2005 Market Trends:

1. MWDUG 2005 Market Trends: Building Business Success with ECM February 18, 2005

2. Objectives • Understand where business is today • Look at the year ahead • What actions can you take today to reach your 2005 goals

3. Agenda • About Doculabs • Market Trends • Impact of mainstream IT players in the ECM space • Plan for success with ECM architecture • Other key trends • Tackling 2005

4. About Doculabs

5. About Doculabs Who is Doculabs? Definition Doculabs is a technology consulting firm backed by research and extensive client experience that lowers the business risk of technology decisions. Our services lower the business risk of technology decisions through client specific recommendations, objective analysis and in-depth research. This approach is based on our fundamental belief that in order to protect a client’s long-term interest, technology advisors shouldn’t be implementers. Founded in 1993 Headquartered in Chicago Privately held Served over 350 customers Quick Facts

6. About Doculabs Our Key Differentiators Recommendations based on the needs of your firm, not the industry at large Client Specific Experience Analysis without the bias of integration services or vendor preferences Objectivity Unique research on suppliers’ capabilities and customers’ best practices In-depth Knowledge

7. Market Trends

8. Market Trends Enterprise Content Management Market

9. Market Trends Increasing Complexity • Increasing complexity in a quickly growing market • Migration from niche applications to infrastructure platforms • Applications are getting more complex and providers are expanding their products to match these needs EDMS (Imaging, Workflow, Document Mgmt) Web Content Mgmt Organize ERM/COLD Security (Document, Perimeter) Content Integration Digital Asset Mgmt Portals Taxonomy and Search Collaboration Collaborate Process Mgmt Forms Records Management Store and Distribute Archival and Storage Print and Distribute

10. 1995/96, 2002/03 FileNet  Watermark, Saros, Greenbar, eGrail, Shana 1997 Eastman Software  Wang Software 1997 iManage  FrontOffice 1999 Hummingbird  PC DOCS, EDUCOM 2001 Microsoft  NCompass Labs 2003/04 Vignette  EpicentricIntraspect, TOWER Tech 2003 Interwoven  iManage, Software Intelligence 2003 EMC  Legato,Documentum 2003/04 Open Text  Gauss, IXOS, Artesia, Quest 2001-04 eiStream  Eastman Software, Viewstar, Keyfile, Identitech (BPM) 2004 2004 2004 2004 2004 Captaris  IMR Oracle  Collaxa Veritas  KVS Adobe  Q-Link Mobius  eManage 2004 HP  Persist 1999-2004 Stellent  InfoAccess, INSO, Kinecta, Ancept, Optika Market Trends M & A Activity 2001-04 Documentum  Box Car, eRoom, BullDog, TrueArc, AskOnce 2002-03 IBM  Tarian, Green Pastures, Venetica Next 3 to 5 years…

11. Impact of Mainstream IT players in the ECM space

12. Impact of Mainstream IT players on ECM Why all the fuss over ECM • Organizations are struggling to integrate structured and unstructured data • Constant struggle with the permanent reality of a heterogeneous environment • The change from product-focused to layer-focused market definition • But this market evolution will take time

13. Impact of Mainstream IT players on ECM Market Giants • EMC • Combines EMC dominance in storage management with Documentum dominance in content management for “ILM” • ApplicationXtender significant contender for midmarket • Directly faces key ECM issues of the day: how to do ILM, how to do mid-scale ECM • IBM • Current positioning: provides ECM capabilities tied to WebSphere, DB2 • Strengths include dominant IT presence, WebSphere centrism, great ECM potential, content integration to other data sources, global reach • Most implementations are highly customized

14. Impact of Mainstream IT players on ECM Market Giants • Microsoft • Addressing ECM challenge with operating environment (Longhorn), Office, SharePoint and Content Manager • Will address enterprise ECM, “small time” ECM – and be a disruptor for the rest • Oracle • Not just Metadata, but also the unstructured content physically resides in a structured store • The basis of their position is that all data is better off being stored in a structured store, i.e. “the database” • They are not trying to win the feature war, rather trying to compete on simplicity and scalability

15. Plan for success with ECM architectures

16. B Inception Chaos Stabilization Rationalization Redirect this investment towards modular architectures C Performance Surplus Customers’ capacity to ingest functionality A Point at which industry wide standards reached adequate maturity, e.g.. XML, Web services, SOA, Performance Deficit Point where customer requirements have been met by vendor functionality developed in a non-modular approach Modular functional development Self-sufficient functional development Key Market Trends Understanding the ECM Evolution Phases  Functionality Time 1995 2000 2002 1985 2005 Market definition First round of consolidation begins Budgets still remain at the departmental level Component object model initiatives undertaken, but failures persisted due to standards not being practical enough SOA goes mainstream ECM is an enterprise architecture based decision DB vendor market share now at risk Partial Source: Innovator’s Solution by Clayton Christianson and Michael Reynor

17. 3 8 1 2 4 5 6 7 ECM Architectures Doculabs’ ECM Strategy Methodology Conceptual Design, Reference Architecture Future State Definition Metadata Taxonomy Development Enterprise Requirements Definition Deployment Strategy Current State Assessment Selection and Consolidation Strategy Candidate Solution Analysis and Recommendation Business Case Analysis ECM Methodology

18. 3 8 1 2 5 6 7 4 ECM Architectures Importance of an ECM Architecture Conceptual Design, Reference Architecture Future State Definition Metadata Taxonomy Development Deployment Strategy Enterprise Requirements Definition Selection and Consolidation Strategy Current State Assessment Candidate Solution Analysis and Recommendation Business Case Analysis ECM Methodology + Enterprise Reference Architecture Organizational Readiness Framework

19. ECM Architectures Content Management Reference Architecture

20. ECM Architectures Sample Roadmap: ERA in Practice Key Design Goals • Service-oriented • Event-driven • Clean abstraction layers • Focus on Security, Portals, ECM and BPM related technologies

21. ECM Architectures Sample Roadmap: Current State • Provides an assessment of current environment related to ECM technology • Is a baseline for on-going measurement of changes towards the desired goals • Is organized using the preferred architectural model for these technologies

22. ECM Architectures Sample Roadmap: Future State • Represents the desired future state that will help achieve strategic goals • Areas in white represent areas that are not required to achieve goals

23. ECM Architectures Sample Roadmap: Resource Requirements • Shows how much relative effort in time, money, and staff resources will be required to move from the current state to the desired future state • Red circles represent defined projects that will lead to improvement for that particular area

24. ECM Architectures Sample Roadmap: Deployment Schedule • Provides a timeline to achieve tactical success that leads to a successful strategic implementation • Percentages in each phase represent portion of total costs that should be expected to be expended during the phase

25. ECM Architectures Sample Roadmap: Deployment Strategy Summary

26. ECM Architectures Making ECM Black and White (and Grey) ECM is technologies and services that directly affect the creation or capture, update or management, delivery or syndication, and long-term storage and archival of information. ECM is sometimes technologies that support or make it easier to work with information or to access it. Not ECM To be or not to be ECM Content Integration ECM Document Management Process Automation Image Capture Collaboration Web Content Management Records Management Portal Workflow Library Services Security Search Enterprise Application Integration ERP Application Services

27. Other Key Trends

28. Other Key Trends Taxonomy Development • It’s a significant undertaking… and can pull you under if you’re not careful • Three approaches: Buy it, build it manually, build it somewhat automatically • Three kinds of tools: manual tools, automation tools, portals and ECM products with metadata tools

29. Other Key Trends Information Lifecycle Management • Currently in a “high visibility” phase • ILM = “proactive management of storage/archive that is business-centric, unified, policy-based, heterogeneous, and aligns storage resources with data value” (ECM) • But adoption is primarily application-specific, and adopters are reassessing advantages • Challengers in pursuit

30. Other Key Trends Enterprise Content Integration (ECI) • Best used as a strategic option in cases where: • Content resides in multiple or specialized repositories or applications • Complex integration is required up- or downstream from repositories • Effort is perceived as too high to consolidate in single repository, while ECI integration is perceived as acceptable • RM requirements (retention, disposition, audit holds) are perceived as low or are under control of existing repositories • Meeting risk reduction requirements is a primary advantage of unified archival over ECI • Virtual records management is resource-intensive and frequently problematic • Unified strategy supported by ILM

31. Other Key Trends Email Management • Email management implementations and vendor capabilities continue to improve • Necessary for Defense” and operational/IT drivers; less necessary for Offense) • Primary requirements: 1) scalability, 2) archival, and 3) advanced records management capabilities for e-mail (e.g. differential attachment processing); few vendors adequately address all three • Some advanced capabilities require complementary technologies (auto-classification, business rules engine, granular access control, filtering for review) • Key vendors include pure play solutions, RM vendors, ECM vendors, storage/ILM vendors • But gaps still remain • In scalability, e-mail-specific RM functionality, integration with other electronic RM systems, integration with ECM systems to address Offensive requirements

32. Conclusion

33. Conclusion Suggested Strategy for 2005 • Determine if your organization has an enterprise IT strategy that incorporates ECM, and plan accordingly • If it does… • If it doesn’t… • If it does, but by the time it’s executed we’ll all be long dead… (so you need an interim strategy) • “In the future all ECM vendors will offer frameworks or modules that fit in frameworks” (and what that means) • Your organization will always be heterogeneous

34. Conclusion Thanks and Good Luck • Doculabs methodologies helps clients develop successful plans for building and implementing ECM strategies • Detailed views of presented visualizations contact • Contact Jeetu Patel – jpatel@doculabs.com