Do Search and CMS Deliver a Revenue Winner?

August 21, 2015

I spotted a write up called “Look for Enterprise Search, Analytics and These ECM Leaders for Your Transactional Content.” I found the article darned amazing even for public relations about a mid tier consulting firm and one of its analyses.

The main point of the article is that analysts have analyzed enterprise software and identified vendors who provide “ECM Transactional Content Services.” Fabricating collections of objects and slapping a jargon laded label on the batch is okay with me.

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Empty calories await you, gentle reader.

What struck me as interesting was this statement:

Forrester Vice President and Principal Analyst Craig Le Clair points to key advancements and opportunities by the leading ECM providers to help enterprises realize greater value in these systems:

  • Ramping analytics to drive insight and reduce administrative burden
  • Accelerating their move to cloud
  • Improved search and content sharing
  • Using stronger and more open application program interfaces (APIs) that spur innovation
  • Moving quickly to fill gaps in their mobile road maps.

Notice the “ECM”. The acronym refers to software which provides editing, access, and publishing functions to its users. The idea, it seems, is that an employee will write a memo and the ECM will keep track of the document. In practice, based on my experience, the ECM recipe usually fails to satisfy my hunger.

ECM and its close cousins in acronym land are similar to the approach articulated by my kindergarten teacher more than half century ago. She said, according to my mother, “Keep your mittens and lunch in your cubby.” The spirit of the kindergarten teacher lives on in enterprise content management systems.

Unfortunately those who have work to do often create content using tools suited for a specific task. For an engineer, that tool might be Solidworks. Bench chemists are often confused when an ECM is described as the tool for their work. One chemist said to me after an enthusiastic presentation by an information technology person, “I work with chemical structures. What’s this person talking about?” Lawyers in the midst of big risk litigation want to use their own and often flawed document systems.  Even the marketer who cheers for ECM for Web content parks some high value data in that wonderful Adobe creative cloud with some back up data on iCloud. I have spotted a renegade analyst with an off the books workstation equipped with an Australian text processing and search system. USA.gov is notable for what is not available because executive brand entities roll their own content solutions.

I was able to review a copy of the consultant report upon which the article was based. Wowza. The write up assembled a grad bag of widely disparate companies, added three cups of buzzwords, and output mixed in one kilo of MBAisms.

To be fair, the report identified “challenges.” These items baffled me. For example, “Deep experience in key transactional applications.” This is a challenge, really?

But the vendors in the report are able to “address emerging opportunities.” Okay, so these are not opportunities. The opportunities are emerging. Hmmm. Here’s an example: “Ramping analytics to drive insight and reduce administrative burden.” Yikes. Ramping analytics. Driving analytics. Reducing administrative burden. Very active stuff this ECM. Gerund alert. Gerund alert.

What companies are into this suite of challenges and emerging opportunities? Here’s the list of the mid tier touted stallions from the ECM stable:

  1. EMC, a company which is considering having a subsidiary of itself purchase the parent company. Folks, when a company does this type of recursive stuff, the core business might be a little bit uncertain.
  2. HP. Yep, an outfit which has lost its way, suffered five consecutive quarters of declining revenue, and bought a company for $11 billion and then wrote off most of that expense because the sellers of the company fooled HP, its consultants, accountants, and lawyers. Okay. A winner for the legal eagles maybe.
  3. IBM. Heaven help me. IBM has suffered declining revenues for 13 consecutive quarters, annoyed me with a blizzard of Watson silliness, and spent lots of time getting rid of businesses. I have a difficult time believing that IBM can manage enterprise content. But, hey, that’s just my rural Kentucky ignorance, right?
  4. Laserfiche. The company offers a “flexible, proven enterprise content management system. I believe this statement. The company was founded in 1987 and sure seems to have its roots in well seasoned technology. The company has lots of customers and lots of award. The only hitch in the git along is that I never ran across this outfit in my work. Bad luck I guess.
  5. Lexmark. Folks, let us recall the rumor that Lexmark and its content businesses are not money makers. I heard that the content cluster achieved an astounding $70 to $80 million shortfall. Who knows if this rumor is accurate. I do know that Lexmark is cutting staff, and one does not take this drastic step unless one needs to reduce costs pronto.
  6. M Files. I never heard of this outfit. I did a quick check of my files and learned that the company “helps enterprises find, share, and secure documents and information. Even in highly regulated industries.” The company is also “passionate about productivity.” The outfit relies on dtSearch for information access. This is okay because dtSearch can process most of the content within a Microsoft-centric environment. But M Files strikes me as a different type of outfit from HP or IBM. As I flipped through the information I had collected, the company struck me as a collection of components. Assembly required.
  7. Newgen Software. Another newbie for me. The company was in my Overflight archive. The firm provides BPM (business process management), ECM (enterprise content management), DMS (I have no idea what this acronym means), CCM (I have no idea what this acronym means), and workflow (I thought this was the same as BPM). The company operated from New Delhi. My thought? Another collection of components with assembly in someone’s future.
  8. Hyland OnBase. This is the third outfit on the list about which I have a modest amount of information. The company says that it is a “leader in ECM.” I believe it. The firm’s url is the same as its flagship product. The company was founded in 1991 and created OnBase, which is a plus. After 25 years, the darned thing should work better than a Rube Goldberg solution assembled from a box of components.
  9. OpenText. Okay, OpenText is a company which has more search engines and content processing systems than most Canadian firms. The challenge at OpenText is having enough cash to invest in keeping the diverse assortment of systems current. Which of these systems is the one referenced in the mid tier firm’s report? SGML search, BASIS, BRS, Nstein, the Autonomy stub in RedDot, Nstein, Fulcrum, or some other approach? Details can be important.
  10. Unisys. Okay, finally a company that is essentially an integrator which still supports Burroughs mainframes. Unisys can implement systems because it is an integrator. For government work, Unisys matches the statement of work to available software. Although some might question this statement, Unisys can implement almost any kind of system eventually.

Several observations:

First, enterprise content management is a big and fuzzy concept. The evidence of this is the number of acronyms some of the companies use to explain what they do. I assume that it is my ignorance which prevents me from understanding exactly how scanning, indexing, retrieval, repurposing, workflow, and administrative functions work in a cost constrained, teleworker, mobile gizmo world.

Second, open source is knocking on the door of this sector. At some point, organizations will tire of the cost and complexity of collections of loosely federated and integrated software subsystems and look for an alternative. Toss in the word Big Data, and there will be a stampede of New Age consultants ready to step forward and reinvent these outfits. Disruption is probably less of a challenge than the challenge of keeping existing revenues from doing the HP, IBM, and Lexmark drift down.

Third, the search function seems to be a utility or an after thought. The only problem is that search does not work particularly well in an enterprise where the workers log in from Starbucks and try to interact with enterprise software from a Blackberry.

Fourth, what an odd collection of outfits? HP, IBM, and Lexmark along with 30 year old imaging firms plus some small outfits. Maybe the selection of firms makes sense to you, gentle reader. For me, the report make evident the struggles of some experts in ECM, BPM, and the acronyms I know zero about.

In short, this mid tier report strikes me as a russische punschtorte. On the surface, the darned thing looks good, maybe mouth watering. After a chomp or two, I want a paprikahenderl.

This ECM thing is a confection, not a meaty chicken. Mixing in search does nothing for the recipe.

Stephen E Arnold, August 22, 2015

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