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Enterprise Applications: Act Two

Henschen, Doug | 03/26/10
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It's difficult to say whether it's pragmatism or jaded resignation, but this year's InformationWeek Analytics/Intelligent Enterprise 2010 Enterprise Applications Survey reveals that enterprises aren't entirely happy with conventional enterprise applications--or any of the alternatives for that matter.

ERP, CRM and supply-chain management systems are still costly and difficult to implement, according to the 485 business technology professionals who responded to the survey. What's more, they doubt that next-generation applications will be any easier to handle. As for the alternatives, most enterprises have yet to fully embrace services-oriented architecture, software as a services or business process management. Oh sure, they're using these technologies here and there, but few survey respondents are confident that SOA, SaaS or BPM can handle everything.

What's clear is that they're likely to combine software and services. Whether that's on-premises services or cloud-based apps and services will depend on the sophistication and security concerns of the individual enterprise. The economy has put a damper on SOA fervor, with interest cooling in elaborate, internal composite application development initiatives. The focus has shifted to using SOA to integrate, customize and extend existing components, particularly vendor-supplied applications.

There's plenty of growth in the use of SaaS and cloud computing, but mainly for e-mail, collaboration and CRM. Mission-critical apps like ERP are seeing slower growth, and our research reveals that many organizations aren't ready to put sensitive financial records and transactional data in the cloud.

Finally, our readers expressed keen interest in BPM. It promises user-friendly, model-driven application development, business-IT collaboration (around those models) and the kind of flexibility and adaptability that on-premises applications haven't delivered. But the surprise in our research is just how keen respondents are to get BPM tools and capabilities from their existing applications vendors.

The next act has yet to be written, but it looks like conventional enterprise applications--love 'em or hate 'em--will continue to play a lead role at most businesses. SOA, SaaS, BPM and other alternatives will play supporting roles. 

Table of Contents

    5    Author's Bio
    6    Executive Summary
    8    Research Synopsis
    9    Enterprise Applications: The Drama Continues
    11    Pain Remains with Conventional Apps
    18    SaaS Bolsters Enterprise Diversity
    24    BPM Becomes a Feature Set
    28    Path Forward: Business-IT Collaboration
    32    Know Your Business Process Management Technologies
    33    Appendix

    Figure List

    9    Figure 1: Responsibilities for Enterprise Applications
    10    Figure 2: Primary Vendor for On-Premises Enterprise Applications
    11    Figure 3: Organizational Attitude Toward Performance Management
    12    Figure 4: Responsibility for Performance Management
    13    Figure 5: Barriers to Success
    14    Figure 6: Most Time-Consuming Tasks
    15    Figure 7: Organizational View on Next-Generation Application Platforms
    16    Figure 8: Satisfaction with Elements of On-Premises Enterprise Applications
    17    Figure 9: Likelihood to Invest in Enterprise Applications
    18    Figure 10: Organizational View on Enterprise Applications
    19    Figure 11: Likelihood to Invest in Performance Management Technologies
    20    Figure 12: Likelihood to Invest in SaaS-Based Enterprise Applications
    21    Figure 13: Likelihood to Invest in SaaS-Based Performance Management Applications
    22    Figure 14: Responsibility for Managing Business Processes
    24    Figure 15: Adoption of Emerging and Alternative Approaches and Technologies
    26    Figure 16: Organizational Attitude Towards BPM
    27    Figure 17: Preferred Source for BPM Technologies
    28    Figure 18: Likelihood to Invest in Process Management Technologies
    29    Figure 19: Primary Business Priority
    30    Figure 20: Productivity Improvements for Technology Initiatives
    33    Figure 21: Industry
    34    Figure 22: Job Title
    35    Figure 23: Company Size
    36    Figure 24: Company Revenue

About the Author

SAP's Bill McDermott On IT Priorities In a Tough Economy

Doug Henschen is executive editor of InformationWeek, where he covers the intersection of enterprise applications with information management, business intelligence, analytics and big data analysis. He previously served as editor in chief of Intelligent Enterprise and has covered IT and data-driven marketing for the last 14 years of his 29-year career in publishing.

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