August 30, 2007 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q3 2007

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1 August 30, 2007 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q by Mary Pilecki for Business Process & Applications Professionals Making Leaders Successful Every Day

2 Includes a Forrester Wave August 30, 2007 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Pegasystems, Appian, And IBM Lead With Strong Industry Frameworks by Mary Pilecki with Colin Teubner, Sharyn Leaver, Mary Ann Rogan, and Jamie Barnett EXECUTIVE SUMMARY Leveraging the lab-based The Forrester Wave : Human-Centric BPM For Java Platforms, Q report, Forrester evaluated leading vendors with business process management suites (BPMS) for banking and investments across 17 criteria. Pegasystems and Appian established early BPM suites for banking and investments leadership thanks to their human-centric BPMS capabilities and deep prebuilt processes for banks and investment firms. IBM follows closely as a Leader, also with processes available through its Information FrameWork (IFW). TIBCO Software and Lombardi Software close out the Leader category with strong strategies that include support for centers of excellence (COEs). In the Strong Performer category, Software AG and Savvion provide the required flexibility for process development and execution in financial services (FS). Graham Technology, another Strong Performer, is a niche player in banking with extremely strong professional services and sales expertise. Finally, BEA Systems, HandySoft Global, and Fujitsu are also Strong Performers with either process templates or strong staff expertise in banking. TABLE OF CONTENTS 2 Significant Opportunity In Banks And Investment Firms 4 What Do Banks And Investment Firms Need In A BPMS? 5 Human-Centric BPMS For Banking And Investments Evaluation Overview 9 FSIs Can Choose The Level Of Prebuilt Processes They Prefer 13 Vendor Profiles 16 Supplemental Material NOTES & RESOURCES Forrester s Human-Centric BPM for Java Platforms evaluation was leveraged by adding criteria specific to banking and investments, and in Q2 2007, we evaluated 11 vendors with an FS focus: Appian, BEA Systems, Fujitsu, Graham Technology, HandySoft Global, IBM, Lombardi Software, Pegasystems, Savvion, Software AG, and TIBCO Software. We also spoke with 25 vendor-supplied banking or investment firm references. Related Research Documents The Forrester Wave : Human-Centric BPM For Java Platforms, Q August 2, 2007 Financial Institutions: Fix Account Opening October 4, , Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Forrester clients may make one attributed copy or slide of each figure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage information, go to Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. To purchase reprints of this document, please resourcecenter@forrester.com.

3 2 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q SIGNIFICANT OPPORTUNITY IN BANKS AND INVESTMENT FIRMS There is greenfield opportunity for banks and investment firms to use BPM for creating new and long-term efficiencies, maintaining compliance, improving the customer and employee experiences, and increasing revenues. But success requires the right tools, a customer- and process-centric perspective, and an enterprise effort toward process simplification. This research document will help you choose the right tools specifically, the right human-centric BPM suite. Why human-centric versus document-centric BPM for banks and investment firms? The opportunities for compliance, efficiencies, experience differentiation, and increased revenue come from the processes that are started and touched by humans either customers or team members. While many of these processes have intensive documentation requirements, the BPM suite you choose should be able to handle first the people side, with strong document handling abilities following (see Figure 1). These human-centric suites support the following business drivers: Adhering to and tracking compliance. BPM suites allow compliance steps to be subprocesses in larger procedures, enabling rapid and flexible design change when needed. This can be done without disturbing the rest of the process. For example, when the permitted identification methods for the Know Your Customer (KYC) regulatory rules change, a process analyst can configure that subprocess to meet the new guidelines without changing the larger procedures to which it is connected, such as account origination. Enabling process- and customer-centricity. Through flexible tools that allow process modeling and simulation, BPM suites sustain efforts to design and test processes from the perspective of the customer. They also allow a single enterprise process to be configured by line of business (LOB) and channel in order to approach key customer processes centrally. For example, the process to change an address can begin as a single set of steps that is configured by product and/ or channel across the enterprise. The customer only needs to request the address change once, and it can be applied to all her products. Finding new efficiencies and growing revenue through process simplicity. Common, guided processes are easier to complete and generally take less time than antiquated steps. By re-engineering processes to a set of enterprise procedures where possible, opportunities for errors and confusion drop dramatically; and ultimately, staff capacity is freed up for other opportunities. If, for example, a universal enrollment process was used in bank branches for all account opening, a sales representative could cross-sell and open three accounts in about the same amount of time it would have taken to open just one with the old process. This creates a better experience for the customer and generates more revenue because of the ease of opening additional products simultaneously. 1 August 30, , Forrester Research, Inc. Reproduction Prohibited

4 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Figure 1 Human-Centric Versus Document-Centric BPM Criteria Types of business processes People-intensive Strong focus on automating peopleintensive activities like servicing customers, operating call centers, managing sales operations, supporting field-based agents, and routing internal requests by employee Employee on-boarding Claims processing (nonpaper-based) Handling exceptions Loan approvals Request fulfillment Characteristics Examples of processes Required features Task list/workflow portal Strong UI development Organization mgmt. Native forms Integration with packaged applications, particularly CRM and ERP Desired features Integration with thirdparty portals Native integration capabilities or integration with third-party integration products Integration with thirdparty e-forms Document-intensive Strong focus on processes that involve extensive use of scanned images for back-office processes Focus on processes that require people to use documents extensively (not just author documents) Claims processing (paper-based) Contract mgmt. Proposal mgmt. SOX compliance and other compliance processes Due diligence for M&A Robust, native support for document imaging, document mgmt., and records mgmt. Task list/workflow portal BPM sold separately from ECM application Event mgmt. for changes to documents Integration with thirdparty ECM products Integration with desktop apps Source: Forrester Research, Inc. 2007, Forrester Research, Inc. Reproduction Prohibited August 30, 2007

5 4 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q WHAT DO BANKS AND INVESTMENT FIRMS NEED IN A BPMS? When looking at BPM suites, banks and investment firms prioritize the following: Rapid speed-to-market and modification ability. Financial services institutions (FSIs) are under the gun to adapt to market, regulatory, and compliance changes very quickly. With today s commonly seen technology infrastructures and multiple applications supporting different LOBs, changes take too long, are too expensive, and are difficult to manage. Ability to simplify processes and measure their results. With complex processes designed to fit the capabilities of the technology tools rather than the needs of the customer, financial firms are struggling to simplify their procedures to save time and improve the customer experience. In addition, tracking is often inadequate, resulting in poor reporting. Easy integration to existing applications and service-oriented architecture (SOA) support. With home computers that support plug-and-play applications so easily, it is difficult for business team members to understand the complexity of fitting together legacy applications and integrating new best-of-breed tools. IT staff members struggle to build business cases to support the need for SOA to help meet business goals. New BPM Suites Support These Goals With A Variety Of Tools BPMS vendors who focus on financial firms must not only understand how their tools can work most effectively, but they must also be able to apply that knowledge within a specific industry. Specifically, these vendors should have: Employed banking and investments experts. Vendors who understand the specifics of financial services the drivers, regulatory pressures, current environment, and more are better able to support these clients during design and implementation. Evolved from templates to frameworks to prebuilt processes. Some FSIs assert that their processes are so unique that they cannot benefit from a template or framework. Still, experience shows that these tools are key to achieving speed-to-market. Forrester believes that the key to speed-to-market is a combination of a jump-start in process development (from frameworks or prebuilt processes) and BPM tools that allow fast and flexible configuration usually with the runtime logic separate from the business logic. Built key partnerships and alliances. In some cases BPMS vendors don t offer their own prebuilt processes or templates, but they have partnered with vendors who have the expertise. These vendors may also employ FS specialists on professional services engagements and rely on alliances to develop and maintain rules such as those for compliance. August 30, , Forrester Research, Inc. Reproduction Prohibited

6 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Experience in building COEs. To simplify processes and to leverage technology investments enterprisewide, a BPM COE can be a significant asset. Some BPMS vendors offer experience and support for COEs that can help to build bridges across LOBs and channel silos, leverage BPM assets, and serve as an area of expertise and guidance for new implementations. HUMAN-CENTRIC BPMS FOR BANKING AND INVESTMENTS EVALUATION OVERVIEW To assess the state of the human-centric BPMS market for banking and investments and see how the vendors stack up against each other, Forrester evaluated the strengths and weaknesses of top humancentric BPMS for banking and investments vendors. Participants in The Forrester Wave : Human- Centric BPM For Java Platforms, Q were invited to take part in this additional evaluation, leveraging the approximately 140 criteria already considered for these vendors. Given that the IT infrastructure of FSIs today typically focuses on Java platforms for enterprise business applications, it was appropriate to leverage the Java platforms Wave for this evaluation. FS Criteria Focus On Prebuilt Processes, Compliance Tools, And Market Presence After examining past research, user need assessments, and vendor and expert interviews, we developed a comprehensive set of financial services-specific evaluation criteria. From the original The Forrester Wave : Human-Centric BPM For Java Platforms, Q3 2007, we eliminated two criteria that were not applicable to financial services and added 34 new criteria. We changed the criteria weightings to reflect the needs of FSIs and evaluated the vendors against a total of 174 criteria, which we grouped into three high-level buckets (see Figure 2): Current offering. Specific to banking and investments, we looked at prebuilt software or templates for key processes such as account origination, servicing, and exception handling. We also evaluated system interfaces, standards and compliance management, and security coverage. These criteria were weighted heavily in order to determine how well vendors met these needs of FSIs. Strategy. In addition to traditional strategy criteria, we looked at planned enhancements specific to banking and investments, consulting partnerships, professional services, and internal resources devoted to the industry. We also evaluated leadership in banking and investments and focused on their industry knowledge as well as COE capabilities. Market presence. To judge market presence in banking and investments, we evaluated the installed bases of banking clients and investment clients, associated revenue, and new customers in each area. The installed bases were weighed most heavily, as we believe that FSI clients using the product are the best measure of market presence. 2007, Forrester Research, Inc. Reproduction Prohibited August 30, 2007

7 6 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Figure 2 Evaluation Criteria CURRENT OFFERING Modeling Process solution Process execution Monitoring and management Product architecture Financial services-specific How sophisticated is the product s development environment for designing processes? What tools and features are provided to allow the creation and execution of an automated business process? How extensive are the product s features for automating business processes built by the modeling tools? How sophisticated is the product s set of tools for monitoring and managing running processes? How robust is the product s runtime integration environment in terms of high performance, reliability, and scalability? What measures have been taken to localize the product for multiple regions? How well does the product meet the specific needs of banks and investment firms? STRATEGY Product strategy Corporate strategy Process expertise Product cost Planned enhancements for FSIs Banking and investment consulting partnerships Banking and investments leadership Professional services banking Professional services investments How strong is the vendor s product strategy? How strong is the vendor s corporate strategy? What is the vendor s expertise and skill in process methodology? What is the product s average price, and how is it licensed? What types of enhancements are planned for financial services firms? What consulting partnerships specific to banking and investments have been established? How much leadership does the company provide in the banking and investments industry? Factors to consider include completeness and quality of vision, influence within the industries, leadership with industry groups, and visibility at key industry events. What banking-specific professional services support is available within the company? Factors to consider for the professional services group include number of people, years of banking experience, breadth of roles available, number of installations performed, and complexity of projects. What investments-specific professional services support is available within the company? Factors to consider for the professional services group include number of people, years of investments experience, breadth of roles available, number of installations performed, and complexity of projects. Source: Forrester Research, Inc. August 30, , Forrester Research, Inc. Reproduction Prohibited

8 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Figure 2 Evaluation Criteria (Cont.) STRATEGY Internal banking resources Internal investment resources MARKET PRESENCE Installed base Revenue Revenue growth Systems integrators Services Employees Technology partners Banking installed base Investments installed base Banking sales revenue Investments sales revenue New customers banking New customers investments How many internal resources are dedicated to banking? Groups can include professional services, product development, marketing, sales, and customer service. How many internal resources are dedicated to investments? Groups can include professional services, product development, marketing, sales, and customer service. How large is the vendor s installed base of customers for this product and for all products? What is the vendor s revenue during the past four quarters? What is the vendor s year-over-year revenue growth during the past four quarters? How many integrator partners have completed three or more deployments of any version of this product in the past 18 months? How strong are the vendor s implementation and training services? How many engineers does the vendor have dedicated to this product? How big is the vendor s sales presence? How strongly do technology partners support this product? What is the vendor s installed base in terms of number of banking companies? What is the vendor s installed base in terms of number of investment companies? What percentage of sales (revenue) in 2006 were from banking companies? What percentage of sales (revenue) in 2006 were from investment companies? How many banking customers bought or upgraded the product during the past two years? How many investment customers bought or upgraded the product during the past two years? Source: Forrester Research, Inc. 2007, Forrester Research, Inc. Reproduction Prohibited August 30, 2007

9 8 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Evaluated Vendors Meet Size And Vertical Focus Criteria Forrester included 11 vendors in the assessment: Appian, BEA Systems, Fujitsu, Graham Technology, HandySoft Global, IBM, Lombardi Software, Pegasystems, Savvion, Software AG, and TIBCO Software (see Figure 3). Each of these vendors: Participated in The Forrester Wave : Human-Centric BPM For Java Platforms, Q Each vendor participated in our Q evaluation and also has a solid base of installed financial services customers. Figure 3 Evaluated Vendors: Product Information And Selection Criteria Vendor Product evaluated Product version evaluated Version release date Appian Enterprise 5.6 May 2007 BEA Systems AquaLogic BPM 5.7 January 2007 Fujitsu Interstage Business Process Manager 8.1 January 2007 Graham Technology ciboodle February 2007 HandySoft Global BizFlow December 2006 IBM BPM Suite December 2006 Lombardi Software Teamworks 6.0 May 2007 Pegasystems SmartBPM Suite 5.2 January 2007 Savvion Savvion BusinessManager 7.0 December 2006 Software Criteria AGfor vendor selection webmethods BPMS TIBCO Software TIBCO iprocess Suite TIBCO Business Studio , 2.0 December 2006 November 2006, May 2007 Vendor qualification criteria The vendor participated in The Forrester Wave : Human-Centric BPM For Java Platforms, Q and also has a solid base of installed financial services customers. The vendor actively seeks new enterprise-level customers in the financial services vertical and focuses a portion of its sales efforts on banks, wealth management and investment firms, and/or insurance companies. The solution was generally available at the time of data collection for this evaluation with at least two references available for contact. Source: Forrester Research, Inc. August 30, , Forrester Research, Inc. Reproduction Prohibited

10 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Targets the enterprise-level financial services market. Each vendor actively seeks new customers in the financial services vertical and focuses a portion of its sales efforts on banks, wealth management, and investment firms. BPM suites for insurance firms were evaluated in a separate effort, The Forrester Wave : Human-Centric BPMS For Insurance, Q FSIS CAN CHOOSE THE LEVEL OF PREBUILT PROCESSES THEY PREFER The evaluation uncovered a market in which (see Figure 4): Pegasystems, Appian, and IBM lead the pack with prebuilt processes and frameworks. These vendors all provide solid financial services frameworks and many prebuilt processes, giving clients a big jump-start on implementation and time-to-market. TIBCO and Lombardi are also Leaders with strong COE strategies and resources. Both of these vendors have strong bases of financial services customers and cater to them through large internal resource pools of banking and investment experts. Additionally, they exhibit strong industry leadership through participation in events as well as COE capabilities. Software AG and Savvion are Strong Performers excelling in process execution. With very strong integration, rules management, and Web services tools, both Software AG and Savvion provide the flexibility required for banking and investment applications. Graham Technology, BEA Systems, HandySoft Global, and Fujitsu are strong performers with capabilities that support FIs. Graham Technology is a small firm specializing in banking applications that excels in professional services expertise. BEA Systems and Fujitsu don t offer much in the way of financial services specific processes but have strong partnerships and internal resources. HandySoft Global has several appropriate process templates but lacks resources in investments. This evaluation of the human-centric BPMS for banking and investments market is intended to be a starting point only. Readers are encouraged to view detailed product evaluations and adapt the criteria weightings to fit their individual needs through the Forrester Wave Excel-based vendor comparison tool. In addition, given the time it takes to complete a Forrester Wave, it is important to ask vendors for a list of enhancements made since the release evaluated in this research. Several vendors have released newer versions that are not represented in this document. 2007, Forrester Research, Inc. Reproduction Prohibited August 30, 2007

11 10 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Figure 4 Forrester Wave : Human-Centric BPMS For Banking And Investments, Q3 07 Strong Current offering Risky Strong Bets Contenders Performers Leaders Appian Lombardi Software Savvion Graham Technology HandySoft Global Fujitsu Pegasystems TIBCO Software IBM Software AG BEA Systems Go online to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Market presence Weak Weak Strategy Strong Source: Forrester Research, Inc. August 30, , Forrester Research, Inc. Reproduction Prohibited

12 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Figure 4 Forrester Wave : Human-Centric BPMS For Banking And Investments, Q3 07 (Cont.) Forrester s Weighting Appian BEA Systems Fujitsu Graham Technology HandySoft Global IBM Lombardi Software CURRENT OFFERING Modeling Process solution Process execution Monitoring and management Product architecture Financial services-specific 50% 13% 13% 9% 20% 40% STRATEGY Product strategy Corporate strategy Process expertise Product cost Planned enhancements for FSIs Banking and investment consulting partnerships Banking and investments leadership Professional services banking Professional services investments Internal banking resources Internal investment resources 50% 2 20% 0% 0% 1 10% 10% MARKET PRESENCE Installed base Revenue Revenue growth Systems integrators Services Employees Technology partners Banking installed base Investments installed base Banking sales revenue Investments sales revenue New customers banking New customers investments 0% 2 2% 2% 2% 3% 3% 3% % 10% All scores are based on a scale of 0 weak to 5 strong. Source: Forrester Research, Inc. 2007, Forrester Research, Inc. Reproduction Prohibited August 30, 2007

13 12 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q Figure 4 Forrester Wave : Human-Centric BPMS For Banking And Investments, Q3 07 (Cont.) Forrester s Weighting Pegasystems Savvion Software AG TIBCO CURRENT OFFERING Modeling Process solution Process execution Monitoring and management Product architecture Financial services-specific 50% 13% 13% 9% 20% 40% STRATEGY Product strategy Corporate strategy Process expertise Product cost Planned enhancements for FSIs Banking and investment consulting partnerships Banking and investments leadership Professional services banking Professional services investments Internal banking resources Internal investment resources 50% 2 20% 0% 0% 1 10% 10% MARKET PRESENCE Installed base Revenue Revenue growth Systems integrators Services Employees Technology partners Banking installed base Investments installed base Banking sales revenue Investments sales revenue New customers banking New customers investments 0% 2 2% 2% 2% 3% 3% 3% % 10% All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. August 30, , Forrester Research, Inc. Reproduction Prohibited

14 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q VENDOR PROFILES Leaders Have Strong Process Templates Or Better Appian. Strong prebuilt processes for both banking and investments help build the high score, but Appian also excels in compliance with a separate compliance manager tool to support the needs of FSIs. One of only two firms to score equally well in investments and banking functionality, Appian offers strong FI leadership and expertise. Other strengths include a very solid interface framework with a three-tiered approach to interfacing with common banking and investment applications. Finally, Appian has built crosschannel capabilities that specifically enable visibility across all channels and support the idea of a single enterprise process, configurable by channel and LOB. 2 IBM. With its recent investment in FileNet and subsequent path to integration with WebSphere products, IBM has been growing its already solid capabilities in BPM for banks and investment firms. The Information FrameWork Process Models that have been available through IBM for several years provide a very strong set of process templates to meet the needs of both banks and investment firms. In addition, IBM offers a robust set of services to support common processes and transactions. IBM still has opportunity though, specifically with investments expertise on staff and with cross-channel capabilities. Once WebSphere and FileNet tools are fully integrated, expect improvements in IBM s overall BPM capabilities. 3 Lombardi Software. While Lombardi doesn t offer its own prebuilt processes, it does have solid professional services expertise in banking and investments as well as very strong consulting partnerships. Where Lombardi excels is in its modeling and process solution tools making it extremely easy for clients to design, build, and test processes until they ve found the optimal set of steps. Lombardi has a strong banking customer base, while its investment base is still growing. New customers and upgrading customers are plentiful, though, and financial firms that don t want prebuilt processes will find solid tools with Lombardi. 4 Pegasystems. Having spent more than 24 years working with banking and investments clients, Pegasystems now offers very comprehensive process frameworks and prebuilt processes specifically for the industry. Its very large customer base in banking originated with its rules and workflow expertise and serves it well in today s market. Its clients include some of the most sophisticated and complex large global banks, and Forrester has found implementations in many separate areas of these organizations. Pegasystems leverages banking customers on its leadership councils, ensuring that it is meeting their needs, and Pegasystems consistently makes enhancements that benefit the financial services industry. 2007, Forrester Research, Inc. Reproduction Prohibited August 30, 2007

15 14 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q While its strength in the investment arena lags slightly behind that of banking, Pegasystems has recently invested in a larger team of investment experts and is adding appropriate processes to the investment template. Regardless of expertise, Pegasystems very strong exception handling capabilities support both banking and investments needs extremely well. 5 TIBCO Software. One of the best ways to work across organizational silos with BPM is to use COEs, and TIBCO has a very strong COE professional services offering. TIBCO offers process templates for key banking and investments processes and has the professional services expertise to really understand the customer base. TIBCO has a very large base of investment customers, supporting its expertise in the industry, as well as a very high number of new FSI customers and customers upgrading their existing systems. 6 Strong Performers Have Strong Design Tools BEA Systems. Offering a mixed bag of prebuilt processes, BEA Systems has particular expertise in loan origination. It also has a very strong installed base for both banking and investments and solid implementation experience. While it has strong partnerships supporting FSIs, BEA did not, until very recently, have product enhancements targeted specifically for banking and investments. Just prior to publication, BEA informed Forrester that it plans to create and catalog vertical templates based on actual engagements. BEA Systems acquisition of Fuego in 2006 has proved helpful for former Fuego customers, as new resources and methodologies have been invested. References indicated a significant improvement in product support, and bug patches are now quick to arrive, easy to install, and fix the problems. 7 Fujitsu. While Fujitsu does not offer prebuilt processes or templates, it does leverage its experience to help clients build their own processes and has been used by several large banks for account or loan origination, in particular. Exception handling is a predefined application that supports critical needs in banks and investment firms. Fujitsu doesn t focus on industries in its product development, and it lacks standards and compliance support unique to FSIs. However, it has significant installed bases of both banks and investment firms and offers valuable expertise through its professional services and internal resource teams. FSIs that want to build processes themselves have been very successful with Fujitsu. 8 Graham Technology. A niche player that specializes in banking, Graham Technology offers many configurable process templates as well as exceptional cross-channel capabilities. It is a smaller firm focused primarily on the EMEA geographies. While it offers templates for investment processes as well, its expertise and client base in this area need to grow. August 30, , Forrester Research, Inc. Reproduction Prohibited

16 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q One comment heard from both references as well as other users in the industry was that Graham Technology was unique in its ability to understand the special needs of the users. Graham Technology got it more quickly than other vendors and was able to bring in projects on time, within budget, and with the required functionality as a result. 9 HandySoft Global. HandySoft offers process templates for account origination, loan origination, and some account servicing but has nothing to support investment transaction processing. This pattern continues through its installed bases and new customers stronger on banks, weaker on investments. It is planning some investment-specific enhancements, though, and is focusing more on this part of the industry. With geographic expansion as a goal, HandySoft recently signed a large Chinese bank. However, references offered varying impressions of the firm s global capabilities, one citing a lack of manuals in needed foreign languages, while another indicated that it provided very good assistance in Chinese. Given that its sales forces are largest in North America and APAC, user firms in other areas may want to check out local support. 10 Savvion. Savvion doesn t offer prebuilt processes but makes available free templates in its online community, ProcessXChange. Its BPMS offers solid capabilities, particularly in process execution and monitoring and management. Its interface framework and cross-channel tools are highly rated as well. While Savvion considers itself a horizontal provider, it does have a solid base of customers in banking less so in investments. It doesn t plan specific enhancements for industries, but its security enhancements in queue will be of significant benefit to FSIs. 11 Software AG. With the recent acquisition of webmethods, Software AG s BPMS offering is much stronger for banks and investment firms. Change management and integration capabilities are very deep in the webmethods tool, supporting key needs for FSIs. Software AG does offer some process templates, but most process expertise is found either through samples or through the professional services team. It also has very strong out-of-thebox solutions for common financial services standards, including SWIFT, FIX, and ACH , Forrester Research, Inc. Reproduction Prohibited August 30, 2007

17 16 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q SUPPLEMENTAL MATERIAL Online Resource The online version of Figure 4 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. Data Sources Used In This Forrester Wave Forrester used a combination of four data sources to assess the strengths and weaknesses of each solution: Hands-on lab evaluations. Vendors spent one day with a team of analysts who performed a hands-on evaluation of the product using a scenario-based testing methodology for the Human- Centric BPM For Java Platforms wave. We evaluated each product using the same scenario, creating a level playing field by evaluating every product on the same criteria. Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation criteria. Once we analyzed the completed vendor surveys, we conducted vendor calls where necessary to gather details of vendor qualifications. Product demos. We asked vendors to conduct demonstrations of their product s functionality. We used findings from these product demos to validate details of each vendor s product capabilities. Customer reference calls. To validate product and vendor qualifications, Forrester also conducted reference calls with two or more of each vendor s current banking and/or investment customers. The Forrester Wave Methodology We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. From that initial pool of vendors, we then narrow our final list. We choose these vendors based on: 1) product fit; 2) customer success; and 3) Forrester client demand. We eliminate vendors that have limited customer references and products that don t fit the scope of our evaluation. After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we gather details of product qualifications through a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies. August 30, , Forrester Research, Inc. Reproduction Prohibited

18 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q We set default weightings to reflect our analysis of the needs of large user companies and/or other scenarios as outlined in the Forrester Wave document and then score the vendors based on a clearly defined scale. These default weightings are intended only as a starting point, and readers are encouraged to adapt the weightings to fit their individual needs through the Excel-based tool. The final scores generate the graphical depiction of the market based on current offering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. ENDNOTES 1 Customers generally think of their primary bank as the one that holds their checking account. Investment firms usually lead with a brokerage account. The first step to enhancing account enrollment is to offer a simple, expedited process for commonly cross-sold products with the primary account not every possible product. Why? FIs can use the results to build the business case for the more expansive project, while capturing low-hanging fruit from the start. Industry data suggests that the best time to cross-sell is within 90 days of opening the primary checking account so it s critical to make relevant offers as soon as possible. Citizen s Bank has reduced its loan applications to a 7- to 10-minute conversation and can offer a preapproval in less than 4 minutes. By automating the cross-sell of credit cards and overdraft protection lines of credit with new checking accounts, the bank has seen a 50% increase in cross-selling results. See the October 4, 2006, Financial Institutions: Fix Account Opening report. 2 View the vendor summary for more detailed analysis on how Appian fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, Appian Is A Leader For Human-Centric Processes report. 3 View the vendor summary for more detailed analysis on how IBM fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, "IBM Is A Strong Performer In Human-Centric BPMS" report. 4 View the vendor summary for more detailed analysis on how Lombardi Software fared in the humancentric BPMS for Java platforms evaluation. See the August 2, 2007, Lombardi Leads With An All-Around Powerhouse Human-Centric BPMS report. 5 View the vendor summary for more detailed analysis on how Pegasystems fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, Pegasystems Leads With A Focus On Process Agility report. 6 View the vendor summary for more detailed analysis on how TIBCO fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, TIBCO Leads Human-Centric BPMS With High- Functioning Suite report. 7 View the vendor summary for more detailed analysis on how BEA fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, BEA Is A Strong Performer In Human-Centric BPMS report. 2007, Forrester Research, Inc. Reproduction Prohibited August 30, 2007

19 18 The Forrester Wave : Human-Centric BPMS For Banking And Investments, Q View the vendor summary for more detailed analysis on how Fujitsu fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, Fujitsu Is A Strong Performer In Human-Centric BPMS report. 9 View the vendor summary for more detailed analysis on how Graham Technology fared in the humancentric BPMS for Java platforms evaluation. See the August 2, 2007, Graham Technology Offers A Strong Solution For Customer Interaction Processes report. 10 View the vendor summary for more detailed analysis on how HandySoft fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, HandySoft Strengthens Its Human-Centric BPMS Offering With A Focus On Collaboration report. 11 View the vendor summary for more detailed analysis on how Savvion fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, Savvion Leads The Human-Centric BPMS Market With Strong Product And Track Record report. 12 View the vendor summary for more detailed analysis on how Software AG fared in the human-centric BPMS for Java platforms evaluation. See the August 2, 2007, Software AG Is A Leader In Human-Centric BPMS report. August 30, , Forrester Research, Inc. Reproduction Prohibited

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