Making Leaders Successful Every Day

November 14, 2008 Updated: November 20, 2008 The Forrester Wave : Order Management Hubs, Q4 2008 by R Ray Wang for Business Process & Applications Professionals Making Leaders Successful Every Day

Includes a Forrester Wave November 14, 2008 Updated: November 20, 2008 The Forrester Wave : Order Management Hubs, Q4 2008 Sterling Commerce, Oracle, SAP, and Epicor Emerge As Leading Solutions That Support The Delivery Of A Perfect Order by R Ray Wang with Sharyn C. Leaver and Meghan Donnelly Executive Summary In the second update to the industry s only process-focused order management assessment of its kind, Forrester evaluated eight leading order management solutions in a 152-criteria evaluation. We found that Sterling Commerce and Oracle E-Business Suite led the pack among the Leaders who delivered technologies that support the perfect order. Meanwhile, Oracle Siebel, SAP, and Epicor Software earned their Leader designation because of their strong support for end-to-end order management processes and forward-looking product strategies. Microsoft, Amdocs, and Manhattan Associates placed in the Performer category for their specialization in targeted markets. The solutions evaluated represent eight of the top 10 to be considered in shortlist discussions for order management hubs customers seeking to achieve a perfect order. table of Contents 2 Order Management Hubs Are The Technology Solution For A Perfect Order Business Process Outsourcing Is Now An Option For Some 3 Order Management Hubs Evaluation Overview Evaluation Criteria Emphasizes Order Management Process And Order Hub Infrastructure Evaluated Vendors Strive To Deliver Perfect Orders In An On-Premise Deployment Model 5 Evaluated Order Management Hubs Represent The Best Of The Best 14 Vendor Profiles Leaders Deliver The Technology To Support Perfect Orders Performers Provide Rich Solutions 19 Supplemental Material NOTES & RESOURCES Forrester conducted demo-based product evaluations from April 2008 to August 2008 and interviewed eight vendor and 40 user companies including: Amdocs, Epicor Software, Infor, Manhattan Associates, Microsoft, Oracle (E-Business Suite and Siebel), SAP, and Sterling Commerce. Related Research Documents The Order Management Missing Link: A Single Process Owner May 31, 2007 The Forrester Wave : Order Hubs, Q2 2006 April 21, 2006 Designing The Order Management Cycle November 3, 2005 2008, Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRadar, 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 www.forrester.com. 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 email clientsupport@forrester.com

2 The Forrester Wave : Order Management Hubs, Q4 2008 Order management hubs are the technology solution for a Perfect order Enterprises that deliver perfect orders drive a direct correlation to positive stakeholder satisfaction scores. Despite the payoff, success in consistently delivering a perfect order eludes many enterprises because existing systems lack the flexibility to deftly move orders across the end-to-end order management cycle. As business process and applications professionals seek new ways to create market differentiation, order management hubs rise to prominence because: Process-centric views trump yesterday s functional fiefdoms. As business process and applications professionals continue their quest to break down silos and move toward process centricity, old-world acronyms (e.g., enterprise resource planning [ERP], customer relationship management [CRM], supply chain management [SCM], etc.) with a functional perspective create confusion around what should be delivered in the components of a perfect order. Emphasis on a process-centric view, increasing importance of service orders, and requirement for multiple stakeholder access shape the future of order management hubs. Process-centric views must include the support for four core business processes: 1) opportunity to order capture; 2) order capture to order fulfillment; 3) order fulfillment to returns; and 4) order completion to cash. Standardized best practices provide little value in today s constant world of change. Whether deployed on-premise, software-as-as-service (SaaS), hosted, delivered from the cloud, or a hybrid, order management hub (OMH) solutions must master changing business models and stakeholder preferences. OMH solutions orchestrate an order through a multitude of inbound order channels while addressing flexibility in the presentation of information across various user roles. The drive to deliver stakeholder-centric personalization requires a unified system to manage and deliver unique and constantly differentiated business processes. Success requires a flexible core application foundation that adopts next-generation architecture and infrastructure and considers hybrid deployment options. Business Process Outsourcing Is Now An Option For Some Legacy systems lead most business process and applications professionals to deploy solutions on premise. However, several new business process outsourcing (BPO) deployment options exist, including: System-integrator-led BPO. Major system integrators including Accenture, HP-EDS, HCL Technologies, IBM, and Infosys Technologies deliver order management via BPO. They often host solutions from on-premise vendors like i2, Oracle, SAP, and Sterling Commerce. Because the needs of business process and application professionals vary by industry, market segment, and geography, companies like Infosys Technologies often play a role in delivering flexible platforms assembled from a multitude of leading on-premise solutions. For instance, Infosys Technologies has launched a hosted order management platform based on Sterling Commerce. November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 3 Cloud-based BPO order management services. Pure outsourcing companies like Amazon, GSI Commerce, and Vcommerce offer pure BPO-led alternatives. These efforts often enable a shared services approach. One example is GSI Commerce, which provides a set of services that enable ecommerce and multichannel retailing for 85 clients, processing 25 million direct-to-consumer orders a year. Customers choose technologies and solutions in Web store, order management, customer care, fulfillment, and marketing services. Order Management Hubs Evaluation Overview To assess the state of the OMH market and see how the vendors stack up against each other, Forrester evaluated the strengths and weaknesses of the top on-premise order management hub vendors. Evaluation Criteria Emphasizes Order Management Process And Order Hub Infrastructure After examining past research, user need assessments, vendor and expert interviews, and future trends in the order management hubs market, we developed a comprehensive set of evaluation criteria. We evaluated vendors against 152 criteria, which we grouped into three high-level buckets: Current offering. We conducted an in-depth evaluation of the five components of the order management cycle (OMC). 1 Order hub infrastructure components such as inbound order channels, presentation framework, core application foundation, and data and infrastructure, represented 5 of the weighting, while business process modules composed the other 5 of the weighting for current offering. Strategy. For strategy, we assessed product strategy, corporate and go-to-market strategy, financial resources, and ownership costs. Product strategy composed the bulk of the overall score with 5 of the weighting. Vendors and solutions that dedicated their strategy to attaining order hub status benefited the most. Market presence. Criteria for market presence reflected the installed base for the solution. Subfactors that composed the main score included number of customers on all versions of the solution, number of customers on maintenance, number of live customers on the current version, amount of license revenue, revenue growth, and global customer base. Evaluated Vendors Strive To Deliver Perfect Orders In An On-Premise Deployment Model Forrester initially invited 10 vendors with 11 solutions for the assessment. The invited vendors were: Amdocs, Click Commerce, Epicor Software, i2, Infor, Manhattan Associates, Microsoft, Oracle (E-Business Suite and Siebel), SAP, and Sterling Commerce. Upon mutual agreement, Click Commerce, i2, and Infor declined participation. Each of the vendors included in our evaluation has (see Figure 1): 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

4 The Forrester Wave : Order Management Hubs, Q4 2008 Figure 1 Evaluated Vendors: Product Information And Selection Criteria Vendor Product evaluated Product version evaluated Version release date Amdocs Amdocs CES Ordering 7.5 February 2008 Epicor Software Epicor Vantage 8.03.400 August 2007 Manhattan Associates Distributed Order Management 2007 June 2007 Microsoft Microsoft Dynamics AX 2009 June 2008 Oracle E-Business Suite Order Management Release 12 January 2007 Oracle Siebel Customer Order Management 8.0 January 2007 SAP SAP CRM SAP ERP SAP SCM SAP EWM 2007 6.0 2007 2007 November 2007 December 2007 August 2007 July 2007 Sterling Commerce Sterling Multi-Channel Selling 8.0 February 2008 Vendor selection criteria The vendor has a broad business process footprint. The vendor has placed a deep investment in order hub infrastructure. The vendor s product strategy road map encompasses more than one industry. The vendor targets customers in the upper midmarket to enterprise class. The vendor s solution supports on-premise deployment. Forrester clients frequently mention or inquired about the vendor. 45384 Source: Forrester Research, Inc. A broad business process footprint. Key requirements included basic out-of-the-box support for opportunity to order capture, order capture to order fulfillment, order fulfillment to returns, and order completion to cash business processes. For large suite vendors, teams transcended traditional CRM, ERP, and SCM boundaries to look at core capabilities in delivering business process requirements. A deep investment in order hub infrastructure. Vendors selected have placed or will continue to place significant investment in order hub infrastructure components, such as inbound order channels, presentation framework, core application foundation, and data and infrastructure. Such infrastructure requires the adoption of service-oriented architecture design principles and native support for Web services. November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 5 The flexibility to transcend industries. While this evaluation remained industry-agnostic, we focused on core capabilities and assessed how easily the solution would adapt to new industries. A key requirement included product strategy road maps that encompassed more than one industry. Target customers in the upper midmarket to enterprise class. Most vendors in this evaluation target customers with more than 500 employees. Some smaller vendors, with 250 to 499 employees, are targeted as well. Support for on-premise deployment. While opportunities existed to evaluate hosted, systemintegrator-led, and SaaS options, this evaluation focused on traditional on-premise deployed solutions. Mindshare among the Forrester client base. Included vendors are frequently mentioned in Forrester client inquiries, shortlists, and case studies. Evaluated order management Hubs represent the best of the best Many vendors assume they have solutions that meet the business process requirements for delivering a perfect order. Others believe they deliver the solution through strong order hub infrastructure. However, only a limited number of vendors have the capability to deliver the right balance between business process expertise and order hub infrastructure. Only the best of the best vendors were assessed. The evaluation uncovered a market in which (see Figure 2): Sterling Commerce and Oracle E-Business Suite (EBS) stand out among the Leaders. These two vendors deliver the fundamentals for order hub attainment, which include balance between business process expertise and order hub infrastructure. Sterling Commerce gained the lead in this year s evaluation with the highest marks for overall strategy, end-to-end business process support, and application foundation. Oracle EBS performed in the top three for most of the evaluation s subcategories with the top score in presentation framework and support for the order completion to cash processes. Oracle Siebel, SAP, and Epicor Software deliver strong offerings among Leaders. Oracle Siebel placed third with strong offerings in opportunity to order capture and the leading data and infrastructure capabilities. Rich support for inbound order channels and order management processes across the board returned SAP to the Leaders band. Epicor Software s continued adoption of key tools and technology from Microsoft drives significant gains. support for order completion to cash put the product on par with other enterprise offerings. Microsoft, Amdocs, and Manhattan Associates excel in specialized markets. Microsoft gains the most ground in delivering on OMH for small and medium-sized businesses (SMBs). Meanwhile, Amdocs continues as a Performer focused on telecommunications but aspiring to expand to other industries. Manhattan Associates debuts as a Performer with core strengths in order capture to order fulfillment. 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

6 The Forrester Wave : Order Management Hubs, Q4 2008 This evaluation of the order management hub market is intended to be a starting point only. We encourage readers to view detailed product evaluations and adapt the criteria weightings to fit their individual needs through the Forrester Wave Excel-based vendor comparison tool. Because many clients have made existing investments in part of OMH, Forrester provides three additional views of the market based on a pure emphasis for the following business processes: 1) opportunity to order capture, 2) order capture to order fulfillment, and 3) order fulfillment to returns (see Figure 3 and see Figure 4 and see Figure 5). Figure 2 Forrester Wave : Order Management Hubs, Q4 08 Current offering Risky Bets Contenders Performers Leaders Sterling Commerce Oracle E-Business Suite SAP Epicor Software Amdocs Manhattan Associates Oracle Siebel Microsoft Market presence Full vendor participation Go online to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Weak Weak Strategy Source: Forrester Research, Inc. November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 7 Figure 2 Forrester Wave : Order Management Hubs, Q4 08 (Cont.) Forrester s Weighting Amdocs Epicor Software Manhattan Associates Microsoft Oracle E-Business Suite Oracle Siebel SAP Sterling Commerce CURRENT OFFERING Inbound order channels Presentation framework Business process modules Core application foundation Data and infrastructure 5 5 2 3.09 3.05 3.05 2.93 4.02 3.10 3.30 2.75 3.35 2.93 4.15 4.04 2.58 2.15 3.25 2.46 3.79 2.18 3.04 2.15 2.77 3.87 3.28 3.92 3.30 4.60 3.86 4.18 3.88 3.64 3.65 4.30 3.20 4.80 4.15 3.88 3.60 4.15 3.86 4.28 3.75 3.80 3.30 4.15 3.94 4.35 3.27 STRATEGY Product strategy Corporate and go-to-market strategy Financial resources to support strategy Ownership costs 5 5 2 2 3.48 3.15 3.75 3.25 3.92 4.05 4.45 3.60 3.50 3.25 4.50 4.08 3.70 3.90 4.75 3.94 4.35 3.80 2.50 3.94 4.25 4.30 2.25 3.41 3.45 3.90 4.16 4.40 4.30 3.50 MARKET PRESENCE All versions of this solution Customers on maintenance Number of live customers (this solution version) Amount of license revenue from order management hub Revenue growth (this solution) Global customer base 2 4 2.40 4.10 2.20 2.90 3.20 3.20 3.80 2.80 All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

8 The Forrester Wave : Order Management Hubs, Q4 2008 Figure 3 Forrester Wave : Order Management Hubs (Opportunity To Order Capture), Q4 08 Risky Bets Contenders Performers Leaders Sterling Commerce Market presence Oracle Siebel Current offering SAP Oracle E-Business Suite Amdocs Epicor Software Microsoft Full vendor participation Go online to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Manhattan Associates Weak Weak Strategy Source: Forrester Research, Inc. November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 9 Figure 3 Forrester Wave : Order Management Hubs (Opportunity To Order Capture), Q4 08 (Cont.) Forrester s Weighting Amdocs Epicor Software Manhattan Associates Microsoft Oracle E-Business Suite Oracle Siebel SAP Sterling Commerce CURRENT OFFERING Inbound order channels Presentation framework Business process modules Core application foundation Data and infrastructure 5 10 3.13 3.13 3.05 3.05 1.67 1.67 2.56 2.56 3.94 3.94 4.23 4.23 3.98 3.98 4.56 4.56 STRATEGY Product strategy Corporate and go-to-market strategy Financial resources to support strategy Ownership costs 5 5 2 2 3.48 3.15 3.75 3.25 3.92 4.05 4.45 3.60 3.50 3.25 4.50 4.08 3.70 3.90 4.75 3.94 4.35 3.80 2.50 3.94 4.25 4.30 2.25 3.41 3.45 3.90 4.16 4.40 4.30 3.50 MARKET PRESENCE All versions of this solution Customers on maintenance Number of live customers (this solution version) Amount of license revenue from order management hub Revenue growth (this solution) Global customer base 2 4 2.40 4.10 2.20 2.90 3.20 3.20 3.80 2.80 All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

10 The Forrester Wave : Order Management Hubs, Q4 2008 Figure 4 Forrester Wave : Order Mgmt. Hubs (Order Capture To Order Fulfillment), Q4 08 Current offering Risky Bets Contenders Performers Leaders Market presence Sterling Commerce Manhattan Associates Oracle E-Business Suite Full vendor SAP participation Microsoft Amdocs Epicor Software Oracle Siebel Go online to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Weak Weak Strategy Source: Forrester Research, Inc. November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 11 Figure 4 Forrester Wave : Order Mgmt. Hubs (Order Capture To Order Fulfillment), Q4 08 (Cont.) Forrester s Weighting Amdocs Epicor Software Manhattan Associates Microsoft Oracle E-Business Suite Oracle Siebel SAP Sterling Commerce CURRENT OFFERING Inbound order channels Presentation framework Business process modules Core application foundation Data and infrastructure 5 10 3.12 3.12 4.40 4.40 3.42 3.42 3.82 3.82 2.70 2.70 3.72 3.72 4.46 4.46 STRATEGY Product strategy Corporate and go-to-market strategy Financial resources to support strategy Ownership costs 5 5 2 2 3.48 3.15 3.75 3.25 3.92 4.05 4.45 3.60 3.50 3.25 4.50 4.08 3.70 3.90 4.75 3.94 4.35 3.80 2.50 3.94 4.25 4.30 2.25 3.41 3.45 3.90 4.16 4.40 4.30 3.50 MARKET PRESENCE All versions of this solution Customers on maintenance Number of live customers (this solution version) Amount of license revenue from order management hub Revenue growth (this solution) Global customer base 2 4 2.40 4.10 2.20 2.90 3.20 3.20 3.80 2.80 All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

12 The Forrester Wave : Order Management Hubs, Q4 2008 Figure 5 Forrester Wave : Order Management Hubs (Order Fulfillment To Returns), Q4 08 Risky Bets Contenders Performers Leaders Market presence Current offering Oracle E-Business Suite SAP Amdocs Epicor Software Manhattan Associates Sterling Commerce Oracle Siebel Microsoft Full vendor participation Go online to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Weak Weak Strategy Source: Forrester Research, Inc. November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 13 Figure 5 Forrester Wave : Order Management Hubs (Order Fulfillment To Returns), Q4 08 (Cont.) Forrester s Weighting Amdocs Epicor Software Manhattan Associates Microsoft Oracle E-Business Suite Oracle Siebel SAP Sterling Commerce CURRENT OFFERING Inbound order channels Presentation framework Business process modules Core application foundation Data and infrastructure 5 10 2.50 2.50 3.50 3.50 3.30 3.30 3.60 3.60 3.20 3.20 STRATEGY Product strategy Corporate and go-to-market strategy Financial resources to support strategy Ownership costs 5 5 2 2 3.48 3.15 3.75 3.25 3.92 4.05 4.45 3.60 3.50 3.25 4.50 4.08 3.70 3.90 4.75 3.94 4.35 3.80 2.50 3.94 4.25 4.30 2.25 3.41 3.45 3.90 4.16 4.40 4.30 3.50 MARKET PRESENCE All versions of this solution Customers on maintenance Number of live customers (this solution version) Amount of license revenue from order management hub Revenue growth (this solution) Global customer base 2 4 2.40 4.10 2.20 2.90 3.20 3.20 3.80 2.80 All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

14 The Forrester Wave : Order Management Hubs, Q4 2008 vendor PROFILES Leaders Deliver The Technology To Support Perfect Orders Sterling Commerce. Sterling Commerce takes top honors in this edition of the Forrester Wave evaluation of order management hubs. The acquisition of Comergent paired with the assets of Yantra bring Sterling Commerce and its customers closer to achieving a perfect order. Sterling Commerce leads among all the vendors evaluated for overall support of end-to-end order management processes. Another area of strength includes the top core application foundation. Sterling Commerce s solutions tie for third among vendors evaluated in the support of various inbound order channels and presentation framework. Of all the vendors evaluated, Sterling Commerce earns the highest marks for overall product vision. customer references and a rich go-to-market strategy earn Sterling Commerce a top-two showing for corporate and go-to-market strategy. Forrester clients with a hodge-podge of existing systems often seek Sterling Commerce s solutions as the source of truth for orders. Forrester believes this solution should be considered in all vendor shortlists, especially for customers in retail, manufacturing (e.g., high-tech, industrial, home improvements goods, and software), communications, and distribution/logistics. Oracle E-Business Suite. Oracle s EBS vaults into the Leaders band in this edition of the Forrester Wave evaluation of order management hubs. Oracle EBS ties for second in support for end-to-end order management cycle business processes. Within the business process modules, the solution places in the top three for order capture to order fulfillment, the top two for order fulfillment to returns, and first for order completion to cash. Oracle EBS earns the top place for presentation framework and places in the top three for inbound order channels and data and infrastructure. Oracle EBS articulates a strong, integrated vision for end-to-end order management. Product strategy and future vision include the near-term delivery of distributed order orchestration, which provides a key component that s missing from the current lineup. Oracle delivers a rich go-to-market strategy for Oracle EBS. However, less than half of customer references provide positive feedback on the overall solution. Forrester believes that this is due to the patchwork of integration and customization work required to complete the end-to-end solution. Despite these weaknesses, Forrester highly recommends this solution for existing Oracle customers, Oracle customers via acquisition, and those enabling various components of Oracle Fusion Middleware. The solution has significant traction in wholesale distribution, industrial manufacturing, hightech, and consumer goods. Oracle Siebel. Oracle Siebel advances into the Leader band in this edition of the Forrester Wave evaluation of order management hubs. Oracle Siebel places second in the support of opportunity to order capture processes and is among the top three in order fulfillment to returns processes. Areas of improvement include support of order management processes November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 15 in order capture to order fulfillment and order completion to cash. On the infrastructure side, the Oracle Siebel solution ranked the highest with the most comprehensive support for inbound order channels. Market-leading areas include support for direct field sales, call center, mobile device, machine-to-machine, and partners. The Oracle Siebel offering is second only to its cousin Oracle EBS in a leading presentation framework earning top marks for channel and nonchannel content management, content management display capability, sensitive data role-based security, and localization support. A combination of leading analytical capabilities, reporting richness and flexible data model support earn the Oracle Siebel product top honors in the data and infrastructure category. Oracle Siebel s order management hub strategy is among the top three for product strategy. When distributed order orchestration is delivered, the Oracle Siebel solution should deliver a critical capability that customers have been seeking. The Oracle Siebel corporate and go-tomarket strategy is tied for second among the vendors evaluated. and productive customer references, rich professional service capabilities, and global support bolster the solution s top-tier standing. Forrester recommends this solution for those customers in heterogeneous environments and those deploying various components of Oracle Fusion Middleware. The solution shows significant traction in high-tech and industrial manufacturing, financial services, communications, utilities, entertainment, and other service-based industries. SAP. SAP returns to the Leader band in this edition of the Forrester Wave evaluation of order management hubs. SAP is tied for second in order management cycle business processes. SAP leads in order fulfillment to returns and places second among all vendors evaluated for order completion to cash. In addition, SAP earned the second highest score among vendors evaluated for a rich and broad support of inbound order channels. Market-leading support includes channels such as mobile, machine-to-machine, and partners. SAP s presentation framework ties for third among vendors evaluated. Most areas exhibit basic or advanced functionality. SAP provides advanced capability in most areas of data and infrastructure. Leading capabilities include support for all major databases, database access, and scalability. Areas for improvement include the enablement and exposure of more native Web services. On the analytics front, support for prebuilt capabilities, key performance indicators (KPIs), clickstream analysis, thirdparty integration, and reporting deliver leading capabilities. SAP delivers a market-based strategy toward end-to-end order management. Until the business suite products (i.e., ERP, SCM, and CRM) are fully integrated onto the same data model and process stack, the overall delivery of the vision will remain fragmented. However, for customers who have made their bet on SAP, a rich level of broad functionality can be stitched across various product lines. SAP delivers a tier one go-to-market strategy. Customer references and Forrester clients find difficulty in working with SAP to complete end-to-end requirements, though future versions may show significant improvements in strategy. Forrester recommends SAP to existing SAP clients across a plethora of industries including banking, insurance, 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

16 The Forrester Wave : Order Management Hubs, Q4 2008 automotive, chemicals, consumer products, engineering, construction and operations, high tech, industrial machinery and components, life sciences, mill products, mining, oil and gas, media, professional services, retail, telecommunications, travel and logistics services, utilities, and wholesale distribution. Epicor Software. Epicor Software ascends to the Leader band in this edition of the Forrester Wave evaluation of order management hubs. Epicor delivers mostly advanced capabilities across the four key order management cycle business processes. Order completion to cash is one of the top three solutions evaluated. Epicor Software addresses most basic order channel requirements but lacks in-store (point of sale [POS]) integration, and advanced direct field sales and cooperative buying capabilities. Epicor Software delivers basic to advanced presentation framework functionality including leading capabilities in content management. Adoption of advanced Microsoft tools and technology provide Epicor Software with an agile and comprehensive application foundation. Rich analytics, intuitive user experiences, and strong support for data out processes earn Epicor Software a top-two placement for data and infrastructure. Epicor delivers a compelling and functionally rich product vision. Key improvements in the next release will include updated core financials and supply chain improvements. Epicor Software leads the corporate strategy category among all vendors evaluated due to the company s strong focus, excellent customer references, strong internal professional services, and rich global support. Forrester recommends Epicor Software for all clients considering a solution built on Microsoft Visual Studio.NET technologies and for SMBs up to $5 billion in revenues looking for a user-centric alternative to the usual suspects. Epicor Vantage is used by 10 verticals and microverticals that include industrial machine, fabricated metals, medical device, automotive, electronics and electrical equipment, aerospace and defense, measuring and controlling devices, furniture and fixtures, rubber and plastics, primary metals, distribution, and consumer goods. Performers Provide Rich Solutions Microsoft Business Solutions. Microsoft Dynamics AX 2009 makes one of the most significant gains as a Performer in this edition of the Forrester Wave evaluation of order management hubs. In fact, the solution just missed the Leader band by a fraction. Microsoft Dynamics AX 2009 provides basic to advanced support for the overall processes in the order management cycle business processes, with advanced capabilities delivered in the subprocesses for order capture to order fulfillment and order completion to cash. Microsoft provides basic support for most inbound order channels, but areas for improvement include in-store POS, direct field sales, fax, call center, and kiosk. role-based usability drives rich user experiences in the presentation framework. However, one area needing improvement is support for role-based security for sensitive data. Areas of strength in the core application foundation include business process management orchestration, exception management of processes, graphical design environment for business processes, general processes for workflow November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 17 and notifications, supplier administration, general user administration, and configuration of business processes. Data and infrastructure capabilities are advanced. Increased adoption of Microsoft tools and technology led to improved rankings. Overall product strategy represents a compelling vision for end-to-end order management. As companies in the upper midmarket continue to experience difficulty with existing systems, Microsoft Dynamics AX 2009 will play an increasing role as a key alternative for divisions and subsidiaries looking for a lower-cost and more effective alternative. The solution fared in the top half of vendors evaluated for corporate and go-to-market strategy due to strong customer references and global reach. Forrester recommends the Microsoft solution to companies with existing Microsoft tools and technologies and for larger SMBs up to $5 billion in revenues looking for a user-centric solution. Microsoft Dynamics AX 2009 shows good traction with companies in discrete and process manufacturing, distribution, retail, and professional services. Amdocs. Amdocs remains a Performer in this edition of the Forrester Wave evaluation of order management hubs and delivers basic to advanced capabilities for most of the business processes in the order management cycle. Despite its telecommunications roots and heritage, Amdocs brings a compelling set of OMH solutions that are potentially applicable to other industries, such as financial services and utilities. Amdocs shines in advanced order capture capabilities with an industry-leading product catalog, general processes in pricing, bundling and pricing, and product and service support. The solution excels in spare parts management and delivers advanced functionality in order fulfillment to returns processes. However, warranty plan processes and contract enforcement processes represent areas with room for improvement. Amdocs delivers leading support for in-store POS and call center channels. Advanced capabilities in the core application foundation include graphical design environments for business process management, general workflow and notifications, and general user administration delivery on not only advanced functionality but also leading ease of use. Amdocs delivers significant capabilities in key analytics and data and infrastructure. Amdocs product strategy follows a pragmatic market-based adoption approach. The key elements of the product vision include enhancing capabilities targeted at vertical markets complementary to the communication service provider (CSP) industry, building stronger selling capabilities, and creating total cost of ownership reduction toolkits for maintenance and support. Amdocs strengths lie in its professional services capabilities and global support. Currently Amdocs has a strong presence in the tier one and tier two segments in the CSP industry, but it is pursuing customers in other industries as well that fit the criteria defined above. Forrester believes the product is an especially good fit for buyers that conduct business in the CSP space and require complex product and service order support. Amdocs strengths show deep telecommunications industry expertise in solving convergent order management issues, such as quad play billing, services and product fulfillment for mobile carriers, and set-top box asset management. Despite the heavy services component to solution delivery, tier one and tier two CSPs should keep Amdocs on their shortlist. 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

18 The Forrester Wave : Order Management Hubs, Q4 2008 Manhattan Associates. Manhattan Associates debuts as a Performer in this edition of the Forrester Wave evaluation of order management hubs. Manhattan Associates earns a toptwo placement for support of order capture to order fulfillment processes. Other subprocesses in order management hubs represent areas for improvement but do provide basic capabilities or support for critical integration points. Manhattan Associates delivers basic support for most inbound order channels. Areas for improvement include direct field sales, in-person store, fax, call center, and kiosk. On the infrastructure front, Manhattan Associates provides leading display capabilities for content management and advanced role-based security and portal sophistication. Areas for improvement include localization support. Manhattan Associates also delivers a solid application foundation with leading capabilities in order decomposition, order line independence, general processes for workflow and notifications, monitoring for workflow and notifications, and configuration of business processes. Manhattan Associates scored the lowest in data and infrastructure with a need to provide more advanced analytical and reporting capabilities out of the box. Manhattan Associates planned enhancements and product road maps show rich understanding of what it will take to build a market-leading solution. While this is a compelling and strong vision, areas of improvement include the development of an industry strategy and long-term platform extensibility. customer references and core focus in order management hubs represent key area of strength. Long-term strategy will require more focus on delivery and go-tomarket enablement. Manhattan Associates placed second among vendors evaluated for overall ownership costs. Forrester recommends Manhattan Associates solutions to those focused on solving critical order capture to order fulfillment challenges. The vendor shows strength in multichannel retail, grocery, multichannel consumer goods, and third-party logistics companies. Customers can expect Manhattan Associates to continue investment in the order management space. Forrester has seen a well-defined road map and expects progress in the next 12 months. November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

The Forrester Wave : Order Management Hubs, Q4 2008 19 Supplemental MATERIAL Online Resource The online versions of Figure 2, Figure 3, Figure 4, and Figure 5 are Excel-based vendor comparison tools that provide detailed product evaluations and customizable rankings. Data Sources Used In This Forrester Wave Forrester used a combination of five data sources to assess the strengths and weaknesses of each solution: Hands-on lab evaluations. Vendors spent one day with the analyst who performed a handson evaluation of the product using a scenario-based testing methodology. We evaluated each product using the same scenario(s), 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 around five of each vendor s current customers on the submitted version of the product. Strategy and product road map briefings. We asked vendors to provide briefings on their business strategy which could include, among other things, plans for new product development, acquisitions, capitalization, market expansion, sales channels, and partnerships. We also asked each vendor to provide an in-depth product road map for the next 12 to 18 months. 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. 2008, Forrester Research, Inc. Reproduction Prohibited November 14, 2008 Updated: November 20, 2008

20 The Forrester Wave : Order Management Hubs, Q4 2008 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 we encourage readers 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 The five components of the order management cycle include multichannel support, presentation framework, business process modules, core application foundation, and data and infrastructure. See the November 3, 2005, Designing The Order Management Cycle report. November 14, 2008 Updated: November 20, 2008 2008, Forrester Research, Inc. Reproduction Prohibited

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