A summary of a commissioned study conducted by Forrester Consulting on behalf of Kofax

Transcription

1 Market Analysis of Multichannel Capture, Business Process Management, and Smart Process Applications, 2013 through 2016 A summary of a commissioned study conducted by Forrester Consulting on behalf of Kofax January 2013 Introduction The following abridged report summarizes Forrester s independent market opportunity assessment of the multichannel capture (MCC), business process management (BPM) and smart process application (SPA) markets. The primary objective of this research was to assess the current market size of these segments and to forecast growth through 2016 based on market demand. Methodology Forrester used its existing data and primary research to size and analyze the MCC, BPM and SPA markets. A multi-country survey was fielded to IT budget-holders across the Unites States, United Kingdom, France, Germany and Russia to augment Forrester s internal data. Definitions Multichannel Capture Market The MCC market includes: A. Production capture, which encompasses centralized, pooled, or shared scanning operations with full-time staff and whose primary function is to scan content for archiving purposes. B. On-demand capture, such as software to support standalone scanners and multifunction devices with enabled scanning. These systems support office staff and point-of-service workers who capture information to complete a transaction (i.e., scanning and capture are not their full-time job). C. Mobile capture, the use of mobile devices such as smartphones, tablets, or industry-specific tools to photograph or video documents (e.g., pay stubs, checks, forms) by a customer/consumer or an employee. Business Process Management The complete BPM space includes dynamic case management (DCM), integration-centric BPM, and traditional BPM solutions. Firms and products in this market provide one of the BPM or DCM capabilities including: Case management solutions Integration-centric BPM capabilities Departmental BPM solutions Traditional BPM process support

2 Market Analysis of Multichannel Capture, Business Process Management, and Smart Process Applications, 2013 through Smart Process Applications SPA is a new category of application software designed to support industry-specific business activities that are people-intensive, highly variable, loosely structured, and subject to frequent change. SPAs automate both structured and unstructured work activities in support of collaborative processes. As such, smart process applications contain all or most of the following core features: Document and content capture for incoming documents, forms, and faxes relevant to the business activity Embedded analytical tools designed for the business activity Collaboration capabilities for people to create content needed for the activity BPM tools for executing the steps involved in the activity Executive Summary MCC - Mature market with linear growth Production and on-demand capture are considered mature and linear-growth markets. Net new growth is due to a gradual entrance of new firms, maintenance and upgrades. The increased spending of buyers is due to increased functionality of products and services. Declining paper usage across developed markets is a downward driver of longterm growth. However, mobile is an emerging and moderately exponential growth market based on overall increasing B2B mobile demands. The global MCC market is forecast to grow from approximately $1.8B in 2010 to $2.5B in 2016, a 6.3 percent compound annual growth rate. BPM - Late growth phase and still chaotic The BPM market is in a late growth phase and business processes are still chaotic, broad, and burdened with content. The market is characterized by many large and small vendors; and large opportunity. The global market is forecast to grow from $3.2B in 2010 to $7.5B in 2016, an 18.7 percent compound annual growth rate. SPA - Nascent market that shows exponential growth Smart process applications is a nascent market that shows a positive, exponential growth outlook in the short-tomedium term; as enterprises shift their spending patterns from developing their own industry-specific smart applications in-house to purchasing them from software vendors. The MCC and BPM markets are separate; however, the SPA market overlaps with both and covers new space. The combined vertical markets are forecast to grow from $5B in 2010 to $15B in Smart Process Application Market MCC Market Production Electronic Content Transformation On Demand SPA Market BPM Market Mobile DCM Traditional Integration Source: a commissioned study conducted by Forrester Consulting on behalf of Kofax, January 2013.

3 Market Analysis of Multichannel Capture, Business Process Management, and Smart Process Applications, 2013 through Market Growth Doubling in Four Years The estimated market growth for MCC is moderate through BPM growth is estimated to be robust. The SPA market is the most attractive growth segment across several vertical markets, ranging from to percent compound annual growth rate (CAGR). The combined market opportunity of all three categories will grow from $7.1 billion in 2012 to $14 billion in 2016, effectively doubling in four years. Combined MCC, BPM and SPA Market Growth Forecast 18% CAGR $14.0 B $7.1 B

4 Market Analysis of Multichannel Capture, Business Process Management, and Smart Process Applications, 2013 through Global Multichannel Capture Market at 6.3% CAGR through 2016 New growth within MCC is mainly from mobile capture in developed markets, while production and on-demand drive growth from emerging markets. A deep dive review of survey respondents revealed that 26% were planning to implement mobile capture in months, and 47% were planning to expand and/or upgrade existing implementation.

5 Market Analysis of Multichannel Capture, Business Process Management, and Smart Process Applications, 2013 through Global BPM Market at 18.7% Growth through 2016 BPM enjoys a CAGR of over 18 percent, significantly higher than the 11 percent CAGR for the global software market as a whole. The survey data shows 71.4 percent of US respondents see the connection between BPM, extracting data from content, and improved analytics. Globally, the SPA Market Shows Sizeable Growth across Verticals through 2015 The SPA market shows most attractiveness within the financial services, government, insurance, and healthcare verticals. The financial services market has the largest market size, and tends to be an early adopter of capture and smart technology. Analysis shows there is a strong need for document, BPM, capture and case management. The branch remains a cornerstone of a bank s sales and service proposition, but is transforming to recreate more a personalized experience. Banks are increasingly focusing on driving sales through the online channel due to growth in the number of customers using online banking. Government is the second largest market after financial services, and despite tight and declining budgets, there is a very strong spending propensity toward operational cost and risk reduction. Additionally, government is a strong adopter of mobile and tablet across the organization. Capture and processes automation will provide improvement for citizen-facing services and for productivity gains where there is excellent potential for BPM and case management.

6 Market Analysis of Multichannel Capture, Business Process Management, and Smart Process Applications, 2013 through Insurance has consistent demand and is a reliably attractive industry for capture and smart technologies. Five core processes that can be maximized with SPA are account opening, customer service, regulatory reporting, renewal/ member management, and agency management. Healthcare has a heightened regulatory environment and will serve as a driver of demand for capture and smart technologies. Healthcare has traditionally had low IT expenditures with medium IT expertise and infrastructure, but is able to leverage technology to reduce costs and meet healthcare regulations. Smart Process App Market (US$ millions) Most respondents see the connection between capture technology and BPM. They believe that better analytics applied to capture technology will significantly enhance their business processes, and that extracting data from the content is a necessary component of driving efficiencies in their business process. These components together are a driving force for the anticipated accelerated growth within the newly defined smart applications market.

7 Market Analysis of Multichannel Capture, Business Process Management, and Smart Process Applications, 2013 through About Kofax Kofax plc (LSE: KFX) is a leading provider of innovative smart capture and process automation software and solutions for the business critical First Mile TM of customer interactions. These begin with an organization s systems of engagement, which generate real time, information intensive communications from customers, and provide an essential connection to their systems of record, which are typically large scale, rigid enterprise applications and repositories not easily adapted to more contemporary technology. Success in the First Mile can dramatically improve an organization s customer experience and greatly reduce operating costs, thus driving increased competitiveness, growth and profitability. Kofax software and solutions provide a rapid return on investment to more than 20,000 customers in financial services, insurance, government, healthcare, business process outsourcing and other markets. Kofax delivers these through its own sales and service organization, and a global network of more than 800 authorized partners in more than 75 countries throughout the Americas, EMEA and Asia Pacific Kofax, Inc. All rights reserved. Kofax, the Kofax logo and First Mile are trademarks or registered trademarks of Kofax, Inc. in the U.S. and other countries. Other names may be trademarks or registered trademarks of their respective owners. ( )