MAXIMIZING THE USEFULNESS OF THE GARTNER AND VERDANTIX REPORTS
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1 WHITE PAPER MAXIMIZING THE USEFULNESS OF THE GARTNER AND VERDANTIX REPORTS By Denise Gatlin, EHS Systems Analyst and Joanne Schroeder, PE, E2 Founder and Principal Software Selection E2 ManageTech, Inc. is the industry leader in Environmental Health & Safety Management Magic Quadrant Green Quadrant Information Systems since the late 1990s when E2 launched as the first company dedicated to EMIS consulting. As a software- Selection Steps neutral company, we are often asked by clients can t I simply use the Gartner and EHS Systems Verdantix reports to pick a software vendor?
2 First steps Selecting an Environmental, Health & Safety (EHS) solution can be a daunting task likened to choosing between an Android phone and an iphone; only you will have to live with the software much longer than one year before upgrading or changing it. There are many options but, at the end of the day, you can only choose one. The first stop in your software search might be your in-house information technology (IT) department. Perhaps the IT team is large and savvy enough to develop custom software to meet your needs. While this may seem convenient, software must also be maintained and updated. This could place additional workload on the IT staff, redirect resources or force a triaging of competing projects. Domain knowledge can also be a concern. EHS software is highly specific and can become increasingly complex. The addition of operational-dependent calculations, regulatory content or topics related to product stewardship, chemicals and international regulations can transform a solution from simple to complicated. Your IT department will be dependent on EHS personnel to educate them on domain knowledge and to develop functional requirements for the custom solution. EH&S software is highly specific and can become complex with the addition of operational-dependent calculations, regulatory content and more. E2ManageTech.com White Paper 1
3 If your IT department is not a viable option for selecting software, where do you turn? You can spend time researching software vendors, fielding sales calls and/or entertaining vendor demonstrations. Again, this redirects resources and time from personnel s day-to-day tasks. Fortunately, there are resources available to assist in the process. You have made the decision to search the commercial marketplace for a viable EHS solution. Where do you start and how do you find the right solution for your company? What works well for one company could fail for another. Where do I start and how do I find the right solution? To assist in the process are the Gartner Magic Quadrant for Environmental, Health and Safety Management Systems and the Verdantix Green Quadrant EHS Software Suppliers. The Magic Quadrant and Green Quadrants are tools for those tasked with selecting and implementing software solutions. Verdantix and Gartner shorten the selection process by conducting in-depth research on vendors and their software solutions. They provide combined qualitative and quantitative analysis of vendors and recommended them for shortlist during your selection process. The recommendations shorten a list of over 100 possible EHS vendors to a more manageable 13 to 14 vendors. How can you make these reports useful in your search for an EHS solution? Let s briefly examine both reports. White Paper 2 E2 ManageTech, Inc.
4 Gartner Gartner, Inc. (Gartner) is an IT research and advisory company that provides product insight for clients looking to make software purchases. Gartner employs the assistance of more than 1,460 research analysts and consultants, and clients in 85 countries to provide thoughtful content. The Magic Quadrant helps assess how well EHS software vendors execute against their vision statements. The Magic Quadrant The Magic Quadrant assists potential buyers in selecting a software solution. It helps assess how well EHS software vendors are executing against their vision statements. It is a square composed of four quadrants, with each quadrant representing a type of technology provider. As shown below the square sits on an x-y axis of Completeness of Vision and Ability to Execute, respectively. E2ManageTech.com White Paper 3
5 Fig. 1 The Magic Quadrant (Source: Gartner) What does it take to be included in the Gartner Magic Quadrant? There are many software companies that offer a range of services for their sectors but, why can t they all be included in the Magic Quadrant? Gartner utilizes selection criteria so that the quadrant is not convoluted and less beneficial to software purchasers. Without giving away too many details (readers must purchase the report to utilize it), Gartner evaluates vendors on the following criteria: quality and efficacy of processes, systems, methods or procedures that enable their performance to be competitive, efficient and effective and to positively impact revenue, retention and reputation. (Gartner, 2014) White Paper 4 E2 ManageTech, Inc.
6 To be considered for inclusion in the Magic Quadrant, a vendor should have significant market presence via annual license, maintenance and subscription revenue. Company revenue is also considered as it indicates long-term stability. Vendors should be able to demonstrate success with their product by meeting a minimum number of deployments. Positioning in the global market is also important. Vendors must provide evidence of global revenue generation. Finally, vendors must demonstrate comprehensive functionality and technical capability. To be considered for Magic Quadrant inclusion, a vendor must demonstrate market presence. Vendors selected for inclusion are placed into one of four quadrants: Leaders, Challengers, Visionaries and Niche players. There are 14 vendors in the most recent Magic Quadrant. Gartner offers a brief summary of each vendor highlighting their strengths and areas of caution. Also included in the report are vendors dropped from the previous year s list. E2ManageTech.com White Paper 5
7 Verdantix Like Gartner, Verdantix is an independent analyst firm that provides data analysis and consulting services related to energy, environment and sustainability strategies. Verdantix employs the assistance of 15 research analysts and 30 professional staff in 100 countries to provide its content. Verdantix also uses a quadrant as a graphical aid to assist buyers in the software selection process. Verdantix uses a quadrant as a graphical aid to assist buyers with their software selection. The Green Quadrant The Green Quadrant for EHS Software provides potential buyers a detailed assessment of solutions available in the software market. To be selected for inclusion in the Green Quadrant, vendors should be able to provide proof of implementation in multiple countries and provide solutions that can meet multiple business requirements. Vendors should also be able to provide proof of at least 10 named customers and the means and resources to meet customer needs for over one year. (Verdantix, 2014) White Paper 6 E2 ManageTech, Inc.
8 Vendors are then evaluated against functionality/feature metrics and supplier criteria. The Green Quadrant sits on an x-y axis of Momentum and Capabilities, respectively. Momentum is evaluated on the basis of the functionality/feature metrics and capabilities are evaluated based on supplier criteria. A numerical scoring is attached to sub criterion of both categories. The highest score represents best-in-class. The Green Quadrant also contains four categories: Challengers, Leaders, Entrepreneurs and Specialists. Fig. 2 The Green Quadrant (Source: Verdantix) Once scores are evaluated and weighted, the analysis provides a clear picture of the vendor. Each vendor is summarized listing their scores, strengths and differentiators. Most importantly, Verdantix provides why the vendor should be considered for shortlist in the selection process. E2ManageTech.com White Paper 7
9 Green Quadrant vs Magic Quadrant Both reports are valuable and can save time and resources. However, their differences might make one report more attractive than the other. To the reader, the Magic Quadrant might be interpreted as a qualitative assessment and the Green Quadrant a quantitative assessment. If you prefer vendor analysis with numerical values attached, the Green Quadrant is ideal. If your preference is a general summary, without weighting and calculations, the Magic Quadrant is a more suitable option. Using both reports is the best choice since many vendors appear on both. The Magic Quadrant can be seen as a qualitative assessment and the Green Quadrant a quantitative assessment. White Paper 8 E2 ManageTech, Inc.
10 Making the Most of the Reports Follow these four simple steps to facilitate using the reports in your selection process. Follow four simple steps to maximizing the usefulness of these reports. 1. Create your list. Select several vendors that are aligned with your software needs based on topical evidence (i.e., vendor demos, sales calls, word-ofmouth and general research). 2. Compare your list. Are any of the EHS vendors that you have selected listed on the Magic Quadrant or Green Quadrant? If so, this is an indication that your selections are in line with those vendors that have a strong presence in the market. If none of your vendors appear on the quadrants, check a previous year s report to see if the vendor made an appearance and was subsequently dropped. If the vendor was dropped, dig deeper to find out why. The reasoning may have no bearing on their ability to successfully deploy a solution for your company. If the vendor has not appeared on either report, don t fret. Absence of a vendor on either report could be due to lack of maturity in the software, low implementations or lack of company stability. Some vendors decline to be evaluated for inclusion on the reports and may be absent for that reason alone. E2ManageTech.com White Paper 9
11 3. Confirm your list. While use of both reports offer the most knowledge, it will never compare to a detailed functionality assessment. An in-depth assessment, demo and confirmation from a second source never hurts. Seek the opinion of an EMIS consultant to buttress the reports and your own research. Selecting technology (software) is only one piece of successful planning. 4. Recognize report limitations. The reports provide an excellent starting point for the software selection process. However, recognize that selecting a technology is only one piece of successful software planning. It is critical to address people (EHS information management stakeholders), processes (EHS business processes to be deployed within the EMIS) and technology. User acceptance is a critical component of any software deployment. Quadrant reports will neither provide a process to achieve consensus and user buy-in, nor will they assess workflow matches. Selecting software from a report will not adequately address these elements. White Paper 10 E2 ManageTech, Inc.
12 Summary There are numerous software vendors on the market competing for your business. Many put their best foot forward to demonstrate their product in hopes that you choose them. How can you prevent purchasing the software equivalent of fool s gold? The Verdantix and Gartner quadrants alone do not guarantee that you will make the right decision. However, they should be included in your selection process. In addition to using the quadrants, if time and budget allow, include an EMIS consultant in the process. Consultants often have in-depth experience working directly with vendors from design through implemention. They can provide feedback on how well a particular solution worked in certain industries and whether a vendor can deliver on its promises. A good consultant will also ensure that people and process are addressed to maximize the success of a project. If you would like more information on Gartner or Verdantix, please visit the websites below: E2ManageTech.com White Paper 11
13 About the Authors Denise Gatlin EHS Systems Analyst Denise Gatlin is an E2 EHS Systems Analyst with a passion for identifying and resolving problems. Her graduate and undergraduate degrees in Earth and Environmental Science and knack for clear and concise technical writing are a solid foundation for EMIS projects. Joanne Schroeder Founder and Principal Joanne Schroeder has an extensive background in selecting and designing Environmental Health and Safety Management Information Systems (EMIS) spanning the full breadth of EHS topics and in virtually every industry. She has been on the forefront of this industry for the last 15 years. Ms. Schroeder can be contacted at jschroeder@e2managetech.com. White Paper 12 E2 ManageTech, Inc.
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