The Forrester Wave™: Omnichannel Order Management, Q3 2016 · PDF fileThe Forrester Wave™: Omnichannel Order Management, Q3 2016 The Nine OMS Providers That Matter Most For Omnichannel

The Forrester Wave™: Omnichannel Order Management, Q3 2016The Nine OMS Providers That Matter Most For Omnichannel Retail And How They Stack Up

by Brendan Witcher and Adam SilvermanJuly 12, 2016

For EBuSinESS & ChAnnEl StrAtEgy ProFESSionAlS

FORReSTeR.cOM

Key takeawaysIBM And Manhattan Associates Lead The PackForrester’s research uncovered a market in which iBM and Manhattan Associates lead the pack; oracle, radial, SAP hybris, Kibo, netSuite, and Aptos offer competitive options; and Jagged Peak qualifies as a solid contender in this space.

ecommerce Pros Are Looking For Vision, Innovation, And Optimization capabilitiesretail eBusiness pros are increasingly turning to oMS solution providers to act as strategic partners. Furthermore, they expect oMS partners to provide both tools and advice that give insights into best practices and program optimization.

Distributed Order Management, Associate Tools, And Reporting Are Key DifferentiatorsAs the basic functions of an oMS become table stakes, the vendors that will lead the pack are those that offer full-functioned, easy-to-use operational tools, packaged with robust reporting and analytics to maximize profitable omnichannel programs.

Why read this reportin Forrester’s 40-criteria evaluation of omnichannel order management (oMS) vendors, we identified the nine most significant software providers in the category — Aptos, iBM, Jagged Peak, Kibo, Manhattan Associates, netSuite, oracle, radial, and SAP hybris — and researched, analyzed, and scored each. this report details our findings about how well each vendor fulfills our criteria and where each stands in relation to one another to help eBusiness professionals select the right partner for their omnichannel order management needs.

2

6

10

16

© 2016 Forrester research, inc. opinions reflect judgment at the time and are subject to change. Forrester®, technographics®, Forrester Wave, roleView, techradar, and total Economic impact are trademarks of Forrester research, inc. All other trademarks are the property of their respective companies. unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

Forrester research, inc., 60 Acorn Park Drive, Cambridge, MA 02140 uSA+1 617-613-6000 | Fax: +1 617-613-5000 | forrester.com

table of Contents

Order Management Systems Rely On Four Pillars

today’s order Management Platforms Focus on improving Customer Experience

oMS Solves the omnichannel Deficiencies of traditional Commerce Systems

Omnichannel Order Management Evaluation Overview

Evaluated Vendors And inclusion Criteria

Vendor Profiles

leaders: iBM And Manhattan Associates

Strong Performers: oracle, radial, SAP hybris, Kibo, netSuite, And Aptos

Contender: Jagged Peak

other Vendors Worthy of Consideration

Supplemental Material

notes & resources

Forrester conducted product evaluations in Q2 2016 and interviewed nine vendor and user companies: Aptos, iBM, Jagged Peak, Kibo, Manhattan Associates, netSuite, oracle, radial, and SAP hybris.

related research Documents

2016 Commerce technology investment trends: omnichannel

Build A Profitable omnichannel Fulfillment Program

Mastering the Art of omnichannel retailing

For EBuSinESS & ChAnnEl StrAtEgy ProFESSionAlS

The Forrester Wave™: Omnichannel Order Management, Q3 2016The Nine OMS Providers That Matter Most For Omnichannel Retail And How They Stack Up

by Brendan Witcher and Adam Silvermanwith Fiona Swerdlow, rebecca Katz, and Meredith Cain

July 12, 2016

http://www.forrester.com/go?objectid=RES116885





http://www.forrester.com/go?objectid=BIO7744



For EBusinEss & ChannEl stratEgy ProFEssionals

The Forrester Wave™: Omnichannel Order Management, Q3 2016July 12, 2016

© 2016 Forrester research, inc. unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

2

The Nine OMS Providers That Matter Most For Omnichannel Retail And How They Stack Up

order Management Systems rely on Four Pillars

Customer expectations for “anytime, anywhere” order fulfillment are high: 25% of uS online adults feel that it’s “important” for a retailer to offer a “buy online, pick up in-store” (BoPiS) service, and 26% already have used the BoPiS fulfillment option.1 omnichannel merchants rely on their order management systems (oMSes) to orchestrate these complex order processing scenarios from the point of capture through the supply chain to the point of fulfillment. however, as omnichannel fulfillment offerings — such as ship-from-store and BoPiS — evolve and become more operationally demanding, vendors must tackle the challenge of continually innovating fast enough to keep up with their clients’ changing needs.2 in addition to managing order fulfillment, the omnichannel oMS is the central repository for order information for all touchpoints, including eCommerce, point of sale (PoS), and field sales staff.

Today’s Order Management Platforms Focus On Improving customer experience

the role of the oMS has pivoted significantly: rather than simply shuttling orders to legacy systems such as warehouse management systems (WMSes) and enterprise resource planning (ErP) systems, it now must orchestrate order fulfillment scenarios that allow customers to receive items more quickly and wherever they choose (see Figure 1). eBusiness professionals today are evaluating oMS vendors based on four key capabilities (see Figure 2):

› Distributed order management (DOM). the distributed order orchestration engine is the heart of an omnichannel oMS. it provides an interface for order consumption from disparate order capture systems, configurable order processing workflows, and intelligent order routing algorithms across all fulfillment centers. Furthermore, DoM must support processes that handle numerous edge-case order scenarios including recurring orders, pre-orders and back orders, partial shipments, drop shipments, digital or service items, and order splitting. it’s critically important that retailers be able to configure, modify, and optimize these capabilities via intuitive business user tools that support drag-and-drop workflow modeling, scenario testing, and optimization — all without requiring a developer to modify or write new code.

› enterprise inventory. the omnichannel oMS consolidates — often in real time — the available inventory from disparate WMS, PoS, and ErP systems into a single, enterprise view across selling channels. With that singular view, the merchant can determine if a product should be made available for sale — and if so, when and how it can be fulfilled. the oMS is the broker and trusted source of inventory data across the enterprise, but it is rarely the system of record for inventory positions. Within most enterprises, the WMS manages distribution center inventory, the PoS manages in-store inventory, and the ErP system manages supply chain inventory.

› customer service. leading oMS platforms today ship with well-developed tools designed for customer service representatives (CSrs) to manage order modifications and capture orders taken by phone. eCommerce platforms originally captured orders, but these solutions often lacked




3


functionality and workflow to effectively modify an order once it was created. Since the oMS has visibility into the entire life cycle of an order, it is often tasked with determining if, when, and how an order can be modified. Doing so may require the system to add or remove products from the order, perform price adjustments, recalculate tax, and accept additional payments or process refunds.

› Store fulfillment. unlike legacy PoS solutions, oMS tools are optimized for store fulfillment, which means they are often mobile-enabled, simple for associates to use, and give store managers control over orders being fulfilled at their stores. retailers and brands with physical locations need tools that enable their associates to efficiently fulfill orders from the store inventory, regardless of whether the order was captured online or in another store location. Most existing warehouse management solutions are ill-suited out of the box for deployment in a retail store environment. in addition, integrating and building custom workflows into existing legacy PoS platforms to support store fulfillment is time-consuming, inefficient, and costly.

FIGURe 1 Sales, Commerce, And Fulfillment Systems Are the highest Software Priority

52%

56%

53%

59%

Infrastructure and context technologies

“Which of the following initiatives are likely to be your organization’s top softwarepriorities over the next 12 months?”

(Percentage selecting high priority or critical priority)

Base: 560 North American software decision-makers whose �rmssell to consumers (500+ employees)

Source: Forrester’s Global Business Technographics® Software Survey, 2015

Aggregation technologies

Interaction technologies

Product innovation solutions

Customer service solutions

Enterprise marketing solutions

Digital delivery technologies

Sales, commerce, and ful�llment solutions

59%

53%

53%

55%




4


FIGURe 2 An omnichannel oMS Provides Four Distinct Pillars of Functionality

Business work�owDrop shipping

Order orchestrationOrder state, event, and exception mgmt.

Payment processingPresale and back orders

Recurring ordersReturns management

Split and partial shipments

Fraud managementOrder cancellation

Order captureOrder escalation work�ow

Order lookupOrder modi�cation

Payment processingRefunds and credits

Buy online, pick up in-storePick, pack, and ful�llment

Ship-from-storeShip-to-store

Ability to promise (ATP)Distribution centersDrop-ship vendorsInventory allocationStoresSupply chain visibility

Distributed ordermanagement

Customer service

Store ful�llment

Enterp

rise inventory

OMS Solves The Omnichannel Deficiencies Of Traditional commerce Systems

today, the oMS plays a critical role within three of the six customer life cycle phases (explore, buy, and use), making it a key technology enabler for eBusiness pros as they focus on customer experience before, during, and after purchase (see Figure 3). the modern oMS is the central repository for inventory and orders. it does the heavy lifting to orchestrate all orders across the enterprise, while providing only the relevant information needed for each of the eCommerce and PoS systems to operate efficiently (see Figure 4). traditionally, eCommerce and PoS systems have served their respective channels with little focus on supporting cross-channel inventory, order, and return processes. But custom integrations of these systems often created issues in negotiating inventory in real time, a function that historically neither system had to consider.




5


FIGURe 3 understanding the role of oMS through the Customer life Cycle

Phases in the OMS life cycle Key capabilities provided by OMS during each phase

• Real-time visibility of store inventory• Store pickup and ship-to-store availability rules• Single view of all enterprise inventory• Available to promise (pre-orders, back orders)• Delivery estimates• Order splitting rules

• Tax calculation• Fraud screening• Payment authorization

• Order status workow• Exception management• Inventory allocation• Order routing optimization (stores, drop shippers, DCs)• Order splitting optimization

• Store pick/pack• Store pickup• Carrier integration (for store-ful�lled orders)• Drop-ship integration

• Single view of orders across the enterprise• Order modi�cations• Order cancellations

• Cross-channel returns• Payment refunds• Exchange management

Reverse logistics

Product availability

Order capture

Order orchestration

Ful�llment

Customer service

EXPLORE

USE

ASK

ENGAGE DISCOVER

BUY

Product availability

Order capture

Order orchestrationFul�llment

Customer service

Reverse logistics




6


FIGURe 4 oMS lies At the heart of An omnichannel Commerce Architecture

Branded digital touchpoints Traditional touchpoints

Commerce APIs

Commerce platform

Personalization Merchandising

Site search Pricing

PIM/product catalog

Order management

Distributed ordermanagement

Customer service

Store ful�llment

Enterp

riseinventory

3PL/drop ship

Distributioncenters

Retailstores

Supplychain

Inventory/fulfillment locations

Enterprise back-office systems

ERP/supply chain

CRM/loyalty

Businessintelligence

POS/merchandising

Stores Contact center

Experience management/WCM

Kiosk Web Mobile Tablet

omnichannel order Management Evaluation overview

to assess the state of the omnichannel oMS market and determine how the vendors compare, Forrester evaluated the strengths and weaknesses of nine top oMS vendors. After examining past research, user need assessments, and vendor and expert interviews, we developed a comprehensive set of evaluation criteria. We evaluated vendors along 40 criteria, which we grouped into three high-level categories:

› current offering. We evaluated each offering against eight core groups of criteria: solution architecture, inbound order channels, enterprise inventory management, customer service, DoM, store fulfillment, reporting and analytics, and professional services. Commerce executives have told us that these are the critical requirements when they invest in a next-generation order management platform. Combined, these criteria provide a detailed look at the breadth and depth of capabilities from each vendor. We encourage clients to reweight these criteria in the model to more closely match their specific requirements. to complete this section, Forrester used a combination of vendor evaluation responses, documentation, demonstrations, pricing scenarios, and customer references.




7


› Strategy. Forrester evaluated strategy based on planned enhancements, strategic vision, focus on oMS innovation, and cost of ownership. A vendor’s position on the horizontal axis indicates the strength of its go-to-market strategy. to complete this section, we compared the strategies of each company with the needs of retailers, industry trends, and Forrester’s forward-looking vision of the oMS market to assess how well each vendor is positioned for future success. other key inputs included vendor evaluation responses, documentation, vendor strategy briefings, demos, and customer references. Finally, we examined each vendor’s road map, planned enhancements, target markets, key technology partners, channel strategies, ease of integration with other systems, and typical deployment time frames.

› Market presence. Many retailers today support their current order management processes with home-grown technology or legacy solutions that vendors no longer support. Working with their supply chain and it counterparts, eBusiness executives must partner with vendors that have a strong and stable installed base, demonstrate steady growth, and present an established and integrated network of partners and resellers. to determine the current market presence for our evaluation, we combined information about each vendor’s installed base, new customers, revenue, revenue growth, and financial resources to support a stated order-management-focused product and market strategy.

evaluated Vendors And Inclusion criteria

in this Forrester Wave™, we evaluated vendors that are able to package and sell an omnichannel oMS either as a standalone capability or as an add-on module to an existing eCommerce, PoS, or ErP platform. Forrester included nine vendors in the assessment: iBM, Manhattan Associates, oracle, radial, SAP hybris, Kibo, netSuite, Aptos, and Jagged Peak. Many eCommerce, PoS, and ErP platform vendors support post-order submission management, but these nine vendors address specific, critical omnichannel order capture and distributed order management scenarios. Specifically, each of these vendors has demonstrated (see Figure 5):

› A product that supports complex omnichannel order orchestration scenarios. these vendors have time-tested, mature, out-of-the-box capabilities that support complex and configurable end-to-end order life-cycle management across channels and between fulfillment hubs. Capabilities include but are not limited to inventory management, order capture, order modification, and order orchestration workflow.

› A focus on retail and wholesale verticals. Beyond the ability to support order orchestration in a single channel, these vendors richly support both retail and wholesale omnichannel retailers. these vendors have capabilities to manage the life cycle of an order across online and offline (brick-and-mortar) locations.




8


› A track record of supporting omnichannel order management at enterprise companies. Vendors in this category have proved that they are deployed at numerous enterprise-class organizations, have the scale to serve large customer accounts, support complex order orchestration and fulfillment channels across channels, and possess a deep understanding of the order management needs of their clients.

› Mindshare among the Forrester client base. We evaluated vendors that Forrester clients have frequently and consistently mentioned during inquiries, shortlists, consulting projects, and case studies over the past year.

› A minimum of $15 million in annual OMS revenue. to be included in this Forrester Wave, vendors had to have a proven product and state that they generate $15 million or more in annual revenue that they could reasonably attribute to their oMS offering specifically.

Forrester did not include companies in this assessment with a primary focus on other related market segments, such as:

› eRP solutions. today, ErP platforms are ill-equipped to manage omnichannel orders that must transcend online and offline channels. ErP solutions commonly offer sophisticated order management modules with strong support for orchestrating orders from capture through fulfillment. however, these solutions are typically used by manufacturing firms that must manage bills of materials (BoMs), suppliers, manufacturing facility constraints, logistics, and supply chain issues.

› Midmarket-focused solutions. Forrester also identified several smaller vendors that are successfully serving this space, including Demandware, Freestyle Solutions, Magento, and orderDynamics. however, these vendors have primarily served small to midmarket companies (or divisions within larger companies), have smaller installed bases, or have less mature offerings.

› Standalone ecommerce and POS platforms. Most eCommerce and PoS solutions in the market have basic order management capabilities that support simple fulfillment scenarios within a single channel. While these solutions may be adequate for clients with a single pool of inventory serving only a single channel, they are ill-equipped to manage complex fulfillment scenarios involving pooled inventory locations, complex order fulfillment life cycles, drop shipping, and the operational complexities of store-based order fulfillment.




9


FIGURe 5 Evaluated Vendors: Product information And Selection Criteria

Vendor

Aptos

IBM

Jagged Peak

Kibo

Manhattan Associates

NetSuite

Oracle

Radial

SAP Hybris

Product evaluated Version

Aptos Enterprise Order Management

IBM Order Management

Edge Order Management Solution

Kibo Order Management

Enterprise Order Management, Store Inventory & Ful llment

NetSuite Order Management

Oracle Retail OMS Cloud Service, Order Broker Cloud Service, XStore POS

Omnichannel Technology

SAP Hybris Commerce Suite

2016

9.4

6i.15.5

N/A

2016

16.1

N/A

N/A

5.7

Vendor selection criteria

A product that supports complex omnichannel order orchestration scenarios. These vendors have time-tested, mature, out-of-the-box capabilities that support complex and con gurable end-to-end order life-cycle management across channels and between ful llment hubs. Capabilities include (but are not limited to) inventory management, order capture, order modi cation, and order orchestration work�ow.

A focus on retail and wholesale verticals. Beyond the ability to support order orchestration in a single channel, these vendors richly support both retail and wholesale omnichannel retailers. These vendors have capabilities to manage the life cycle of an order across online and of�ine (brick-and-mortar) locations.

A track record of supporting omnichannel order management at enterprise companies. Vendors in this category have proven that they are deployed at numerous enterprise-class organizations, have the scale to serve large customer accounts, support complex order orchestration and ful llment channels across channels, and possess a deep understanding of the order management needs of their clients.

Mindshare among the Forrester client base. We evaluated vendors that Forrester clients have frequently and consistently mentioned during inquiries, shortlists, consulting projects, and case studies over the past year.

A minimum of $15 million in annual OMS revenue. To be included in this Forrester Wave, vendors had to have a proven product and state that they generate $15 million or more in annual revenue that they could reasonably attribute to their OMS offering speci cally.




10


Vendor Profiles

this oMS market evaluation is intended as a starting point only. We encourage clients to view detailed product evaluations and adapt criteria weightings to fit their individual needs through the Forrester Wave Excel-based vendor comparison tool (see Figure 6). Clients can also schedule an inquiry with the authors of this report to discuss market trends and specific vendor products. to further enable successful omnichannel programs, clients should also read Forrester’s omnichannel commerce playbook, which provides complementary information and additional strategic insights into how an oMS enables critical omnichannel commerce capabilities.3

FIGURe 6 Forrester Wave™: omnichannel order Management, Q3 ’16

Challengers Contenders LeadersStrong

Performers

StrategyWeak Strong

Currentoffering

Weak

Strong

Go to Forrester.com to

download the Forrester

Wave tool for more

detailed product

evaluations, feature

comparisons, and

customizable rankings.Aptos

Radial

SAP Hybris

IBM

Jagged Peak

Kibo

Manhattan Associates

NetSuite

Oracle

Market presence




11


FIGURe 6 Forrester Wave™: omnichannel order Management, Q3 ’16 (Cont.)

Leaders: IBM And Manhattan Associates

› IBM. iBM’s solution is a leader in our evaluation, offering well-developed tools that drive inventory visibility, order promising, distributed order management, and call center support. it also supports store associate applications that enable omnichannel commerce both online and in the store. the iBM order Management system powers many Fortune 100 organizations across a wide variety of industries. the extensive feature set allows for many configuration scenarios and scales to support the demands of large enterprises, although midmarket clients may not need the more complex components of the solution. iBM has made significant investments in the order Management suite over the past few years, and client reference calls revealed that iBM is seen as a leading innovator in this space. the company also excels at communicating its vision and planned enhancements to clients. reporting and analytics tools that optimize omnichannel were limited, but iBM has recently

Ap

tos

Rad

ial

SA

P H

ybris

IBM

Jagg

ed P

eak

Kib

o

Man

hatt

an A

ssoc

iat e

s

Net

Sui

te

CURRENT OFFERING Solution architecture Inbound order channels Enterprise inventory management Customer service Distributed order management Store ful�llment Reporting and analytics Professional services

STRATEGY Product strategy Corporate strategy Cost

MARKET PRESENCE Installed base for this product Revenue New customers and retention

2.982.904.002.203.003.063.003.003.00

2.503.002.003.50

2.654.001.003.00

Forr

este

r’sW

eigh

ting

50%10%10%15%10%20%20%10%5%

50%50%50%0%

0%33%34%33%

3.913.804.004.103.403.963.804.004.50

2.252.502.004.50

3.684.005.002.00

2.853.155.001.603.002.632.353.004.00

3.004.002.003.00

3.655.002.004.00

4.325.005.004.604.204.304.103.004.50

4.504.005.003.00

4.345.005.003.00

2.522.753.002.302.202.142.254.002.00

2.503.002.004.00

3.665.003.003.00

2.783.254.002.003.002.663.351.003.00

3.003.003.004.50

3.645.001.005.00

4.424.455.005.004.204.004.754.003.00

4.004.004.002.50

4.014.005.003.00

2.753.104.001.603.402.962.203.002.50

2.752.503.001.50

3.645.001.005.00

Ora

cle

3.233.204.003.203.803.112.903.003.00

3.003.003.003.50

2.663.002.003.00

All scores are based on a scale of 0 (weak) to 5 (strong).




12


launched a companion (though separately sold) product to fill this gap, the order Management insights & optimizer. Business leaders who want to get the most out of their omnichannel programs should review this tool for a fit with their needs.

› Manhattan Associates. Manhattan Associates has integrated core order management capabilities into a seamless interface that clearly addresses the needs of individual business constituents, including oMS administrators, contact center representatives, and store associates who fulfill orders from stores. Building on its 12-year investment to date in this part of its portfolio, the company’s endless-aisle and store-fulfillment capabilities are a key differentiator, further bolstered by its global Bay acquisition in 2014. order capture, order pick and task management, ship-from-store, and ship-to-store/location support stand out. the solution has proven scalable to meet the needs of top-tier retail clients. Client reference calls showed that Manhattan Associates was doing an excellent job of communicating its vision and planned enhancements for its solution. While Manhattan Associates generally leads the design and teaches its customers how to configure the application, its proprietary code base and the limited supply of engineers with development experience can make it challenging for organizations to find engineers to maintain and configure the application.

Strong Performers: Oracle, Radial, SAP Hybris, Kibo, NetSuite, And Aptos

› Oracle. oracle serves both enterprise and midmarket players with a respectable omnichannel oMS solution. After acquiring the Micros order management and PoS solutions (along with other commerce assets) in 2014, oracle has focused on integrating into its commerce suite the order orchestration engine order Broker (formerly Micros locate), the oMS (formerly Micros Serenade), and the XStore PoS. going forward, the company will focus on its cloud-based offering, moving away from on-premises instances. oracle brings to the table some best-of-breed capabilities with respect to APis, integration, inventory segmentation, and the ability to take remedial actions. however, the product overall lacks maturity within parts of the tools — specifically around deep functionality for order orchestration rules. Client reference calls revealed that oracle’s strategy for oMS innovation is on the right track, but its vision and planned enhancements for oMS somewhat lag client needs.

› Radial. given its Sterling roots, it is no surprise that the radial oMS solution ranks close to a leader for capabilities. Formerly eBay Enterprise, radial’s order management pedigree originated with gSi Commerce and now offers an oMS with modular store fulfillment capabilities. the core oMS is based on version 9.0 of iBM Sterling Commerce, while the modular suite of store fulfillment solutions (ship-from-store, in-store-pickup, ship-to-store) leverages capabilities from the 2010 acquisition of Vendornet. radial has also layered on an impressive configuration interface, which allows new clients to set up the system by completing a guided form. the solution excels also in store fulfillment, offering best of breed for most capabilities. however, as part of the divestiture from eBay Enterprise, radial lost the strong endless-aisle and clienteling capabilities found in the former retail Associate Platform. From a strategic perspective, radial lags the leaders in areas of




13


focus, investment, and innovation and lacks a strong network of key technology partners. Client references noted their satisfaction with the oMS itself but felt that radial approached the market as a solution provider, rather than as a full strategic partner.

› SAP Hybris. Bundled with its eCommerce platform, the SAP hybris oMS is a good candidate for B2C and B2B hybris commerce platform customers who value a close integration with the commerce application. this oMS is highly customizable, and clients noted that they can tailor the solution by tapping the company’s extensive partner network and strong implementation and support services. overall, however, the out-of-the-box SAP hybris oMS is not developed enough to qualify as a leader. the solution often requires additional customization to enable some basic functionality that comes standard in other solutions. in addition, DoM administration functionality, and store fulfillment business utilities in particular, are not best in class. Clients shared that SAP hybris seems to have a reasonable road map for its oMS product, and the company continues to have a strong set of key technology partners. however, the company’s innovation in this space lags companies that are investing and focusing more to build out their offerings.

› Kibo. the Kibo solution can be a good fit for midmarket retailers or enterprise retailers seeking to roll out cost-effective ship-from-store or store-pickup capabilities. Kibo was formed in January 2016 after Vista Equity Partners acquired oMS vendor Shopatron, eCommerce platform provider Marketlive, and mobile point-of-sale vendor Fiverun. the oMS solution can still be used as a standalone offering and is only offered as a multitenant software-as-a-service (SaaS) platform, providing regular product updates for all clients. the platform is especially effective at supporting store fulfillment scenarios and can be installed quickly, allowing for rapid time-to-market. however, Kibo still has a way to go in delivering strong DoM capabilities, as it lacks hearty functionality around order orchestration rules. in addition, Kibo’s implementation partner ecosystem is nascent, so most clients will need to use Kibo’s own professional services for implementation. From a strategy perspective, client references showed that Kibo was seen as a good partner for the midmarket retailer, with a healthy vision for the future and a good offering of key technology partners. however, its pace of oMS innovation did not meet some clients’ expectations.

› NetSuite. the netSuite order Management solution is a good fit for midmarket clients that have complex online fulfillment scenarios such as drop-ship relationships and multiple web distribution centers, but it is not currently best in class for those retailers that want to launch significant omnichannel fulfillment programs in stores. the solution is a multitenant SaaS solution that is tightly integrated with the netSuite suite, offering order management capabilities to retailers, distributors, and manufacturers. netSuite acquired orderMotion in 2013, but these solutions remain separate offerings today, as orderMotion (renamed netSuite oMX) primarily targets direct marketers needing support for continuity programs. the netSuite order Management solution provides robust functionality for capabilities like state and event management, special order types, and international orders. the solution also offers effective contact center capabilities, but it lacks any effective support for store-based order fulfillment (although capabilities are coming in an upcoming release).




14


› Aptos. the exclusively cloud-based solution targets midmarket B2B and B2C companies and provides a commerce suite along with distributed order management capabilities for retail and brands. Aptos was created as a spinoff from Epicor’s retail business solutions in 2015, following the latter’s earlier acquisition of ShopVisible, which offered both an eCommerce platform with integrated oMS capabilities and a standalone oMS offering (ShopVisible oMS). the oMS solution can still be used as a standalone product and is a solid all-around offering for the midmarket retailer or brand. in addition, the company is still maturing after the spinoff from Epicor, and the firm’s strategy isn’t yet clear to some of the clients we spoke with. the firm will need to capitalize on becoming an independent company by picking up the pace of innovation to stay competitive and find ways to differentiate its oMS offering going forward.

contender: Jagged Peak

› Jagged Peak. the Edge oMS offers on-premises, hosted, and SaaS solutions that allow clients to rapidly deploy their order management solutions at a reasonable cost compared with other oMS vendors in this evaluation. Acquired by Singapore Post in late 2015, Jagged Peak offers a capable midmarket full-service commerce solution, including a standalone oMS for luxury and branded manufacturers. the acquisition gives Jagged Peak more exposure to international markets and more support for services to its uS clients. its reporting and analytics tools are notable and give insights into omnichannel optimization that most other solutions to date have yet to deliver. By contrast, the oMS offers very little customization and is not as configurable as other solutions evaluated, particularly for most DoM capabilities, inventory segmentation, and store fulfillment automation. in addition, the lack of an extensive partner network means clients must rely on Jagged Peak to implement, maintain, and customize the application.

Other Vendors Worthy Of consideration

the oMS market is ballooning, and the landscape of vendors offering viable order management is becoming more diverse. Both eCommerce and PoS vendors are spreading their wings to support alternative channels and are directing r&D investment to ensure that they support omnichannel order fulfillment scenarios. Many vendors in this space did not qualify for the Forrester Wave, in some cases simply because they have not matured enough to meet criteria such as total annual oMS revenue. Beyond the vendors featured in this research, eBusiness professionals may also consider solutions from the following vendors:

› Demandware. offering a strictly cloud-based commerce platform for midmarket to large enterprise customers, Demandware provides oMS exclusively within its commerce suite as part of its go-to-market strategy of offering clients a unified commerce platform across web and stores, rather than a set of standalone products. in January 2014, the company acquired a long-standing oMS technology partner, Mainstreet Commerce, to offer oMS as a core platform capability. like Demandware, Mainstreet was a fully multitenant SaaS platform, and the integration architecture between the two solutions already existed. the company is folding these new oMS capabilities




15


into Demandware’s Commerce Cloud platform. in June 2016, Salesforce announced that it was acquiring Demandware. it is too early to tell if this acquisition will have a material impact on the investment in Demandware’s oMS solution going forward.

› Freestyle Solutions. With a long history of focusing on oMS technology, Freestyle Solutions offers midsize businesses good solutions to meet many of their omnichannel needs: More than 2,000 clients currently run this software. Freestyle Solutions offers two standalone oMS software solutions: Freestyle omnichannel Management Service (oMS) and Freestyle Multichannel order Manager (MoM). Freestyle oMS is a cloud-based order and inventory management system that connects a retailer’s eCommerce platform with its sales channels, shipping providers, and accounting software. Freestyle MoM is a comprehensive order and inventory management system that is available both as on-premises software and as a hosted solution.

› Magento. looking to quickly take advantage of its independence from eBay Enterprise, Magento has been working hard to further advance its oMS offering, Magento Commerce order Management (MCoM). MCoM is available as a standalone, multi-tenant SaaS solution hosted exclusively on a Magento private cloud infrastructure. the company currently has live MCoM deployments with the Magento Digital Commerce platform as well as a few other enterprise commerce solutions. For those familiar and comfortable with Magento’s commerce offering, this oMS solution is worth considering to enable omnichannel capabilities. Additionally, the solution allows store associates to take orders and assist customers in-aisle, along with facilitating order fulfillment for omnichannel orders.

› OrderDynamics. orderDynamics provides a SaaS oMS that targets midmarket and enterprise-level multichannel retailers. the firm offers a solution for fulfilling orders from both online and store locations, as well as complementary modules for eCommerce and a mobile point-of-service application for store fulfillment. this may be particularly attractive for midmarket retailers looking for an integrated end-to-end solution. Furthermore, it offers prebuilt integrations with popular enterprise eCommerce, PoS, and WMS platforms, which can reduce implementation time frames. Clients may choose to use orderDynamics’ professional services for implementation or work with third-party system integrator partners. Based in Canada and the uK, the firm has been expanding its international reach and its efforts to focus on upper midmarket and enterprise accounts.




16


Supplemental Material

Survey Methodology

Forrester’s global Business technographics® Software Survey, 2015, was fielded to 3,651 business and technology decision-makers from companies with two or more employees located in Australia, Brazil, Canada, China, France, germany, india, new Zealand, the uK, and the uS. this survey is part of Forrester’s Business technographics and was fielded from July 2015 to August 2015. researchnow fielded this survey on behalf of Forrester. Survey respondent incentives include points redeemable for gift certificates. We have provided exact sample sizes in this report on a question-by-question basis.

Forrester’s Business technographics provides demand-side insight into the priorities, investments, and customer journeys of business and technology decision-makers and the workforce across the globe. Forrester collects data insights from qualified respondents in 10 countries spanning the Americas, Europe, and Asia. Business technographics uses only superior data sources and advanced data-cleaning techniques to ensure the highest data quality.

Online Resource

the online version of Figure 2 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings.

Engage With An Analyst

gain greater confidence in your decisions by working with Forrester thought leaders to apply our research to your specific business and technology initiatives.

Analyst Inquiry

Ask a question related to our research; a Forrester analyst will help you put it into practice and take the next step. Schedule a 30-minute phone session with the analyst or opt for a response via email.

learn more about inquiry, including tips for getting the most out of your discussion.

Analyst Advisory

Put research into practice with in-depth analysis of your specific business and technology challenges. Engagements include custom advisory calls, strategy days, workshops, speeches, and webinars.

learn about interactive advisory sessions and how we can support your initiatives.

http://forr.com/1einFan

http://www.forrester.com/Analyst-Advisory/-/E-MPL172




17


Data Sources Used In This Forrester Wave

Forrester used a combination of data sources to assess the strengths and weaknesses of each solution. We evaluated the vendors participating in this Forrester Wave, in part, using materials that they provided to us by June 15, 2016.

› Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation criteria. once we analyzed the completed vendor surveys, we conducted vendor calls where necessary to gather details of vendor qualifications.

› Product demos. We asked vendors to conduct demonstrations of their products’ functionality. We used findings from these product demos to validate details of each vendor’s product capabilities.

› customer reference calls. to validate product and vendor qualifications, Forrester also conducted reference calls with three of each vendor’s current customers.

The Forrester Wave Methodology

We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. From that initial pool of vendors, we then narrow our final list. We choose these vendors based on: 1) product fit; 2) customer success; and 3) Forrester client demand. We eliminate vendors that have limited customer references and products that don’t fit the scope of our evaluation.

After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. to evaluate the vendors and their products against our set of criteria, we gather details of product qualifications through a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies.

We set default weightings to reflect our analysis of the needs of large user companies — and/or other scenarios as outlined in the Forrester Wave evaluation — and then score the vendors based on a clearly defined scale. We intend these default weightings to serve only as a starting point and encourage readers to adapt the weightings to fit their individual needs through the Excel-based tool. the final scores generate the graphical depiction of the market based on current offering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. For more information on the methodology that every Forrester Wave follows, go to http://www.forrester.com/marketing/policies/forrester-wave-methodology.html.

Integrity Policy

We conduct all our research, including Forrester Wave evaluations, in accordance with our integrity Policy. For more information, go to http://www.forrester.com/marketing/policies/integrity-policy.html.




18


Endnotes1 Source: Forrester’s north American Consumer technographics retail online Benchmark recontact Survey, 2015.

2 today, 15% to 20% of retailers have some form of omnichannel fulfillment capability. We expect that number to double capabilities like “buy online, ship to store” and “buy online, pick up in-store” in the next 12 months. to read more about the expected growth in omnichannel offerings, see the “2016 Commerce technology investment trends: omnichannel” Forrester report.

3 For an in-depth understanding of discovering, planning, launching, and optimizing omnichannel capabilities, please see the “Mastering the Art of omnichannel retailing” Forrester report.




We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

Products and services

› core research and tools › data and analytics › Peer collaboration › analyst engagement › consulting › events

Forrester research (nasdaq: Forr) is one of the most influential research and advisory firms in the world. We work with business and technology leaders to develop customer-obsessed strategies that drive growth. through proprietary research, data, custom consulting, exclusive executive peer groups, and events, the Forrester experience is about a singular and powerful purpose: to challenge the thinking of our clients to help them lead change in their organizations. For more information, visit forrester.com.

client suPPort

For information on hard-copy or electronic reprints, please contact client support at +1 866-367-7378, +1 617-613-5730, or [email protected]. We offer quantity discounts and special pricing for academic and nonprofit institutions.

Forrester’s research and insights are tailored to your role and critical business initiatives.

roles We serve

Marketing & Strategy ProfessionalscMoB2B MarketingB2c Marketingcustomer experiencecustomer insights

› eBusiness & channel strategy

Technology Management Professionalscioapplication development & deliveryenterprise architectureinfrastructure & operationssecurity & risksourcing & vendor Management

Technology Industry Professionalsanalyst relations

126988