Magic Quadrant for Field Service Management, 2008
 
18 April 2008

Michael Maoz

Gartner RAS Core Research Note G00156856
 

Demands for Web and mobile field service options with end-to-end process design will drive investments in better field service technologies. Integrated software solutions conforming to service-oriented architecture will be preferred because they enable the design of optimal business processes.





What You Need to Know



This document was revised on 2 May 2008. For more information, see the Corrections page on gartner.com.

  • Accelerated business demand to improve field service execution will favor two types of software suppliers: those with multiple application components and an underlying process design tool, and best-of-breed vendors with strong functionality, whose software is service-oriented architecture (SOA)-compliant or delivered using a software as a service (SaaS) model. These capabilities enable the best-of-breed vendors to fit logically into a service management suite.
  • By 2012, at least 30% of new application components (for example, workforce optimization, technician portal and asset monitoring) will be sold as SaaS subscription models, rather than bought and deployed on premises.
  • Mapping, fleet routing and fleet management will be integrated, essential packages for field service organizations by 2012.
  • By 2012, the percentage of technicians with wireless access to a formal packaged field service management (FSM) solution in a large enterprise will increase from 12% to 40%.
  • The addition of CRM functionality to field service solutions will be used as a way to enable field service technicians to capture sales leads, configure orders and market while on site.
  • Vendors will be forced to dramatically expand capabilities in the area of field service analytics to optimize the use of parts and adhere to service-level agreements.

Note that Gartner's Magic Quadrant for Field Service Management, 2008, like all Magic Quadrants, is not intended to be the sole tool for creating a vendor shortlist. Use it as part of your due diligence and in conjunction with discussions with Gartner analysts.






Magic Quadrant



Figure 1. Magic Quadrant for Field Service Management, 2008

Figure 1.Magic Quadrant for Field Service Management, 2008

Source: Gartner (April 2008)

 




Market Overview

The significant packaged application providers in the FSM market are shifting the market to a focus on end-to-end field service processes, while the smaller innovators are delivering new software models, such as SaaS. Although most of the market will remain specialized (reflecting the multiple goals of service organizations), the move toward SOAs and loosely coupled FSM applications is moving forward. Multichannel access gateways (MAGs) will remain a key component of successful field service applications, whether delivered directly by the FSM vendor or through a strong partner.

Microsoft has yet to make a move in the FSM area. Microsoft has tremendous long-term potential in this area, but it is unlikely to muster the focus required to build a credible business during the next 12 months. It will remain consumed by other priorities, such as communications, CRM, ERP applications for small and midsize businesses, and mobility.

We tracked nearly 20 FSM vendors in the market (see Note 1) that neither met the broad criteria for the Magic Quadrant for geographic breadth nor demonstrated references or revenue targets. Examples include 360 Technologies, Agentek, Agresso, Clevest, Microsoft, Insight Direct, Epicor, Metrix, salesforce.com, Tesseract and ViryaNet. The merger frenzy has calmed, yet by 2012, more than 50% of the field service management suppliers on the Magic Quadrant will merge with, be acquired by or acquire another supplier.

Software sales in the FSM market can only be approximated. Privately held vendors and some large vendors (for example, Infor, IBM, Oracle and SAP) do not disclose software sales in the area of FSM and, in the case of Infor and Microsoft, do not meet the minimum requirements for the Magic Quadrant. Gartner research puts the revenue for packaged field service dispatch and workforce management software applications, not including service revenue, at slightly less than $265 million in 2007 (rising to $325 million by 2010). We estimate that market penetration for field service applications has reached 10% of the addressable market.

The weighting of selection criteria for FSM should factor in vendor viability as a contractual item, but focus more highly on the installed base of reference customers, the number of skilled service professionals, the existence of a modern SOA and the cost of the solution. Vendor weightings should focus on the best technology architecture, functionality advantages and the vision of the vendor. Buyers should focus on the ability to control the terms of the software acquisition for the length of a pilot, and terms and conditions, in case that the vendor is acquired. Emerging criteria for 2009 will include social networking capabilities, customer experience and CRM capabilities for field marketing and upselling.

Field service is increasingly viewed as an integral part of a unified customer strategy, improved over time as part of a careful project. It is as integral as sales, marketing and customer support to product-centric businesses. Niche vendors will need to improve the service orientation of their applications to better integrate with other applications, or they risk failure.




Market Definition/Description

Four primary vendor categories combine to address and support FSM processes: MAG vendors, field service optimization vendors, vertical industry experts and end-to-end FSM process optimization vendors. We consider the MAG vendors in a separate Magic Quadrant (see "Magic Quadrant for Multichannel Access Gateways, 2007"). We see the highest demand for packaged FSM applications in capital-intensive industries, followed by utilities, telecommunications and transportation. They can be categorized as having one of three business models:

  1. Original equipment manufacturer performs installation, maintenance and repair
  2. Field service for asset-intensive businesses, for example, manufacturing plants, utilities and telecommunications (the predominant model)
  3. Third-party (outsourced) maintenance and repair (the most complex model, because the management of parts, contracts and warranties — essentially ERP, SCM and product life cycle management functions — are not under the vendor's control)

The applications that we focus on should have the scope to achieve four objectives:

  • Receipt of requests for a field service technician, received over the Internet, over the telephone or arriving from an intelligent device (see "Intelligent Machines and the Enterprise Service Opportunity").
  • Optimally assign a service technician (long, midrange, weekly and intraday optimization of the technician, factoring in assets and improved service-level agreement compliance)
  • Complete mobilization of that technician to perform end-to-end service tasks, including the ability to look up inventory status in real time or cached on a wireless device
  • Field service functionality that supports a continuum of field service models, from reactive to preventive, to predictive, to reliability-centered maintenance

An end-to-end FSM solution contains these components (the example is for an asset-intensive industry):

  • Field technician management (skills, plan board, assignment, route optimization)
  • Entitlements and contract management
  • Product and pricing configuration
  • Case-based reasoning/knowledge management
  • Project management software
  • Reporting and service analytics
  • Bill/invoice preparation
  • Field parts, tools and material/parts management (essentially a field SCM system)
  • Intelligent device management and fleet management
  • Depot repair
  • Software for wireless applications support that includes a user experience that maps to mobile workflow, as well as client-side and server-side middleware (see "Magic Quadrant for Multichannel Access Gateways, 2007")
  • A service integration framework or platform

A complete FSM solution would include a SaaS offering to supplement on-premises software. Market dynamics and technology advances will determine the mix among large vendors vs. partners in an SOA framework.




Inclusion and Exclusion Criteria

Market Traction and Momentum

  • The vendor had five new customer references for FSM functionality since the 2007 Magic Quadrant. A leader would be a worldwide vendor selling and supporting multiple industries.
  • The vendor has generated at least $4 million in software application licenses (or subscriptions in the case of SaaS) to new customers for FSM in the past four rolling quarters; the majority is from large or midsize businesses (average deal size of 100 mobile technicians). An exception is made when the vendor, even if small, fills a critical (but niche) gap.

Short-Term Viability

  • The vendor has sufficient professional services to fulfill customer demands during the next 12 months.
  • The vendor has enough cash to fund one year of operations, given current burn rates.
  • The vendor demonstrates a pipeline of prospects, and an adequate sales team, to drive new business.



Added
  • IFS
  • Vertical Solutions
  • WennSoft



Dropped
  • We have dropped @Road. We have not seen software modernization of the workforce optimization application, or partners and a sales force actively selling and deploying the product.



Evaluation Criteria

Ability to Execute

Product or Service (Weight: High): Technology/architecture — To score highly, the vendor will be on a standard SOA by 2009. It has demonstrated an ability to flexibly integrate and configure the application to participate in business processes that are outside its own application set. The product operates across multiple communication channels and with various business functions. FSM-specific requirements also call for the ability to flexibly connect to billing and network management, and support automation systems and multiechelon parts-distribution systems. The vendor will be required to support a range of wireless and handheld computers. In the case of field force optimization, the vendor can potentially scale up to support as many as 12,000 technicians. The application architecture supports one-to-many and many-to-many product and customer relationships.

The vendor will be measured on the ability of its architecture to support global rollouts and localized international installations. Vendors will be measured on the ability of their product releases to support the service management building blocks of their chosen markets (see "Toolkit Decision Framework: Evaluating Field Service Solutions"). The vendor rating is developed by these weighting functionalities: service request handling (20%), technician assignment (15%), project management (5%), wireless technician field enablement (25%, whether direct or via partners), parts management (5%), mapping and vehicle/fleet management (15%, whether direct or through partners) and account management (15%). The capability to support wireless across these functional areas has moved from a highly desired criterion to a firm requirement; enterprises facing compliance, cost and workforce issues (especially those whose technicians are highly trained or those where many workers are reaching retirement age) are placing increased pressure on enterprises to address operations workforce productivity.

Overall Viability (Business Unit, Financial, Strategy and Organization — Weight: Standard): The vendor can ensure that it has cash on hand and consistent revenue growth over four rolling quarters to fund current and future employee burn rates and to generate profits, and the likelihood that the product will remain viable during the next three years. The vendor will be measured on its ability to generate business results in the FSM market. It must have a stable development team and product road map.

Sales Execution/Pricing (Weight: High): The vendor's ability to provide business value compared with the price it charges for software and services in deploying its FSM software. The vendor will be measured on its flexibility in supporting multiple pricing scenarios, such as in-house licensed, hosted, SaaS and business process outsourcing.

Market Responsiveness and Track Record (Weight: Standard): Marketing and sales capabilities — The vendor's ability to consistently generate market demand and awareness of its FSM solution via marketing programs and press visibility. The vendor must be found on the shortlist of appropriate requests for proposals. To be other than a niche player or visionary, the vendor must appear in more than three unique industry categories, and in three geographic locations (not including its installed base), as a part of competitive bids.

Marketing Execution (Weight: High): Reach — The vendor's ability to provide global sales directly or through a distributor or other partner. The distributor/partner must align with the vendor's marketing messages and have specific experience in selling FSM software to the appropriate buying center.

Customer Experience (Weight: High): To prove the viability of its product in the marketplace, the vendor can produce a sufficient number of quality clients and references with varying levels of sophistication and maturity (for example, a mix of new customers, together with extensions to sales into the installed base). Of special interest is customer experience with wireless mobility, devices and service process workflows. References are used as part of the evaluation for each of the dimensions on the Ability to Execute and Completeness of Vision axes.

Operations (Weight: Low): Implementation and support; professional services — The vendor's ability to provide internal professional-service resources, or partner with system integrators or other service providers that have vertical-industry expertise, FSM domain knowledge, global and localized country coverage, and a broad skill set (for example, project management and system configuration) to support a complete project life cycle. Customer support: Ability of the vendor's customer support organization to provide satisfactory, prompt service to its customers worldwide.


Table 1. Ability to Execute Evaluation Criteria

Evaluation Criteria
Weighting
Product/Service
high
Overall Viability (Business Unit, Financial, Strategy, Organization)
standard
Sales Execution/Pricing
high
Market Responsiveness and Track Record
standard
Marketing Execution
high
Customer Experience
high
Operations
low

Source: Gartner

 




Completeness of Vision

Market Understanding (Weight: Standard): The vendor demonstrates a strategic understanding of how the market and partner opportunities for field service solutions are changing. This includes the role of wireless devices, SaaS, third-party service delivery, as well as new application functionality (for example, real-time analytics and mapping) or customer segments, ongoing vendor market dynamics (for example, consolidation trends) and vertical-industry requirements (for example, telecommunications, utilities and capital equipment manufacturing).

Marketing and Sales Strategy (Weight: Marketing: Standard; Sales: Low): Business and financial strategy — The vendor has a well-articulated strategy for revenue growth and a sustained opportunity for profitability. Key elements of the strategy include a sales and distribution plan, internal investment priority and timing, and partner alliances. A leader will move a market by offering users a range of modular choices at varying price points that do not lock the user into a platform decision, and not by squashing competition.

Offering (Product) Strategy (Weight: High) and Technology Innovation (Weight: High): The vendor openly communicates to its customers and to Gartner a "statement of direction" for its next two product releases that keeps pace with or surpasses Gartner's vision of the FSM market. The vendor understands major technology/architecture shifts in the market and communicates a plan to leverage them, including any migration issues these shifts may create for customers on current releases, how well the vendor has articulated its vision to support mobile and wireless devices, or integrate parts planning and contract management.

Business Model (Weight: Standard). The partners for professional services and complementary functionality and wireless enablement unique to specific geographies and industries will often determine vendor success.

Vertical/Industry Strategy (Weight: High): This is one of the thorniest challenges because too much emphasis on a single industry leaves the provider as a niche participant in the broader market, whereas lack of industry expertise knocks the product out of the evaluation process.

Geographic Strategy (Weight: Standard): Few FSM vendors can sell, deploy, maintain and extend customers on a worldwide basis, yet multinational service organizations continue to look for global application provider partners.


Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria
Weighting
Market Understanding
standard
Marketing Strategy
standard
Sales Strategy
low
Offering (Product) Strategy
high
Business Model
standard
Vertical/Industry Strategy
high
Innovation
high
Geographic Strategy
standard

Source: Gartner

 




Leaders

Leaders demonstrate not only market strength based on installed base depth, but also affect market trends in all categories of the criteria on which they're evaluated. Users of the software feel they are gaining a competitive advantage over others in their industry.




Challengers

Challengers demonstrate a clear understanding of today's FSM market, but may not be innovative. They often have a strong market presence in other application areas (such as parts and asset management, finance and order management), but they haven't demonstrated a clear understanding of the future FSM market direction (which is more end-to-end process-based) or are not well-positioned to capitalize on emerging trends.




Visionaries

Visionaries display technology or business model innovation, and influence (or will soon influence) the direction of the FSM market, but are limited in execution or demonstrated track records. Typically, their products and market presence aren't complete or established enough to challenge the leading vendors.




Niche Players

Niche players offer products for FSM functionality components or vertical subsegments. They also may offer complete portfolios. However, they demonstrate weaknesses in one or more important service management areas.




Vendor Strengths and Cautions

Astea International

Strengths
  • Astea has excellent, focused knowledge of capital equipment and high-tech industries for end-to-end service processes.
  • It is a publicly traded company that continues to develop and acquire components in line with its vision of the service management space.
  • During 2007, Astea experienced an improvement in sales, profitability and overall revenue growth, as well as released a new version of Alliance (v.8) for market.
  • Astea has a strong Microsoft .NET architecture, integration with Microsoft Dynamics and solid, but slow, progress with its multichannel access gateway (wireless services) from the acquisition of FieldCentrix.



Cautions
  • The sales and marketing organization has been largely unable to convince large enterprise prospects in Astea's core market of capital equipment of the value proposition of its combined wireless, contracts, field service and sales functionality and translate that into large-scale contracts.
  • Scalable references (for example, 400 users deployed with mobile devices, centrally dispatched using dynamic scheduling) were not available for the latest release, version 8.0.
  • There is no strategic alignment with large third-party consulting organizations or system integrators for large-scale international projects.



ClickSoftware

Strengths
  • ClickSoftware has deepened its focus on the energy and utilities sector, and prospects with complex workforce optimization needs in these industries should consider the company. Telecommunications is another area of strong industry knowledge.
  • The company is the largest independent software company offering field service optimization. It is a growing company with the advantage of focus on a core service business problem.
  • ClickSoftware has made additional improvements to mapping and wireless capabilities; however, there are only a few references for its recent mobile thick-client offering. Perform a thorough functional review before buying.
  • With fuel, transportation and labor costs trending upward, field-force optimization will be a leading agenda item for service organizations in asset-intensive industries at the core of ClickSoftware's market (telecommunications, utilities and manufacturing).
  • Gartner estimates that continued investment in product development for end-to-end field service scheduling and analytics is higher for ClickSoftware than any other competitor in the market.



Cautions
  • ClickSoftware is not intended to be a complete solution for field service (for example, contracts, invoice, parts management and CRM) and will generally be an expensive add-on, which often requires additional cost justification.
  • The absence of a complete field service solution at a time when focusing on end-to-end processes is important limits product appeal for some prospects.
  • As a small company with a specialty product in a time of market consolidation, ClickSoftware could, like most best-of-breed companies, become an acquisition target.
  • The company has yet to gain significant traction with its new offering for the service enterprise of medium size and complexity.
  • Although its vision for tying mobile enablement to optimization holds promise in yielding a tighter coupling, the company faces the challenge of matching vendors with more-extensive track records for keeping up with wireless industry trends.



Corrigo

Strengths
  • Corrigo continues to invest in deepening its management talent and system scalability for U.S. companies.
  • WorkTrack Service Management is a SaaS product geared to small and midsize businesses doing basic scheduling and ordering.
  • CorrigoNET is also a SaaS product, targeted to more enterprise service for maintenance organizations, with good wireless support for Research In Motion BlackBerry devices. Mobile support is suited to lightweight work processes, where the amount of interaction in the mobile interface is minimal.
  • Corrigo possesses key knowledge in U.S.-based service industries, facilities and properties management, construction, facilities management and real estate.



Cautions
  • Corrigo has limited third-party or in-house professional services capabilities on large, complex projects.
  • Because of its U.S.-based operations, Corrigo is not recommended for shortlists outside the U.S., unless Corrigo provides references that match your functionality needs.
  • Corrigo is not recommended for large asset-intensive organizations interested in field service analytics, complex parts management, return merchandise authorization/depot repair, contract management and so on.



IFS

Strengths
  • IFS has a strong mix of new customer wins, deal expansions (additional modules) and growth of users in established accounts.
  • It has a good focus on end-to-end field service processes and overall service management life cycles, versus narrow departmentalized deployments.
  • Combination of a deep business-to-business customer base, depth in government business, wide geographic coverage and an SOA methodology makes IFS a good choice for shortlists in its installed base.



Cautions
  • Some weakness in new U.S. sales and improvements in competitor products will put pressure on IFS to narrow its product or industry scope/footprint.
  • There is limited strategic alignment with large third-party consulting organizations or system integrators for large-scale projects outside of the government sector.
  • Compare the wireless capabilities against best-of-breed solutions based on reference checks, not product demonstrations.
  • IFS has less brand recognition in the field service space compared with competitors such as SAP, Oracle or best-of-breed players in North America, South America and parts of Asia.



Oracle-E-Business Suite

Strengths
  • The field service components are a natural for shortlists of customers of the Oracle E-Business Suite (EBS) already using Oracle ERP products for depot and repair, such as asset management, order management, depot repair and parts inventory.
  • Oracle provides good references for project management.
  • Oracle Mobile Field Service has moderate wireless coverage abilities. The thick-client functionality extensions require development in Oracle's Application Development Framework Mobile Application Framework, such as store and forward, while the Oracle Field Technician Portal is useful for technicians able to directly access the network.
  • EBS has rich functionality for asset-intensive businesses and capital equipment (for example, manufacturing) environments.



Cautions
  • References note complexity in procuring all the elements for a complex implementation, such as correct software, development resources, business consultants and complementary partners.
  • Oracle EBS is less feature-rich than the Siebel 7.8 or 8.0 offerings.
  • At this time, there is no SaaS offering.
  • EBS is appropriate when the core databases and ERP systems are Oracle products.
  • The product has low referenceability in complex environment where field service, Web self-service, CRM and advanced real-time workforce optimization and third-party knowledge management are tightly integrated.
  • The number of mobile reference customers is low, and these report overall high project costs for delivery.



Oracle-Siebel Systems

Strengths
  • Oracle's Siebel Field Service version 8.0 can be considered a less-mature product compared with the more-established versions 7.7 and 7.8, yet contains more Web services and connects well with other Siebel and Oracle application modules and is gaining momentum. Its primary focus is high-tech manufacturing, cable and some areas of telecommunications.
  • Siebel design and configuration tools are best-of-breed. References report that the scalability of the application can support thousands of technicians comfortably.
  • The product is showing continued investment in functionality and technology, deeper integration with the Oracle technology stack and the organization has ongoing recruitment of development, sales and marketing resources.
  • Siebel's Mobile capability covers thin clients, handhelds, remote Web clients and a partnership with Antenna Software for Siebel's CRM On Demand. The mobile user experience for Siebel Handheld is functionally rich, although cumbersome to use when compared with other MAG-based offerings.



Cautions
  • There is no proof of innovation in Web-based appointment booking for end customers, mapping, intelligent device management or a SaaS version of the product.
  • Upgrade decisions can be complex.
  • Siebel is not ideal for long-term forecasting, complex advanced scheduling or real-time workforce optimization.
  • Siebel is a high-end solution from the standpoint of software cost (initial cost, tools, ongoing maintenance, upgrade and configuration) relative to the market average. It is not recommended generally as a stand-alone product, but as a part of a broader Siebel implementation. Treat the contract process as a discussion to entail the possible scenarios for the next seven years.
  • Be sure your external service provider (ESP) supplies recent references for your industry and region as proof of project competency with Siebel Field Service.



SAP

Strengths
  • SAP is a sensible shortlist candidate for users wanting to deploy field service, along with asset management, contracts, warranties and supply chain.
  • SAP has a strong investment in core architecture, a worldwide installed base and good corporate profitability.
  • The user interface and the integration capabilities of the SAP CRM 2007 release are improving for the desktop client, Web client and mobile applications.



Cautions
  • The process design, testing and monitoring tools are still maturing, and training will proceed throughout 2008. Third-party consulting, system integration and development resources for the latest field service offerings are in short supply.
  • SAP's field service references are limited. They are in utilities, some manufacturing and where the field force supports internal assets. References were in North America and Europe only.
  • The SAP FSM product is not recommended as a stand-alone product. It should be shortlisted in the context of a broader SAP Business Suite commitment.
  • SAP mobile applications are rated below average of the best-of-breed mobility applications.
  • SAP has work ahead of it to convince the customer base of the benefits of end-to-end service management.



ServicePower

Strengths
  • ServicePower offers outsourcing services and a traditional on-premises software model. It has a deep set of functionality from service scheduling, execution, support of mobile, and claims and warranty processing.
  • It has strong process knowledge and references for businesses involved in installation and repair, especially where warranty management or managing independent subcontractors is important.
  • With the introduction of a new CEO and tighter business focus, we expect profitability and growth after several years of unprofitability.



Cautions
  • Watch for three consecutive quarters of consistent improvement of profitability and growth as signposts that sales and marketing are on track for longer-term success.
  • A small number of new customers (our estimate is approximately 10 new customers in 2007) makes the weighting on vendor viability and ability to execute high on the criteria evaluation.
  • Limited geographic reach (primarily in the U.S., some in the U.K.) and few strategic business consulting and integration partners limit future potential.



Syclo

Strengths
  • Syclo has a good range of SOA-enabled products: Smart Suite to manage work and schedules and to support the technician in the field, and the Agentry platform as the MAG to design mobile processes and perform integration and process flows.
  • Consider Syclo for shortlists for 50- to 200-seat deployments (notably in public utilities, energy and facilities management), where the requirement is for work management/field service, inventory management and inspections (for example, government, discrete manufacturing, utilities, oil and gas, life sciences and facilities management).
  • Improvements to the Syclo Agentry platform, including making it a plug-in to Eclipse, are ongoing. These improvements will address issues in broadening the Agentry environment and making it more mainstream.
  • Syclo makes a good adjunct where there is an enterprise asset management system, such as IBM's MRO Software, SAP or Ventyx.



Cautions
  • Syclo is privately held, with a 2008 revenue of less than $25 million (Gartner estimate) and approximately 100 employees. Organizations must perform their due diligence to ascertain the adequate financial position, which we estimate exists.
  • Look for adequate professional services resources for your industry and for your business model. Proof of a technology refresh will be necessary as Syclo transitions to meet evolving SOA standards.
  • Whereas Syclo has strong references for asset maintenance work and wireless service processes, if the service management need entails CRM (sales, field marketing and consistent customer service processes), then scrutinize reference accounts carefully to determine Syclo's competency.



TOA Technologies

Strengths
  • TOA Technologies is the fastest-growing vendor on the Magic Quadrant, tripling deployed seats from 4,000 to 12,000.
  • Customer-centric appointment booking management will emerge as a key differentiator for telephone and broadband providers. TOA focuses on producing optimal and convenient scheduling and appointment bookings, as well as how to communicate with the consumers and with mobile field service technicians.
  • The product, ETAdirect, is the only multitenant, Internet-based, SaaS offering on the FSM Magic Quadrant. It attacks a high-value, high-cost activity: service technician travel and work.
  • TOA has a presence in North America and Europe, primarily in telecommunications, with expected expansion into Asia by 2009



Cautions
  • The narrow functional and industry-vertical footprint (relative to enterprise software packages) and SaaS model limit the company's appeal to many IT organizations outside of telecommunications and those looking to streamline the number of applications in their overall portfolios. Many large telecommunications organizations have broader processes that they are attempting to improve (parts, information, people issues, sourcing and upselling).
  • TOA is a startup company (estimated 175 employees by year-end 2008) with fewer than 10 sales staff and limited professional services staff to help with global change process management and complex integrations.
  • Any MAG capability the company may have has yet to be demonstrated, but it provides a mobile software development kit.
  • TOA's installed base has a limited geographic reach (U.S. and Europe), there are few referenceable clients and it has only the beginnings of partnerships with global ESPs.



Ventyx

Strengths
  • In the utility industry, Ventyx has a broad presence in service management, from asset tracking and management through wireless middleware and workflow. The product set is in a continual process of modernization, and management may consider acquisitions to expand the offering.
  • Industry specialists are in utilities (former Indus International and MDSI) and communications (MDSI). The MAG capability is limited and has not progressed significantly since the merger, so expect higher total cost of ownership for mobile support.
  • Ventyx has a strong installed base into which it can sell new products and services, primarily in North America and Western Europe.



Cautions
  • We have not observed that the market has responded strongly to the Ventyx Service Suite offerings as demonstrated by new references.
  • New deployments appear to be largely in North America and Western Europe.
  • Viability and performance are still in question, albeit supported by private equity.
  • The large enterprise application suite vendors (for example, Oracle and SAP) are better positioned to offer aggressive pricing bundles for suites composed of financials and supply chain, as well as CRM capabilities.



Vertical Solutions

Strengths
  • Vertical Solutions has good scalability, with a "sweet spot" in the 50- to 250-technician range for service businesses, manufacturers and small high-tech industries, primarily in the United States and Western Europe.
  • It is easy to configure and adapt the system to changing user needs, and it has good integration capabilities.
  • Vertical Solutions offers broad functionality for end-to-end field service management, particularly for North American businesses needing ready access to professional service resources where extensive change management support is not required.



Cautions
  • As a small, privately held company with fewer than 20 core developers, it is a challenge to adopt new technology models, such as SaaS, or add innovative homegrown modules.
  • Limited ability to expand sales and implementations beyond the U.S.
  • Look for concrete proof of ability to support large-scale (more than 600 technicians, including depot repair and multiple wireless device support across national boundaries) deployments.
  • Vertical Solutions has a limited number of third-party system integrators or partners for large-scale hosting or wireless device software.



WennSoft

Strengths
  • WennSoft has a focused business strategy geared to small and midsize service and installation businesses, primarily with Microsoft infrastructure, wanting to optimize maintenance or the project-costing function in facilities/equipment management.
  • The company has a good understanding of end-to-end processes, with a development team and professional services team trained to support customers working to improve these processes.
  • It has strong integration capabilities with Microsoft's Dynamics, SharePoint and Office.



Cautions
  • We estimate that WennSoft will have approximately 120 employees and less than $25 million in revenue by the first half of 2009, focused primarily on small and midsize businesses. Therefore, it is not a strong candidate for the shortlists of Global 1000 companies looking for a scalable, large enterprise solutions.
  • Because WennSoft is a privately held company with no large system integrator partners, organizations must perform their due diligence to ascertain the adequate financial position, which we estimate exists.
  • Non-Microsoft field service organizations will not find as strong a fit for WennSoft on their shortlists of FSM suppliers.

The Magic Quadrant is copyrighted 18 April 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

© 2008 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner's research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.






Strategic Planning Assumption(s)




By 2012, more than 50% of the field service management suppliers will merge with, be acquired by or acquire another supplier. Industry-specific field service management suites, including mobility and Web self-service, will emerge by 2010.





Acronym Key and Glossary Terms





EBS 
E-Business Suite

ESP 
external service provider

FSM 
field service management

MAG 
multichannel access gateway

SaaS 
software as a service

SCM 
supply chain management

SOA 
service-oriented architecture





Note 1
Definition of a Market




A market, according to Geoffrey Moore, is:

  • A set of actual or potential customers
  • For a given set of products or services
  • Who have a common set of needs or wants
  • Who reference each other when making a decision

Markets are sets of potential buyers that view a product as solving a commonly identified need. Market segments are portions of the generic market that are qualified by more-exact criteria, which group together potential buyers more tightly. Segmentation may take two forms:

A generic market may be broken down into a recognizable entity for which the rules for defining a market still hold. FSM is a discrete market within the broader service management space, which is a generic market that includes elements of aftermarket service supply chains, enterprise asset management, maintenance support, sensor networks, radio frequency identification, telematics, FSM, technical support, contract management and product life cycle management.

Alternatively, a vendor may segment the market to target its products more precisely and differentiate itself from (or avoid competing with) other players addressing the same overall market. In that case, however, the targeted buyers may not know they're part of the same market segment. Such segmentation won't be explicitly reflected in the Magic Quadrant, but it may be reflected implicitly (by placing a vendor in the Niche Players quadrant, for instance).





Vendors Added or Dropped




We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. This may be a reflection of a change in the market and, therefore, changed evaluation criteria, or a change of focus by a vendor.





Evaluation Criteria Definitions





Ability to Execute

Product/Service: Core goods and services offered by the vendor that compete in/serve the defined market. This includes current product/service capabilities, quality, feature sets, skills, etc., whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.

Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood of the individual business unit to continue investing in the product, to continue offering the product and to advance the state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor’s capabilities in all pre-sales activities and the structure that supports them. This includes deal management, pricing and negotiation, pre-sales support and the overall effectiveness of the sales channel.

Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message in order to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional, thought leadership, word-of-mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements, etc.

Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.


Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen and understand buyers' wants and needs, and can shape or enhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the Web site, advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling product that uses the appropriate network of direct and indirect sales, marketing, service and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature set as they map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying business proposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including verticals.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.