The market for business process management (BPM) software will rise 15% to 20% in 2004 over this year's lower-than-expected $1.1 billion in revenue, according to new research.
Meta Group Inc., Stamford, Conn., said that many industry watchers expected the market for BPM software would take off this year as companies moved to comply with the financial reporting requirements of the federal Sarbanes-Oxley Act, known as SOX.
Instead, "the business drivers for the BPM market in 2003 were primarily more penetration of planning and budgeting solutions, not SOX compliance-driven sales," said John Van Decker, a Meta Group vice president.
"In 2004, we'll likely see a 15%-20% increase in business performance management, as firms utilize BPM both for SOX compliance activities and as an enabler of closed-loop performance management frameworks," said Van Decker.
The analyst firm recommended that companies consider deploying BPM software to improve financial visibility, which supports Sections 302 and 906 of SOX, and to improve notifications, which supports Section 409 of the law.
In its new report, Meta projects that 85% of enterprises will undertake BPM projects within the next 18 months.