Putting the E Back in ECM:
Upselling from the Department a Current Critical Challenge
By
JOHN
PARKER & STEVE
WEISSMAN
Enterprise
content management (ECM) means many things to many people, but nearly everyone
we speak to agrees on at least three of its best attributes: it is a worthy
goal, it is a potential driver of business value, and it is an enviable
technical achievement.
But one question on which the market seems divided is whether the
first letter of the acronym notwithstanding ECM is truly saleable as
an enterprise solution. A recently-completed Kinetic Information
market inquiry suggests that it isnt, at least not in the present economic
climate.
Instead, we find that one of most critical sales challenges facing ECM
vendors today especially those that bulked up over the past two years
in order to pursue enterprise-scale opportunities is how to slim themselves
down in order to best meet customer needs on a departmental basis. Conversely,
vendors with solid departmental traction are now seeking ways to push further
into the enterprise as a whole, and at the moment, they are finding the
going rather slow.
Stuck in the Middle with You
For one thing, CIOs and CFOs are all but paralyzed by slack business
and spending restrictions, and have been slow to sign off on ECM projects.
In this tightfisted corporate atmosphere, the word content still has
a squishy sound, and enterprise revives painful memories of the massive
infrastructure investments they made a few years back whose payoff still
seems elusive. Changing this perception requires a pretty compelling set
of value proof-points and an assist from the economy as a whole and the
longer the latter takes to materialize, the more important it is that the
former become reality.
At the other end of the sales pipeline, the people who are best able
to appreciate content managements day-to-day benefits are the ultimate
end users, who may notice fairly immediate improvement in the way they
are able to work. But end users dont set the corporate budget and generally
dont have the ear of the senior executives who do. So it is clear that
conventional viral marketing from the desktop up just may not pay, and
that other stratagems need to be employed.
Crossing the Enterprise Divide
Given all this, we recommend a back to basics strategy that emphasizes
tangible return on the departmental level, and encourages dialog across
departments and with IT so a groundswell of support can be built and capture
a CxOs attention. Here are a few issues to keep in mind when executing
on such a strategy:
-
Department heads need to monitor and control. This is not a matter
of being on a power trip: rather, managers must justify any and all expenditures
of time and cash, and defend hopefully while promoting their departments
performance on a daily basis. It isnt enough to know where in the content
workflow a process has been interrupted; managers should be able to tell
immediately how the interruption will affect customer service, time to
market, and other relevant business outcomes. The nascent market for business
activity monitoring (BAM) is centered on this capability. Even enterprise
Goliath IBM is playing
to this need with its new DB2
Cube Views, software that automates OLAP processing and lets users
manipulate multi-dimensional charts to perform chores like sales performance
monitoring and forecasting.
-
Department heads need solutions that tackle their business-critical
issues. Whether one is selling more of a horizontal content application (e.g.,
Documentum, FileNET)
or is focusing more on a targeted set of content management capabilities (e.g.,
Open Text), it is
crucial to encapsulate those business processes that most directly:
-
affect either sales revenue (customer service), operational cost (employee
productivity/system throughput), or both;
-
involve risk to the company (regulatory compliance), and
-
consume the most human resources (claims handling, order processing)
-
Consider buying vs. building additional domain expertise and technical
functionality. If content-related technologies are becoming commodities
(which they are), and if closing departmental sales is an urgent task (which
it is), vendors ought to look for ways to buy rather than build domain
expertise and extra functionality. This might involve hiring experts or
acquiring companies, or partnering intelligently with complementary vendors
or selected systems integrators and/or value-added resellers. But either
way, it is a proven way to increase your market agility and shorten certain
sales cycles.
-
Imbue your pre-sales messages with business, not coolness. At
a recent HP briefing on management systems, one analyst remarked: You
guys have always been good at selling to Dilbert, but not so good at selling
to Dilberts boss. The point, of course, is that department heads
even pointy-haired ones dont buy technology; they buy business solutions
that allow them to do more with less. And they focus more on the solutions
aspect today than they have in years.
Variation on the Theme: Enterprise Providers Mid-Market Play
An interesting variation on this departmental theme can be seen in
the effort many enterprise vendors (e.g., PeopleSoft,
SAP) are making to push
into the mid-market. They know they have sold about all the big systems
they can into the upper echelons of the marketplace, where customers not
only are loathe to spend additional mega-millions on new technology, but
are still seeking a return on their earlier investments. But as they move
down, they are surprised to find their enterprise sales arguments are being
met with many of the same responses ECM vendors are receiving when making
their departmental sales calls!
The primary reason this is so is that smaller organizations think more
like big departments than like large corporate entities, and enterprise
application providers are now learning to adjust their pitches accordingly.
Where it promises to get most interesting is where they cross paths with
the ECM vendors pushing upward and the battle then likely will be fought
in terms of focused functionality, supplier reliability, and system interoperability.
Conclusion: Think Globally, Act Locally
None of the pragmatic salesmanship outlined above makes the visionary
thinking behind enterprise content management any less valid. Organizations
particularly those in financial services, manufacturing, health care,
and government would benefit dramatically from integrating all
their paper, e-document, and Web content. And standardizing both the user
experience and the system administration is essential to maximizing
the total value of a content management solution, especially as the volume
of the content to be managed continues to expand and as the format of that
content increasingly encompass voice as well.
All indicators today suggest that the best course of action is to take
a page from the environmental movement and to think globally, act locally
for sure, senior managers are looking to improve the performance of their
entire enterprise, but it is going to take a lot of departmental prodding
before they spring into action. Contact
Us for More
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