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					A Taxonomy of Software




                         1
 Applications           Framework for Discussion
 Strategies and
 eBusiness
                                     Business Processes


                     eBusiness/eCommerce Applications & Services
                         (Electronic marketplaces, Supply chain management,
                    Enterprise resource planning, customer relationship management)   Management
                                                                                      and Support
                                            Middleware
                      (Web, Client-server support, mobile computing middleware,       . Planning
Computing)
(Distributed
IT Infrastructure




                       CORBA, Workflows, EDI, XML-trade, Legacy gateways)             . Organizing
                                                                                      . Staffing
                                                                                      . Security
                                      Computing Platforms                             . Performance
                               (Computer Hardware, Operating Systems,                 . Availability
                                     Database Managers, Utilities)

                                             Network
                               (IP, Wireless, Next Generation Networks)

                                                                                              2
                                             Software Overview
                                                     Software Segmentation
                                                      (Gartner Definitions)


                               Infrastructure software              Enterprise Application Software


                                 AD                                       CRM
                                 AIM                                      ERP
                                 BI Tools                                 SCM
                                 Collaboration S/W                        PPM
                                 DBMS
                                 Datawarehouse Tools                 Enterprise Application Software Definitions
                                 NSM Software                        The focus for application software is to increase the performance
                                 Security Software                   of business or personal resources. It enables users to leverage the
                                                                     power of computers toward achievement of their business,
Infrastructure Software Definitions                                  professional or personal objectives or goals. These definitions are
                                                                     how Gartner Dataquest views the market as of August 2003
The focus of infrastructure software is to increase the
performance of IT resources. In this category, we gather
software primarily for use by IT professionals. These definitions
are how Gartner Dataquest views the market as of August 2003


                                                                                                                         3
                      Infrastructure Software Overview
                                                    Infrastructure Software



                            Application Development               Application Integration & Middleware
                                      (AD)                                     (AIM or EAI)


                             Requirements management                     Adaptor Suites
                             BPA                                         APS
                             Database Design                             Application Servers
                             OOA&D                                       Integration Suites
                             Language Oriented Dev Environments          MOM
                             ISE                                         ORB
                             Trad (client/server) AD tools               Enterprise Portal Server
                             BRE                                         TPM
                             BPM                                         Other Middleware
                             Automated Testing
                             SCCM
                             Other AD Software                       Application Integration and Middleware
AD Software                                                          AIM is defined as the system software or runtime
                                                                     infrastructure used to provide intra- and inter-application
The AD software market is comprised of tools that
                                                                     communications. Intra-application middleware is used for
represent each phase of the software development life
                                                                     the construction of individual multitiered applications. Inter-
cycle (planning, design, construction, automated software
                                                                     application middleware is used for communication between
quality and operation life cycle).
                                                                     individually designed applications
                                                                                                                        4
Infrastructure Software Overview Continued
                               Infrastructure Software Continued

     Database Management Systems                               Data Warehouse Tools


    Lots of varied tools                                 Data Mining Tools
                                                         Data Quality Tools
                                                         ETL Tools

 Network & Systems Management Software                             Security Software


    Lots of varied tools                                 Lots of varied tools


        Business Intelligence Tools              Collaboration Software & Knowledge Management


     BI Platforms                                       Email & Calendaring
     EBIS                                               Real Time Collaboration
     Other BI Software                                  Team Support




                                                                                                 5
Business application architecture




                                    6
Business application architecture

           Software Segmentation
            (Gartner Definitions)


        Enterprise Application Software


             CRM
             ERP
             SCM
             PPM




                                          7
Customer Relationship Management

                              Retention
         Marketing and        and Loyalty
         Fulfillment          Programs
  Sales
                      Customer          Store Front
  Cross-Sell
                                        and Field
  Up-Sell
                     Customer           Service
  TeleSales
                     Service and
                     Support


              Contact Management



                                                      8
                   Enterprise Application Software
                              Overview
Customer Relationship Management
•Gartner Dataquest believes that CRM technologies should enable greater customer insight, increased customer
access, more effective customer interactions and integration throughout all customer channels and back-office
enterprise functions.
•CRM is a business strategy whose outcome optimises profitability, revenue and customer satisfaction by
organising around customer segments, fostering customer-satisfying behaviours and implementing customer-
centric processes.
•The CRM software sector, part of the enterprise software market, provides functionality to enterprises in three
segments: sales, marketing, and customer service and support.




                                                                                                        9
                           Enterprise Application Software
                                      Overview
Customer Relationship Management
Sales
        •Direct sales (field sales/inside sales) — Direct sales builds on the attributes of technology, functionality and value of order management systems
        (OMSs) and extends the definition to include functionality for sales execution and sales operations..

        •Sell-side commerce — E-commerce sell-side — B2B and business-to-consumer (B2C) enterprise software applications offer manufacturers and
        retailers the ability to sell, service and market their products to customers through the Web and channel partners..

        •Partner sales — The sales-focused partner relationship management (PRM) applications designed to improve an enterprise's ability to market,
        sell and service end customers through channel partners..

        •Retail sales — The additional collection of sales applications required for a retail environment. It includes point-of-sales (POS) applications for
        recording sales transaction, usually a cash register and merchandising software.

        •Other/specialised — This is the disparate selection of specialist vendors and technologies associated with sales force automation. It includes
        aspects such as proposal generation, content management, sales portals and guided selling.




                                                                                                                                           10
                  Enterprise Application Software
                             Overview
Customer Relationship Management
Marketing
    •Customer management — These are applications that allow prospecting and lead generation, lead
    management, segmentation, campaign management, multi-channel interaction, event driven management, e-
    marketing, loyalty management, privacy management and dialogue management.
    •Resource management — These are applications that allow strategic planning and budgeting, program
    management, creative development and distribution, content management, media planning and execution,
    events coordination and resource measurement.
    •Data and analytics — This is an application providing data preparation, data quality management,
    measurement and reporting, predictive modeling, profitability and optimization.
    •Demand network management (including partner marketing) — These are applications providing content
    distribution, trade promotion and partner lead management. This is a component of PRM.
    •Brand and product management — These are applications that provide for trade promotion, product
    development management and market research



                                                                                                   11
                   Enterprise Application Software
                              Overview
Customer Relationship Management
Customer Service and Support

     •Contact center customer service software —designed to allow employees or agents of a company to support
     the clients directly, usually within a call or contact center, typically non-product support focused on service
     that is business related (such as dissatisfaction, problems with shipment and billing).
     •Contact center technical support software —designed to allow employees or agents of a company to support
     the clients directly, usually within a call or contact center, typically focused on clients' product usage,
     implementation and problem resolution.
     •Customer self service and support — A blend of customer-initiated interaction technologies that are
     designed to allow customer to service themselves. It includes electronic records management systems
     (ERMS), chat and knowledge bases.
     •Field service management software — Applications that are designed within a CRM environment that
     enable agents to diagnose problems categorically, identify resource and dispatch it to client with proper tools
     or materials required for the specific problem. It includes field service workforce management and intelligent
     device management (IDM).

                                                                                                       12
                    Enterprise Application Software
                               Overview
Customer Relationship Management
Customer Service and Support

     •Contact center performance management — It includes workforce management software, e-learning and
     quality assurance (QA). This is a call and contact center application enabling the management of
     communication queues, agent schedules, monitoring call flow and traffic. It is designed to automate the
     workforce management, and increase efficiencies by reducing waste and streamlining work paths to the
     workforce.
     •Partner customer support software — Service-focused PRM applications designed to improve an
     enterprise's ability to market, sell and service end customers through channel partners. Key components
     include entitlement management, order management, service-level management and material reverse
     logistics.
     •Contact center infrastructure — Software and hardware designed to run a contact/call center. This includes
     automatic call distributors (ACDs), integrated voice response unit (IVRU), computer telephony integration
     (CTI), universal communications or universal queue management, integrating multiple channels for a
     call/contact center (integrating ACD/IVRU/CTI/chat/ERMS)..

                                                                                                      13
                  Enterprise Application Software
                             Overview
Supply Chain Management
•At a high level, SCM software is segmented into
    •planning,
    •execution and
    •sourcing and procurement components.
Planning typically deals with activities such as developing demand forecasts, establishing relations
with suppliers, planning and scheduling manufacturing operations, and developing metrics to ensure
efficient and cost-effective operations.
Execution functions manage the processes and activities to ensure completion of the plans, including
creating purchase orders, taking customer orders, updating inventory, managing movement of products
in the warehouse, and delivering goods to the customer.
Sourcing and procurement functions manage the automation and of corporate sourcing and
purchasing
                                                                                           14
        Supply Chain Management

Supply
Chain           Commit      Schedule          Make            Deliver
Life Cycle


               Order           Demand                Manufacturing
SCM          Commitment        Planning                Planning
Functional
Processes
              Advance        Transportation           Distribution
             Scheduling         Planning               Planning
SCM
Integrated
Solution        Internetworked Supply Chain Management


                                                               15
                  Enterprise Application Software
                             Overview

Supply Chain Execution
•supply chain execution (SCE) is a framework of execution-oriented applications that enable the
efficient procurement and supply of goods, services and information across enterprise boundaries to
meet customer-specific demand.
•SCE suites have evolved consolidating supply chain execution components —
    •warehouse management systems (WMSs),
    •transportation management systems (TMSs),
    •order management systems and supply chain inventory visibility (SCIV) — to provide a single
    solution to manage the outbound logistics process




                                                                                           16
                 Enterprise Application Software
                            Overview
Warehouse Management Systems
•WMS are applications that manage the operation of a warehouse or distribution center.
•Functionality includes receiving, put-away, inventory management, cycle counting, task interleaving,
wave planning, order allocation, order picking, replenishment, packing, shipping, labor management
and automated material-handling equipment interfaces. Using radio frequency (RF) technology in
conjunction with bar codes provides the foundation of WMS, delivering accurate information in real
time.
Transportation Management Systems
TMS are systems used to manage all freight activities across the enterprise. Functions include
planning and procuring freight movements, freight rating and shipping across all modes, route and
carrier selection, management of freight, visibility, and freight payment and audit



                                                                                          17
                  Enterprise Application Software
                             Overview
Supply Chain Planning
•supply chain planning (SCP) applications are designed to provide forward-looking options for future
time horizons. SCM applications coordinate assets to optimize the delivery of goods and services, and
information from supplier to customer, balancing supply and demand. A SCP application suite sits on
top of a transactional system to provide planning, what-if scenario analysis capabilities and real-time
demand commitments.
     •Typical modules include
     •network planning,
     •capacity planning,
     •demand planning,
     •manufacturing planning and scheduling, and
     •distribution and deployment planning


                                                                                            18
                  Enterprise Application Software
                             Overview
Supply Chain - Sourcing and Procurement
• Sourcing and procurement applications are used to support the automation and management of
corporate sourcing and purchasing (or procurement) of direct and indirect goods, suppliers, and
content (for example, product catalogs, parts databases and supplier directories).
•Sourcing software is used to help companies understand and improve the terms and conditions of
trade to understand enterprise spending. It aids in creating an optimal set of suppliers, establishing the
terms of trade to balance cost, quality and risk.
     •Strategic sourcing applications include
     •requests for proposal (RFPs)/requests for quotation (RFQs)
     •bid management, and
     •supplier analysis and optimization.
•Strategic sourcing applications are also evolving into the practice of managing longer-term
purchasing activity and supplier relationships. Sourcing applications will have the capability to
interface with procurement systems — for example, in spot buying/spot sourcing environments
                                                                                              19
                  Enterprise Application Software
                             Overview
Supply Chain - Sourcing and Procurement
•Procurement applications automate purchasing for direct and indirect goods and services. These
applications are designed to help companies reduce costs by automating and streamlining the
purchasing process, connecting buyers and sellers and controlling corporate spending. Functionality
includes, but is not limited to, purchase order processing, master blanket release, receipt and advance-
ship notice, settlements and rebates, invoice payment, catalogs, requisition management, project
costing, encumbrance (public sector), and invoicing.
•Procurement is tremendously complicated. There are broad sets of activities common to procurement.
Such activities include supplier connectivity, needs specification (such as those expressed by a
production plan, materials forecast, work order material plan or catalog items in a shopping cart) and
invoice and payment processing. Often procurement relies on sourcing and in some categories (for
example, capital goods, spot-buys and certain types of services), diminishing the validity of
distinctions between sourcing and procurement. Procurement and sourcing are in many ways co-
dependent.

                                                                                             20
                 Enterprise Application Software
                            Overview

Supply Chain - Sourcing and Procurement
• Marketplaces   (e-marketplace) are Web-enabled trading communities that aggregate buyers and
sellers to enable transactions, collaboration and content. Marketplace software can also include
strategic sourcing, contract negotiation, legacy integration and Web-based order management
functionality. Marketplaces offer market intelligence to buyers and sellers. Buyers are in a better
position to understand their buying behaviors and, thus, gain control over their procurement processes.
Suppliers are able to collaborate more effectively with other partners in the supply chain to reduce
inventory, obtain greater visibility of supply chain constraints and lower processing costs.
•Content management addresses the problem of how to take unstructured product content and create
and manage structured data. This segment includes solutions in data cleansing, parts databases and
supplier directories. It also provides functionality that includes catalog conversion, parametric
matching engines, dynamic content aggregation, automated integration to back-end databases, online
content updating and multiple language translation


                                                                                           21
Enterprise Resource Planning


         Production          Integrated
         Planning            Logistics
  Sales
                      Customer/
  Distribution,                       Accounting
                      Employee
  Order                               and Finance
  Management
                  Human
                  Resources




                                                    22
                     Enterprise Application Software
                                Overview
Enterprise Resource Planning
     •ERP is application strategy focused on a several distinct enterprise application suite (EAS) markets. In
     general, ERP involves software packages that automate and support the processes of the administrative,
     production, inventory and product development aspects of an enterprise. ERP is considered the back-office
     application set and is defined as manufacturing, HRMS and financial management systems (FMS).
Manufacturing
The functionality that comprises this segment includes, but is not limited to ,
     •manufacturing execution,
     •master production scheduling,
     •material requirements planning (including regenerative manufacturing resource planning [MRP]),
     •inventory control,
     •bills of material/routing (including engineering change control), capacity requirements planning (including
     input/output control,
     •finite scheduling and infinite scheduling), and
     •quality tracking/control.                                                                       23
  Manufacturing Information Systems
                                                    Intranet


     Computer Integrated Manufacturing
Manufacturing     Manufacturing      Engineering
  Resource          Execution          Systems
  Planning           Systems                                  Remote
                                    •CAD                      Worker
•Production        •Shop Floor        •CAE
Forecasting        •Scheduling        •Computer-              Supplier
•Production        •Machine Control   Aided
Scheduling         •Process Control   Process
•Quality Control   •Robotic Control   Planning




                                                   Extranet
                                                                24
                  Enterprise Application Software
                             Overview
Project Portfolio Management
PPM applications provide a set of integrated functions designed to streamline outward functions and
inward processes of project-intensive departments, industries and organizations.
They address a majority of the nine processes defined by the Project Management Institute's Project
Management Book of Knowledge (PMBoK):
    •project scope management,
    •time management (including scheduling),
    •cost management,
    •resource management,
    •quality management,
    •project communications management,
    •project risk management and
    •project procurement management.
                                                                                          25
    •integration of these processes.
                     Enterprise Application Software
                                Overview
Project Portfolio Management
PPM applications optimize project delivery by providing, at a minimum, integrated functionality to support project
planning, tracking, resource assignment and portfolio reporting. Features often address the following functional
areas:
     •Scope management — Preliminary scope planning, including project definitions, timelines, size and
     deliverables
     •Time management — Manages deliverable activity timelines, schedules and deadlines for projects, tasks,
     assignments, scope and goals
     •Resource management — Allocates resources using a repository of resource profiles (of skills and other
     attributes), identifies skill shortages and includes resource loading and leveling capability (direct or via third-
     party tool integration)
     •Cost management — Estimates and tracks resource and material costs and obtains approval for actual
     project expenses associated with billing, chargebacks, travel, project materials, or purchase of necessary
     equipment
     •Procurement management — Supports procuring of external resources and project related goods
                                                                                                            26
                   Enterprise Application Software
                              Overview

Project Portfolio Management continued
    •Communication management — Data distribution (discussions, e-mail and chat) and project intelligence
    gathering so participants can collaborate, maintain, manage, and share current or previous project knowledge
    •Risk management — Tracks individual projects' problems, issues and schedule risks, and provides a macro
    view of multiple projects' risks to weigh with cost and value in portfolio analysis
    •Quality management — Uses corporate or industry standards (for example, project models, templates,
    project knowledge, workflows and process metrics) to ensure quality, consistency and efficiency of executed
    projects and their deliverables
    •Integration management — Gathers project data from above segments to store, report and forecast project
    progress, manage pipelines and conduct portfolio analysis




                                                                                                     27
                Emerging Enterprise Application
                          Software
•ERP II and Enterprise Application Suite
•Mobile and Wireless Packaged Applications Software
•Product Life Cycle Management
•Smart Enterprise Suites.
•Supplier Relationship Management
•Web Services Software
•Business Process Management
•Business Activity Monitoring
•Business Rules Engine (BRE)

•Collaborative Commerce


                                                      28
               Emerging Enterprise Application
                         Software
ERP II and Enterprise Application Suite
    •The emerging next generation of ERP strategy is called ERP II by Gartner Dataquest.
    •ERP II is an application and deployment strategy that expands out from ERP functions to
    achieve integration of an enterprise's key domain-specific, internal and external collaborative,
    operational and financial processes

Mobile and Wireless Packaged Applications Software

    •The terms mobile application and wireless application are bandied about in the trade press, often
    used interchangeably, and can refer to simple stand-alone software or to internetworked processes
    of great complexity.
    •Mobile and wireless applications can mean anything from a menuing system on a smartphone, a
    calendar or a tic-tac-toe game on a PDA to Internet/corporate e-mail connectivity up to a sales
    force automation order-entry system that updates back-end databases over a wireless link

                                                                                            29
                Emerging Enterprise Application
                          Software
Product Life Cycle Management
    •At its highest definitional level, product life cycle management (PLM) is a process for guiding
    products from idea through retirement to deliver the most business value to an enterprise and its
    trading partners.
    •PLM employs product information and business analysis to support product portfolio strategy,
    product life cycle planning, management of activities, and execution of those activities through
    each phase in a product's life.
    •The applications that support the business activities enabled through PLM includes product
    ideation, design, engineering, manufacturing process management, product data management,
    and product portfolio management


Smart Enterprise Suites
Smart enterprise suites include a significant combination of technologies, such as content
management, team support, a portal framework and information retrieval. They may also include
expertise location and management, community technology, process management, and multichannel
access                                                                                     30
                  Emerging Enterprise Application
                            Software
Supplier Relationship Management
    •Confusion and varying opinion on what exactly SRM is and what it should encompass.
    •There are a plethora of software applications that support SRM initiatives but, to date, no true SRM
    applications.
    •SRM is a logical extension of SCM.
    •SRM is the latest of a series of innovations within SCM and represents an incremental development. As
    such, SRM is a subset of SCM. SRM represents an evolutionary extension of SCM, driven by the need for
    enterprises to create a more comprehensive life cycle view of suppliers' operational contribution to the top
    and bottom lines. Consequently, SRM is an extension of, and builds on, SCM technologies and practices.
Web Services Software
    •Deploying Web services-enabled software will be an evolutionary process, not a revolutionary one.
    •While the majority of software vendors have committed to supporting Web services software standards
    within their established product lines, it will take more than four years to evolve these immature standards,
    build up skills, and plan, build and test for new versions of software that gradually incorporate these
    standards.
    •Web services standards will be deployed through multiple markets, such as integration suites, AD tools and
    some enterprise application segments                                                             31
                 Emerging Enterprise Application
                           Software
Business Process Management
    •Business process management (BPM) is a general term describing a set of services and tools that provide for
    explicit process management (that is, process analysis, definition, execution, monitoring and administration),
    including support for human and application-level interaction.
    •BPM has emerged from many sources — workflow, applications, collaborative tools, integration brokers,
    Web integration servers, application servers, development tools, rules engines and commerce offerings.
    •BPM leverages tools to analyze and model processes, using a graphical process designer targeted for
    business analysts that extract process flow and architect new business process flows.
    •A runtime execution engine (underlying state machine) executes the defined process flow, stepping through
    the defined process flow. As the process flow is executed, applications (that is, legacy, packaged, external
    business-to-business [B2B] and Web services) may be invoked, as will tasks that humans have to complete.
    The runtime environment maintains the status (state) of each process instance.
    •As the many instances of multiple process types execute, they can be monitored (that is, process
    performance, degree of completion and out-of-bounds conditions) and administered (that is, for process
    termination and load balancing or rerouting).
    •Post-completion analysis is also possible, as the state data is archived for BI potential
                                                                                                     32
                Emerging Enterprise Application
                          Software
Business Activity Monitoring
    •BAM is neither a market nor a product.
    •It is a concept, such as quality or knowledge management, and it is not new.
    •BAM solutions focus on cross-business processes rather than divisional-, departmental- or
    technology-specific processes. T
    •he scope of integration in BAM solutions expands far beyond the four walls of a plant or a
    division, and real time is not necessarily nanoseconds but rather is determined by the
    requirements of the business process.
    •It brings the near real-time world of the BI operational data store together with NSM(Network
    Services Management) monitoring and BPM through integration brokers and shared messaging




                                                                                          33
               Emerging Enterprise Application
                         Software
Business Rules Engine (BRE)
    •Business rule change has been a constant companion of systems development since the inception
    of IT, but a growing number of factors has led to the increase of change necessary to remain
    competitive in business.
    •This increase in the frequency of change is leading to new approaches to alter the business rules
    embedded in business process flows, applications and even in the enterprise architecture.
    •Enterprises are more pressed to become adaptable and apply the knowledge captured in rule sets
    to outflank competitors and respond to changing business environments.
    •They can no longer wait for professional programmers to change applications written in
    traditional programming languages.
    •Business users want to change rules without going through a long-running change process that
    is, at best, measured in days and, at worst, measured in weeks and months.
    •Therefore, rules engines allow even end users to make dynamic "real time" changes to their
    applications in an abstracted level of language
                                                                                           34
                Emerging Enterprise Application
                          Software

Collaborative Commerce
    •Collaborative commerce (c-commerce) involves the collaborative, electronically enabled
    business interactions among an enterprise's internal personnel, business partners and customers
    throughout a trading community.
    •The trading community can be an industry, industry segment, supply chain or supply chain
    segment.
    •For some enterprises, c-commerce is already a fact of business life, but how can they measure it?
    •It is not yet quantifiable with any consistency. It is not a class of software and it is difficult even
    to define




                                                                                                35
Business application architecture




                                    36
 Applications           Framework for Discussion
 Strategies and
 eBusiness
                                     Business Processes


                     eBusiness/eCommerce Applications & Services
                         (Electronic marketplaces, Supply chain management,
                    Enterprise resource planning, customer relationship management)   Management
                                                                                      and Support
                                            Middleware
                      (Web, Client-server support, mobile computing middleware,       . Planning
Computing)
(Distributed
IT Infrastructure




                       CORBA, Workflows, EDI, XML-trade, Legacy gateways)             . Organizing
                                                                                      . Staffing
                                                                                      . Security
                                      Computing Platforms                             . Performance
                               (Computer Hardware, Operating Systems,                 . Availability
                                     Database Managers, Utilities)

                                             Network
                               (IP, Wireless, Next Generation Networks)

                                                                                              37

				
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