsoft Microsoft is a Challenger on the basis of its overall viability, the opportunity presented by the Microsoft Dynamics CRM customer base, and its broad MRM solution and midmarket appeal. Microsoft Dynamics opportunity: In 2015, Microsoft generated over $93 billion in overall revenue. Microsoft Dynamics CRM has growing momentum (80% growth in 4Q14), with over 40,000 customers. Although the bulk of this revenue is generated by sales force automation (SFA) sales, the SFA client base presents a tremendous cross-selling opportunity for Microsoft Dynamics Marketing and its MRM solution. Microsoft reports that 27 of its largest MarketingPilot customers are upgrading to Dynamics Marketing. Gartner estimates that Microsoft generated between $15 million and $25 million in MRM revenue in Broad solution: Microsoft offers a broad set of MRM capabilities for planning, budgeting, procurement, project management, content/asset management, media buying and performance management. Functionality improvements: Microsoft continues to increase its MRM investment. Investments in 2015 focused on DAM improvements, using HTML5 to enhance the viewing, searching and annotation of assets. Analytics improvements focused on role-based dashboards for managing asset effectiveness, tracking project effectiveness, and analyzing budgets and costs. Integration with Microsoft Skype for Business has improved marketing collaboration. Deployment option: Microsoft Dynamics Marketing is available as a public SaaS offering. Hosting of the SaaS solution is managed by Microsoft data centers globally. Cautions Marketing fulfillment and financial management capabilities: Although Microsoft offers some marketing fulfillment and financial management capabilities, they are not as robust as Page 12 of 30 Gartner, Inc. G

13 those of the specialty marketing fulfillment vendors in the Niche Players quadrant or the leaders in financial management. Large-enterprise market: Microsoft's MRM capabilities are not as deep or complex as some of the Leaders, which makes it more attractive to midmarket buyers than to large-enterprise buyers. Although Microsoft has sold to a few large enterprises, in general we do not see it in competitive deals in the large-enterprise market. Market visibility: Gartner is seeing less of Microsoft in stand-alone MRM deals where clients are not already Microsoft Dynamics CRM customers for SFA. Many Gartner clients inquiring about MRM are not aware that Microsoft has an MRM solution. Microsoft will need to raise the visibility of its MRM capabilities to win more best-of-breed deals. Client feedback: Judging from inquiries from Gartner clients, some customers are considering a move to other vendors' MRM solutions as they do not believe that Microsoft is investing as much in MRM. Reference customers contacted for this Magic Quadrant gave Microsoft one of the lowest ratings for overall satisfaction. They also gave it low satisfaction ratings for ease of installation and integration with nonmarketing business applications. Saepio Saepio is a Niche Player on the basis of its core focus on marketing asset management and marketing fulfillment for distributed teams, such as franchisees, primarily in the U.S. Growth in recurring revenue: Saepio reported a 40% increase in monthly recurring revenue over the past 10 quarters (3Q13 to 4Q15), with a compound annual growth rate of 17%. Its goal in 2016 is to have 90% of its revenue come from subscriptions and only 10% from one-time projects. Gartner estimates that Saepio had MRM revenue of between $8 million and $11 million in Focus on local marketing enablement: Saepio's MRM solution focuses on distributed marketing, sales enablement and brand management in local markets. Its distributed marketing solution provides capabilities focused on the dynamic assembly of localized advertising and marketing communications for use in local markets. It also provides budgeting and project management capabilities for the marketing fulfillment process. R&D investment: Saepio made over 85 product enhancements to its MarketPort platform in Investments covered all five MRM areas: financial management (a native budget manager and Saepio OnePay for a multimerchant gateway); creative production management (new commenting features, the ability to configure alerts and communication management for approvals); marketing asset management (a new capability for tagging assets, the ability to publish assets to third-party systems, HTML5 support); marketing fulfilment (a new advanced search capability, streamlined check-out, and new fulfillment and order modules); and analytics (more out-of-the-box reports). Gartner, Inc. G Page 13 of 30

14 Deployment model: Saepio offers a hosted, multitenant SaaS option. Amazon Web Services supports the hosting. Cautions Financial management capabilities: Saepio offers some basic financial management capabilities, but these are not as robust or complex as those of the leading MRM vendors. These capabilities are typically used to augment marketing fulfillment. Creative production and project management capabilities: Saepio offers some creative production and workflow capabilities, which are used primarily to support downstream fulfillment and distribution of content. However, they are not as robust or complex as those offered by the leading MRM vendors, and they are typically used to augment marketing fulfillment. Increased competition: The number of small vendors targeting the marketing asset management, marketing fulfillment and content marketing areas of MRM is increasing rapidly. Larger MRM vendors are likely to make acquisitions in these areas of MRM to be more competitive. This will increase the level of competition from larger players and make Saepio an attractive acquisition target. Global expansion: Many of the market's European vendors are starting to expand globally and enter the U.S. To compete on a global scale, Saepio will need to develop a plan for expansion outside the U.S., into Europe and eventually Asia/Pacific and South America. SAP SAP is a Leader on the basis of its broad and robust set of MRM capabilities and market execution and traction, particularly within its installed base. Market momentum: SAP has rebranded its marketing products under the SAP Hybris Marketing umbrella. SAP Hybris Marketing now offers a broad marketing platform, based on SAP Hana, that is available with a wide range of deployment options which include a new public cloud offering. SAP Hybris Marketing remains an area of growth for SAP, with over 50% of SAP Hybris Marketing customers including its MRM capabilities in their purchase. Most of SAP's licensed MRM customers are in EMEA and Asia/Pacific, but its MRM deals have been increasing in North America. Gartner estimates that SAP's MRM-related revenue was between $75 million and $100 million in MRM R&D: Recent MRM enhancements to SAP's on-premises product have focused on budget planning, spending management and financial integration, program management, content development, DAM integration, and analytics and performance management, including a new dashboard for chief marketing officers. SAP has also launched SAP XM (Exchange Media) in a co-innovation mode, which will provide an end-to-end digital advertising platform based on Hana in-memory technology. SAP plans to integrate SAP Hybris Marketing with SAP XM to enable advertisers and publishers to maximize their return on media. In addition, SAP has Page 14 of 30 Gartner, Inc. G

15 released a public cloud (SaaS) solution built on SAP Hana S/4HANA Cloud Marketing Edition offers the same MRM functionality as the on-premises version, except for a few integration points (such as DAM and financial integration) that are on SAP's 2016 roadmap. Partner ecosystem: SAP continues to expand its partner ecosystem for MRM, to include advertising platforms, data management platforms, marketing agencies and independent software vendors (ISVs). It is also developing prebuilt integrations with ISVs. Deployment options: SAP offers on-premises, hosted, on-demand and hybrid deployment options. About 50% of SAP's new deals are for the SaaS solution. Cautions Market perception: Some prospective customers believe that, if they are not also considering SAP purchases in other areas of CRM and ERP, it does not make sense to pursue SAP MRM software as they think it is too difficult to engage large vendors for best-of-breed MRM solutions. Gartner does not see SAP in best-of-breed MRM deals where the client is not already an SAP customer. Multiple solutions: SAP relies on integration with OpenText for DAM and marketing fulfillment capabilities. Some existing and prospective clients have stated that there are differences between the UIs of the SAP and OpenText solutions, and that integration is not always seamless. SaaS for creative production management: One of the hottest areas for SaaS in the MRM market is creative production management for reviews, approvals, annotations and project management. SAP, however, does not have native capabilities for this area in its SaaS solution. Workflow: SAP's business rules and workflow remain less flexible than those of the more mainstream MRM vendors. This is an area of concern for some existing and prospective clients. SAS SAS is a Leader on the basis of its broad and robust set of capabilities across the five MRM competencies, its improving customer satisfaction scores, its growing momentum, its architectural investments, and its vision for next-generation MRM capabilities. Financial viability and growth: SAS is a large, privately owned company with revenue of approximately $3.1 billion in Gartner estimates that its MRM revenue grew by between 30% and 40% in 2015, to over $40 million. Robust MRM solution: SAS's Marketing Operations Management solution provides a strong set of capabilities for planning, financial management, creative production management, marketing asset management, marketing performance management and marketing mix optimization. Satisfaction scores from reference customers have greatly improved for this product, as they have for SAS's customer service and ongoing R&D investment. Gartner, Inc. G Page 15 of 30

16 R&D investment: SAS invests an average of 23% of its revenue in R&D. New features in Marketing Operations Management 6.4 include improved usability and navigation, setup and maintenance, performance, and reporting. In addition, enhancements have been made to Workbench, Planner, Digital Asset Management, Resource Management, Calendars and Artwork Producer. Integration with third-party vendors, applications within Marketing Operations Management and other SAS applications (including those of the broader Customer Intelligence suite), is also a focus. Deployment options: Marketing Operations Management is primarily deployed as SaaS, but also available via on-premises, hosted and hybrid models. Cautions Marketing fulfillment capabilities: SAS provides some marketing fulfillment capabilities, but they are not as robust as those of the "pure play" marketing fulfillment vendors, such as Elateral, MarcomCentral, Saepio and Wedia. MRM visibility: There remains some confusion regarding SAS's MRM capabilities outside its installed base. Consequently, SAS misses out on some best-of-breed MRM deals for which it would have been an ideal candidate for shortlisting. Competition and pricing: SAS will increasingly be challenged by SaaS-only vendors with robust capabilities, particularly in the midmarket where pricing is more important. Customers express concerns about SAS's pricing model, and pricing was the main reason why some reference customers surveyed for this Magic Quadrant, after considering SAS, chose a different vendor. MRM versions: SAS is currently developing its next-generation Customer Intelligence platform, Customer Intelligence 360. Over the next two years, it will develop its functionality in this platform. Clients will need to evaluate whether the current version of the platform, 6.x, meets their MRM requirements better than the new platform, or whether they prefer to integrate the current version with the next-generation version. Once SAS's new version has most of the capabilities of its current Marketing Operations Management suite, existing and prospective clients will be encouraged to start using Customer Intelligence 360. Teradata Teradata is a Leader on the basis of its broad and deep solution, MRM experience, client maturity, focus on client value, and continued market traction. It has, however, shifted downward in the Leaders quadrant due to uncertainty created by the sale of its marketing application business and declining satisfaction ratings from reference customers. Growth: Teradata continued to increase its MRM revenue in 2015, and it is one of the top three vendors for appearances in the shortlists and final contract negotiations seen by Gartner. We estimate that Teradata's MRM-related revenue in 2015 was between $80 million and $100 million. Page 16 of 30 Gartner, Inc. G

17 Robust solution with mature implementations: Teradata provides a broad set of MRM functionality, with capabilities in each of the five competency areas, including deep functionality in planning, budgeting and creative production management. It has some of the most advanced MRM clients in the market. R&D investment: Key areas of investment for 2015 included a new Portfolio Planner, a new Task Inbox, an improved calendar, and a new Workflow Mover and library of tools. Teradata has a new common UI across its marketing applications and is using a new REST API framework. Its acquisition of FLXone provides it with a data management platform, the Teradata Data Management Platform, to help with media spending for budget management, marketing mix modeling and planning. Teradata Interactive provides an agency-based solution for value realization services focused on strategy, creative services and execution. Deployment options: Teradata offers on-premises, hosted and SaaS options for its Marketing Operations solutions. Hosting partners include Accenture, Capgemini and Cognizant. Cautions Uncertainty over sale of marketing application business: At its third-quarter 2015 earnings call, Teradata announced it was selling its marketing application business (that is, the assets acquired from Aprimo, ecircle and others). Until the new owner is named, uncertainty will exist in the marketplace, which could disrupt sales cycles in the short term and cause attrition in the long term, if it takes too long to find a buyer. Teradata's MRM product and business remains solid, and Gartner expects this product to find a new home. However, we have noted a decline in satisfaction among some clients and reference customers contacted for this Magic Quadrant, in areas such as customer service and support, ongoing R&D investment, pricing and value relative to cost. Increased competition: Given the uncertainty created by the announced sale, Teradata will find itself increasingly challenged by its competitors, particularly other Leaders. Expect competitors to use this uncertainty against Teradata during sales cycles and in competitive campaigns to target Teradata clients. Marketing asset management and marketing fulfillment capabilities: Although Teradata has expanded its capabilities for DAM and marketing fulfillment, they are still not as robust as those offered by niche providers or "pure play" DAM vendors. Teradata does, however, have, a reseller partnership with Adam Software, and is cultivating partnerships with other vendors, such as Contentserv. Partner risk: Adam Software and Contentserv could be attractive targets for acquisition for their DAM capabilities. Teradata's marketing asset management and fulfillment capabilities could be at risk if another vendor, particularly a competitor, were to buy one or both of its partners. Gartner, Inc. G Page 17 of 30

18 Wedia Wedia is a Niche Player on the basis of its focus on creative production, marketing asset management and marketing fulfillment, as well as its predominantly European client base. International expansion: Wedia, which is based in France, raised 1 million for the first phase of its expansion into other European countries, the Middle East and Asia. It is cultivating partnerships in each of these countries to help sell its solutions. In the second phase, Wedia plans to expand into North America. Gartner estimates that Wedia's MRM revenue was between $9 million and $11 million in Marketing asset management: Wedia's strength is in managing creative projects and review cycles, storing digital assets and marketing content, and fulfilling marketing content to local markets via its brand portal and through mobile, print, , social media and website channels. R&D investment: Wedia enhanced its functionality for DAM, project management and analytics in 2015 with Wedia CrossMedia 11. In version 11.1, it focused on enhancing the UI. In version 11.2, it improved the search capabilities through integration with Elasticsearch. Deployment options: Wedia's solution is SaaS-based, but it can be deployed in a hosted (single-tenant) model on Amazon Web Services by customers that do not want to share their application and database instance. Cautions Market visibility: Gartner does not see Wedia on as many longlists or in as many competitive deals as many other MRM providers, particularly outside Europe. Financial management and creative workflow capabilities: Although Wedia offers some cost information and tracking capabilities for creative projects, it does not provide an enterprise budgeting and financial management tool for marketing. Workflows and creative review and approval processes are geared to creative content campaign execution as part of marketing fulfillment. Market stability: More small vendors, especially in Europe, are entering the marketing asset management and marketing fulfillment sectors of the MRM market. As a small vendor, with less than $15 million in revenue, Wedia is susceptible to strong fluctuations in a market that is rapidly becoming overcrowded, and in which it faces competition from larger vendors. On-premises deployment: Wedia defaults to a cloud service implementation, but on-site system implementation is an option available on request. Page 18 of 30 Gartner, Inc. G

19 Workfront Workfront is a new Leader on the basis of its rapid growth, increasing resources for MRM, expanding capabilities, growing partner network, geographical expansion, high customer satisfaction scores, and focus on creative project and resource management. Growth and customer satisfaction: Workfront is one of the fastest-growing vendors in this Magic Quadrant. It now has over 650 MRM clients. Gartner estimates that Workfront's 2015 MRM revenue was between $28 million and $33 million. Workfront received one of the highest overall satisfaction ratings from reference customers surveyed for this Magic Quadrant. Resource and project management focus: Workfront's MRM solutions focus on its core competency of project management to meet the needs of creative project and resource management for marketing organizations. Its robust people resource management capabilities are a competitive differentiator. It improved its proofing capabilities for creative production management with the acquisition of ProofHQ in July Partnerships: Workfront has a strong partnership with WebDAM (a Shutterstock company) for DAM and marketing fulfillment. The associated product is available on an OEM basis and sold as Workfront DAM. Workfront also has DAM partnerships with Adobe, Canto, Extensis, North Plains and Widen. It also partners with Allocadia for marketing financial management and Tableau for MRM analytics. In addition, Workfront has partnered with Adobe (Adobe Creative Cloud) for a plug-in to Adobe InDesign, and with Oracle for integration with Oracle Eloqua and the Oracle Marketing Cloud. SaaS: Workfront's software can be deployed as a multitenant SaaS or single-tenant hosted solution. Ninety-four percent of Workfront's customers use the multitenant SaaS model. Clients with strong regulatory or security requirements have the option to deploy an on-premises version. Cautions Financial management capabilities: Although Workfront offers some useful calendaring and resource-planning capabilities, it does not offer robust budgeting and financial management capabilities. Workfront is partnering with Allocadia in this area, but clients often look for financial management and project management capabilities in an integrated solution from one vendor. Marketing fulfilment capabilities: Although Workfront DAM has some marketing fulfillment capabilities for publishing marketing content, it does not provide the shopping cart and procurement features seen in the offerings of vendors focused on marketing fulfilment. Partner risk: Workfront has numerous partners, including Allocadia and WebDAM, to provide an expanded set of MRM capabilities. If one of these partners were to be acquired, acquire a competitive solution or decide not to partner with Workfront any longer, Workfront could find itself having to find a new partner. Gartner finds that prospective MRM customers often prefer an integrated solution from a single vendor. Gartner, Inc. G Page 19 of 30

20 Competition: Workfront's core competency in creative production and resource management differentiates it from other specialty MRM vendors that focus on marketing asset and brand management. However, it also brings Workfront into more direct competition with some of the larger vendors and Leaders in this Magic Quadrant, such as Infor, SAP, SAS and Teradata. Vendors Added and Dropped We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor's appearance in a Magic Quadrant 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 None. Note, however, that MarcomCentral replaces Ricoh (PTI Marketing Technologies). MarcomCentral is now the official name of the subsidiary, bought and owned by Ricoh, that was part of PTI. Dropped North Plains Systems. This vendor did not meet the inclusion criteria for numbers of new customers and did not provide sufficient information for evaluation. North Plains is positioning itself more toward DAM and cultivating partnerships with vendors in this Magic Quadrant for broader MRM capabilities in creative production management and marketing fulfillment. Inclusion and Exclusion Criteria To be included in this Magic Quadrant, vendors had to meet the following criteria. Market Traction and Momentum: Vendor must have at least 30 production customers for MRM functionality. Vendor must have had at least 15 new customers for MRM in Vendor must have generated at least $10 million in revenue from MRM offerings in Vendor must sell to, and support, clients in at least three different industries. Vendor must have appeared on Gartner client lists at least once per quarter in MRM Product Capabilities: Vendor must provide a prepackaged enterprise-class software solution targeted at MRM buyers and support ongoing R&D for its software. Page 20 of 30 Gartner, Inc. G

21 Vendor's MRM solution must be available for sale independently of other solutions (that is, a customer must be able to purchase the MRM solution separately, without having to purchase other business or marketing applications first or at the same time). Software (as opposed to consulting services) must account for 60% or more of the MRM solution. Vendor must support MRM functionality for at least four of the following five areas of functionality: Planning and financial management Creative production management Marketing asset management Marketing fulfillment MRM analytics and optimization At least one of these areas of functionality must be for (1) budgeting and financial management or (2) workflow for creative production management (such as for internal project management and reviews/approvals). The purpose of MRM solutions is to manage multiple types of marketing resource. New vendors whose focus is only one of these resources (such as content, assets and information) were ineligible for inclusion in this Magic Quadrant. To be considered for inclusion, new vendors had to support at least three of the following resources: Budgets and costs (money) Projects and tasks People and skills Content, assets and information Evaluation Criteria Ability to Execute Product or Service: Product and service remains one of the key differentiators of vendors' capabilities and an important selection criterion for companies looking for a competitive advantage. Subcriteria include specific functionality and solution capabilities for planning and financial management (25%); creative production management (25%); marketing fulfillment (20%); measurement, reporting, dashboards, analysis and optimization (15%); architecture, in terms of, for example, openness, flexibility, usability and workflow (10%); and marketing asset and content management (5%). Gartner, Inc. G Page 21 of 30

22 Overall Viability: In a market with many small vendors, viability is an important criterion. Subcriteria include overall financial viability (50%), MRM-related revenue (40%) and partner strategy (10%). Sales Execution/Pricing: A vendor's ability to provide global sales and distribution coverage for its MRM solution, whether directly or through partnerships (or both). Pricing structures that support both large enterprises and SMBs, and both in-house and SaaS-based deployments, are also important. Market Responsiveness/Record: A vendor's responsiveness to the market is key, as are the market's responsiveness to a vendor and its solution, and customers' experience of working with that solution in their particular geographic location and industry. Marketing Execution: A vendor's ability to consistently generate market demand and awareness of its MRM solution through marketing programs and press visibility. This criterion evaluates a vendor's marketing strategy and execution to build recognition for its MRM solution in ways that gain traction across regions and industries. Customer Experience: This criterion assesses aspects related to ensuring that each customer has ongoing success with its MRM deployment. Aspects considered include implementation services and partners, global technical support (direct and via partners), account management, user groups/ panels and customer communities. Operations: This criterion explores a vendor's ability to meet its goals and commitments. A vendor must have sufficient professional services (delivered by in-house resources or third-party business consultants and system integrators) to meet evolving customer requirements. Its customer service must also be sufficient to meet demand for different customer support request tiers. Subcriteria include customer service and support (50%) and professional services (50%). Table 1. Ability to Execute Evaluation Criteria Evaluation Criteria Product or Service Overall Viability Sales Execution/Pricing Market Responsiveness/Record Marketing Execution Customer Experience Operations Weighting High High Medium High Medium High Medium Source: Gartner (February 2016) Page 22 of 30 Gartner, Inc. G

23 Completeness of Vision Market Understanding: A vendor's understanding of the MRM market, and its specific value proposition for marketing personnel, are critical factors for buyers looking for a vendor with a vision that meets their needs. This criterion therefore receives the highest weighting. Marketing Strategy: A vendor's marketing strategy supports its ability to gain broad recognition for its MRM solutions. This criterion assesses that strategy's consistency, clarity and differentiation with regard to the positioning of MRM both internally and externally, and in line with the company's overall vision. Sales Strategy: A vendor's sales strategy supports its market penetration and global expansion. We assess the go-to-market approach to selling MRM products and services, both directly and through partnership networks globally. Offering (Product) Strategy: Innovation and vision across the breadth and depth of product capabilities are critical if a vendor is to keep meeting the needs of a maturing market in the five areas of MRM competency. This criterion therefore receives the highest weighting. Subcriteria include specific functionality and solution capabilities for planning and financial management (25%); creative production management (20%); marketing fulfillment (20%); measurement, reporting, dashboards, analysis and optimization (20%); architecture, in terms of, for example, openness, flexibility, usability and workflow (10%); and marketing asset and content management (5%). Business Model: This criterion includes an evaluation of how well a vendor mobilizes resources and uses partners to go to market and execute. Vertical/Industry Strategy: This criterion evaluates a vendor's go-to-market strategy for industries, solution capabilities (product verticalization), industry templates and packaging. Innovation: This criterion assesses a vendor's innovation in new and emerging areas of MRM, such as collaboration, mobile connectivity, advanced MRM analytics, marketing resource optimization, scenario planning/forecasting and digital extensions for fulfillment. Geographic Strategy: This criterion assesses a vendor's understanding of global MRM requirements, as well as its strategy and plans for geographical expansion, including marketing, sales, implementation and customer support. Gartner, Inc. G Page 23 of 30

24 Table 2. Completeness of Vision Evaluation Criteria Evaluation Criteria Market Understanding Marketing Strategy Sales Strategy Offering (Product) Strategy Business Model Vertical/Industry Strategy Innovation Geographic Strategy Weighting High Medium Medium High Medium Medium High Medium Source: Gartner (February 2016) Quadrant Descriptions Leaders Leaders in the MRM market demonstrate exemplary performance. They deliver a breadth and depth of integrated MRM functionality for large, enterprisewide and global implementations that extend MRM across the marketing organization. Leaders articulate business propositions that resonate with buyers. Challengers Challengers have entered the MRM market primarily to provide offerings that complement their established business applications. In doing so, they expect to benefit from their large installed bases. They typically offer a breadth of functionality, although often at the expense of depth and innovation. They provide value in terms of ease of integration with their enterprise applications, but have a limited understanding of market trends and marketing buyers. Challengers are either unable to articulate their visions consistently and effectively, or have not mobilized their resources to excel in this market. Visionaries Visionaries have a strong vision for applying technology to MRM-related issues, but have yet to mobilize resources or develop a robust business model for global expansion. Visionaries are thought leaders and innovators in most of the five areas of MRM competency. They need to achieve greater scale in the MRM market and execute more consistently, if they are to become Leaders. Page 24 of 30 Gartner, Inc. G

25 Niche Players Niche Players perform well in a small segment of the MRM market, but they have limited ability to innovate outside their core competency area(s) or to outperform other vendors with a broader focus. They focus on a specific geographic area or industry, or on only some of the five MRM competencies. They have limited implementations and support services for MRM, and may not have achieved the necessary scale to solidify their market positions. Context As more companies invest in campaign management and digital marketing solutions, decisions to purchase MRM solutions are becoming more mainstream. Companies are finding they need to manage their marketing resources, partly due to the growing complexity of their marketing organizations and partly to promote greater agility across the marketing mix. Given the complex and strategic nature of MRM, IT and marketing leaders must work closely together when selecting vendors and during the implementation of an MRM solution. As a best practice, many companies rely on marketing operation directors, who sit between marketing and IT executives, to lead MRM initiatives. MRM investments continued to grow in 2015, particularly in North America and Europe, but we also saw more interest in Asia/Pacific and Latin America. Most vendors continued to increase their revenue. A few, especially those competing in the marketing fulfillment area, were flat in terms of revenue growth, and a few suffered slight revenue declines. The gaps between vendors appear to be widening, due largely to differences in their product capabilities and market execution. Judging from the vendors that Gartner tracks, we estimate that there are over 6,300 MRM implementations worldwide in midsize and large companies, which collectively generate over $1 billion in annual revenue. There were over 850 new MRM implementations among the vendors we evaluated for this Magic Quadrant in Gartner sees MRM growing within organizations due to companies' global expansion, increases in the number of users across different regions, and the expansion of capabilities across the five areas of MRM competency. MRM is establishing a firmer presence in the midmarket, especially through SaaS and hosted deployment options. The MRM competency most commonly asked about by Gartner clients is creative production management. This is mainly due to interest in the following: the compliance review process; managing and tracking collaborative reviews and approvals with annotations in one system; and project management to ensure tasks and marketing initiatives are delivered on time. The number of client inquiries Gartner receives about marketing financial management is also increasing, with more clients asking about these capabilities in 2015 than in any previous year. Clients are often interested in implementing marketing financial management capabilities on either a stand-alone basis or as a second-phase initiative after implementing creative production Gartner, Inc. G Page 25 of 30

26 management capabilities. Interest in financial management is being driven by rapid growth in digital marketing; these capabilities enable marketers to make real-time budgeting decisions and reallocate funds to increase marketing agility in the era of digital business. Gartner is also receiving more inquiries about vendors with both marketing financial management and performance management capabilities. Examples of such vendors are Allocadia and Beckon, two companies that we are tracking for potential inclusion in a future edition of this Magic Quadrant. By contrast, growth in clients' interest in marketing asset management and fulfillment capabilities has leveled off somewhat. As the market matures, it is attracting larger vendors, and some vendors are experiencing explosive growth. In this context, small vendors particularly those with less than $10 million in annual revenue may not survive, and they are increasingly likely to be acquired by larger companies. We expect approximately half of the market's smaller vendors to go out of business or be acquired during the next three years. We expect consolidation between the smaller vendors to broaden these companies' MRM capabilities and geographical footprints. We also expect larger vendors to acquire smaller MRM vendors in order to enter the MRM market for the first time or to expand their existing MRM capabilities. Market Overview Customers are more astute about their MRM requirements now than they were two years ago. Firsttime buyers are surveying a broader set of MRM competencies and examining the global impact of MRM initiatives. MRM veterans are looking to enhance their functionality, and expand globally, while consolidating prior purchases. Early buyers are re-evaluating their prior choices as the market matures. Among the reference customers surveyed for this Magic Quadrant (70 participated in an online survey), the most important reason for selecting a vendor was that its MRM functionality met their organization's requirements (59% of respondents). Other common reasons for selection were the robustness of the MRM functionality (33%), the vendor's MRM expertise (30%), pricing (26%), and a good response to an RFP or a strong presentation of capabilities (26%). In addition, 33% of the surveyed reference customers used an on-demand/saas solution, 23% had deployed an onpremises solution, 19% were using a solution hosted by a third party, and 14% were using a hybrid model. Implementation times (to full production deployment) ranged from three to 16 months among the reference customers, with the average being eight months. Sixty-four percent of these customers stated that the implementation time generally met their expectations; 25% reported that it was longer than expected; 4% said it was shorter than expected; and 7% didn't know. Seventy-eight percent of the reference customers used their own staff for MRM implementation, 52% used their vendor's professional services, and 16% used one or more external system integrators. Page 26 of 30 Gartner, Inc. G

27 Forty-five percent of the reference customers stated that their MRM solution required configuration and customization; 22% said it needed configuration only (with no custom writing of code); 19% said it required only customization (writing of code); 13% were using a solution as supplied, with no customization or configuration; and the rest said that they didn't know about this. The extent of customization varied greatly from one vendor to the next, from less than 7% to 80% of the implemented solution. Clients should carefully evaluate what proportion of their requirements can be met "out of the box," and what proportion will require configuration or customization. They should aim to keep customization to 20% or less, if possible, by selecting a vendor that offers 80% or more of the functionality they require "out of the box." For further help with identifying and evaluating MRM vendors that meet your requirements, see "Toolkit: How to Create a Marketing Resource Management Application RFP." Gartner Recommended Reading Some documents may not be available as part of your current Gartner subscription. "How Markets and Vendors Are Evaluated in Gartner Magic Quadrants" "Toolkit: How to Create a Marketing Resource Management Application RFP" "12 Best Practices to Implement a Marketing Resource Management Solution" "The Five Competencies of MRM 'Re-' Defined" "IT and Marketing Need to Work Together to Support Marketing Planning and Financial Management" "The 12 Key Functional Capabilities for Marketing Creative Production Management" "Marketing Fulfillment Is the Last Mile of Marketing Resource Management" "Cut Waste, Not Marketing Programs, Using MRM" Evaluation Criteria Definitions Ability to Execute Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria. Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that Gartner, Inc. G Page 27 of 30

28 the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products. Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel. Market Responsiveness/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 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 initiatives, 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, service-level agreements and so on. 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 to 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 website, advertising, customer programs and positioning statements. Sales Strategy: The strategy for selling products 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. Page 28 of 30 Gartner, Inc. G

29 Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets 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 vertical markets. 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. Gartner, Inc. G Page 29 of 30

30 GARTNER HEADQUARTERS Corporate Headquarters 56 Top Gallant Road Stamford, CT USA Regional Headquarters AUSTRALIA BRAZIL JAPAN UNITED KINGDOM For a complete list of worldwide locations, visit Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner s prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner s research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner s Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see Guiding Principles on Independence and Objectivity. Page 30 of 30 Gartner, Inc. G