Report:
The Forrester Wave™: Enterprise Service Management, Q4 2023
How does Forrester define the Enterprise Service Management market in 2023?
Enterprise Service Management (ESM) has evolved from applying ITSM practices to broader organizational needs. The market has matured with vendors building business workflows and now differentiating through AI, ML, and particularly generative AI capabilities. ESM platforms are feature-rich with strong user and vendor communities contributing to business-specific workflows. The market is at a turning point as these platforms now serve the entire business - operations, product development, and customer service - with connected workflows, data flow, and analytics measuring business outcomes. Organizations should seek providers that support collaborative workflows across the enterprise, integrate seamlessly with other technologies for information flow, and use AI/ML/generative AI to accelerate knowledge work.
Key Facts for The Forrester Wave™: Enterprise Service Management, Q4 2023 in 2023
- Publication Date: 05-Nov-2023
- Document ID: RES178485
- Summary: In our 24-criterion evaluation of enterprise service management (ESM) providers, we identified the most significant ones and researched, analyzed, and scored them. This report shows how each provider measures up and helps technology professionals select the right one for their needs.
- Authors: Julie Mohr, Charles Betz, Faith Born
How did the Enterprise Service Management market evolve in 2023?
- ESM platforms have evolved from ITSM to serve the entire enterprise, connecting business operations, product development, and customer service
- Vendors are leveraging AI and ML, particularly generative AI, to create market differentiation
- ESM platforms feature rich workflows with strong user and vendor communities contributing to business-specific workflow advancement
- The market is at a turning point in redefining what constitutes an ESM platform given its expanded scope
- 12 vendors were evaluated in this assessment
- Three placement categories: Leaders, Strong Performers, and Contenders
- Evaluation based on 24 criteria across current offering, strategy, and market presence
- Materials evaluated as of August 11, 2023
What product features are required to be included in this year's evaluation?
- A multipurpose ESM platform that could connect knowledge workers across the enterprise, including employees, technology teams, and developers
- Relevance to Forrester clients - vendors often discussed in inquiries or warrant inclusion because of technology, market presence, or client interest
- Annual revenues greater than $100 million demonstrating significant player status in the ESM market
What are the common features of top products in the Enterprise Service Management space?
No common features specified.
Scope Exclusions
- Single-purpose or ITSM-only platforms
- Vendors with annual revenues less than $100 million
- Platforms that do not connect knowledge workers across the enterprise (employees, technology teams, and developers)
- Vendors not relevant to Forrester clients or lacking significant market presence
Inclusion Criteria
Vendors must, among other requirements:
- A multipurpose ESM platform that could connect knowledge workers across the enterprise, including employees, technology teams, and developers
- Relevance to Forrester clients - vendors often discussed in inquiries or warrant inclusion because of technology, market presence, or client interest
- Annual revenues greater than $100 million demonstrating significant player status in the ESM market
Offering Strengths — Relative Weighting
- Functional modules — 40%
- Platform — 30%
- Technology management — 30%
Strategy Strength — Relative Weighting
- Vision — 30%
- Innovation — 20%
- Roadmap — 10%
- Partner ecosystem — 10%
- Adoption — 10%
- Pricing flexibility and transparency — 10%
- Community — 10%
FAQs
Q: What does this research cover?
A: This research evaluates 12 enterprise service management (ESM) providers across 24 criteria grouped into three categories: current offering (50% weight), strategy (50% weight), and market presence (0% weight). The evaluation focuses on multipurpose ESM platforms that connect knowledge workers across the enterprise, including employees, technology teams, and developers. Vendors must have annual revenues greater than $100 million and demonstrate significant market presence.
Q: Who should use this research?
A: Technology professionals evaluating ESM platforms should use this research as a starting point for vendor selection. Organizations looking for providers that support collaborative workflows across the enterprise, integrate with other technologies for seamless information flow, and use AI/ML/generative AI to accelerate knowledge work will benefit from this evaluation. The downloadable Excel-based vendor comparison tool allows readers to customize criteria weightings based on their specific requirements.
Q: What are the mandatory features of vendors included in this market?
A: To be included in this Forrester Wave evaluation, vendors must have: (1) A multipurpose ESM platform that connects knowledge workers across the enterprise, including employees, technology teams, and developers - not just ITSM capabilities; (2) Relevance to Forrester clients, meaning the vendor is frequently discussed in client inquiries or warrants inclusion based on technology innovation, market presence, or demonstrated client interest; (3) Annual revenues greater than $100 million, demonstrating they are a significant player in the ESM market with proven market performance.
Q: What are some reasons for not being included in this report?
A:
- Platform is single-purpose or limited to ITSM only without broader ESM capabilities
- Unable to connect knowledge workers across the full enterprise spectrum (employees, technology teams, and developers)
- Annual revenues below $100 million threshold
- Lack of relevance to Forrester clients - not frequently discussed in inquiries and insufficient technology, market presence, or client interest to warrant inclusion
- Vendor declined to participate in the evaluation process
- Vendor only partially participated in the evaluation process
Q: What should buyers consider when evaluating products in this market?
A:
- Support for collaborative workflows across the enterprise and teams - ability to assign work across business lines, IT, and developers with alerts, notifications, and service-level targets
- Balance between agility/flexibility and full-featured capabilities - avoiding bottlenecks from overly complex platforms
- Integration capabilities with other technologies for seamless collaboration and information flow across the value stream
- Visibility into end-to-end value stream from customers to developers
- AI, ML, and generative AI capabilities to accelerate knowledge work including ticket routing, alert filtering, corrective actions, and risk assessment
- Generative AI impact on knowledge management, natural language chat with data, simplified workflow creation, and improved chatbot experience
- Platform's ability to track business digital assets as well as IT assets
- Service portals that include knowledge and requests for all departments, not just IT, HR, and facilities
Q: How has the Enterprise Service Management market evolved in 2023?
A:
- Application of ITSM practices to broader organization leading to ESM as platform differentiator
- Increasing maturity in building business workflows across vendor landscape
- Vendors turning to AI, ML, and generative AI to create market distinction
- Feature-rich platforms with strong user and vendor communities
- Platforms now serving entire business beyond IT - operations, product development, customer service
- Connected workflows enabling collaboration across customers, support organizations, and developers
- Market evolution toward platforms managing complete business outcomes rather than just service management
- Rich repository of ticket data enabling fine-tuning of large learning models
- Security controls embedded in ESM making them ideal for generative AI experimentation
Q: What differentiates Strength of Offering vs. Strength of Strategy?
A: Strength of Current Offering (vertical axis) evaluates the vendor's existing product capabilities, focusing on functional modules, platform capabilities, and technology management features. It represents what the vendor can deliver today. Strength of Strategy (horizontal axis) evaluates the vendor's future direction and ability to execute, including vision, innovation, roadmap, partner ecosystem, adoption approach, pricing model, and community engagement. It represents where the vendor is headed and how well-positioned they are for future market needs.
Reference
- Forrester, The Forrester Wave™: Enterprise Service Management, Q4 2023, 05-Nov-2023, ID RES178485
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