(When) Will Digital Process Automation Vendors Get Their Mojo Back? - Analyst Brief
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Deep Analysis Analyst Brief (When) Will Digital Process Automation Vendors Get Their Mojo Back? By: Connie Moore The Essentials comprehensive offerings, doesn’t matter, but the process automation vendors need to get Digital process automation vendors have moving. Otherwise, hotter markets will soon crossed the sales and marketing chasm, going eclipse their software offerings and they will from niche software status to a mainstream be relegated to a lesser status, particularly as IT-approved offering that empowers both RPA and process mining vendors grab all the business processes and businesspeople. By available mindshare. dumping the Lean/Six Sigma/BPM lingo in 2015-2016 and going full bore into low-code What will it take for the process automation and robotic process automation (RPA) vendors to get their mojo back? Some partnerships, process automation vendors of the areas they must address – either have finally received the attention from IT through internal product development, deep that they needed for their market to grow. partnerships, and/or acquisitions – include: That acceptance, in turn, has opened the door AI/ML for specific process automation to significantly more business buyers and functions (many of them yet to be has finally “legitimized” the process discovered) automation market. Process mining for process insight and Unfortunately, many of the digital process continuous improvement that also taps into automation vendors have lost their mojo along AI/ML for making real-time improvements the way. Adjacent markets and process-related in complex, dynamic environments technologies are ripe and even compelling for the vendors to pursue, while machine learning New process modeling approaches that (ML) also beckons the R&D developers’ go well beyond BPMN – a notation standard attention. But still, the large majority of first developed in 2004 (!) – making it vendors remain stuck in an automation box. easier for businesspeople to envision and Whether they develop or acquire their way out create new processes and to align process of an automation-only mindset, and into more transformation with customer experience initiatives Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 1
RPA for task automation within process are all pursuing it from similar angles – transformation and automation which includes pushing deeper into supporting citizen developers in addition to Process-based packaged business providing tooling for business analysts and applications for functional and industry- application developers.2 specific processes Case management is mainstream. This list is not exhaustive; process automation While straight-through processing is vendors must pursue many other areas such still important for transaction-intensive as blockchain, process governance, workforce processes that have low or no human touch, intelligence, integrating customer journey case management is the widely accepted mapping with process mapping, automating approach for long-running, people- and more freestyle collaboration activities, and document-intensive processes. Many automating processes within digital business vendors are comfortably positioned in the networks that span multiple organizations and case management market and continue to business entities. innovate (e.g., Alfresco, Hyland, IBM, and OpenText) because they are strongly rooted What Happened in the document management and capture to the Vendors’ Innovation markets, which enjoy a natural marriage Momentum? with dynamic case management. Other process vendors fill the content technology Last year Deep Analysis conducted deep- gap by partnering with document dive research into the current state of the management providers and may even digital process automation market (2019) to support federated content architectures identify the five-year trends driving the market (e.g., Pegasystems). and products (2020-2025).1 The interviews and demos made it clear that the process automation vendors had lost their innovation Stuck in an Automation Box moorings. At that time, the vendors were winning the low-code process battle but losing Process the overall technology innovation war. Now, the Discovery RPA state of the 2020 market can be summed up as AI/ML follows: Blockchain Low-code is king. For the past 3-5 years, process automation vendors have been rightly preoccupied with providing more low-code process design Process Journey Mining and development functionality for Mapping developers, business analysts, and even businesspeople. Low-code is now where most vendors focus their R&D Work and marketing energy. However, it is Business Collaboration Applications Customer getting harder for vendors to differentiate experience themselves on low-code alone because they Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 2
Packaged business apps are tantalizing RPA was ascendant, most of the process but too hard, too scary, or both. A couple automation vendors missed their chance, of process automation vendors (Appian even though task automation is a crucial and OpenText) have made initial forays into part of process automation. One could even developing packaged business applications argue that task automation is subservient such as customer service and contract to more widely scoped process automation management; however, with the exception initiatives and the two technologies belong of Pegasystems, most process automation together. To make up for missing the RPA vendors have been reluctant or very slow market when it first emerged, virtually to move definitively in this direction. every process automation vendor has In the meantime, Pegasystems zeroed followed a well-trod path to partnerships in on customer service and customer with Automation Anywhere, Blue Prism, UI experience long ago and has been a richly Path, and other RPA companies. Some of featured CRM vendor for years. Conversely, these partnerships are barely more than Salesforce has expanded from CRM into co-marketing agreements, while others the digital process automation space, and involve deeper integration (e.g., IBM resells SAP has added process automation and Automation Anywhere).4 RPA throughout its portfolio of packaged AI/ML is tantalizing but the details are business apps. hard to figure out. When asked about “Workflow for all” is surfacing with a low- R&D plans for artificial intelligence and code focus and new technology building machine learning, most process automation blocks. A few vendors, such as Catalytic, vendors say it is too early to make a call Flowforma, and Nintex, started making a about where and how to apply them. They run at the general-purpose workflow market aren’t even sure how ready their customers with a full range of process automation are to implement AI/ML within processes, tools for businesspeople and those elusive where the data for machine learning will citizen developers. Catalytic has a deep war come from (e.g., process transaction logs, chest to become the next market maker. process mining, IoT, case data, etc.), and This “workflow for all” focus is unfolding where that data will be stored. Clearly, now despite the ever-present risk of being most vendors are working hard to figure it eclipsed by Microsoft, Amazon, or some out. The challenge is that different AI/ML other software mega-giant that supports a solutions apply to specific pockets within roll-your-own approach. 3 the process automation software, making a blanket strategy hard to develop, plus RPA partnerships are everywhere, but totally new data sets are often needed to high valuations hinder acquisitions. When support machine learning. Although it’s The challenge is that different AI/ML solutions apply to specific pockets within the process automation software, making a blanket strategy hard to develop, plus totally new data sets are often needed to support machine learning. Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 3
true that envisioning how to apply AI/ML to email and may later ingest the results, to process automation is hard work, the but what happens within those emails, vendors can’t shy away from embracing discussions, and document exchanges it now.5 is usually outside the purview of the automated process. But now, if nothing Operational excellence and customer else, the Covid-19 pandemic has shown experience (CX) initiatives are miles apart. how frequently important decisions are Today, an inexcusable and yawning gulf made by remote workers and teams using separates business process transformation a hodgepodge of tools. This crucially projects from CX transformation projects. important work could be – but hasn’t been Although these efforts are actually two – brought into the process automation sides of the same coin and should be fold, with AI/ML driving the collaborative treated as such, business process and CX processes. At the same time, collaboration professionals rarely talk to one another, vendors are aggressively adding their own have been trained in different disciplines, AI/ML capabilities to bring structure to use different tools for transformation, and these ad hoc scenarios. report into different parts of the C-suite. Much of this is historical: business process initiatives have been heavily tilted toward operational excellence in the back office A Handful of Vendors Are and championed by the COO and CIO, while Pursuing New Innovations CX is nascent in comparison and usually While most of the digital process automation championed by the chief customer officer, vendors are stuck in an automation-only chief digital officer, CXOs (i.e., functional mentality, a few are envisioning a new future heads), chief revenue officer, and/or the for their evolving software products (see CMO. As a result, process automation Figure 1). Part of the problem is that the word products offer very little thought- “automation” has created a mindset that is leadership in integrating with customer too limiting and constraining for the digital journey mapping and transforming digital process automation market. To set the stage touchpoints.6 for innovation, the vendors must get back Supporting collaboration is an to thinking seriously about what it takes to afterthought. Historically, digital process successfully support business transformation, automation has focused on the highly end-to-end business processes, outside-in structured processes that move data, thinking, customer journeys, and – dare information, work activities, and decision- we say it? – continuous improvement. making through a department or across The future for digital process automation is the organization. But a lot of work gets an intelligent business automation platform done informally – in email, conference calls, that encompasses process mining, digital web conferencing, and collaboration tools process automation, and RPA, leverages AI/ML – and this work largely goes unaddressed throughout, and provides intelligent, predictive, within the automated process. It’s true that process-enabled business applications.7 The workflow often hands activities or tasks vendors need to get moving again. Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 4
Figure 1 Intelligent business automation platform encompasses many technologies CONTEXTUAL PROFILE Biometrics Personalization PROCESS ENGAGEMENT APPLICATIONS Chatbots CRM WFO/contact center WFO Social Customer service Mobile apps Digital supply chain Omnichannel ERP Virtual/augmented reality DATA SOURCE(S) Vertical apps IoT/drone integration Data models Etc. Data lakes Predictive analytics CRM Emerging Tools ERP MDM INTELLIGENT COGNITIVE CDP CONTENT SERVICES AUTOMATION Machine learning Intelligent capture Deep learning Content management Biometrics Sentiment analysis Natural language processing PROCESS Information governance Natural language generation AUTOMATION Predictive content Ephemeral content Process governance Process models/journey maps Low-code design & management Workflow Straight-through processing Business rules RPA Innovators forge different Timeline.8 Others rely on partnerships, such as and often parallel paths Alfresco’s relationship with Amazon, or K2’s and Nintex’s relationships with Microsoft.9 The For enterprise buyers, the first thing to smaller vendors that can’t make acquisitions understand about digital process automation but have big visions are partnering to round vendors is that a handful of innovators are out their offerings – but buyers should use pursuing many different paths, often at the caution because not all these partnerships same time. For example, companies such as are very deep. An example of a smaller Appian, Kofax, Nintex, and Pega have moved vendor differentiating itself through strategic their competitive goalposts by acquiring partnerships is FireStart, an Austria-based RPA vendors (among other ways), while company that partners with process mining others have developed something entirely vendor Celonis, as well as with RPA vendors, to new and different, such as ABBYY’s Process cover the full spectrum of automation. While IQ and Content IQ, and BP Logix’s Process other vendors may have similar partnerships, Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 5
FireStart intentionally goes to market with Figure 2 an integrated approach that spans process Digital Process Automation Innovators: mining, digital process management, and RPA. Three Dimensions The end result is what matters. Ask these kinds of questions: are our vendors’ products highly Strategic Innovation Pega leads the pack, followed by differentiated? Has market and technology Appian, Kofax, and Nintex convergence through acquisitions moved some of our vendors more quickly toward the intelligent business automation platform? And finally, do their innovations allow us to Product Innovation Pega, Nintex, BPLogix, ABBYY, better transform the business by focusing on and IBM show leadership operational excellence, customer experience, and/or end-to-end, outside-in processes?10 Business Apps Innovation Pega, Salesforce, and SAP lead Overall innovation in the digital process the pack, followed by Appian, Hyland, OpenText, and Ultimus automation market is being driven by a handful of vendors, most notably Pegasystems and to a lesser extent Appian. Other standout vendors include ABBYY, BPLogix, Hyland, IBM, Kofax, Nintex, and OpenText, although these The innovation path ahead vendors are innovative for different reasons includes at least eight directions (and none of them should rest on their laurels). The vendors can be clustered on these three A deeper dive into the many dimensions of dimensions (see Figure 2): innovation shows that the most innovative vendors pursue more than one approach, Strategic innovation: Pega leads the pack, often in parallel (see Figure 3). Many more followed by Appian, Kofax, and Nintex approaches will surface as the market Product innovation: Pega, Nintex, BPLogix, transitions to an intelligent business ABBYY, and IBM show leadership (although automation platform over the next 3-5 years. they innovate their products in different Process mining is crucial for business and areas and in varying ways) process insight Business apps innovation: Pega, The process mining market – which has taken Salesforce, and SAP clearly lead the pack up the mantle of continuous improvement for process-enabled business applications, and operational excellence in a way that the followed by Appian and OpenText; Hyland digital process automation vendors have more and Ultimus provide many mature recently ignored – is on the cusp of becoming a applications as part of their baseline significant force, particularly in manufacturing, products11 pharma, oil & gas, and other regulated industries. Business acceptance is still slow (Celonis leads the market, along with Kofax, Minit, QPR, Signavio, Software AG, UiPath, and 25+ other pure-play vendors) but enterprises are increasingly interested in Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 6
Figure 3 Digital Process Automation Innovators: By Approach Process Insight AI/ML (process mining) ABBYY Celonis Appian Kofax IBM QPR Appian Nintex Signavio Hyland Pega 25+ others Process Business Design Apps OpenText BP Logix (modeling) Pega IBM Salesforce Nintex SAP Ultimus Appian Catalytic Kofax Flowforma Nintex Nintex Pega Task Workflow for Automation Alfresco IBM SAP Everyone Hyland Pega (RPA) IBM Progress OpenText Pega Content in Action (case, Digital blockchain & Decisioning governance) gleaning insights from their business processes loop is getting much harder for digital process and then improving the automation. Riding automation vendors, given the widespread on the coattails of big data, process mining use of microservices, serverless systems, software uses transaction logs from enterprise cloud computing, dynamic case management, apps, legacy apps, digital process automation and more complex business processes. As a systems, RPA software, and other systems to result, vendors are largely ignoring the need identify and correct root causes for process for a continuous feedback loop. This myopic inefficiencies and bottlenecks. Originally, thinking needs to stop. The vendors must process mining applied to historical data, but instead envision how process mining, AI/ now it can consume execution data that is ML, and automation can be combined in new refreshed every hour. and different ways for supporting process improvement and business transformation. For Historically, continuous improvement was example, machine learning could be trained to an important aspect of business process identify and correct bottlenecks and deviations management. But automating the improvement within executing processes. Unlike with RPA, Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 7
which eluded the process automation vendors Figure 4 until it was too late, these companies need to The Deming Continuous Improvement Cycle invest in process mining before the market explodes. They also need to target process mining at customer-facing processes, tracking metrics such as net promoter scores and other customer experience data. Process mining PLAN The digital Process mining process is core to transformation and operational software automation tackles three ACT DO excellence, making it imperative for process vendors have parts of the concentrated on automation vendors to pursue (see Figure 4). Deming process one aspect of improvement Process design (or modeling) needs CHECK the continuous cycle. improvement rethinking and updating cycle. Although flowcharting is the default for depicting and designing business processes, companies automating end-to-end processes or highly dynamic case management solutions often hit the wall at some point. And it’s identify what each task and activity needs no surprise. The world is moving beyond before completing, and the timeline flowcharting with BPMN as processes become software determines which tasks and increasingly more complex.12 Taking this into activities execute, and in what order, while account, some process automation vendors the process runs.13 have developed innovative design approaches Nintex allows its process mapping, such as timeline-based process design or modeling, and workflow users to describe natural language processing for capturing processes in plain English, then uses natural business activities. Others are contemplating language processing (a type of AI/ML) to ways (but moving too slowly, in our opinion) match the text to standard workflow actions to integrate process models with customer and automatically generate the skeleton journey mapping and touchpoints. of a workflow process. These descriptions For example: are stored as parent/child process snippets that can be reused in multiple processes.14 BP Logix’s Process Timeline, which is a time-based modeling and execution IBM Blueworks Live provides a SaaS- approach, offers the richness of BPMN based collaboration environment for flowcharts without the complex depiction business subject-matter experts to capture of dependencies, parallel processing, and their process knowledge prior to process arrows pointing in all directions. When modeling. Hundreds or even thousands of designing processes, businesspeople business teams commonly use Blueworks Historically, continuous improvement was an important aspect of business process management. But automating the improvement loop is getting much harder for digital process automation vendors ... Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 8
Live to crowdsource innovation and customer micro-journeys usually involve solicit process improvement ideas from multiple channels. colleagues, document their process insights, and then pass this information Task automation belongs to process design business analysts and with process automation developers. Blueworks Live precedes the process design and modeling stage, and As a growing number of RPA customers not all ideas captured by businesspeople are learning, automating just the manual, are incorporated into the process design. laborious parts of a process without thinking However, once the effort moves to process about transforming and automating the design, modeling, and automation, overall business process results in a myopic, the platform provides low-code forms, band-aid approach to operational excellence documentation, prompts, checklists, etc. for and business transformation. Think about business analysts and developers to design it – task automation is a fairly granular the process.15 activity, with tasks belonging to activities within one or more larger processes. Signavio is focused on integrating This is one reason why so many process customer journey mapping for digital automation vendors have partnered transformation projects and process with RPA vendors. Ideally, the process modeling for operational excellence automation vendors should have developed projects. These two worlds have or acquired RPA products long ago and traditionally operated independently folded them into their platforms, as Kofax of each other, although they are highly did with Kapow, and as Pega did with intertwined and should be brought together. OpenSpan. Now that RPA valuations are so Specifically, customer journey mapping high, it’s much more difficult for vendors to depicts how the company’s customers make acquisitions. But as Appian has shown engage with the organization throughout with its recent acquisition of Jidoka, there the customer journey (the end-to-end are still many small RPA companies that process) and the business process model would be smart investments – allowing the represents what the organization does combined functionality of RPA and process internally to support the customer. Bringing automation to execute work without band- these two worlds together is an important aids for achieving operational excellence, breakthrough. customer-facing processes, and end-to-end Pega uses stage-based case modeling to business transformation.16 design microjourneys and visualize the customer journey. Pega's approach is Digital decisioning could be a new point pragmatic: rather than tackle the entire of differentiation customer journey, Pega recommends automating micro-customer journeys The digital process automation firms know and then integrating them into the overall business rules technology very well, having customer journey to support the used rules for many years to automate end-to-end customer experience. Pega business and process logic. However, a cautions against automating customer handful of vendors – namely Pega, Progress journeys by channel because even Corticon, IBM, and Salesforce – have gone Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 9
beyond the more typical embedded business process automation companies are now rules by offering a full complement of digital including intelligent capture and sentiment decisioning that combines business rules, analysis as part of their process automation predictive analytics, AI/ML, and business offerings, and, for example, Appian has process automation software for intelligent implemented an innovative solution using decisioning. As organizational leaders move 17 natural language generation. The biggest trend more into algorithm-driven business decision- the vendors should move on is blockchain, making, process automation vendors have an which provides a secure way to move opportunity to differentiate their products by information between business entities and supporting real-time, predictive decisioning at across the information supply chain.19 every customer touchpoint and by using digital decisioning for next-best-action and fraud “Workflow for everyone” is risky business but detection. an area of innovation Content in action requires case management The low-code era for workflow ushered in a and blockchain new breed of vendors willing to pursue selling workflow as a general-purpose business The digital process automation vendors have tool for everyone in the organization. Just always been bifurcated along the lines of how as ordinary businesspeople routinely use they support document management and fairly complicated software such as Excel content services. Several vendors with deep and PowerPoint and think nothing of it, heritages in document management – these vendors believe the time has come for namely Alfresco, Hyland, IBM, and OpenText – workflow automation. There’s little argument, are also significant players in dynamic case and vendors such as Catalytic, Flowforma, management and other types of process Nintex, and Ultimus are making inroads, but automation. Also, many other vendors have many market watchers think they are putting forged deep partnerships using Microsoft themselves at risk of competing against SharePoint, such as K2, OpenText, and Nintex.18 Microsoft, Google, Amazon, or some other For many years, content management was mega-vendor. Differentiation can be had in this considered a mature market, but AI/ML has market segment, but for many other process made deep inroads into case management automation vendors, pursuing this target is too through intelligent content, intelligent much of a David and Goliath scenario for their capture, sentiment analysis, and many other comfort zone. In the meantime, Nintex stands content-centric features. This gives the digital out with the breadth of its product line (process process automation vendors that stayed out modeling, automation, and RPA) and use of of the content market another opportunity AI/ML. Companies like Nintex and Ultimus are to differentiate themselves by managing also hedging their bets by pushing hard into unstructured information. As a result, some departmental implementations for strategic business processes. The digital process automation vendors have always been bifurcated along the lines of how they support document management and content services. Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 10
Business applications are ever so to move back and forth seamlessly between slowly emerging highly structured work and unpredictable, ad hoc, and often messy work. But now, It’s been over seven years since Forrester with more companies depending almost Research first coined the term “smart process exclusively on remote workers in virtual teams, applications” to describe functional and they find very few tools at their disposal that industry-specific business applications built on support remote work. In the new “normal,” a platform including digital process automation, organizations require a more structured way document management, collaboration, and to capture collaborative decisions instead of analytics. That view of the future has been relying on creaky email and document-sharing extremely slow to materialize, with the notable tools coupled with web conferencing and exception of Pega, which had always focused on collaboration software. And they need those the CRM market and further sealed the deal in decisions and collaboration artifacts to be 2010 by acquiring Chordiant. Some vendors are integrated into the automated process. now making a serious – although constrained – run at the business applications market for One workflow automation vendor, Zapier, has digital process automation platforms, including created such an in-house tool to help manage Appian and OpenText. Others, such as Hyland its virtual workforce. This so-named “decision and Ultimus, use a full complement of process- log” software, called Async, substitutes for based business applications to capture new the firm’s email system by providing a place customer wins and to deepen their footprints to find important discussions and track within existing customers without charging for important information and documents.20 the applications. The opportunity for innovating One could imagine such a tool, powered by through business applications based on a AI/ML, being integrated with digital process process platform is a no-brainer. Maybe one automation software to provide more structure, day the rest of the vendors will wake up to this governance, and knowledge management opportunity for differentiation. (that really works this time around) for virtual workers. An untapped opportunity exists to marry collaboration with structured business AI/ML has a major role and vendors need to processes figure it out For decades, process automation tools have When we recently asked vendors about their lacked true collaboration while, at the same plans for AI/ML, many of them responded that time, the collaboration tools have needed less they think it is important but 1) don’t know “mess” or “chaos” and more structure. Over the where to apply it within process automation, years, knowledge workers have been expected and 2) don’t know if customers are ready yet. In the new “normal,” organizations require a more structured way to capture collaborative decisions instead of relying on creaky email and document-sharing tools coupled with web conferencing and collaboration software. Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 11
Still, some of the innovators have concrete Recommend design options in modeling plans for moving into AI/ML, even if they aren’t and RPA scripting ready to reveal their R&D roadmaps. Here’s a Eliminate duplicated/conflicting processes refresher on the AI/ML holy grail for process that may be creating regulatory/compliance automation: issues An event from a dynamic case management Improve process models based on process system automatically triggers human mining outputs actions and automated systems based on machine advice and creates new processes Identify duplicated global processes on the fly; for example, when a system and recommend the best version to detects an intruder and dispatches a guard operationalize to look at the situation while at the same Analyze process performance data to time updating other people, systems, and correct inefficiencies (e.g., customer even IoT devices. shipments, billing, payments) There’s a good reason why the vendors are so Use process mining for predictions based unsure. For AI/ML to work in applications, the on process models tools must be applied in very specific, targeted ways. The AI/ML platforms – IBM Watson, Use AI/ML for intelligent capture (e.g., to Salesforce Einstein, Google TensorFlow, completely streamline the input process, Microsoft Azure AI, and Amazon AWS Machine capture relevant data automatically, apply Learning – are just that . . . platforms. They are processing rules, and capture sentiment pre-trained for generic purposes, but software analysis to identify hot-button issues) vendors looking to use them must build their In the meantime, innovators like IBM and own applications to meet their own needs. Nintex are integrating with data lakes Some of the areas that process automation to store large amounts of process and business vendors are considering include: data needed for AI/ML and are targeting Analyze workstreams to determine the specific areas to focus on. Already, several business value of different workflows and vendors have trained their eyes on using select the highest performance workstream AI/ML within process automation, including IBM, Kofax, and Pegasystems, followed by Combine case data and business data ABBYY, Alfresco, Appian, Bizagi, K2, Nintex, to improve decision-making and make OpenText, and Ultimus. In particular, ABBYY predictions (e.g., automatic escalations, is taking a highly innovative approach by preventing actions that would negatively developing a neural network for analyzing impact high-value customers, and dynamic case management instances, identifying the potential for missed including forecasting process outcomes and deadlines before they occur) event timing. For example, in a healthcare Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 12
process, ABBYY’s system will predict whether Process-based business applications the patient will be sent home, sent to the Process mining hospital emergency room, or sent to the operating room, and make recommendations RPA for prepping the healthcare providers and Many other technologies on the horizon administrative staff based on those predictions. that will impact the speed and direction After defining the deadlines for a process of product development for the intelligent instance, the software can also predict the business automation platform probability of missing a deadline, and the financial impact. Following this analysis, the The main question isn’t whether these software can then advise the businessperson of technologies provide an opportunity for the next best event for processing the case and vendors to differentiate; it is whether the future engaging with the patient. solutions will be best of breed or an integrated platform. Well-formed arguments can be made for either approach. The most likely answer will be that vendors will use both approaches. The Call to Action vendors that like to offer everything in their own Sometimes things just belong together, and platform (e.g., Pega and Appian) and partner this is one of those times. In fact, this research out of necessity will be those leading the charge – while directed at enterprise buyers – is a toward an integrated platform – through cri de coeur for digital process automation in-house development or through acquisitions. vendors to wake up and 1) move beyond their Smaller vendors are more likely to partner their automation comfort zone into other aspects way to innovation and the intelligent business of business process transformation, and automation platform. 2) rethink how they’ve done automation in the past. Process automation vendors must expand their horizons, whether their approach is a best-of-breed strategy that involves partnerships or a single integrated platform. The digital process automation vendors may have successfully crossed the sales-marketing chasm, but they need to wake up to the many opportunities that involve combining other technologies with process automation, including: AI/ML Blockchain Customer journey mapping Intelligent content Predictive analytics Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 13
Enterprise Buyer 3. Look at the different approaches for Recommended Actions automating the enterprise’s roadmap. Is best of breed most attractive (e.g., faster to 1. Create a 3-5 year strategic roadmap implement, more selection, etc.) or does the for achieving your business technology enterprise prefer integrated platforms from goals. These could be continuous process single vendors. Or might it involve a combined improvement, operational excellence, customer approach? experience, or business transformation through end-to-end processes, to name a few. 4. Review the product and strategic roadmaps of your organization’s technology partners. 2. Identify the most critical software See what innovations are on the horizon and components of an intelligent business whether the timeline is sufficient. automation platform for achieving your strategic roadmap. For example: 5. Review best-of-breed products that fit into an -- Does the roadmap require process-based expanded view of digital process automation. business applications? This could include process mining, digital -- Should RPA and process automation be decisioning, new types of process modeling, implemented together (to support processes, RPA, and many other product categories on the activities, and tasks) or separately? horizon that are AI/ML focused. -- Do you have customer-centric processes, 6. Circle back to the 3-5 year strategic roadmap meaning you need vendors with a customer (in Step 1). Determine the best approach for touchpoint and journey mapping mindset that successfully implementing that vision. (If for aligns with your organization’s vision? any reason you don’t have that roadmap – e.g., mergers and acquisitions – it’s time to develop a new one.) Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 14
Endnotes 1 See State of the Digital Process Automation Market – Current 10 See Innovation—A Call to Action! Assessment 2019 and State of the Digital Process Automation https://www.deep-analysis.net/2020/02/innovation-a-call-to- Market Trends 2020-2025 action/ https://www.deep-analysis.net/report/state-of-the-digital-process- 11 See Hyland (Digital Process Automation) Vendor Vignette automation-market-current-assesment-2019/ https://www.deep-analysis.net/vendor-vignette/hyland-digital- process-automation/ https://www.deep-analysis.net/report/state-of-the-digital-process- automation-market-trends-2020-202/ 12 Business process model and notation (BPMN) is a standardized notation tool first developed in 2004 and released by the Object 2 Citizen developers are businesspeople who work in various Management Group in 2006. BPMN version 2.0 was released in departments and lack formal training in technology or application 2013. development. A citizen developer could be a person in accounting, HR, or customer support. One trend in digital process automation is 13 See BP Logix Vendor Vignette to give businesspeople all the tools to develop their own processes https://www.deep-analysis.net/vendor-vignette/bp-logix/ without assistance from IT. These individuals are elusive, however, 14 See Nintex Vendor Vignette because most organizations do not have the resources (i.e., https://www.deep-analysis.net/vendor-vignette/nintex/ individuals working in their day jobs) or experience to build mission- critical processes by themselves. Instead, these businesspeople 15 See IBM Vendor Vignette usually work side-by-side with business analysts to design and https://www.deep-analysis.net/vendor-vignette/ibm/ create processes. However, citizen developers are available for “workflow for all” tools because these software products are 16 See Appian Buys Jidoka—Let the Acquisitions Begin!, RPA and positioning process automation as true end-user computing tools Process Automation—It’s An Upside Down World and SAP’s Take on (similar to how businesspeople use PowerPoint and Excel). the RPA Market https://www.deep-analysis.net/2020/02/appian-buys-jidoka-let- 3 See Catalytic, Flowforma, and Nintex Vendor Vignettes the-consolidation-begin/ https://www.deep-analysis.net/vendor-vignette/catalytic/ https://www.deep-analysis.net/2019/10/rpa-and-process- https://www.deep-analysis.net/vendor-vignette/flowforma/ automation-its-an-upside-down-world/ https://www.deep-analysis.net/vendor-vignette/nintex/ https://www.deep-analysis.net/2020/03/saps-take-on-the-rpa- market/ 4 See RPA and Process Automation—It’s An Upside Down World https://www.deep-analysis.net/2019/10/rpa-and-process- 17 See Progress Corticon Vendor Vignette automation-its-an-upside-down-world/ https://www.deep-analysis.net/vendor-vignette/progress-software- corticon/ 5 See AI in Digital Process Automation: It’s Complicated https://www.deep-analysis.net/2020/05/ai-in-digital-process- 18 See K2 and OpenText Vendor Vignettes automation-its-complicated/ https://www.deep-analysis.net/vendor-vignette/k2/ https://www.deep-analysis.net/vendor-vignette/opentext/ 6 See Digital Transformation – Bridge The Skills Abyss https://www.deep-analysis.net/report/digital-transformation- 19 See Three Recent Acquisitions – Hyland, OpenText & Alfresco, bridge-the-skills-abyss/ and Enterprise Blockchain Market Forecast https://www.deep-analysis.net/2020/03/three-recent- 7 See Intelligent Business Automation: The Nexus for Process, acquisitions-hyland-opentext-alfresco/ Content, Data, AI/ML, and More https://www.deep-analysis.net/2019/08/enterprise-blockchain- https://www.deep-analysis.net/2020/04/intelligent-business- market-forecast/ automation-the-nexus-for-process-content-data-ai-ml-and-more/ 20 See The Key to Building a Successful Remote Organization? 8 See ABBYY Timeline and BP Logix Vendor Vignettes Data. Harvard Business Review, May 18, 2020 https://www.deep-analysis.net/vendor-vignette/abbyy-timeline/ https://hbr.org/2020/05/the-key-to-building-a-successful-remote- https://www.deep-analysis.net/vendor-vignette/bp-logix/ organization-data 9 See Alfresco Software (Digital Process Automation) and Nintex Vendor Vignettes, and Alfresco Software: Flying High in the Back Office https://www.deep-analysis.net/vendor-vignette/alfresco-software- digital-process-automation/ https://www.deep-analysis.net/vendor-vignette/nintex/ https://www.deep-analysis.net/2019/04/alfresco-software-flying- high-in-the-back-office/ Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 15
Deep Analysis About Deep Analysis Deep Analysis is an advisory firm that helps organizations understand and address the challenges of innovative and disruptive technologies in the enterprise software marketplace. Its work is built on decades of experience in advising and consulting to global technology firms large and small, from IBM, Oracle, and HP to countless start-ups. About the Author Connie Moore is Vice President and Led by Alan Pelz-Sharpe, the firm focuses on Information Principal Analyst at Deep Analysis. Management and the business application of Cloud, Artificial She joined the firm after four years Intelligence, and Blockchain. Deep Analysis recently published as Senior Vice President, Research, at the book "Practical Artificial Intelligence: An Enterprise Digital Clarity Group, and more than twenty years as Research Director and Playbook," co-authored by Alan and Kashyap Kompella, Vice President at Forrester Research. outlining strategies for organizations to avoid pitfalls and Connie is a widely acclaimed speaker, successfully deploy AI. advisor, consultant, and expert in digital process automation, customer Deep Analysis works with technology vendors to improve their experience management, digital understanding and provide actionable guidance on current and experience platforms, and content future market opportunities. services. In 2014 Connie received the Workflow Management Coalition's Yet, unlike traditional analyst firms, Deep Analysis takes a buyer- globally recognized Marvin Manheim Award for influence, contribution, centric approach to its research and understands real-world and distinction based on standout buyer and market needs versus the “echo chamber” of the contributions to the field of workflow technology industry. and business process management. Contact us: info@deep-analysis.net +1 978 877 7915 Deep Analysis © 2020 | info@deep-analysis.net (When) Will Digital Process Automation Vendors Get Their Mojo Back? 16
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