INPUT Definition of Terms

82 Pages·1996·3.7 MB·English

INPUT
Terms and Definitions
1997
INPUT
TERMSANDDEFINITIONS
Publishedby
INPUT
1881LandingsDrive
MountainView,CA 94043-0848
UnitedStatesofAmerica
InformationServicesMarketAnalysisProgram
INPUTTermsandDefinitions
Copyright©1997byINPUT.Allrightsreserved.
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1997
DEFINITIONOFTERMS INPUT
Table of Contents
A
Introduction
B. OverallDefinitionsandAnalyticalFramework 1
1. InformationServices
2. MarketForecasts/UserExpenditures 3
3. Product/ServiceCategories ^
^
4. MarketSectors
5. TradingCommunities ^
6. TheInternet ^
C. Product/ServiceCategoriesandSubcategories 5
1. SoftwaiBProducts
a. SystemsSoftwareProducts
b. ApplicationsSoftwareProducts 9
2. TurnkeySystems ^
3. ProcessingServices
12
4. Outsoui-cing
5. SystemsIntegration(SI)
6. ProfessionalSei-vioes 1^'7
7. NetworkServices ^
8. EquipmentServices
D. ComputerEquipment 9^1
E. SectorDefinitions ^
1. IndustrySectorDefinitions
2. Cioss-IndustiySectorDefinitions 26
a. Accounting
b. HumanResources 26
c. EducationandTraining 27
d. OfficeSystems 27
e. Engineerii^andScientific 29
£ Plannir^andAnalysis 29
g. SalesandMarketing 29
3. Produd/Sei-viceCategoryRepoi-tingbySector 30
l^l^pg ©1996byINPUTReproductionProhibited
DEFINITIONOFTERMS INPUT
Exhibits
-1 InformationServioesIndustryStructure 6
-2 SystemsSoftwareProductsMarketStructure 8
-3 ApplicationProductsandTurnkeySystemsMarketStructure 10
-4 TheCustomizationSpectrum 11
-5 ProcessingServicesMarketStructure 12
-6 OutsourcingComponents 13
-7 ProductsandServioesIncludedinSystemsIntegrationProjects 16
-8 ProfessionalServioesMarketStructure 17
-9 NetworkServicesMarketSti-ucture 19
-10 IndustrySectorDefinitions 23
-11 Product/ServiceCategoryversusMarketSectorFormistContent 31
ii O1996byINPUTReproductionProhibited, MMDS
DEFINITIONOFTERMS INPUT
Definition of Terms
Introduction
INPUT'SDefinitionofTermsprovidestheframeworkforallofINPUT'S
marketanalysesandforecastsoftheinformationservicesindustry. Itis
usedforaUU.S.programs,inEurope,andforINPUT'sworldwideforecasts.
TheinformationservicesindustrystructureisdiagrammedinExhibit1.
Ooictfhnsateihnneogdfeuustnshtdaereryresltsmyrtaierndnugegct,tmhuatsrrheoekfayeIntadNrsPemiUzacTiakn'regSesfamuncladlhryakfnodegroteeccsauanmisafteltnydhstaeiteysad.asareEnervadricecthqehuseyieirnsaeerdtw.hIedNWecPhfoiUnensTniitsirtoeenvnsiceyws
andforecastsreconciledtothepriordefinitionsandforecasts. INPUTclients
havethebenefitofbeingabletotrackmarketforecastdatafromyeartoyear
againstaprovenandconsistentfoundationofdefinitions.
B
OverallDefinitionsandAnalyticalFramework
1. InformationServices
InformationServicesarecomputer/telecommunications-relatedproductsand
servicesthatareorientedtowardthedevelopmentoruseofinformation
systems. Informationservicestypicallyinvolveoneormoreofthefollowing:
• Packagedsoftwareproducts,includingsystemssoftwareorappUcations
software(calledSoftwareProducts)
• Acombinationofcomputerequipment,packagedsoftwareandassociated
supportservicesthatwillmeetanapplicationsystemsneed(called
TurnkeySystems)
• Peopleservicesthatsupportusersindevelopingandoperatingtheirown
informationsystems(calledProfessionalServices)
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DEFINITIONOFTERMS INPUT
• Acombinationofproducts(softwareandequipment)andservicesin
whichthevendorassumestotalresponsibihtyforthedevelopmentofa
customintegratedsolution,orpartofasolution,toaninformation
systemsneed(calledSyste?nsIntegration)
• Servicesthatprovideoperationandmanagementofallorasignificant
partofauser'sinformationsystemsortelecommunicationsfunctions
underalong-termcontract(calledOutsourcing)
• Useofvendor-providedcomputerprocessingservicestodeveloporrun
apphcationsorprovideservicessuchasdisasterrecoveryordataentry
(calledProcessingServices)
• NetworkServiceshastwocomponents:
- Servicesthatsupportthedehveryofinformationinelectronicform-
typicallynetwork-orientedservicessuchasvalue-addednetworksand
electronicmail(calledNetworkApplications)
- Servicesthatsupporttheaccessanduseofpubhcandproprietary
informationsuchason-hnedatabasesandnewsservices(called
ElectronicInformationServices)
• Servicesthatsupporttheoperationandmaintenanceofcomputerand
digitalcommunicationequipment(calledEquipmentServices)
Ingeneral,themarketforinformationservicesdoesnotinvolveproviding
equipmenttousers. Theexceptioniswhentheequipmentispartofan
overallserviceofferingsuchasaturnkeysystem,anoutsourcingcontract,or
asystemsintegrationproject.
Theinformationservicesmarketalsoexcludespuredatatransportservices
(i.e.,dataorvoicecommunicationscircuitssuchasT-1carriers). However,
whereinformationtransportisassociatedwithanetwork-basedservice(e.g.,
electronicdatainterchangeservices),orcannotfeasiblybeseparatedfrom
otherbundledservices(e.g.,someoutsourcingcontracts),thetransportcosts
areincludedaspartoftheinformationservicesmarket.
Theanalyticalframeworkoftheinformationservicesindustryconsistsofthe
followinginteractingfactors:overallandindustry-specificbusiness
environment(trends,eventsandissues);technologyenvironment;user
informationsystemrequirements;sizeandstructureofinformationservices
markets;vendorsandtheirproducts,servicesandrevenues;distribution
channels;andcompetitiveissues.
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DEFINITIONOFTERMS INPUT
2. MarketForecasts/UserExpenditures
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fromtheuser'sviewpoint-thatis,expendituresarecategorizedaccordingto
whatusersperceivetheyarebuying.
Byfocusingonuserexpenditures,INPUTavoidstwoproblemsthatare
relatedtothedistributionchannelsforvariouscategoriesofservices:
• Doublecounting,whichcanoccurbyestimatingtotalvendorrevenues
whenthereissignificantreseUingwithintheindustry(e.g.,software
salestoturnkeyvendorsforrepackagingandresaletoendusers)
. Missedcounting,whichcanoccurwhensalestoendusersgothrough
indirectchannelssuchasmailorderretailers
CaptiveInformationServicesUserExpendituresareexpendituresfor
pcroorpdourcattsioanndassetrhveicuesserp.roTvhiedseedbexypaenvdeintduorresthaarteinsoptairntcolfudtehedisnamIeNPpUarTent
forecasts.
NoncaptiveInformationServicesUserExpendituresareexpendituresthatgo
tovendorsthathaveadifferentparentcorporationthantheuser. Itisthese
expenditures,generaUyregardedasopentocompetitivebid,thatconstitute
theinformationservicesmarketanalyzedbyINPUTandthatareincludedin
INPUTforecasts.
3. Product/ServiceCategories
Product/ServiceCategoriesaredefinedasgroupingsofproductsand
servicesthatsatisfyagivenuserneed. WhileMarketSectorsspecifywhothe
buyeris,Product/ServiceCategoriesspecifywhattheuserisbuying.
Ofthenineproduct/servicecategoriesdefinedbyINPUT,sixareconsidered
primaryproductsorservices:
• ProcessingServices
• NetworkServices
• ProfessionalServices
• ApplicationsSoftwareProducts
• SystemsSoftwareProducts
• EquipmentServices
MMDS ©1996byINPUTReproductionProhibited. 2
DEFINITIONOFTERMS INPUT
Theremainingthreeproduct/servicecategoriesrepresentcombinationsof
theseproductsandservices,inconjunctionwithequipment,management
and/orotherservices:
• TurnkeySystems
• Outsourcing
• SystemsIntegration
SectionCdescribestheproduct/servicecategoriesandtheirstructurein
moredetail.
4. MarketSectors
MarketSectors,ormarkets,aregroupingsofthebuyersofinformation
services. Therearethreetypesofusermarkets:
• VerticalIndustrymarkets,suchasbankingandfinance,transportation,
utihties,etc. Thesearecalled"industry-specific"markets.
• FunctionalApplicationmarkets,suchashumanresources,accounting,
etc. Thesearecalled"cross-industry"markets.
• Othermarkets,whichareneitherindustry-norapphcation-specific,such
asthemarketforsystemssoftwareproductsandmuchoftheon-Une
databasemarket.
SpecificmarketsectorsusedbyINPUTaredefinedinSectionE,below.
5. TradingCommunities
Informationtechnologyisplayingamajorroleinreengineering,notjust
companies,butthevaluechainorTradingCommunitiesinwhichthese
companiesoperate. Thisreengineeringisresultinginelectroniccommerce
emergingwhereinterorganizationalelectronicsystemsfacihtatethebusiness
processesofthetradingcommunity.
• Atradingc—ommunityisthegroupororganizations—commercialandnon-
commercial ^involvedinproducinggoodsorservices.
• ElectroniccommerceandtradingcommunitiesareaddressedinINPUT'S
ElectronicCommerceProgram.
©1996byINPUT.Reproductionprohibited. MMDS
INPUT
nEFINITIONOFTERMS
6. TheInternet
TheInternetisexpectedtobeamajor,ifnotthedominant,communications
andapphcationsresourceofthenextmillennium. Althoughinthemid-
1990sInternetcommercialapplicationsarehmited,bytheyear2000the
WorldWideWeb(WWW)andtheInternetareexpectedtobethe
applicationsandcommunicationsplatformsofpreferencefornotonly
Americanbusiness,butalsoforglobalcommerce,personalcomputingand
communicationsactivities. Asaplatformthatfacihtatescommunications
betweenbusinesses,theInternetwillhaveanimpactoneachofthenine
product/servicecategoriesdiagrammedinINPUTsinformationservices
industrystructurechart(Exhibit1). Internet-relatedexpenditureswiUbe
subsetsoftheappropriateproduct/servicecategoryorsubcategory,as
determinedbytheirusewithorapplicabilitytoInternet-basedor-related
businessactivities. BecauseoftheubiquitousnatureoftheInternetand
Internet-relatedinformationservicesspending,noseparateInternet
definitionswillbeprovidedinthisDefinitionsbook,since,dependingupon
context,anyofINPUT'SinformationservicescategoriescouldhaveInternet
applicability.
Product/ServiceCategoriesandSubcategories
Exhibit1providestheoverallstructureoftheinformationservicesindustry
asdefinedandusedbyINPUT. ThissectionoftheDefinitionofTerms
providesdefinitionsforeachoftheproduct/servicecategoriesandtheir
submodesorcomponents.
5
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DEFINITIONOFTERMS INPUT
Exhibit1
InformationServicesIndustryStructure
1996
SSoyfsttweamrse AppSloifctawtiaornes STyusrtnekmesy ProSfeersvsiicoensai InStyesgrtaetmiosn Outsourcing PrSoecrevsisciensg (SiNenerctvlwiuodcirenskg EqSeurivpimceenst
Internet)
SCyosnttreomls EnSteerrvperrisse Equipment ConsuIlSting Equipment Platform Transaction IEnSlfeeorcrvtmiracoteniisocn EnSteerrvperrisse
MOapneargaetimoennst DepSaerrtvmeernstal SPorfotdwuacrtes &EdTurcaaitniionng SPorfotdwuacrtes Applications Utility AppNleitcwaotrikons DepSaerrtvmeernstal
Applications
DevTeoloolpsment Clients PrSoefrevsiscioensal DeSvoefltowpamreent ProSfeersvsiicoensal SDeersvkitcoeps Ottier Clients
MaDnaatgaebamseent Other MaNneatgweomreknt EnvSierrovnimceenstal
Applications
Management
Business
Operations
Source:INPUT
1. SoftwareProducts
INPUTdividesthesoftwareproductsmarketintotwoproduct/service
categories: systemssoftwareandapplicationssoftware.
Thetwocategorieshavemanysimilarities. Bothinvolvepurchasesof
softwarepackagesforin-housecomputersystems. Includedarebothlease
andpurchaseexpenditures,aswellasexpendituresforworkperformedby
thevendortoimplementormaintainthepackageattheuser'ssites.
Vendor-providedtrainingorsupportinoperationanduseofthepackage,if
partofthesoftwarepricing,isalsoincludedhere.
6 1996byINPUT.Reproductionprohibited. MMDS