1. US offices: 31001 Palomares Rd., Castro Valley, CA 94552. www.strategy-partners.comwww.strategy-partners.com US phone 510 538 3032; UK phone +44 1753 592787. Email: advice@strategy-partners.com Content Management in Transition: Report of an Industry Investigation Jim Bair, Rory Staunton, Jean-Francois Tougard

2. Copyright 2001 Strategy Partners International, Ltd.2 Agenda Definition Market past and direction Value proposition Whos who among suppliers Strategy

3. Copyright 2001 Strategy Partners International, Ltd.3 CM and KM Content Management: –The end-to-end process of creating, managing and delivering content to Web sites –Immediate, personalized content delivery to targeted Web users based on a predetermined process –Production, efficiency improvement to support necessary cost of business Knowledge Management: –A discipline that results in the capture, management, sharing and reuse of knowledge, usually beginning with the intellectual assets contained in the minds of knowledge workers –A well understood, ill-defined application of advanced technology –Discretionary, difficult to pre-justify Average number of pages on a Web site will grow to 100,000 in 2001, from 100 in 1998 Definition

4. Copyright 2001 Strategy Partners International, Ltd.4 Content Management Overview CreateManageDeliver Automated processes Enterprise infrastructure Knowledgeworkers Data & Document Repositories Authoring & Layout tools LOB/ERP Web apps Authors Designers Definition Properties Meta data Federated repository File system Personalized content B to C B to B G to C

5. Copyright 2001 Strategy Partners International, Ltd.5 CM Process: Looks Good on Paper Vendor A Vendor B Vendor C? XML DefinitionPersonalize Transact

6. Copyright 2001 Strategy Partners International, Ltd.6 Ericsson Corporate Information Centre Web (inter- and intranet) WAP / SMS publications Internet Intranet Extranet Definition Reusability: media and markets

7. Copyright 2001 Strategy Partners International, Ltd.7 CM Market Future: Waves of Popularity EDM Groupware KM CM Mind Share Time Commodity ocean Portals IR eCommerce Collaborative Commerce Content Commerce IntelligentContent Intellectual Capital Management Management Search resurgence Past & Direction

8. Copyright 2001 Strategy Partners International, Ltd.8 Vendors in Search of a Market? Everything is e-business -- is it the end of differentiation? It is e-business really, but all Ive got is: –EDM, workflow, CRM, personalization, publishing, authoring, media... –Could be worse: collaboration (x-groupware) –Not-a-portal Therefore, its Content Management Past & Direction

9. Copyright 2001 Strategy Partners International, Ltd.9 Market Found: Content Management The Good News: + Content management adds layers of functionality to enterprise IT + Automation is a powerful value proposition + Enables e-business + Early market + Enables brick and mortar business Bad news: CM requires more functionality Past & Direction

10. Copyright 2001 Strategy Partners International, Ltd.10 Value Propositions 1 All companies have customer facing information with enormous production/ publication costs (people and paper) –Avoids paper production No manufacturing, shipping, inventory costs Savings for users physical files Web presence = must have –24X7 availability –Media rich –…Managing attention Value 1 IT Director list 1

11. Copyright 2001 Strategy Partners International, Ltd.11 Value Propositions CM automates the production, delivery and maintenance of Web site information –Greatly reduces cost –Currency is as good as creation: production delay is removed –Production cycle reduced to near zero Always up to date Reusable style –Justifies greater investment in user experience Value 1 IT Director list 2

12. Copyright 2001 Strategy Partners International, Ltd.12 Year 2000 Worldwide Market Share Content Management Vendors Vignette 8.9% Interwoven 8.5% Oracle 6.4% Documentum 6.3% BroadVision 5.9% Next 5 20.6% Others 43.4% Whos Who

13. Copyright 2001 Strategy Partners International, Ltd.13 CM Functions and Vendors Content Document Mgt. Publication Application E-commerce Creation Authoring Library Staging/Config Server (personalization) Process Services Process Page Assembly Web Site See CM report for details. Create Manage Deliver BroadvisionDocumentum Whos Who FileNETIBM InterwovenMSFTOracleVignette

14. Copyright 2001 Strategy Partners International, Ltd.14 Overview CM Magic Sextant Could-bes Wanna-bes Leaders Business Performance in CM Technical PowerfulNascent Inventors Whos Who * October 2001 Autonomy Smartlogik PurpleYogi Netperceptions LexiQuest Microsoft Stellent* CA BroadVision Documentum Filenet IBM Oracle Vignette Interwoven Factiva Cimage Easy Obtree Day NorthernLight Open Market Tridion iManage 80-20 iXOS Ever SAP MediaSurface Starbase Presence Online EBT Gauss Qumas Open Text Hummingbird ATG SER Rational Key: red= top tier, orange = second tier, blue = third tier, green = technology providers, gray = not covered yet

15. Copyright 2001 Strategy Partners International, Ltd.15 Quarterly Revenue of Bell Weathers 0 20000 40000 60000 80000 100000 120000 140000 160000 Q1 98Q2 98Q3 98Q4 98Q1 99Q2 99Q3 99Q4 99Q1 00 Q2 00 Q3 00Q4 00Q1 01Q2 01Q3 01 Broadvision Documentum Filenet Hummingbird Interwoven Open Text Vignette Stellent Strategy

16. Copyright 2001 Strategy Partners International, Ltd.16 Year 2000: Content Management Worldwide Market - $ 1.174 Billion Europe 26.4% USA 61.1% RoW 12.5% Strategy

17. Copyright 2001 Strategy Partners International, Ltd.17 - 500 1,000 1,500 2,000 2,500 199920002001200220032004 $m CM Software Products Consulting & services System Integration Strategy Worldwide CM Revenue Trends by Type

18. Copyright 2001 Strategy Partners International, Ltd.18 CM Market by Vertical Sector, USA Banking & Finance 16% Insurance & Pensions 10% Manufacturing 14% Pharmaceuticals 7% Government 8% Healthcare 4% Utilities 4% Telecoms 13% Retail & Logistics 6% Legal market 2% Others 16% Strategy

19. Copyright 2001 Strategy Partners International, Ltd.19 What Should You Do? Wait? –Continued cost of Web sites –The competition doesnt wait… You cannot wait Understand what is safe to buy and act now. Do you have the patience to wait till your mud settles and the water is clear? Can you remain unmoving til the right action arises by itself? -- Tao Te Ching Strategy