COMPANIES OVERPAYING FOR CONTENT MANAGEMENT TECHNOLOGY, REPORTS JUPITER RESEARCH
Jupiter offers new Content Management Service to help businesses make
opportunistic decisions about how digital content is created, managed,
distributed and monetized
Number of homegrown content management systems to double by 2004
NEW YORK, June 11, 2002 - Jupiter Media Metrix (NASDAQ: JMXI), the leader in
Internet and new technology analysis, today reports that businesses are
drastically overspending on digital content management systems. According
to the first report from Jupiter`s new Content Management Service - entitled
"The Content Management Threshold" - overly optimistic predictions for
Web-based business initiatives have led companies in some cases to spend a
hefty $25,000 per non-technical employee per year to manage simple content
on a Web site. In many cases, customization, integration and deployment
costs can rise as high as six times the basic licensing fees. Jupiter
analysts have found that businesses with Web sites that do not operate at
scale (e.g. scores of users, tens of thousands of assets) are better off
evaluating lower-cost solutions, sometimes even homegrown systems.
"We`re seeing companies overspending on online content management systems
mainly because they don`t know how to properly solve their own content
management problems," said Matthew Berk, Jupiter Research analyst. "The
majority of the first-tier content management platforms are only
cost-effective at a very high scale. Despite the maturity of broad
solutions, businesses need to be vigilant about matching their content
management requirements to the appropriate solution and its cost."
High Costs and Risks
Despite the prevalence of costly, failed content management systems, most
organizations still view content management as the key to operating their
Web sites and, increasingly, their enterprise. Content management systems
provide value by limiting the efforts of technical personnel required to
support the productivity of non-technical content workers. According to a
April 2002 Jupiter Executive Survey, 53 percent of companies will have
deployed new document, content or media asset management systems by the end
of 2002. Moreover, nearly one-fifth of Web site managers (19 percent), said
they will be involved in content management consolidation projects as they
unify systems to manage multiple Web properties.
Spend at the Right Scale
Although just under one-third (31 percent) of companies surveyed have
developed homegrown content management systems, Jupiter analysts expect the
number to potentially double by 2004 as companies recover from - and react
to - expensive, failed systems. Jupiter analysts advise companies to
consider a homegrown system if the content management initiative applies to
a single Web property, the parent company has no desire to manage content
across the organization, the number of contributors is fewer than 20 and the
workflow is no more complicated than a few steps. Longer term, Jupiter
analysts expect that decisions about the scale and scope of content
management systems will be extended to include the broader needs of the
enterprise, and not simply for Web site management.
"Web sites with specific content management needs often focus on the
platform that will `do it all,` rather than match specific problems to
specific, often lower-cost, tactical solutions," said David Schatsky,
Jupiter research director. "Jupiter`s new Content Management Service,
created in response to client and vendor feedback, will help businesses make
opportunistic decisions about how digital content is created, managed,
distributed and monetized."
The High Value of Content Management
With nearly one-quarter of executives surveyed complaining of sparse
adoption of content management systems, and Web site managers frequently
railing against the high costs of managing complicated content management
software, it`s clear that existing deployments are often weakest where they
should provide the most strength. Prior to vendor evaluation, Jupiter
analysts recommend a thorough review of existing process to determine to
what extent, if any, a formal content management solution will enhance
overall employee productivity.
Companies interested in purchasing the new Jupiter Research Report -
entitled "The Content Management Threshold"- can call toll-free at
1-877-464-6627 or visit www.jmm.com.
Jupiter Content Management Research Methodology
Jupiter utilizes a wide set of data-gathering tools to conduct research,
including systematic polling of leading industry executives, extensive
consumer surveys, extensive executive surveys, Media Metrix audience
measurement data and a rigorous approach to building market forecasting
models. Jupiter analyses and forecasts are based on a number of
methodologies, including close examination of analogous markets (either
previous growth of new technologies or relevant off-line market case
studies), consumer self-stated intentions culled from proprietary Jupiter
surveying, complex market segmentation analysis, and analysis of historical
trends. Additionally, all forecast assumptions are rigorously debated in a
process designed to capture the collective judgment of analysts with
relevant experience and perspectives on each given market. For a fuller
explanation of the methodology, please visit www.jmm.com.
Jupiter Executive Survey - In April 2002, Jupiter conducted a formal survey
of IT and Marketing executives selected from E-Rewards, Inc executive panel.
Respondents were targeted by function (IT Manager or above) and company
revenue ($50 Million or more) and screened for decision making
responsibility on Web site spending for their companies. A total of 270
qualified individuals completed the survey. Respondents received an e-mail
invitation to participate in the survey, with an attached URL linked to the
Web-based survey form.
In this survey effort, Jupiter worked with its research partner E-Rewards,
Inc on the technical tasks of sample building, survey fielding, and data
processing. E-Rewards maintains one of the largest executive research panels
with more than 200,000 IT and Business Executives in the U.S. Panel-based
market research with E-Rewards enables Jupiter to field successful, highly
targeted surveys to hard-to-reach executives such as purchasing managers and
VPs of IT.
About Jupiter Media Metrix
Jupiter Research helps companies develop, extend and integrate business
strategies across online and emerging channels. Backed by proprietary data,
Jupiter`s industry-specific analysis, competitive insight and strategic
advice give businesses the tools they need to exploit new technologies and
business processes. The company is headquartered in New York City. Visit
http://www.jmm.com for more information.
This press release contains statements of a forward-looking nature relating
to future events or future financial results of Jupiter Media Metrix.
Investors are cautioned that such statements are only predictions and that
actual events or results may differ materially. In evaluating such
statements, investors should specifically consider various factors, which
could cause actual events or results to differ materially from those
indicated from such forward-looking statements, including the matters set
forth in Jupiter Media Metrix reports and documents filed from time to time
with the Securities and Exchange Commission.
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