Thursday, June 16, 2005

 

Baseline article - content management vendor comparison (EMC, Interwoven, Stellent, OpenText), and what kind of clients they have

One File Cabinet to Rule Them All

Four years ago BioMérieux, a French manufacturer of medical diagnostic products, had millions of documents, in both paper and digital form, scattered across offices in 130 countries. And almost none of it was easy to access.

For example, R&D documentation was stored in three "huge file rooms, and it was all on paper," says Ted Walsh, an information-technology project manager at the BioMérieux North American division in Durham, N.C. "People couldn't get to the information quickly enough."

Even information in digital form was hard to access: Documents were in any of a dozen different places, including Lotus Notes databases, Windows file servers or on someone's desktop computer hard drive. "The business ran a whole lot slower," Walsh says.

In 2002, Walsh led a team that implemented a document management system from Open Text that now holds 200,000 documents in North America and 300,000 in Europe. The electronic documents filed in the system range from technical product specifications to packaging labels.

Now the company is phasing out its gargantuan file rooms. And, Walsh says, BioMérieux runs more quickly. For example, before the Open Text system went live, the company received, on paper, monthly results from a major clinical trial involving several hundred patients at three hospitals; teams of clerks then keyed the information into databases twice (to ensure accuracy). The process took 45 minutes per patient. By reading and storing the data from the paper documents in the Open Text system, BioMérieux cut that to 5 minutes. "We can get products out the door faster now," Walsh says.

Enterprise content management systems promise to provide a single repository to handle every type of "unstructured data"—information not organized in a dedicated database—that a company wants to throw at it. The point? Rather than maintain separate, disconnected systems for records, documents, images, Web pages or archived e-mail messages, companies can use an enterprise content management system to provide centralized services and make mountains of data more manageable. Such communal functions include controlling who's able to access or modify particular documents, tracking revisions to files and providing the ability to search for information using keywords.

Historically, however, content management products have been geared to specific tasks, such as handling access to digitized images of legal documents. In practice, most companies use a specific subset of the entire range of capabilities in enterprise content management suites to optimize certain business processes; for example, to publish documents on corporate Web sites (see "Streamlining the Team," p. 69).

Vendors such as EMC, FileNet, Interwoven, Open Text and Stellent have taken different paths to get to their current enterprise content management offerings, mainly by buying other software companies. Storage systems powerhouse EMC, for example, in 2003 bought Documentum, a document management specialist. These players are pushing the concept of managing multiple types of content under one umbrella system—no surprise, since they stand to fatten their wallets by broadening their reach into customers' networks.

But it's not entirely vendor hype. Customers say there are real benefits to storing everything in one big bucket.

Winthrop & Weinstine, a commercial law firm in Minneapolis, has found effective uses for its enterprise content management system. In 2000, Craig Wilson, the firm's manager of information systems, rolled out Web-based content management software from iManage (since acquired by Interwoven), primarily to share documents securely with clients over the Internet.

Last fall, Wilson expanded the system to file e-mail messages associated with individual cases. Previously, attorneys would print out an e-mail and hand the sheets to an assistant, who would lock them away in a cabinet; tracking it down later could take up to two weeks. "Now, every document and e-mail is available to the whole firm," he says. "It allows our practice groups to be more organized with the volume of e-mail everyone receives."

Plus, Wilson says, if the firm's lawyers choose to, they can easily share e-mails with clients via the Interwoven system's Web publishing capabilities.

Those who have deployed content management systems say it's critical to first establish a workable set of meta-data—information about documents, such as date of creation—to let employees find information more easily. That also means keeping that information as simple as possible, says Gary Williamson, director of information technology at Georgia System Operations, a utility in Tucker, Ga.

When the company first deployed Stellent's content management software, employees were forced to fill out 25 fields when checking documents into the system. "People were starting to resist it because it was cumbersome," Williamson explains. His team added a "check in similar" option to the system that automatically enters most of the meta-data information, which has greatly increased usage.

Meanwhile, many organizations aren't looking for the holy grail of content management—they just desperately need a better way of getting a handle on paper documents.

The Virginia Department of Taxation was "drowning in paper" in 2001, says CIO Farley Beaton. The state agency, which generated $11.5 billion in tax revenue last year, receives more than 2 million individual tax returns on paper annually.

In 2002, Beaton and his team installed a FileNet document management system that converts tax returns into electronic images. That alone let the agency reduce its peak-period staffing needs by 30%—to 150 additional employees per year—as well as nearly halve the warehouse space needed to store physical documents, from 48,000 square feet to 25,000. And it speeded up Virginia's turnaround on processing returns: According to Beaton, the state issued 95% of refunds within 12 days last year, compared with less than 85% in 2000.

As the CIO puts it: "The real driver for us is that everyone has instant access to the image of a tax return."

An enterprise content management system can function as a universal repository for every piece of data a company produces or receives—from product specifications and invoices to Web pages and e-mail. Today, though, most businesses use only individual slices of the content management pie.


Group Dynamics

Category: Enterprise content management

What It Is: Software that acts as an electronic library for storing and retrieving a company's digital documents, including those published to intranets or public Web sites. Such applications can also control access to documents and route them through business process workflows.

Key Players: EMC, FileNet, Hummingbird, Interwoven, IBM, Microsoft, Open Text, Stellent, Vignette, Xerox

Market Size: $2.93B worldwide, 2003 (IDC)

What's Happening: Vendors are integrating tools that were once dedicated to specific tasks (such as managing Web content) into unified systems that can apply consistent policies about accessing and storing all document types.

Expertise Online: CMSWatch.com provides news, opinion, reports and quizzes on content management software, as well as links to other resources.

Companies in italicized orange type are featured in dossiers this month.

Voice of Experience: Streamlining the Team

Robert Buttacavoli
Global Leader, Client Technology Services
Mercer Human Resource Consulting
New York, N.Y.
www.mercerhr.com

MANAGER'S PROFILE: In charge of the information-technology practice for the 13,000-employee consulting firm, a subsidiary of insurance brokerage Marsh & McLennan Cos.

WEB WAIT: Three years ago, Mercer produced its public Web sites by hand. Everything from approving content to formatting pages was handled manually by individual Webmasters in different departments. It could take up to a week to get a single document posted. "The bigger we grew, the more those inefficiencies became a cost strain," Buttacavoli says.

HIS PROJECT: Mercer rolled out Interwoven's TeamSite content management system in 2002. Today, about 250 "content producers" across the company use the software to publish roughly 6,000 documents per year—instantaneously, if they choose to. Total cost: $800,000, half of which was for the software, a quarter for consulting services and the rest for servers and other items.

SITES UNSTAFFED: Buttacavoli guesses that Mercer cut its content management costs by 65% by moving to the new system. The biggest savings: Fewer staffers to run its Web sites. "If we had 20 people in 20 locations managing sites, say they're all getting $100,000 a year—it adds up pretty quickly," he says. Mercer now has three developers creating new features for TeamSite and the equivalent of 1 1/2 full-time staffers handling server maintenance. "We don't need Webmasters anymore," Buttacavoli points out.

EMC: Bigger and Hungrier

Documentum, founded in 1990, built an early lead in the document management market. In December 2003, the company became part of EMC, one of the biggest and most aggressive vendors in the data storage systems market—and some of EMC's hard-charging culture appears to have rubbed off.

David Beyers, manager of training technologies at Alteon, Boeing's flight and maintenance training subsidiary, says he notices the difference in the Documentum sales team now that they work for EMC. "The sales guys were low-key before," he says. "Now they want more commitments up front. They're a little more aggressive."

Beyers adds, though, that EMC has also brought more depth to Documentum's technical support staff. "They've been really good about putting us in touch with engineers at no charge," he says. "Before, I just don't think [Documentum] had the staff. It costs money to provide those kinds of people."

While Documentum used to have a reputation for being expensive—at one time costing more than twice as much as competitors—its pricing is now in line with the rest of the market, according to customers. However, getting the code customized can still be pricey, says Brian Madden, director of information technologies at Boston Capital, a real estate financing firm.

Documentum developers can command hourly rates of $175 or more, whereas standard Web developers run $130 per hour, according to Madden. "It can add up very quickly if you need to make customizations," he says.

Still, Documentum's system stands apart in providing a soup-to-nuts ability to handle multiple types of content, says Steve Servais, director of human resources information systems at The Manitowoc Co., a manufacturer of ships and cranes. "We really looked for a vendor that could meet our document management, Web content management and collaboration needs," he says. "We felt Documentum delivered that."

And many customers like that Documentum is large and well established, particularly now that it's under EMC's wing. Darrell Delahoussaye, manager of information systems in Bechtel's oil, gas and chemicals division, has worked with Documentum since the early 1990s. As Documentum expanded it has incorporated more sophisticated features into its system. "They've maintained their relationship with customers they've had for a long time," Delahoussaye says, "and as part of EMC they have even more resources."

Enterprise Content Management

EMC
6801 Koll Center Pkwy.
Pleasanton
CA 94566
(925) 600-6800
www.documentum.com

TICKER: EMC (NYSE)

EMPLOYEES: 22,700

Dave DeWalt
Executive VP, Software
Previously president and CEO of Documentum. In 1997, he co-founded Eventus Software, a Web content software firm now part of Segue Software.

Rob Tarkoff
Senior VP, Software
In charge of strategy for the software group. Previously, he was the chief strategy officer of Documentum. Before that, he headed business development for Commerce One, a provider of supply chain management software.

PRODUCTS

Documentum 5.3 software provides storage, retrieval, search, security and other services for documents, records, images, e-mail, Web pages and other content. eRoom Web-based software lets distributed teams share documents and manage tasks.

Reference Checks

Boston Capital
Brian Madden
Dir., I.T.
(617) 624-8642
Project: Real estate financing firm uses Documentum 5.25 to store documents for 2,500 low-income housing properties.

Bechtel
Darrell Delahoussaye
Mgr., IS
(301) 228-8020
Project: Firm's oil, gas and chemicals group uses Documentum to store documents, such as engineering diagrams, associated with 200 major construction projects per year.

Concordia University
Andrew McAusland
Exec. Dir., Instructional and I.T. Services
andrew.mcausland@concordia.ca
Project: Montreal university stores 15,000 student applications per year and 6 million pages of faculty-related documents in Documentum.

The Manitowoc Co.
Steve Servais
Dir., Human Resources IS
sservais@manitowoc.com
Project: Wisconsin ship and crane maker replaced homegrown content management systems with Documentum.

Bristol Myers Squibb
Doug Winning
Mgr., Document Design and Integration
douglas.winning@bms.com
Project: Drug maker stores 45,000 documents, such as floor plans, for 200 buildings worldwide in Documentum.

Alteon
David Beyers
Mgr., Training Technologies
david.beyers@alteontraining.com
Project: Boeing subsidiary uses Documentum to store about 1 terabyte of technical data used to produce maintenance-and flight-training publications and programs.

Executives listed here are all users of EMC's Documentum products. Their willingness to talk has been confirmed by Baseline.

EMC operating results*


2005YTD 2004 2003
Revenue $2.24B $8.23B $6.27B
Gross margin 52.3% 51.2% 45.6%
Operating income $323.21M $1.04B $401.16M
Net income $269.83M $871.19M $496.11M
Net margin 12.0% 10.6% 8.0%
Earnings per share $0.11 $0.36 $0.22
R&D expenditure $234.30M $847.90M $718.47M

*Fiscal year ends Dec. 31; YTD reflects first three months

Source: company reports

Other Financials**

Total assets - $15.80B

Stockholders'equity - $11.72B

Cash and equivalents - $1.68B

Short-term investments - $1.38B

Long-term debt - $128.08M

Shares outstanding - 2.44B

Market value, 4/25 - $31.96B

**As of March 31, 2005, except as noted

Interwoven: Upgrade Angst

Interwoven's content management software works just fine—but trying to upgrade it can be a waking nightmare, say some customers.

"We've run into nothing but problems" with upgrades, says Rick Peltz, chief information officer for commercial real estate investment brokerage Marcus & Millichap. "It's horrible." In July 2002, Peltz deployed the WorkSite collaborative document system (then sold by iManage, which Interwoven acquired in 2003). The idea was to provide a Web-based collaboration tool for the firm's 900 agents to exchange documents with prospective clients.

Since then, Marcus & Millichap has upgraded the software three times. Each time, Peltz says, the upgrade failed to work and the firm had to pay for Interwoven's professional services to complete the installation. "My feeling is they don't have a well-defined [quality assurance program] to test the upgrades," Peltz says. He plans to replace WorkSite with Microsoft's SharePoint document-sharing server.

Interwoven's Web content management system, TeamSite, also has been difficult to upgrade, according to Kevin Mayes, director of global knowledge management for Aon. The insurance brokerage and consulting firm first rolled out TeamSite in 1999. "Every upgrade we've gone through has been a humongous effort," he says. Aon's upgrade two years ago to TeamSite 5.5 took three months; Mayes had thought it would require less than a month. "We got some incremental good stuff, but nothing in comparison with the pain," he says.

Kevin Cochrane, Interwoven's vice president of Web content management, acknowledges some older versions of its software required "a number of days of migration planning," but that recent releases have been easier to upgrade. "We've come a long way," he says.

And to be sure, some Interwoven customers say upgrades have been routine. "There have been little glitches, but we've caught 99% of them during testing," says Robert Buttacavoli, head of Mercer Human Resource Consulting's technology practice.

Another contented content manager: Craig Wilson, manager of information systems at Winthrop & Weinstine, a Minneapolis law firm that uses WorkSite. He says the software is easy to use—letting employees set up sites to share documents with clients in less than 15 minutes—and that his dealings with the company have been trouble-free. As Wilson puts it: "Interwoven's support is superior."

Enterprise Content Management

Interwoven
803 11th Ave.
Sunnyvale, CA 94089
(408) 774-2000
www.interwoven.com

TICKER: IWOV (NASDAQ)

EMPLOYEES: 696

Martin Brauns

Chairman, CEO

Before joining the company in March 1998, he was vice president of North American sales at database vendor Informix (now part of IBM).

Steve Martello
Senior VP, Client Services
Previously in charge of managing teams at Internet consulting firm Scient, which filed for bankruptcy in 2002. Before that, he worked at IBM for 17 years in software development, product management and services roles.

PRODUCTS

WorkSite document management software includes version control, full-text search and document-level security, plus additional workflow and collaboration features. TeamSite provides similar capabilities for publishing Web-based content.

Reference Checks

Aon
Kevin Mayes
Dir., Global Knowledge Management
kevin_mayes@aon.com
Project: Insurance brokerage and consulting firm uses TeamSite to manage content on its intranet and public Web sites, which include 90 country-specific sites.

Winthrop & Weinstine
Craig Wilson
Mgr., IS
cwilson@winthrop.com
Project: Law firm in Minneapolis first deployed WorkSite in 2000 to store documents, e-mails and voice-mail messages associated with cases.

Mercer Human Resource Consulting
Robert Buttacavoli
Global Leader, Client Technology Services
robert.buttacavoli@mercer.com
Project: New York consulting firm uses TeamSite to publish content on customer Web sites.

Russell Investment Group
Karl Porter
Mgr., Business Applications
(253) 572-9500
Project: Financial services firm in Tacoma, Wash., uses TeamSite to manage its public Web site and 50 extranet sites for partners.

Marcus & Millichap
Rick Peltz
CIO
rpeltz@marcus-millichap.com
Project: Real estate investment brokerage in Encino, Calif., originally deployed WorkSite to collaborate with clients but plans to use it to manage legal documents instead.

Blue Cross Blue Shield of Rhode Island
Jennifer O'Meara
Dir., Web Services
o'meara.j@bcbsri.org
Project: Health insurance provider publishes content to its public Web site and intranet using TeamSite.

Executives listed here are all users of Interwoven's products. Their willingness to talk has been confirmed by Baseline.

Interwoven operating results*


2005YTD 2004 2003
Revenue $42.49M $160.39M $111.51M
Gross margin 68.2% 67.7% 66.2%
Operating loss -$0.66M -$24.41M -$49.86M
Net loss -$0.25M -$23.67M -$47.53M
Net margin -0.6% -14.8% -42.6%
Loss per share -$0.01 -$0.58 -$1.72
R&D expenditure $8.09M $30.83M $24.61M

*Fiscal year ends Dec. 31; YTD reflects first three months

Source: company reports

Other Financials**

Total assets - $392.56M

Stockholders' equity - $289.81M

Cash and equivalents - $58.65M

Short-term investments - $82.46M

Long-term debt - None

Shares outstanding - 41.14M

Market value, 4/25 - $346.56M

**As of March 31, 2005, except as noted

Stellent: A Smaller Fry

Stellent's customers say it provides a top-flight enterprise content management system that keeps getting better—but that the company sometimes lacks the firepower of bigger rivals.

Sierra Pacific Power uses Stellent's content management system to handle more than 1.3 million documents. The utility first deployed the software in 1998, and the product has improved every year since, says programmer analyst Darlene Huff. "They've grown and learned what the market wanted," she says. "Our wish lists have turned into features in the product." For example, Stellent is adding the ability to convert engineering diagram files into Web-viewable images.

But Stellent offers training only at its Eden Prairie, Minn., headquarters and its San Francisco and London offices. That was a limitation for Larry Hibbs, applications development supervisor for the city of Aurora, Colo. Because of a tight rollout deadline, he and his team couldn't attend training sessions and had to learn how to use Stellent's Web publishing software on their own. "We didn't have the training, so we really had to hack at it," he says. "It would have been nice if they offered training in our area." (Stellent says it offers on-site classes for teams as well as online training on 19 topics.)

Meanwhile, Stellent's alliances with other vendors have faltered at times, according to Michael Abbene, director of application services for Arch Coal, a coal producer in St. Louis. He picked Oracle's portal software in 2002 largely because Stellent said it planned to develop connectors to the Oracle software. Then, when Oracle upgraded its portal, Stellent's connectors didn't work anymore. Abbene says Stellent first told him Arch Coal would have to pay for the additional development before eventually delivering what it promised. "I was pleased they came through," he says. A Stellent spokesman says Oracle remains one of the company's premier technology partners.

Some customers believe Stellent mainly needs to get the word out. Steve Kissinger, director of accounts payable for DHL, says Stellent's enterprise content management system is as comprehensive and full-featured as those offered by EMC's Documentum unit and FileNet, but he feels that the company hasn't been as effective at generating buzz: "I think their marketing department needs to do a better job of promoting the product."

Enterprise Content Management

Stellent
7777 Golden Triangle Drive
Eden Prairie, MN 55344
(952) 903-2000
www.stellent.com

TICKER: STEL (NASDAQ)

EMPLOYEES: 392

Robert Olson
Chairman, President and CEO
Founded the company, then known as IntraNet Solutions, in 1995. Previously ran Technical Publishing Solutions, a document management software firm he founded in 1990.

Mark Ruport
Executive VP, Operations
Heads sales, consulting services and alliances. Previously was CEO of Optika, a provider of imaging and business process management software that Stellent acquired last year.

PRODUCTS

Universal Content Management software provides a repository for documents, Web pages, images and other multimedia elements, providing common services such as access control, security, searching and workflow. Additional application modules offer features specifically for Web content, document management, collaboration, records management or digital asset management.

Reference Checks

Sierra Pacific Power
Darlene Huff
Programmer Analyst
dhuff@sierrapacific.com
Project: Electric and gas utility serving Nevada and northeastern California uses Stellent's content management system to store 1.3 million documents.

DHL International
Steve Kissinger
Dir., Accounts Payable
steve.kissinger@dhl.com
Project: Shipping company converts 100,000 paper invoices per month into electronic documents stored in Stellent's system.

City of Aurora
Larry Hibbs
Applications Development Supervisor
lhibbs@auroragov.org
Project: City government in Colorado rolled out Stellent's system to manage 69,000 records and documents and 5,000 Web pages for 17 departments.

Arch Coal
Michael Abbene
Dir., Application Services
mabbene@archcoal.com
Project: Coal producer uses Stellent to let employees publish Microsoft Word files and other documents to its intranet.

Georgia System Operations
Gary Williamson
Chief Dir., I.T.
(770) 270-7690
Project: Utility in Tucker, Ga., stores images of 350,000 paper records, 21,000 electronic documents and 3,200 Web pages in its Stellent system.

Fordham University
Gene Fein
Senior Associate Dir., Technology
fein@fordham.edu
Project: The New York university's enrollment group uses Stellent to manage an archive of more than 500,000 documents, such as financial aid forms.

Executives listed here are all users of Stellent's products. Their willingness to talk has been confirmed by Baseline.

Stellent operating results*


2005FYTD 2004FY 2003FY
Revenue $78.28M $75.77M $65.43M
Gross margin 69.5% 68.8% 68.6%
Operating loss -$3.36M -$11.88M -$32.62M
Net loss -$2.89M -$10.51M -$32.40M
Net margin -3.7% -13.9% -49.5%
Loss per share -$0.11 -$0.48 -$1.45
R&D expenditure $13.28M $13.26M $15.77M

*Fiscal year ends March 31; FYTD reflects first nine months

Source: Company Reports

Other Financials**

Total assets - $187.23M

Stockholders' equity - $154.23M

Cash and equivalents - $45.76M

Short-term investments - $17.90M

Long-term debt - None

Shares outstanding - 28.28M

Market value, 4/25 - $191.01M

**As of Dec. 31, 2004, except as noted

Copyright (c) 2005 Ziff Davis Media Inc. All Rights Reserved.

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