IOM 538 Project I

Content Management (CM) is providing businesses and/or government a single system strategy via web services and strategic solutions to centralize, facilitate, enhance, provide competitive advantage, speed process, provide economies of scale, and help carry out daily Business to Business (B2B)/Business to Government (B2G)/Business to Consumer (B2C) operations and transactions.

What do experts say?

¡°Single system that manages all content for all a business multiple internal and external websites, portals, and other channel including paper, CD-ROMS, and wireless applications. Most people are dividing ¡°CM¡± solutions into two categories: direct-to-web publishing and content management. Direct-to-web enables business to put content on the web quickly. They are usually lightweight, not strategic solution. True Content Management supports enterprise self-service by enabling the right people to access the right content at any time and by providing the ability to use that content in appropriate transactions.¡± -- Broad Vision.

The following services can be done with Content Management: ¡°develop and maintain your Web sites with ease, deliver personalized content that is targeted and relevant to users, leverage industry standards like Java and XML to integrate with other applications, and scale from departmental initiatives to enterprise-class applications, while maintaining departmental control.¡± ¨CDivine.

¡°True Content Management is the ability to create, personalize, deliver, and manage content pulled from any part of an extended organization to be used and re-used in any language for global competitive edge.¡± ¨C Documentum.

¡°FileNET's solutions are designed for both the enterprise content management and collaborative commerce markets, enabling organizations to realize increased productivity, customer satisfaction, and profitability by empowering customers, business partners, suppliers, and employees to engage in business processes and exchange relevant content.¡± ¨C FileNet.

¡°Delivers a Dynamic Web Experience - Relevant, timely and compelling content are the three success factors for eBusiness, Inclusive Content Entry - Today's Enterprises need a content management system that allows collaboration between all Web contributors from throughout the organization, from the occasional, non-technical contributor to the Web team itself, and Scalable Infrastructure - Enterprise class content management accommodates large, dispersed teams of contributors that work on millions of diverse Web assets. ± ¨C Interwoven.

¡°Content Management is the ability to manage and deliver content to every electronic touchpoint.¡±-- Vignette Corporation.

l CM Benchmark

l Industry Growth

North America CAGR 1999 - 2002E = 89.51%

Europe CAGR 1999 - 2002E = 96.51%

Other CAGR 1999 ¨C 2002E = 91.17%

Source: Gaussip¡¯s Annual Report for 2000 (http://www.gaussip.com)

http://www.magellan.com/Company/Intestors/Gauss-Webb.pdf

Note: North America¡¯s 2000 and 2001 values are estimates.

Source: Vignette Corporation¡¯s Income Statements (http://www.vignette.com),

Gaussip¡¯s Annual Report for 2000 (http://www.gaussip.com)

http://www.magellan.com/Company/Intestors/Gauss-Webb.pdf

l Market Size/Share

Enterprise Content Management Market in 2000

Firms	Revenues	Revenues from CM¹	CM Market Share
Vignette	366.66	70.00%	256.66	26.80%
FileNET	398.61	50.00%	199.31	20.81%
Documentum	197.59	90.00%	177.83	18.57%
Interwoven	132.13	100.00%	132.13	13.79%
Broad Vision	413.92	20.00%	82.78	8.64%
Open Market	88.98	15.00%	13.35	1.39%
Others²			95.78	10.00%
Market size³			957.84	100.00%

Notes:
¹	The percentage of revenues received from content management software sales were taken form the Giga Information Group report "Sizing the Web Content Management Market" 2/22/00
²	We assumed that the six companies pioneered the content management market in late 90's kept 90% of the market in 2000 while other companies accounted for 10% of all sales.
³	The estimated market size of $957.84 million is close to the estimate made in the Business Week of 12/11/00, which was $917 million.

l Financial Analysis

2001 Figures Sector: Technology Industry: Software & Technology
Ratio	Broad Vision	Documentum	FileNet	Interwoven	Divine	Vignette	Sector	Industry
Financial Strength
Quick Ratio	1.64	1.75	2.63	2.93	3.78	3.39	2.46	3.10
	Divine and Vignette are more successful in converting current assets quicker into cash. Documentum and Broad Vision are less effective in converting current assets into cash. FileNet and Interwoven are under the Industry average, but above the sector average so they are also successfully able to convert their current assets quicker into cash.
Current Ratio	1.72	2.07	2.82	3.01	4.17	3.43	3.01	3.43
	Divine and Vignette are easily able to meet short-term obligations. Broad Vision, Documentum, and FileNet may have some difficulty meeting short-term obligations. Interwoven is able to meet short-term obligations since they are at the same average as the sector.
LT Debt to Equity	0.01	0.00	0.00	0.00	.27	.05	.22	.07
	Divine has the greatest portion of long-term debt that debt-holders furnish however the difference from the sector is not much. Documentum, FileNet, and Interwoven don¡¯t owe any long-term debt to debt-holders. Broad Vision and Vignette owe very little long-term debt to debt-holder compared to the industry and sector averages.
Total Debt to Equity	0.02	0.00	0.00	0.00	.31	.05	.29	.08
	Divine¡¯s creditors have contributed 31 cents for each dollar of equity capital, which is slightly more than the sector and much more than the industry average. Vignette, and Broad Vision don¡¯t have much capital being provided by creditors. Interwoven, Documentum, and FileNet don¡¯t have any capital being provided by creditors.
Profitability Ratio
Net Profit Margin	NM	-20.62	-5.00	-63.72	NM	-5.14	1.63	12.87
	None of the content management companies had good expense control. They all experienced revenue losses and did poorly compared to the sector and industry averages. Interwoven had the poorest performance. Divine and Broad Vision did not report these figures.
Management Effectiveness
Return on Assets	-106.09	-18.38	-5.33	-26.51	-86.35	-92.77	.84	6.93
	None of these companies made a profit off their assets. Nevertheless their sector and industry did profit from their assets.
Return on Investment	-127.98	-27.98	-7.49	-31.84	-96.37	-102.20	2.53	9.99
	All of these companies have a poor return on investment. FileNet having the least financial risk, yet still performing poorly compared to sector and industry averages.
Return on Equity	-36.91	-28.05	-7.69	-31.84	-125.34	-102.89	4.52	10.75
	None of these companies were able to generate income of equity investment. All companies may have performed poorly in ROA, ROI, and ROE and some other ratios due to other factors such as Political, Economic, Social, or Technology factors.
Microsoft, Computer Associates and IBM were not included in this comparison due to the difficulty of separating their content management portion with the rest of the services they provide. Their figures don't represent the true market in Content Management.

Source: Ratio figures, http://yahoo.marketguide.com/MGI/mg.asp?target=/stocks/companyinformation/ratio&Ticker=VIGN

Graphical Description

l CM Products (Vignette)

Vignette V6 is an open, scalable, reliable and flexible content management solution. It enables effective online

relationships with customers, suppliers, partners and employees. The core is V6 Content Suite, which enables

companies to integrate content within and across organizational boundaries, manage and deploy content to

any electronic touch point, and continually monitor and optimize the effectiveness of its online channel. And

V6 Content Extensions are extensions to the Vignette V6 Content Suite that enable advanced capabilities

l Process View

Delivering the right content to the right person at the right time is accomplished through proper execution

throughout the content management lifecycle. In general, a complete content management process contains

seven stages as follows:

Discovery: Perform initial project scoping and establish objectives, plans;

Analysis: Define the business and application requirements;

Design: Design the CM solution and technology infrastructure needed to satisfy the business requirements;

Construction: Collect data, create contents following the requirements;

Deployment: Implement applications based on the requirements and the design;

Support: System maintenance, project debriefing to gather lessons learned;

Update: License expires, version updates.

l System Interfaces

A CM system involves various users such as content editors, publishers, system administrators, and other

systems such as database, and so on. The following diagram describes such involvement. The corners

represent the interfaces. Editors can collect data from the database, and then produce the content based

on the business requirements and system design; then publishers can deliver the content either as online

web pages or as offline CDs, brochures, etc.; then system administrators or other analysis personnel can

gather the system performance information, optimize the content, and feedback to the database.

l IT Components

Here, IT components refer to the hardware and software used in the CM systems.

Hardware: Sun and Windows PC are mostly selected as DB server, Web server, and Application server;

Software: CM system requires various software support, including operation system, database, web server

platform, application server platform, and CM applications, etc. Examples are given in the diagram.

l Standards

CORBA is an OMG standard that enables interoperation cross operating system, programming language,

web format, database platform, and network. CORBA is useful for CM solutions, it can easily integrate

machines from different vendors. There are also many industry standards such as Java, XML, HTTP

protocols, etc., the details are described in the following diagram.

Comparison Table

To view the results of the comparison table, please click here.

Abbreviations

B2C Business to Consumer

B2B Business to Business

B2G Business to Government

CRM Customer Relations Management

FTP File Transfer Protocol

HTTP Hyper Text Transfer Protocol

TCP Transport Control Protocol

IP Internet Protocol

HTML Hyper Text Mark-up Language

XHTML eXtensible Hyper Text Markup Language

URL Uniform Resource Locator

WWW World Wide Web

XML eXtensible Markup Language

CORBA Common Object Request Broker Architecture

OMG Object Management Group

MS Microsoft

SQL Structured Query Language

Useful Links

Broad Vision: Content Management company.

http://www.broadvision.com/

FileNet: Content Management company.

http://www.filenet.com/

Technology Glossary

http://www.its.bldrdoc.gov/projects/telecomglossary2000

Interwoven: Content Management company.

http://www.interwoven.com/

Paper on Content Management by Documentum

http://www.documentum.com/products/collateral/platform/article_ecm_

Paper on Content Management by Interwoven

http://www.interwoven.com/news/press/2000/0222upsidepr.html

Paper on Content Management by Broad Vision

http://www.broadvision.com/content/products/whitepaper/contentMgmt_wp.pdf

Vignette Corporation: Content Management company.

http://www.vignette.com/

Google Search Engine

http://www.google.com/

Strategy Partners International

http://www.strategy-partners.com/

Glossary

Applet: A small, self-contained computer program that usually performs a task as part of, or under the control of, a larger software application. For example, most modern World Wide Web browsers are capable of making use of applets written in the Java programming language to perform simple tasks such as display animations or more complex tasks such as spreadsheet and database operations.

Source: http://www.vignette.com/

Application: A software program that carries out some useful task. Database managers, spreadsheets, communications packages, graphics programs and word processors are all applications.

Source: Camp, Jeffrey and Stephen Flynn "Internet Data Services: Glossary." Morgan Stanley Dean Witter August 11, 1999: 175-180.

Browser: A software program that generally resides on a user's computer and is used to view different aspects of the Internet.

Source: Camp, Jeffrey and Stephen Flynn "Internet Data Services: Glossary." Morgan Stanley Dean Witter August 11, 1999: 175-180.

Business to Consumer (B2C): Exchanges between businesses and consumers; e.g., Amazon.com, Yahoo.com, and Schwab.com.

Source: Rayport, Jeffrey F. and Bernard J. Jaworski. e-Commerce. New York: McGraw-Hill/Irwin, 2001.

Business to Business (B2B): The full spectrum of e-commerce that can occur between two organizations, including purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management, and service and support.

Source: Rayport, Jeffrey F. and Bernard J. Jaworski. e-Commerce. New York: McGraw-Hill/Irwin, 2001.

Channel: 1. A connection between initiating and terminating nodes of a circuit. 2. A single path provided by a transmission medium via either (a) physical separation, such as by multi pair cable or (b) electrical separation, such as by frequency- or time-division multiplexing. 3. A path for conveying electrical or electromagnetic signals, usually distinguished from other parallel paths. 4. Used in conjunction with a predetermined letter, number, or codeword to reference a specific radio frequency. 5. The portion of a storage medium, such as a track or a band, that is accessible to a given reading or writing station or head. 6. In a communications system, the part that connects a data source to a data sink. 7. A virtual area where Internet Relay Chat (IRC) users communicate (exchanging text messages) in real time. Note: There are thousands of channels located on the Internet. 8. An IRC conduit designated for the real-time exchange of text messages. 9. An electrical path suitable for the transmission of communications between two or more points, ordinarily between two or more stations or between channel terminations in Telecommunication Company central offices. A channel may be furnished by wire, fiber optics, radio or a combination thereof. 10. The portion of the electromagnetic spectrum assigned by the FCC for one emission. In certain circumstances, however, more than one emission may be transmitted on a channel.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

Content Analysis: The ability to provide actionable insight into the customer's relationship to a business.

Source: http://www.vignette.com/

Content Integration: The ability to integrate a variety of e-business applications within and across enterprises.

Source: http://www.vignette.com/

Content Management: The ability to provide actionable insight into the customer's relationship to a business.

Source: http://www.vignette.com/

Customer Relations Management (CRM): a business strategy intended to help companies acquire, retain, and service customers.

Source: Schneiderman, Nathan and Adrienne Yih. "The Emerging Face of Customer Relationship Management." Wedbush Morgan Securities Industry Report/September 2001.

Electronic-business (e-business): Any process that a business organization conducts over a computer-mediated network. Business organizations include any for-profit, governmental, or nonprofit entity. Their processes include production, customer, and internal or management focused business processes.

Source: http://www.ecommerce.gov/ecomnews/e-def/html

Electronic-mail (e-mail): Messages sent and received electronically via telecommunication links, such as between microcomputers or terminals.

Source: Rayport, Jeffrey F. and Bernard J. Jaworski. e-Commerce. New York: McGraw-Hill/Irwin, 2001.

Electronic-market (e-market): Web sites where buyers and sellers come together to communicate, share ideas, advertise, bid in auctions, conduct transactions, and coordinate inventory and fulfillment. e-markets may be structured "horizontally" to serve more generic economic functions for a wide array of industries. Alternatively, they may be structured "vertically" in the sense that they are channeled to serve specific industries (e.g., computing, life sciences, paper, chemical, and steel). e-markets may sometimes be referred to as liquid markets or trading exchanges.

Source: Sood, Rakesh, et al. "E-Commerce/Internet: B2B:2B or Not 2B?" Goldman Sachs Investment Research 12 Nov. 1999: 188-189.

Electronic-commerce (e-commerce): Transaction completed over a computer- mediated network that involves the transfer of ownership or rights to use goods or services. Transactions occur within selected e-business processes (e.g., selling process) and are "completed" when agreement is reached between the buyer and seller to transfer the ownership or rights to use goods or services. Completed transactions may have a zero price (e.g., a free software download).

Source: http://www.ecommerce.gov/ecomnews/e-def/html

File Transfer Protocol (FTP): A method for downloading and uploading files to and from an Internet site.

Source: Camp, Jeffrey and Stephen Flynn "Internet Data Services: Glossary." Morgan Stanley Dean Witter August 11, 1999: 175-180.

Hardware: 1.Physical equipment as opposed to programs, procedures, rules and associated documentation. 2.The generic term dealing with physical items as distinguished from its capability or function such as equipment, tools, implements, instruments, devices, sets, fittings, trimmings, assemblies, subassemblies, components, and parts. The term is often used in regard to the stage of development, as in the passage of a device or component from the design stage into the hardware stage as the finished object. 3.In data automation, the physical equipment or devices forming a computer and peripheral components.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

Hyper Text Transfer Protocol (HTTP): A protocol that allows HTML documents to be moved across the Internet.

Source: Camp, Jeffrey and Stephen Flynn "Internet Data Services: Glossary." Morgan Stanley Dean Witter August 11, 1999: 175-180.

Hyper Text Mark-up Language (HTML): A formatting language used to create pages on the WWW. A major feature allows documents to link to any other documents on the Web. Documents can be viewed through a browser that runs on your computer.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

Internet: A web of hundreds of thousands of computer networks, linked together primarily by telephone lines through which data can be carried around the world in seconds.

Source: Rayport, Jeffrey F. and Bernard J. Jaworski. e-Commerce. New York: McGraw-Hill/Irwin, 2001.

Intranet: Any private network that uses some or all of the protocols of The Internet. Note: In an intranet, nodes interact in a client-server relationship, nodes are identified by using Internet protocol (IP) addresses, and files are identified by universal resource locators (URLs). The data being exchanged are typically formatted using the HTML language, and is controlled and displayed using a browser. The intranet may be connected to The Internet via firewalls, or it may be totally separate.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

Network: 1.An interconnection of three or more communicating entities. 2.An interconnection of usually passive electronic components that performs a specific function (which is usually limited in scope), e.g., to simulate a transmission line or to perform a mathematical function such as integration or differentiation. Note: A network may be part of a larger circuit.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

On-line: 1.Pertaining to the operation of a functional unit when under the direct control of the system with which it is associated. Note 1: On-line units are available for immediate use on demand by the system without human intervention. Note 2: On-line units may not be independently operated. 2.Pertaining to equipment that is connected to a system, and is in operation. 3.In computer technology, the state or condition of a device or equipment that is under the direct control of another device. 4.In computer technology, the status of a device that is functional and ready for service. Also spelled "on line" and "online."

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

Platform: 1.The type of computer on which a given operating system or application runs. Synonym hardware platform. 2.The operating system in use on a given computer. Synonym operating system platform. 3.The application program in use on a given computer and operating system. Synonym application platform. Note 1: The term platform, usually with some kind of accompanying qualifying verbiage, may also be applied to any combination of the foregoing. Note 2: The term cross-platform may be used to characterize an application program or operating system that may be run on more than one platform.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

Port: A specific gateway into and/or out of a computer system. This term can apply to physical plugs, such as a printer or modem port. On the Internet, it specifically applies to programmed gateways that lead to specific features within computer systems.

Source: Camp, Jeffrey and Stephen Flynn "Internet Data Services: Glossary." Morgan Stanley Dean Witter August 11, 1999: 175-180.

Server: A computer or software program that controls the dissemination and movement of information.

Source: Camp, Jeffrey and Stephen Flynn "Internet Data Services: Glossary." Morgan Stanley Dean Witter August 11, 1999: 175-180.

Software: 1.A set of computer programs, procedures, and associated documentation concerned with the operation of a data processing system; e.g., compilers, library routines, manuals, and circuit diagrams. 2.Information (generally copyrightable) that may provide instructions for computers; data for documentation; and voice, video, and music for entertainment or education.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

Uniform Resource Locator (URL): Specifies a transmission protocol and an Internet identifying number.

Source: Rayport, Jeffrey F. and Bernard J. Jaworski. e-Commerce. New York: McGraw-Hill/Irwin, 2001.

Wireless: Descriptive of a network or terminal that uses electromagnetic waves (including rf, infrared, laser, visible light¨Cand acoustic energy) rather than wire conductors for telecommunications.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/

World Wide Web (WWW): A subset of the Internet that is accessible through the use of HTTP to link documents at various URLs that are composed in HTML.

Source: Rayport, Jeffrey F. and Bernard J. Jaworski. e-Commerce. New York: McGraw-Hill/Irwin, 2001.

eXtensible Markup Language (XML): A trimmed specification or version of the Standard Generalized Markup Language (SGML) that allows Web developers to create customized tags for additional functionality.

Source: http://www.itsbldrdoc.gov/projects/telecomglossary2000/