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Software's Sublimation by Alex Goldman (bio)

Data's diffusion throughout business and into the cloud



BPM software shines in the recession

appian_logo.gifUPDATED: The recession has forced software vendors to focus on one metric, return on investment (ROI), Matthew Calkins, CEO of Appian, told InternetNews.com. He added that business process management (BPM) (define) is designed to deliver on that metric.

BPM software is designed to give employees access to data in order to help them make decisions, Calkins said. "Optimally, BPM is informed action. It is coupled with data and the comprehension of data. It is coordinated and inclusive. It is not just open to a few wonks."

Businesses already coordinate processes through e-mail. "I like to say that e-mail is the most successful BPM product on earth because that's how people actually handle business processes," Calkins said.

E-mail has many flaws. "You don't know who failed to take the handoff in an exchange. It's hard to close systems."

E-mail also has strengths. "Everyone's on e-mail and you can always include somebody new. BPM has every other advantage."

Getting people involved in the BPM network effect

"BPM is not simple enough," Calkins said. "SUN used to say that the network is the computer. They meant that the value of their technology is equal to the number of people that use it. You can increase the value of the network by getting more people involved."

"BPM should be an industry staple, and I expect to see it become one," he said. "I think this year is the most important year in our industry. It will separate the winners and losers. BPM will step up and prove its value. Recessions force organizations to prove efficiencies and many have found it in BPM."

It's not easy to sell software in a recession. "People's time horizons have collapsed in the recession," he said. "Corporations want to show that their corporation will not be the next thrown off the boat. Also, employees don't know if they will be the next to lose their job or if their unit will be sold off."

"I have not seen as much emphasis on this Window as in 2009. Deals have disappeared," he said.

"We are generally a fresh investment and we need to show ROI in 12 months or less," he said. "The clock is ticking every time you're on a project."

One case where Appian delivered a real and rapid ROI, Calkins said, is Starbucks. "They use our SaaS or hosted version," he said.

He explained that Starbucks has been growing rapidly for years and needed to keep bringing people online, but the IT team wasn't finding this easy to do. "They were taking too much time and were alienating people on other jobs. We streamlined processes, keeping out people who didn't have to be involved and keeping in people who did have to be involved. Now people don't have to sit in on long spreadsheet reviews."

Made possible by hot technologies

Calkins said that new technologies are one reason why this is the year for BPM. "The technology is getting more favorable," he said.

He added that Appian uses Web services, Ajax, and other Web 2.0 technologies to deliver a truly browser-based product.

"We built the entire interface in a Web-portable fashion. There's no install and no download. Our competitors did not have the luxury of choosing that," he said.

Appian is not the only company to see the potential of these technologies. The largest are offering a complete suite and Calkins said that he coined the term "BPMS" for BPM suite, a term now used by analysts at Forrester Research and in the industry.

"I'm not claiming we have the breadth of an IBM," he said. "But we do deliver better integration."

Everything uses the same code, even the SaaS product. "Our hosted solution is identical to our non-hosted solution," said Calkins. "That's part of the advantage of being the last and least-funded entrant to the market."

Appian was founded in 1999 and received $10 million in funding from Novak Biddle in 2008. It has otherwise been self-funded.

Update corrects data concerning VC funding.

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1 Comments

David King said:

Historical data on BPM market-size and analyst reports demonstrate that BPM has become popular during the economic slow-downs during the dot-com fallout as well.

People come flooding to BPM to survive during times of incredible duress, but if the ROI is so good, why don't people have the same focus during times of plenty?

Companies should always be focused on improving their performance in everything they do, not just during a recession.

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