Copyright TechTarget - All rights reserved https://cyber.law.harvard.edu/rss/rss.html Techtarget Feed Generator en Fri, 05 Jun 2026 03:20:52 GMT https://www.techtarget.com/searchcio editor@techtarget.com <p>No matter the industry, organizations rely on IT departments to drive efficiency, workflows and competitive advantage. And, like buildings, fleets and business travel, IT has its own carbon footprint.</p> <p>IT leaders charged with reducing emissions from hardware and software must understand <a href="https://www.techtarget.com/sustainability/feature/How-to-lead-on-sustainability-in-the-rise-of-greenhushing">where their organizations currently stand with their environmental, social and governance</a> (ESG) strategy and what areas are prime targets for improvement. The challenge: The tools used to assess, measure and monitor emissions have their own digital carbon footprint, too.</p> <p>Below, learn more about what a digital carbon footprint is and how companies are reducing their carbon footprints.</p> <section class="section main-article-chapter" data-menu-title="What is a digital carbon footprint?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is a digital carbon footprint?</h2> <p>A digital <a href="https://www.techtarget.com/whatis/definition/carbon-footprint">carbon footprint</a> comprises greenhouse gas emissions (GHGs) produced by information and communications technology, including the following:</p> <ul class="default-list"> <li>Applications.</li> <li>Compute processing.</li> <li>Desktop computers.</li> <li>Displays and digital signage.</li> <li>Laptops.</li> <li>Printers.</li> <li>Servers.</li> <li>Software.</li> <li>Smartphones.</li> </ul> <p>The use of IT equipment and software generates emissions through the following methods:</p> <ul class="default-list"> <li>Their development, manufacturing and usage.</li> <li>The energy required to run them.</li> <li>Data transfers.</li> <li>The energy needed to keep servers and data centers online.</li> </ul> <p>Each component requires energy to be built and then to function. This includes mining, transport and refining of raw materials, transformation and manufacturing, delivery to consumers and end-of-life processes, including recycling and waste incineration, according to The Shift Project, a think tank based in Paris, in its 2025 <a target="_blank" href="https://theshiftproject.org/en/publications/al-data-and-computing-shaping-infrastructures-for-a-decarbonised-world/" rel="noopener">report</a>, "AI, data, and computing: shaping infrastructures for a decarbonized world."</p> <p>The Shift Project also noted that the <a href="https://www.techtarget.com/searchnetworking/tip/How-to-handle-environmental-regulations-and-green-networking">global network infrastructure required for connectivity</a> and data transfer -- including fiber-optic systems, mobile network antennas, and submarine and terrestrial cabling -- contributes to digital carbon footprints, as well.</p> <p>In the context of ESG, IT leaders struggle to balance their organizations' sustainability goals with maintaining and improving business performance. While some may believe that better performance equates to a larger digital carbon footprint, this isn't always the case, according to Thomas Achhorner, chief digital and information officer at sustainability consultancy ERM, based in London.</p> <p>For example, when employees have access to more networking performance and capacity, they can be more efficient when working remotely. This, in turn, decreases the need for them to conduct business in person all the time, therefore reducing carbon emissions generated when they commute or travel across regions or countries to meetings.</p> <p>"It's not only about the footprint created by IT," Achhorner said. "I get a lot more leverage by thinking about how I support the digital footprint in other business areas."</p> </section> <section class="section main-article-chapter" data-menu-title="Steps to reduce your digital carbon footprint"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Steps to reduce your digital carbon footprint</h2> <p>IT leaders have various routes they can take to reduce their digital carbon footprint. Some paths are more straightforward than others, but they all lead to the same goal: reducing the business's environmental impact.</p> <h3>1. Decrease IT's Scope 2 impact</h3> <p>The Greenhouse Gas Protocol, a standards body based in Washington, D.C., <a href="https://www.techtarget.com/sustainability/feature/Scope-1-2-and-3-emissions-Differences-with-examples">divides carbon emissions into three main categories</a>:</p> <ul class="default-list"> <li>Scope 1 comprises all the direct emissions a company generates, such as those produced by company vehicles, manufacturing and processes.</li> <li>Scope 2 includes indirect emissions from purchased energy, such as the electricity to power devices, equipment and offices.</li> <li>Scope 3 accounts for the indirect emissions produced all the way through an organization's supply chain, including at the supplier and customer levels. This includes raw materials and precious metals used in manufacturing digital devices.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/what_are_scope_1_2_3_emissions-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/what_are_scope_1_2_3_emissions-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/what_are_scope_1_2_3_emissions-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/what_are_scope_1_2_3_emissions-f.png 1280w" alt="A chart comparing Scope 1, 2 and 3 emissions." height="336" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Cutting down on Scope 1, 2 and 3 emissions can help organizations reduce their digital carboon footprints. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>To reduce IT's Scope 2 emissions, organizations can purchase <a href="https://www.techtarget.com/searchdatacenter/tip/Four-ways-to-reduce-data-center-power-consumption">energy-efficient equipment</a>. They could also adopt a circular approach to IT procurement, Achhorner said, which considers the entire lifecycle of devices from manufacturing to their retirement and beyond.</p> <p>IT leaders can also activate certain settings on devices and networking systems to reduce energy consumption, Achhorner said. This includes programming machines to go into sleep mode after hours.</p> <h3>2. Reduce IT's Scope 3 emissions</h3> <p>Scope 3 is arguably the most difficult category to address, as companies have far less control over how their suppliers and vendors approach ESG.</p> <p>For example, many cloud computing providers make assertions about their green efforts, but verifying them can be difficult. While IT leaders may initiate conversations with vendors about initiatives to minimize their digital carbon footprint -- such as increasing their use of renewable energy to power data centers -- they sometimes can only rely on claims in the literature, Achhorner said.</p> <p>That said, organizations can still adopt best practices to reduce Scope 3 emissions in smaller ways. For example, they can encourage employees to send links, rather than attachments, to share files over email.</p> <p>"If you attach files to emails, that causes a surprising number of emissions," Achhorner said. "If you attach a link to something like SharePoint or a cloud directory, the footprint is significantly less."</p> <h3>3. See where and how AI fits into your strategy</h3> <p>As AI drives energy consumption in data centers, IT leaders must balance using AI for business performance and <a href="https://www.techtarget.com/sustainability/feature/Generative-AIs-sustainability-problems-explained">controlling its negative impact on the environment</a>.</p> <p>To achieve this, IT leaders can use AI for tasks such as energy modeling in data centers to optimize usage and water consumption, said Abhijit Sunil, a senior analyst at Forrester Research.</p> <p>Additionally, IT could intentionally pair AI models with specific business functions, Sunil said. For example, a team of editors doesn't have the same needs as a group of software developers. Not everyone requires the latest, greatest and largest version of a tool to be effective in their roles.</p> <p>It's also helpful to <a href="https://www.techtarget.com/searchcio/feature/AI-workforce-training-How-BDO-USA-trains-its-employees">train employees on how to use AI efficiently</a>, which can cut down on energy consumption. An increasing number of companies offer classes so employees can grow more adept at prompting, Sunil said.</p> <p>"Rather than spend 15 minutes trying to get the right outcome, you optimize your query," Sunil said.</p> <h3>4. Build greener software</h3> <p>Thanks to the adoption of virtualization, containerization and the ability to run more apps on a single server, <a href="https://www.techtarget.com/searchstorage/tip/Tips-to-reduce-the-environmental-impact-of-data-storage">today's software systems have a smaller carbon footprint</a> than legacy apps, according to Gadhu Sundaram, innovation lead for sustainability technology strategy and advisory at NTT Data and chair of the Green Software Foundation, a non-profit focused on developing standards and tools to build more sustainable systems.</p> <p>Still, there is room for improvement. The Green Software Foundation prioritizes three areas of focus:</p> <ul class="default-list"> <li>Using less hardware -- for example, scheduling longer retirement cycles.</li> <li>Consuming less energy.</li> <li>Being smarter about the energy the organization consumes.</li> </ul> <p>Additionally, IT teams can be more intentional about the apps and features they employ and develop, and evaluate whether they will really bring value to the business.</p> <p>"The greenest feature is the one you did not develop at all," Sundaram said.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/the_hidden_ecosystem_of_an_it_product-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/the_hidden_ecosystem_of_an_it_product-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/the_hidden_ecosystem_of_an_it_product-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/the_hidden_ecosystem_of_an_it_product-f.png 1280w" alt="hidden environmental effects of a tech product" height="504" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Don't overlook the hidden environmental costs of tech. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>Basic hygiene, too, can go a long way, including the following practices:</p> <ul class="default-list"> <li>Getting rid of old copies of test data that are no longer relevant.</li> <li>Removing apps that no one uses anymore.</li> <li>Taking inventory of the company's software and eliminating redundant packages.</li> </ul> <p>Then, the next natural step is to analyze code for optimization.</p> <h3>5. Measure carbon intensity</h3> <p>Organizations can link carbon-intensity measurement to better sustainability outcomes through <a href="https://www.techtarget.com/searchhrsoftware/definition/gamification">gamification</a>, Sunil said. This may look like a dashboard that employees can consult to learn how much carbon they emitted in a given period, and what that means for the planet.</p> <p>"For many employees, the carbon they emitted from an AI query may not make any difference [to them], but perhaps a metric like, 'You saved X number of trees this month' [would]," Sunil said. "It may be a gamified way in which behavioral changes can be brought about."</p> <h3>6. Embed sustainability into IT governance</h3> <p>To ensure sustainability becomes part of IT's culture, leaders must establish metrics that people can use to measure and monitor progress.</p> <p>Some tasks and tools to measure include the following:</p> <ul class="default-list"> <li>AI inferencing.</li> <li>AI modeling.</li> <li>AI workloads.</li> <li>Carbon intensity.</li> <li>Cloud efficiency.</li> <li><a href="https://www.techtarget.com/searchdatacenter/definition/power-usage-effectiveness-PUE">Power usage effectiveness</a>.</li> </ul> <p>"Then we could make broader business connections, like the cost savings gained from our energy efficiency initiatives overall," Sunil said.</p> <p>Presumably, companies will use sustainability management software to gather this data. However, IT leaders should push vendors to be transparent about the digital carbon footprint of their own services -- especially if they are powered by AI, Sunil said.</p> <p>"Right now, we are not really emphasizing the amount of carbon footprint that the AI solution will, in itself, produce," Sunil said. "On the other hand, some of these AI [features] may not even be needed for certain capabilities, but [vendors] have to talk about it because AI has become a differentiator for many of these companies."</p> <p><em>Carolyn Heinze is a Paris-based freelance writer. She covers several technology and business areas, including HR software and sustainability.</em></p> </section> Companies' reliance on digital technologies has an environmental cost that few CIOs and IT teams understand. Learn why a digital carbon footprint is critical and how to address it. https://cdn.ttgtmedia.com/rms/onlineimages/esg_g1363594237.jpg https://www.techtarget.com/searchcio/feature/Understand-the-digital-carbon-footprint-of-enterprise-IT Tue, 17 Mar 2026 00:00:00 GMT <p>Environmental sustainability has moved from the margins of enterprise IT to the center of executive accountability.</p> <p>What was once framed as a <a href="https://www.techtarget.com/searchcio/definition/corporate-social-responsibility-CSR">corporate social responsibility</a> initiative, often owned outside the technology organization, has become a board-level mandate with direct implications for IT strategy, operations and governance. For CIOs, this shift brings both pressure and opportunity.</p> <p>Technology decisions significantly influence an organization's environmental footprint, from data centers and cloud architectures to the rapid expansion of <a href="https://www.techtarget.com/sustainability/feature/Generative-AIs-sustainability-problems-explained">energy-intensive workloads, such as AI</a>. At the same time, environmental, social and governance (ESG) expectations remain uneven, evolving and often unclear. This leaves many IT leaders to balance sustainability goals against performance, security, cost and resilience requirements.</p> <p>In practice, ESG rarely arrives as a single directive. Regulatory requirements vary by geography, investor scrutiny fluctuates with market conditions and customer expectations differ by industry. As a result, CIOs must determine how sustainability fits into IT decision-making and the extent of their influence on outcomes.</p> <p>What's clear, however, is that CIOs cannot treat sustainability as adjacent to IT strategy. Organizations that make measurable progress consider sustainability in architecture decisions, infrastructure choices, governance models and cross-functional collaboration.</p> <section class="section main-article-chapter" data-menu-title="Why CIOs need to focus on sustainability"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why CIOs need to focus on sustainability</h2> <p>The most significant change in ESG over the past decade was the rise of sustainability to the level of enterprise governance, not the emergence of new metrics or <a href="https://www.techtarget.com/sustainability/feature/Top-ESG-reporting-frameworks-explained-and-compared">reporting frameworks</a>. When ESG reaches the board's agenda, it ceases to be an aspirational goal and becomes an operational expectation.</p> <p>"If sustainability is treated only as a compliance exercise, it stays siloed," said Anuj A. Shah, partner at Grant Thornton Stax. "But once it's part of governance, incentives and oversight, it becomes embedded in how the organization manages risk and creates value."</p> <p>That governance shift has direct implications for CIOs because IT decisions increasingly influence <a href="https://www.techtarget.com/sustainability/feature/Scope-1-2-and-3-emissions-Differences-with-examples">Scope 2 and Scope 3 emissions</a>. Choices around infrastructure placement, cloud adoption and third-party providers directly affect energy consumption and carbon output.</p> <p>"CIOs may not control the grid, but they do control where technology runs," said Ben Montalbano, technical director of ESG at Schellman. "Whether systems are hosted on-premises, in colocation facilities or in the cloud has real emissions consequences."</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/the_hidden_ecosystem_of_an_it_product-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/the_hidden_ecosystem_of_an_it_product-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/the_hidden_ecosystem_of_an_it_product-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/the_hidden_ecosystem_of_an_it_product-f.png 1280w" alt="hidden ecosystem of tech product waste" height="504" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Don't overlook the carbon emissions and environmental waste of technology. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>At the same time, ESG pressure is far from uniform. Momentum varies widely across organizations, Montalbano said. Some companies operate mature voluntary reporting programs, while others are just beginning to formalize their sustainability efforts. In some cases, political and economic uncertainty has slowed board-level prioritization altogether.</p> <p>This inconsistency creates risk. <a href="https://www.techtarget.com/sustainability/feature/Examples-of-greenwashing-claims">Overstated sustainability claims</a> can invite regulatory scrutiny, investor backlash and reputational damage. Meanwhile, poorly understood technology choices, particularly around emerging technologies such as AI, can quietly expand an organization's environmental footprint without clear accountability.</p> </section> <section class="section main-article-chapter" data-menu-title="Building sustainability into IT strategy and architecture"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Building sustainability into IT strategy and architecture</h2> <p>CIOs who make progress on sustainability do so by integrating it into IT strategy rather than treating it as an overlay. Several architectural and planning principles stand out.</p> <h4>Align IT roadmaps with enterprise sustainability goals</h4> <p>When organizations commit to emissions reduction or <a href="https://www.techtarget.com/searchdatacenter/tip/Sustainable-resources-to-power-data-centers">renewable energy targets</a>, IT roadmaps must reflect those commitments. Sustainability does not replace traditional criteria, such as cost or <a href="https://www.techtarget.com/sustainability/tip/Aligning-cybersecurity-with-ESG-goals-A-guide-for-IT-leaders">security, but it becomes an explicit factor</a> in decision-making.</p> <h4>Adopt sustainable-by-design principles</h4> <p>Environmental impact is shaped early in infrastructure planning.</p> <p>"Design choices, from power systems and cooling to how the building itself is constructed, affect emissions across the entire lifecycle," said Jenny Gerson, chief operating officer at DataBank. "Those decisions matter from construction through daily operations."</p> <h4>Evaluate cloud, hybrid and on-premises tradeoffs realistically</h4> <p><a href="https://www.techtarget.com/searchcloudcomputing/definition/hyperscale-cloud">Hyperscale cloud</a> environments are typically more energy-efficient due to virtualization and scale, while colocation facilities generally outperform private server rooms. However, efficiency gains depend on workload design, utilization and power sourcing, according to Gerson. CIOs need to evaluate sustainability alongside resilience, latency and control.</p> <h4>Account for emerging technologies early</h4> <p>AI is a growing driver of energy consumption, particularly as training and inference workloads scale, Montalbano said. CIOs need to <a href="https://www.techtarget.com/sustainability/feature/How-can-AI-help-sustainability">understand how those workloads affect emissions</a> and whether cloud providers or internal environments are better positioned to manage them efficiently.</p> </section> <section class="section main-article-chapter" data-menu-title="4 ways CIOs can reduce environmental impact"> <h2 class="section-title"><i class="icon" data-icon="1"></i>4 ways CIOs can reduce environmental impact</h2> <p>While sustainability strategies vary by organization, several practical actions consistently deliver results:</p> <ol class="default-list"> <li><b>Optimize workloads and resource utilization. </b>Idle or overprovisioned systems waste energy. Rightsizing infrastructure, improving utilization and <a href="https://www.techtarget.com/searchdatacenter/feature/How-to-decommission-a-data-center-A-step-by-step-guide">decommissioning unused resources</a> can reduce emissions while improving cost efficiency.</li> <li><b>Minimize data sprawl through lifecycle management. </b>Data storage carries an environmental cost. Clear retention policies, archiving strategies and systematic deletion of unused data help reduce energy consumption and risk exposure.</li> <li><b>Modernize infrastructure for energy efficiency. </b>Newer hardware, <a href="https://www.techtarget.com/searchdatacenter/tip/Data-center-cooling-systems-and-technologies-and-how-they-work">advanced cooling systems</a> and optimized power distribution offer measurable gains. "The biggest immediate opportunity is renewable power," Gerson said. "Choosing a facility backed by renewable energy can eliminate a large portion of operational emissions right away."</li> <li><b>Reduce digital waste across the IT estate. </b>Legacy systems, redundant apps and shadow IT increase both complexity and environmental impact. App rationalization supports sustainability while simplifying operations.</li> </ol> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/actions_to_help_reduce_ewaste-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/actions_to_help_reduce_ewaste-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/actions_to_help_reduce_ewaste-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/actions_to_help_reduce_ewaste-f.png 1280w" alt="steps to reduce e-waste" height="413" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>Understanding how to reduce e-waste is a critical step in the IT sustainability journey. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="How CIOs can lead cross-functional ESG collaboration"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How CIOs can lead cross-functional ESG collaboration</h2> <p>Technology alone cannot deliver sustainability outcomes. CIOs must act as connectors across sustainability, finance, procurement and risk teams.</p> <h4>Enable data-driven sustainability reporting</h4> <p>Accurate ESG reporting depends on <a href="https://www.techtarget.com/searchdatamanagement/tip/ESG-data-collection-Beginning-steps-and-best-practices">reliable data pipelines</a>.</p> <p>"Measurement is often underestimated," Montalbano said. "Sustainability quickly becomes a data management challenge, especially across hybrid and third-party environments."</p> <h4>Partner with procurement to evaluate vendors</h4> <p>CIOs play a critical role in assessing the sustainability claims of infrastructure partners. Audited emissions data, renewable energy attestations and power purchase agreements help distinguish <a target="_blank" href="https://www.forrester.com/blogs/predictions-2026-environmental-sustainability/" rel="noopener">real action</a> from greenwashing, Gerson said.</p> <h4>Establish governance and accountability models</h4> <p>Clear ownership and incentives matter. Sustainability should follow the same playbook as any other strategic priority, Shah said.</p> <p>"Behavior follows incentives. If sustainability goals aren't reflected in compensation or performance metrics, progress will stall," he said.</p> <h4>Drive awareness and culture change within IT</h4> <p>CIOs do not need every technologist to become a sustainability expert. They do need teams to understand tradeoffs, such as how <a href="https://www.techtarget.com/sustainability/feature/Cloud-computings-real-world-environmental-impact">cloud placement or AI adoption affects energy use</a>, so sustainability becomes part of everyday decision-making.</p> </section> <section class="section main-article-chapter" data-menu-title="The CIO's opportunity"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The CIO's opportunity</h2> <p>Environmental sustainability is no longer a peripheral concern for IT leaders. As ESG expectations mature, CIOs are uniquely positioned to translate ambition into execution with technology strategy, operations and governance to deliver measurable outcomes.</p> <p>The most effective CIOs will not treat sustainability as a constraint. They will approach it as another dimension of sound IT leadership: informed decision-making, disciplined execution and accountability across the enterprise. In doing so, they can help move ESG from aspiration to action, one architectural decision at a time.</p> <p><em>Christine Campbell is a freelance writer specializing in business and B2B technology.</em></p> </section> Sustainability as a business initiative has rocketed up the priority list as investors, consumers and legislators demand accountability from businesses. Here's how IT can help. https://cdn.ttgtmedia.com/rms/onlineimages/esg_a506458222.jpg https://www.techtarget.com/searchcio/feature/How-CIOs-and-IT-can-drive-environmental-sustainability Fri, 13 Feb 2026 00:00:00 GMT <p>Learning management systems have long been popular tools for managing online education in corporations, nonprofit organizations, schools and government agencies. The typical <a href="https://www.techtarget.com/searchcio/definition/learning-management-system">LMS</a>&nbsp;handles every major step of the process, from planning and creating educational content to delivering it to learners, tracking their progress, certifying completion and maintaining records. It serves as an administrative hub and central repository for e-learning and in-person courses.</p> <p>LMSes earned a reputation as stodgy, often on-premises legacy systems&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/tip/How-to-overcome-LMS-challenges-and-improve-EX-retention">that are hard to use</a>, but LMS vendors have striven to shake that image with modern, web-friendly UIs; SaaS deployment; personalized learning paths; and generative AI that can make recommendations, write course descriptions, translate text, generate images and create entire courses.</p> <p>Companies often incorporate an LMS into their HR system infrastructure to offer training to employees, which can be a cost-effective way for workers to build new skills and complete compliance courses. LMSes are geared to online instruction, though many LMSes also support in-person, instructor-led training and hybrid models.</p> <p>While many LMSes offer comparable features, such as AI, HR leaders must consider the full product offering and cost when comparing one system to another. Some LMSes are part of a larger HR system, where the LMS is one module among many. Other LMSes are standalone and typically include more features.</p> <p>LMSes compete to some degree with a newer type of software, the learning experience platform (<a href="https://www.techtarget.com/searchhrsoftware/definition/learning-experience-platform-LXP">LXP</a>), which emerged to make it easier to discover and deliver user-generated learning content, such as short&nbsp;<a href="https://www.techtarget.com/whatis/definition/microlearning">microlearning</a> videos and quizzes, and generally modernize and improve the LMS user experience (<a href="https://www.techtarget.com/searchcio/definition/UX-user-experience">UX</a>). But rather than replacing LMSes, LXPs are now viewed more as a complement, with many organizations keeping their LMS for administrative purposes.</p> <p>Here are some of the top LMSes on the market as well as some key features that help differentiate each system. The following unranked list is based on information from Gartner, G2, Software Advice, web searches, the author's personal experience and vendor websites; it only includes products referred to by their vendors as LMSes and excludes LXPs.</p> <section class="section main-article-chapter" data-menu-title="1. Docebo"> <h2 class="section-title"><i class="icon" data-icon="1"></i>1. Docebo</h2> <p>Docebo offers an AI-powered LMS, <a href="https://www.techtarget.com/searchhrsoftware/definition/gamification">gamification</a>, auto-assignment of training based on required employee skills and a catalog of skills and roles.</p> <p>The company also provides access to more than 400 integrations through its marketplace, which simplifies single sign-on configuration and integration with&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/definition/HRIS">HR information systems</a>, conferencing systems and CRM software. The system also offers an AI virtual coach that employees can use to try out phrasing for a particular interaction and receive feedback.</p> </section> <section class="section main-article-chapter" data-menu-title="2. TalentLMS"> <h2 class="section-title"><i class="icon" data-icon="1"></i>2. TalentLMS</h2> <p>TalentLMS' implementation process is relatively quick, and the process for creating new courses is easy. The software includes a library of prebuilt courses and an AI tool that can help users develop new courses, which could speed up the transition from signed contract to employees using the system.</p> <p>TalentLMS supports common course file types, <a target="_blank" href="https://adlnet.gov/past-projects/scorm/" rel="noopener">such as</a> Sharable Content Object Reference Model (SCORM), and supports more than 40 languages, so companies with a global workforce can configure the system to support each user's time zone and language. The LMS supports conference calls right in the system, with options for integration with third-party video conference systems.</p> </section> <section class="section main-article-chapter" data-menu-title="3. LearnUpon"> <h2 class="section-title"><i class="icon" data-icon="1"></i>3. LearnUpon</h2> <p>The LearnUpon LMS enables HR leaders to set up customized portals for each target audience, such as employees or partners. It also includes an authoring tool that&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/tip/LMS-vs-LCMS-Find-out-which-learning-system-is-right-for-you">makes course development easier</a>&nbsp;and supports common course file types. LearnUpon is likely the best fit for companies looking for an easy-to-use system that doesn't require complex customizations.</p> <p>LearnUpon works with several partners to simplify integration with third parties, including LXP vendor Degreed.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/lms_vs_lxp-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/lms_vs_lxp-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/lms_vs_lxp-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/lms_vs_lxp-f.png 1280w" alt="Chart comparing learning management systems with learning experience platforms." height="319" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>LMSes are often confused with a newer technology, LXPs, but they have important differences, and LMSes are still the standard platform for workplace learning. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="4. Moodle"> <h2 class="section-title"><i class="icon" data-icon="1"></i>4. Moodle</h2> <p>Moodle is a free, open source system that companies can download and install. That means they can customize it to meet their specific needs, and a community of developers works to improve the system. Companies that require help installing, configuring and maintaining the system can hire Moodle specialists directly through the vendor or through Moodle's certified partner network. Moodle currently supports over 100 languages.</p> <p>Moodle also offers MoodleCloud, which is aimed at small companies that don't need customizations and are looking to get the system up and running quickly.</p> </section> <section class="section main-article-chapter" data-menu-title="5. GyrusAim LMS"> <h2 class="section-title"><i class="icon" data-icon="1"></i>5. GyrusAim LMS</h2> <p>Like many LMSes on the market, GyrusAim LMS supports both instructor-led and e-learning courses. It also supports numerous online conferencing applications, so instructors can offer live webinars. Instructors can register users through GyrusAim LMS, as is the case with many other LMSes.</p> <p>GyrusAim LMS can track user skills and competencies for gap analysis and recommend courses for users through its AI. It also provides features aimed at companies operating in regulated industries.</p> </section> <section class="section main-article-chapter" data-menu-title="6. Cornerstone LMS"> <h2 class="section-title"><i class="icon" data-icon="1"></i>6. Cornerstone LMS</h2> <p>Cornerstone LMS can be licensed individually or as part of a larger HCM system. The system is very configurable, and both internal and external users can use it.</p> <p>The application includes an integrated course development tool, and users can create a course externally, then upload it into Cornerstone LMS. Permission settings are extensive and enable system administrators to develop roles for specific types of users. The application also includes an option to charge course participants.</p> </section> <section class="section main-article-chapter" data-menu-title="7. Canvas"> <h2 class="section-title"><i class="icon" data-icon="1"></i>7. Canvas</h2> <p>This platform is designed to support learning at all levels, from K-12 students to higher education and, finally, to corporate learners. It provides features for employee training in blended learning environments or more focused in-person or remote settings. In 2024, Canvas was updated with a slew of AI and collaborative learning features.</p> <p>Trainers and employees can collaborate during a live session using the Canvas Studio tool, which enables students to upload videos and add comments. Trainers can also upload content for further reading by course participants.</p> </section> <section class="section main-article-chapter" data-menu-title="8. Blackboard"> <h2 class="section-title"><i class="icon" data-icon="1"></i>8. Blackboard</h2> <p>Blackboard has been in business for more than 20 years, and its platform is the de facto standard in higher education for course management, giving the vendor the opportunity to expand its product offering.</p> <p>Blackboard includes an LMS and additional modules designed to enhance the learners' and training team's experience. The LMS can be accessed on any device with a responsive interface, providing users with a mobile learning experience that matches that on a desktop computer. The vendor is focused on providing an accessible learning environment for all learners, including features that conform to global accessibility standards. They include Blackboard Ally, a tool that checks content for accessibility and can translate content into over 100 languages. Blackboard also offers consulting services to help customers develop accessible training content.</p> <p>Like many products here, Blackboard made significant AI additions in 2024, including a generative AI "persona" that can carry on conversations with students on specific educational topics and doubles as a tool for building AI literacy.</p> </section> <section class="section main-article-chapter" data-menu-title="9. Brightspace"> <h2 class="section-title"><i class="icon" data-icon="1"></i>9. Brightspace</h2> <p>Brightspace bills itself as a learning innovation platform, moving beyond what a traditional LMS offers by including additional functionality and an improved UX. The system can be used by people in any organizational setting or stage of life, including K-12, higher education, corporations and nonprofits.</p> <p>The Brightspace system includes gamification features, functions that support accessibility and a responsive website that supports any device, according to the vendor. Learners can download lessons to complete offline and create profiles that show what they are working on and their interests.&nbsp; Brightspace has an AI feature that provides feedback to learners on how they speak and use key terms. The company introduced in 2024 an AI-based accessibility checker and a text-to-speech reader.</p> </section> <section class="section main-article-chapter" data-menu-title="10. iSpring LMS"> <h2 class="section-title"><i class="icon" data-icon="1"></i>10. iSpring LMS</h2> <p>The iSpring LMS platform is available both as SaaS and on-premises. Courses can be developed in a variety of ways and contain different types of content. For example, the system supports traditional SCORM files -- the LMS standard for e-learning content -- as well as role-play simulations, interactive courses and training videos. It is designed to enable course creation by learning professionals and subject matter experts with user-friendly tools that speed up and simplify course development, including such software as Microsoft PowerPoint. New functionality includes an AI-powered image generator and an AI-powered translator.</p> <p>In addition to the LMS functionality, companies can use iSpring LMS to host a corporate news feed, that includes company-wide announcements, user comments and reactions in the form of emojis, and employee profiles, according to iSpring's website.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/tTLO4LJqBT0?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="11. Absorb LMS"> <h2 class="section-title"><i class="icon" data-icon="1"></i>11. Absorb LMS</h2> <p>Absorb LMS offers users many standard LMS features plus the ability to add other modules to build a comprehensive learning environment. It comes preconfigured to enable third-party courses from different vendors, which enables companies to pick and choose the courses that best meet their needs and &nbsp;start engaging employees quickly. The application can also be used to train customers and partners.</p> <p>Companies can integrate other offerings from Absorb. For example, Infuse provides features for integrating course content directly in the systems employees already use, such as a CRM or&nbsp;<a href="https://www.techtarget.com/searcherp/definition/ERP-enterprise-resource-planning">ERP</a>. That capability enables microlearning, in which courses are short and can be taken on the spur of the moment. Absorb Engage adds a social aspect to the learning environment, including leaderboards, the ability to add news articles and the option to add public social media.</p> </section> <section class="section main-article-chapter" data-menu-title="12. Cypher"> <h2 class="section-title"><i class="icon" data-icon="1"></i>12. Cypher</h2> <p>Cypher is an LMS for training&nbsp; K-12, students in higher education and employees. The vendor uses AI to drive many of the product's features, such as accelerated &nbsp;course development and the ability to assign courses to employees automatically. There are also features designed to enhance community involvement and help employees find internal coaches and mentors, as well as peers who are interested in the same topics.</p> <p>Organizations can also use Cypher to train external workers, and each learning program can have its own portal and security.</p> </section> <section class="section main-article-chapter" data-menu-title="13. LearnWorlds"> <h2 class="section-title"><i class="icon" data-icon="1"></i>13. LearnWorlds</h2> <p>The LearnWorlds LMS supports both internal employee training and external training for partners and customers. Companies can also use it to sell courses. The LearnWorlds website touts the platform's simplicity for trainers and learners alike. New AI features enable content developers to extract content from existing video courses and use AI to build new courses.</p> <p>An organization's learning team can use the platform's form and survey designer to gather feedback from the people who take the courses to identify areas for improvement. LearnWorlds also provides tools for building a customized mobile app, with supposedly no coding required, which enables system administrators to design the app in a way that matches the organization's brand.</p> </section> <section class="section main-article-chapter" data-menu-title="14. Acorn PLMS"> <h2 class="section-title"><i class="icon" data-icon="1"></i>14. Acorn PLMS</h2> <p>Organizations can use the Acorn Performance Learning Management System (PLMS) for employees, customers and partners, and third parties can use it to monetize course delivery. The portal for each group can be customized to meet its specific needs.&nbsp; Acorn PLMS includes built-in performance management features, which enable organizations to directly connect their performance management process with the training available in the LMS.</p> <p>With Acorn's social features, employees can collaborate to share their knowledge and experience, so it can be captured and reused by others. The system is also designed to record employee development plans and enable managers to track employee progress against the goals.</p> </section> <section class="section main-article-chapter" data-menu-title="15. Eloomi"> <h2 class="section-title"><i class="icon" data-icon="1"></i>15. Eloomi</h2> <p>Eloomi is marketed as a combined LMS and LXP. &nbsp;The platform offers performance management features, including the ability to record one-on-one meetings, create goals and connect employee skill development requirements with courses available in the LMS.</p> <p>Users can build courses in Eloomi, import them from other systems or choose prebuilt ones from Eloomi's content store. Users can also add courses to &nbsp;learning paths that can support blended learning approaches.</p> <p>HCM software vendor Dayforce, formerly known as Ceridian, acquired Eloomi in 2024.</p> </section> <section class="section main-article-chapter" data-menu-title="16. eFront"> <h2 class="section-title"><i class="icon" data-icon="1"></i>16. eFront</h2> <p>The eFront LMS enables customers to access the software code to customize the platform, which runs in the cloud or on-premises. In addition to enabling code changes, the LMS includes numerous configuration features available out of the box and the ability to extend the platform using custom plugins.</p> <p>Organizations can offer training content on its own or as part of a learning path that can include quizzes and tests. Courses can be&nbsp; assigned according to predetermined criteria, such as skills attained or prerequisites completed. Customers can use eFront to sell courses to external parties.</p> </section> <section class="section main-article-chapter" data-menu-title="17. ProProfs"> <h2 class="section-title"><i class="icon" data-icon="1"></i>17. ProProfs</h2> <p>The ProProfs LMS comes with 100-plus professionally built courses that companies can brand and edit to meet their needs. According to the vendor's website, ProProfs online courses can include handouts, flashcards and end-of-chapter assessment quizzes in addition to many other features. The AI functionality can also help users develop new courses. &nbsp;While editing courses, users can add other kinds of learning content, such as videos, graphics and presentations.</p> <p>The system includes shared folders with access control to help simplify file sharing among members of the training team. Organizations can also use the system as a knowledge base and training material storage receptacle.</p> <p>In November 2024, the vendor announced its acquisition of PeopleGoal, a maker of&nbsp;<a href="https://www.techtarget.com/searchhrsoftware/definition/performance-management-software">performance management software</a>. The two systems continue to operate separately.</p> </section> <section class="section main-article-chapter" data-menu-title="18. SkyPrep LMS"> <h2 class="section-title"><i class="icon" data-icon="1"></i>18. SkyPrep LMS</h2> <p>SkyPrep LMS comes in 21 languages to support companies with an international footprint. The LMS offers gamification tools to encourage learning, including points, badges and a leaderboard. It automates routine tasks, such as course assignments, based on configured rules, reminders and scheduled reports. The tool updates employee profiles using course completion ratings.</p> <p>The vendor also offers&nbsp; SkyPrep Studio for creating multi-lingual and interactive learning content with minimal effort, according to the website. The authoring tool has a drag-and-drop UI and lets users save courses to SkyPrep LMS or export them as SCORM files.</p> </section> <section class="section main-article-chapter" data-menu-title="19. LearnRight"> <h2 class="section-title"><i class="icon" data-icon="1"></i>19. LearnRight</h2> <p>LearnRight is a newer LMS on the market. The vendor offers many of the features commonly found in an LMS, including AI capabilities for generating course content, community creation tools and gamification. Also, content developers can store files such as images and videos on the platform.</p> <p>Unlike many other vendors, LearnRight permits customers to pause their contract for up to 12 months and only charges them for active users. They also offer multiple software tiers so customers can find the price point and functionality that best fits them, and customers can change tiers in the future if desired.</p> </section> <section class="section main-article-chapter" data-menu-title="20. Adobe Learning Manager"> <h2 class="section-title"><i class="icon" data-icon="1"></i>20. Adobe Learning Manager</h2> <p>Adobe Learning Manager is an LMS that includes an optional LXP. Courses can be made available in other enterprise applications, such as Salesforce, using APIs so employees can complete courses in the systems they already use. The completion data is maintained in the LMS regardless of how employees access the course.</p> <p>AI can recommend courses, identify suitable courses for employees' needs and help users develop new courses. The vendor also offers more than 86,000 courses and learning journeys.</p> <p><i>Eric St-Jean is an independent consultant with a particular focus on HR technology, project management and Microsoft Excel training and automation. He writes about numerous business and technology areas.</i></p> </section> While many LMSes offer comparable features, HR leaders must consider the full product offering and cost. Here are some of the top LMSes on the market. https://cdn.ttgtmedia.com/rms/onlineimages/check_g1182594295.jpg https://www.techtarget.com/searchhrsoftware/tip/Top-learning-management-systems Thu, 29 Jan 2026 12:00:00 GMT <p>One unique element of the technology industry is that it does not demand formal education and is open to self-taught professionals. Many industry leaders -- Bill Gates, Steve Jobs and Mark Zuckerberg, for example -- never finished college, and more than a few top programmers -- such as John Carmack -- are self-taught.</p> <p>However, the one thing they all have in common -- besides lacking a degree -- is they all started their own businesses. For those not feeling the entrepreneurial spirit, getting a job with an established organization might require more formal education. And nothing says education like an industry certification. Whether the position is in security, IT management or business process management (<a href="https://www.techtarget.com/searchcio/definition/business-process-management">BPM</a>), the right certifications can open doors.</p> <p>In addition, professionals with a BPM certification earn approximately 20% more than those who are not certified; a BPM-certified professional earns in the low six figures, while a noncertified professional's salary is in the high $90,000 range.</p> <p>There are four primary reasons to take a certification program:</p> <ol class="default-list"> <li><b>Credibility.</b> Certification from a well-regarded school, program or course offers proof of your expertise and is a prestigious credential that shows your commitment to the job. Top certifications from accredited schools provide validation that you have been trained and educated in the right skills for a particular industry.</li> <li><b>Marketability.</b> Having a certification in a specific field can help you stand out in a competitive market. While a self-taught individual can be quite knowledgeable, employers naturally gravitate toward someone with a Certified Information Systems Security Professional certificate, for example.</li> <li><b>Staying current.</b> Technology is always evolving, so many programs require recertification on an annual or regular basis. Learning current tech increases your value to an employer and separates you from the competition.</li> <li><b>Increased earning potential.</b>&nbsp;According to a Pearson <a href="https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/voc/pearson-vue-2025-value-of-certification-report.pdf?utm_source=chatgpt.com">study</a>, 32% of newly certified professionals received a raise, with 31% receiving a raise of more than 20%.</li> </ol> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/JenVMTnJyzY?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <section class="section main-article-chapter" data-menu-title="What is a BPM certification?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is a BPM certification?</h2> <p>Business process management employs methods to discover, model, analyze, measure, improve, and <a href="https://www.techtarget.com/searchcio/tip/How-to-improve-and-optimize-business-processes-step-by-step">optimize business strategy and processes</a>.</p> <p>BPM is broader and more involved than simple task and project management. Task or project management focuses on individual tasks, while BPM observes, analyzes and upgrades the process from end to end. Project management refers to a one-time project, while BPM focuses on processes that are repeatable and can be used from one project to the next -- with the processes tweaked and modified as needed.</p> <p>Many organizations offer BPM training and certification, but their education processes vary. A best practice is to evaluate offerings from the biggest associations, such as the BPM Institute and the Association of Business Process Management Professionals (ABPMP) International.</p> <p>BPM certification also helps employers define job objectives, evaluate candidates, assess employee performance, and motivate employees to enhance their skills and knowledge.</p> </section> <section class="section main-article-chapter" data-menu-title="Business process management certification courses"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Business process management certification courses</h2> <p>The following 12 certification programs offer online classes and in-person tutoring at local education centers. Tests are also administered online and in person. Most classes offer video on demand, so you can download and watch lectures at your own pace.</p> <h3>1. ABPMP International</h3> <p><b>Course details/course(s) offered:</b> <a target="_blank" href="https://www.abpmp.org/page/certification_home" rel="noopener">ABPMP International</a> offers the Certified Business Process Associate (CBPA), Certified Business Process Professional (CBPP) and Certified Business Process Leader (CBPL).</p> <p><b>Who should take this course:</b> Anyone wanting a career in BPM.</p> <p><b>Requirements:</b></p> <ul class="default-list"> <li><b>CBPA:</b> 1,250 hours of documented working experience in a business process-related area or a four-year qualifying university degree, complete application, pass exam and sign ABPMP code of ethics.</li> <li><b>CBPP:</b> Four to 10 years of business process experience, six months credit for other certifications, complete application and pass exam.</li> <li><b>CBPL:</b> 10 years of business process experience, five years of business transformation project management, CBPP certification and six months credit for other certifications, complete application and pass exam.</li> </ul> <h3>2. Six Sigma Belts</h3> <p><b>Course details/course(s) offered:</b> The certifications validate varied <a target="_blank" href="https://asq.org/quality-resources/six-sigma/belts-executives-champions" rel="noopener">levels of skill</a> in Six Sigma, ranked by martial arts-style colored belts with different assignments. They are as follows:</p> <ul class="default-list"> <li><b>Master Black Belt: </b>Trains and coaches Black Belts and Green Belts.</li> <li><b>Black Belt:</b> Leads problem-solving projects, trains and coaches project teams.</li> <li><b>Brown Belt: </b>Brown Belt is not traditionally used in Six Sigma and is not recognized by most organizations or accrediting agencies. However, some organizations might classify a person as a Brown Belt if they have a Green Belt and passed the Black Belt certification exam, but haven't completed a second Six Sigma project.</li> <li><b>Green Belt:</b> Assists with data collection and analysis for Black Belt projects.</li> <li><b>Yellow Belt: </b>Participates as a project team member.</li> <li><b>White Belt: </b>Entry level. Can work on local problem-solving teams that support overall projects, but might not be part of a Six Sigma project team.</li> </ul> <p><b>Who should take this course:</b> Anyone looking to improve organizational operation, reduce errors, improve compliance and rise to a management position.</p> <p><b>Requirements:</b> Web-based or in-person exam from Council for Six Sigma Certification and achieve a minimum score of 70%.</p> <h3>3. ITIL 4 Foundation</h3> <p><strong>Course details/course(s) offered:</strong>&nbsp;<a target="_blank" href="https://www.globalknowledge.com/us-en/training/certification-prep/brands/itil/section/itil-4-foundation/itil-4-foundation/" rel="noopener">ITIL Foundation</a> offers ITIL Specialist, ITIL Strategist, ITIL Leader and ITIL Master certifications. The course is a globally recognized framework of best practices for IT service management. Topics covered include the following:</p> <ul class="default-list"> <li>Introduction to ITIL.</li> <li>Four dimensions of service management.</li> <li>Service value system components.</li> <li>Insights from lean, Agile and DevOps.</li> </ul> <p><strong>Who should take this course:&nbsp;</strong>Any professionals working within an organization, or alongside an IT department, that has adopted the&nbsp;<a href="https://www.techtarget.com/searchdatacenter/definition/ITIL">ITIL</a> (IT Infrastructure Library) framework; professionals who want to understand ITIL better; non-IT workers who want to learn ITIL; and anyone wishing to be certified in IT service management.</p> <p><strong>Requirements:</strong> This is an entry-level certification and does not require candidates to hold prior certifications. Seventeen hours over three weeks of instruction.</p> <h3>4. PMI Agile Certified Practitioner (PMI-ACP) Certification</h3> <p><b>Course details/course(s) offered:</b> PMI Agile Certified Practitioner (PMI-ACP) certification is a professional certification offered by the <a target="_blank" href="https://www.pmi.org/certifications/agile-acp" rel="noopener">Project Management Institute</a>. It teaches you Agile practices, principles and tools. The PMI-ACP certification validates an individual's ability to apply Agile principles and practices to successfully manage projects.</p> <p>PMI offers several resources including study guides and practice tests. Candidates are also encouraged to take an Agile Certified Practitioner training course from an accredited provider. The test costs $495 for non-PMI members and $435 for members. There might also be a fee for taking a training course if one is chosen to prepare for the exam.</p> <p><b>Who should take this course:</b> Any manager looking for certification in Agile.</p> <p><strong>Requirements:&nbsp;</strong>To qualify for the PMI-ACP exam, candidates must meet one of the following requirements:</p> <ul class="default-list"> <li>Two years of Agile experience (in the past five years).</li> <li>A degree from a GAC-accredited program, and an additional year of Agile experience.</li> <li>Third-party Agile certifications, plus an additional year of Agile experience.</li> <li>PMP (Project Management Professional) certification.</li> </ul> <h3>5. Certified Business Analysis Professional (CBAP)</h3> <p><strong>Course details/course(s) offered:</strong>&nbsp;The CBAP certification&nbsp;<a target="_blank" href="https://www.simplilearn.com/project-management/cbap-preparatory-course-training" rel="noopener">training course</a> features live, instructor-led online sessions with industry experts and seven assessments. The course covers topics, including the following:</p> <ul class="default-list"> <li>Business analysis, planning and monitoring.</li> <li>Business process management perspective.</li> <li>Elicitation and collaboration.</li> <li>Requirements lifecycle management.</li> <li>Strategy analysis.</li> </ul> <p><strong>Who should take this course:</strong>&nbsp;Anyone looking for a career path with specialized knowledge of the technology industry, and professionals looking to advance their careers in business analysis.</p> <p><b>Requirements:</b> 7,500 hours of business analysis work experience in the last 10 years, 900 hours of which should be in four out of the six Business Analysis Body of Knowledge Guide Version 3 knowledge areas. You also need a minimum of 35 hours of professional development in the past four years and must provide two references.</p> <h3>6. Certified Information Technology Professional (CITP)</h3> <p><b>Course details/course(s) offered:</b> The CITP training <a target="_blank" href="https://www.aicpa-cima.com/membership/landing/citp-credential" rel="noopener">program</a> offers 20 hours of continuing professional development, half of which are structured learning activities approved by the National Association of State Boards of Accountancy or a legally constituted state authority; up to half can be unstructured or nontraditional. The course provides two pathways: the CITP Standard Pathway and the CITP Experienced Pathway.</p> <p><b>Who should take this course:</b> Certified public accountants (CPAs) looking to bridge business and technology and looking for training and experience in IT assurance, risk, security and privacy, analytics and technology.</p> <p><b>Requirements:</b> CPA license in good standing and Association of International Certified Professional Accountants (AICPA) membership. You must have at least 1,000 hours of experience working on IT projects in the past five years and complete 75 hours of continuing professional development courses.</p> <p>The CITP Exam is a four-hour computer-based exam composed of multiple-choice questions. The exam fee is $400 for AICPA members and $500 for nonmembers.</p> <h3>7. Certified Scrum Product Owner (CSPO)</h3> <p><b>Course details/course(s) offered: </b>The <a target="_blank" href="https://www.scrumalliance.org/get-certified/product-owner-track/certified-scrum-product-owner" rel="noopener">CSPO</a> course is a two-day certification course that teaches students to guide their teams and build successful products at Agile speed, while creating customer satisfaction.</p> <p><b>Who should take this course:</b> Product owners looking to decide what an Agile team will create next to deliver more value to the customer.</p> <p><strong>Requirements:&nbsp;</strong>A two-day (16-hour) in-person course or a 14- to 16-hour live virtual course. Cost depends on virtual or in-person classes, ranging from $299 to $795 for online to as much as $2,652 for in-person training as of Novemebr 2025.</p> <h3>8. Certified Management Accountant (CMA)</h3> <p><strong>Course details/course(s) offered:&nbsp;</strong>The&nbsp;<a target="_blank" href="https://www.imanet.org/IMA-Certifications/CMA-Certification" rel="noopener">CMA</a> exam comes in two parts, with 150 to 170 recommended hours of study per part. Study includes planning and budgeting, performance analysis and management, investment decisions and financial reporting. Course topics include the following:</p> <ul class="default-list"> <li>Business decision analysis.</li> <li>Cost management.</li> <li>Enterprise risk management.</li> <li>External financial reporting decisions.</li> <li>Technology and analytics.</li> </ul> <p><strong>Who should take this course:&nbsp;</strong>Accountants looking to learn the "why" behind financial figures. Unlike most certifications, CMA designation holds global recognition, making it valuable for accountants who want to work outside the U.S.</p> <p><strong>Requirements:&nbsp;</strong>12 to 18 months to complete both parts on average, with up to three years allowed to complete both parts. Additionally, there is a two-part test covering 12 competencies. CMA entrance fee of $300 for professional members and $225 for student/academic members must be paid before taking the examinations.</p> <h3>9. PRINCE2 Foundation and Practitioner Certifications</h3> <p><b>Course details/course(s) offered:</b> <a target="_blank" href="https://www.prince2.com/usa" rel="noopener">PRINCE2</a> (Projects in Controlled Environments) is a process-based approach for project management. It is recognized as one of the most popular project management methodologies worldwide and is used extensively in both the public and private sectors.</p> <p>The PRINCE2 Foundation certification provides an introduction to the PRINCE2 methodology, including its principles, processes, themes and techniques. The PRINCE2 Practitioner certification builds on the knowledge acquired during the Foundation course by focusing on how to tailor and apply PRINCE2 within a specific project environment.</p> <p>The PRINCE2 certifications range in price, from $1371, to $3719 (converted from British pounds, as of November 2025).</p> <p><b>Who should take this course:</b> Current and aspiring project managers as well as other key staff involved in project management.</p> <p><b>Requirements:</b> 12 hours to complete Foundation, 20 hours to complete Practitioner, either online or in classrooms. It typically takes about two months to complete both certifications, depending on study time commitment and availability of exams or assessments.</p> <h3>10. AWS Certified Security -- Specialty</h3> <p><b>Course details/course(s) offered: </b><a target="_blank" href="https://aws.amazon.com/certification/certified-security-specialty/" rel="noopener">This certificate</a> offers advanced knowledge on <a href="https://www.techtarget.com/searchsecurity/definition/cloud-security">cloud security</a> and the skills to secure the AWS platform. The certification validates a practitioner's abilities in managing AWS security, identity and compliance; AWS architecting; and AWS security engineering. It also demonstrates your expertise in AWS-based data classifications, protection mechanisms and secure internet protocols, among others. There is a $300 fee.</p> <p><b>Who should take this course:</b> Anyone with at least five years of IT security experience in designing and implementing security solutions, and two or more years of hands-on experience in securing AWS workloads.</p> <p><b>Requirements:</b> Five years of experience designing and implementing IT security solutions, two years of experience in securing AWS workloads, and basic knowledge of security controls for AWS workloads. Exam prep includes two exam study guides.</p> <h3>11. Lean Business Process Management Change Skills</h3> <p><strong>Course details/course(s) offered:</strong>&nbsp;<a target="_blank" href="https://www.udemy.com/course/business-improvement-improve-profits-with-lean-techniques/" rel="noopener">The course</a> helps professionals learn LEAN business processes to improve efficiency. LEAN businesses are those that operate with maximum efficiency and minimal waste of effort. Course topics include the following:</p> <ul class="default-list"> <li>Understanding LEAN business processes.</li> <li>Identifying and implementing an action plan.</li> <li>How to lead a team through a continuous improvement project.</li> <li>Current state analysis.</li> <li>GANTT charts.</li> </ul> <p><b>Who should take this course:</b> Any manager looking to reduce waste associated with a project.</p> <p><b>Requirements:</b> Applicants must be involved in a business at a supervisory level or above and need a basic understanding of business principles. Five sections, 21 lectures, two hours and 26 minutes total length.</p> <h3>12. Google Professional Cloud Architect</h3> <p><b>Course details/course(s) offered:</b> The Google Professional Cloud Architect exam <a href="https://cloud.google.com/learn/certification/cloud-architect" target="_blank" rel="noopener">certifies</a> your ability to design and plan cloud architectures; develop, manage and provision cloud infrastructure; design for security and compliance; analyze and optimize technical and business processes; and maintain reliable infrastructure and operations. Training and an exam guide with a list of topics that might be on the test are offered.</p> <p><b>Who should take this course:</b> Any manager looking to advance their skills in Google Cloud.</p> <p><b>Requirements:</b> At least three years in the industry. At least one of these years needs to include solution design and management with Google Cloud. Familiarity with Google Cloud Well-Architected Framework is necessary.</p> <p><i>Rosa Heaton is content manager for the IT strategy group at TechTarget. </i></p> <p><i>Andy Patrizio is a technology journalist with almost 30 years' experience covering Silicon Valley who has worked for a variety of publications on staff or as a freelancer, including Network World, InfoWorld, Business Insider, Ars Technica and InformationWeek. He is currently based in Southern California.</i></p> </section> These certifications and courses can help you gain the specialized knowledge you need to bolster your credentials and marketability as a BPM professional. https://cdn.ttgtmedia.com/rms/onlineimages/certification_g646945874.jpg https://www.techtarget.com/searchcio/feature/Top-business-process-management-certifications Wed, 26 Nov 2025 11:00:00 GMT <p>User-generated content (UGC) is published information that an unpaid contributor provides to a website. The information might be a photo, video, blog or discussion forum post, poll response or comment made through a <a href="https://www.techtarget.com/whatis/definition/social-media">social media</a> website.</p> <p>For example, when a customer completes a transaction with a bank, retail store or other business, before completing the transaction, the system asks the customer to complete a survey. Typical data gathered includes how the company performed, satisfaction with the customer representative, rating the overall experience and perhaps other performance-related questions. It might also <a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-gather-and-evaluate-customer-sentiment">ask for comments and suggestions</a> that the firm can review for "quality purposes." Both the survey responses and the comments made by the customer constitute user-generated content.</p> <p>In traditional communication methods, a single source provides information to multiple receivers -- such as a commercial on a local news channel, a newspaper article or a book. However, some media organizations base their entire business models on UGC, encouraging <a href="https://www.techtarget.com/searchcustomerexperience/feature/Video-marketing-challenges-and-how-to-overcome-them">unpaid contributors</a> to provide content that the media organization can republish, promote and profit from.</p> <section class="section main-article-chapter" data-menu-title="Why is user-generated content important?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why is user-generated content important?</h2> <p>With the rise in <a href="https://www.techtarget.com/whatis/definition/social-networking">social networking</a> channels, user-generated and organic-reach content has become more popular than ever. Customers and <a href="https://www.techtarget.com/searchcustomerexperience/feature/Customer-loyalty-vs-brand-loyalty-Whats-the-difference">brand loyalists</a> mainly generate this brand-specific content, which is vital in influencing the buyer's journey and providing important insights, such as buyer preferences and other relevant data to the company.</p> <p>The following highlights how UGC can be beneficial if incorporated into a company's <a href="https://www.techtarget.com/whatis/definition/Four-Ps">marketing mix</a>:</p> <ul class="default-list"> <li><b>Authenticity. </b>In a competitive online space, brands can benefit from <a href="https://www.techtarget.com/whatis/feature/How-to-spot-a-fake-review-online">authentic reviews</a>, sentiments and attention that their customers generate. UGC can also boost social media reach and growth, as most buyers are willing to accept recommendations for products and services if real people make them as opposed to the brand itself.</li> <li><b>Brand loyalty.</b> UGC cultivates <a href="https://www.techtarget.com/whatis/definition/brand">brand</a> loyalty because consumers create the content rather than official representatives of the brand. Companies can gain a high level of customer faith by putting their audience first and encouraging them to participate in the brand's image building.</li> <li><b>Cost-effectiveness.</b> UGC is a cost-effective option for businesses looking to promote their brands without spending thousands of dollars on promotions, market research and TV commercials. Unpaid customers -- who are trying to share their experience with a product or service, build a connection with like-minded individuals or are simply looking to avail some perks -- create most UGC content organically.</li> <li><b>SEO boost.</b> Positive customer reviews and surveys can elevate a brand's <a href="https://www.techtarget.com/whatis/definition/search-engine-optimization-SEO">SEO</a>. Consumers mainly post UGC on blogs with backlinks to product websites. Analyzing consumers' search keywords and phrases enables brands to improve their keyword optimization research.</li> <li><b>Building trust.</b> The availability of customer product or service reviews -- especially positive reviews -- can build trust in a specific brand. Conversely, unfavorable reviews -- if presented -- can <a href="https://www.techtarget.com/whatis/feature/How-much-can-a-bad-review-hurt-your-business">reduce or eliminate trust</a>.</li> <li><b>Supporting the creation of AI</b><b>- and LLM</b><b>-based content.</b> With the development and widespread use of <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence">AI</a>, machine learning (<a href="https://www.techtarget.com/searchenterpriseai/definition/machine-learning-ML">ML</a>) and large language models (<a href="https://www.techtarget.com/whatis/definition/large-language-model-LLM">LLM</a>), user-generated content is an important resource when leveraging those technologies.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Pros and cons of user-generated content"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Pros and cons of user-generated content</h2> <p>User-generated content has become an important communications resource in digital marketing. Despite its growing popularity, it has pros and cons, as follows:</p> <h3>Pros of UGC</h3> <ul class="default-list"> <li><b>Encouragement to proceed to the next step.</b> When customers read positive reviews and commentary, they are often motivated to proceed to the next step, which is to make a purchase.</li> <li><b>Savings on production costs.</b> The use of UGC that is voluntarily submitted saves on marketing and production costs.</li> <li><b>Improvements in SEO.</b> Search engine rankings can be improved using UGC.</li> <li><b>Appeal to audience diversity.</b> UGC can introduce a wide range of views and insights that can resonate with <a href="https://www.techtarget.com/whatis/feature/Generational-marketing-explained-Everything-you-need-to-know">different types of people</a>.</li> </ul> <h3>Cons of UGC</h3> <ul class="default-list"> <li><b>Damage from bad reviews and comments.</b> Without proper screening and decisions on unfavorable reviews and comments, release of "bad news" can have a detrimental effect on a brand.</li> <li><b>Messages out of sync with brand goals.</b> UGC that does not <a href="https://www.techtarget.com/searchcustomerexperience/tip/Ways-to-successfully-align-your-sales-and-marketing-teams">align with a brand's message</a> generates potentially significant risks.</li> <li><b>Additional overhead needed to monitor and manage UGC.</b> It might be costly to address UGC that does not reflect the brand's image.</li> </ul> <p>While UGC has its benefits, its drawbacks cannot be overlooked. Commercial media's growing reliance on user-generated content has led to controversy in the publishing world. Some organizations monitor UGC carefully for profanities, lies and attacks on other contributors. Other organizations let users self-police their content.</p> </section> <section class="section main-article-chapter" data-menu-title="Types of user-generated content"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Types of user-generated content</h2> <p>UGC isn't limited to a company's size, industry affiliation or product offerings. From luxury brands to household products, <a href="https://www.techtarget.com/searchcustomerexperience/post/3-ways-to-attract-customers-to-your-online-store">user-generated content can resonate</a> with all audiences.</p> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/user_generated_content-h.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/user_generated_content-h_half_column_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/user_generated_content-h_half_column_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/user_generated_content-h.png 1280w" alt="Graphic highlighting the different types of UGC." height="365" width="279"> <figcaption> <i class="icon pictures" data-icon="z"></i>Different types of UGC. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>The following are the main types of user-generated content:</p> <ul class="default-list"> <li><b>Images.</b> Unpaid customer images of products posted on social media, blogs and other online platforms.</li> <li><b>Videos and live streams.</b> GoPro videos, YouTube videos, Instagram Stories, natively shot videos, live video streams on Facebook and other platforms, which the creator isn't getting paid for. These videos can also include product unboxing and hauls.</li> <li><b>Social media content.</b> Any <a href="https://www.techtarget.com/whatis/feature/12-social-media-marketing-tips-to-boost-your-business">social media message</a> regarding a brand, such as a tweet, Instagram post or Facebook update.</li> <li><b>Product reviews and testimonials. </b>Customer reviews on a section of a product's website or a third-party site, which can include Yelp, Google, TripAdvisor and G2.</li> <li><b>Blog posts.</b> A product tutorial or a review that bloggers post on their blogs without getting paid for it.</li> <li><b>Q&amp;A forum. </b>A public forum where customers and the brand can engage in healthy discussions and answer questions regarding a product.</li> <li><b>Case studies. </b>Detailed, unpaid customer reviews that explain the pros and cons of products and services.</li> <li><b>Surveys</b>. <a href="https://www.techtarget.com/searchcustomerexperience/feature/5-tips-for-deploying-surveys-and-collecting-customer-feedback">Customer-provided views</a> or descriptions of a specific feature or product.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="How to integrate user-generated content into a marketing strategy"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to integrate user-generated content into a marketing strategy</h2> <p>While there are different ways to integrate user-generated content into a marketing strategy, the following diagram depicts the typical UGC lifecycle.</p> <ul class="default-list"> <li><b>Define goals and objectives.</b> Establish what is expected from the UGC initiative, such as increasing brand visibility, and define performance criteria, such as key performance indicators, i.e., <a href="https://www.techtarget.com/searchcustomerexperience/tip/10-customer-success-KPIs-and-metrics-to-track">KPIs</a>.</li> <li><b>Select the optimum platform.</b> This is <a href="https://www.techtarget.com/searchcontentmanagement/feature/GEO-vs-SEO-Whats-the-difference">where the medium for the message is selected</a>, e.g., social media, websites.</li> <li><b>Identify the relevant community.</b> This is the desired audience and how to encourage them to participate in a UGC campaign.</li> <li><b>Gather content and curate it.</b> This step includes the process of gathering content -- e.g., by surveys and templates -- and validating it for use and securing permission to use it.</li> <li><b>Prepare for publication and deliver to media.</b> Complete the content preparation, confirm the delivery channels, and deliver the content.</li> <li><b>Monitor and measure performance.</b> Leverage performance metrics available from social media platforms to ensure the UGC is performing as desired.</li> <li><b>Maintain momentum, update as needed.</b> This includes establishing active relationships with content creators, reviewing the content and updating it as needed to produce the best results.</li> </ul> <p>The following are ways that companies can integrate UGC into <a href="https://www.informatechtarget.com/webinar-event/good-better-best-how-to-deliver-great-content-marketing-outcomes/">content marketing strategy</a>:</p> <h3>Reviews</h3> <p>Before making purchasing decisions, most consumers read product reviews because they provide a glimpse into the product they're interested in buying. Reviews also increase the reliability factor for a brand and help boost traffic to a website, which results in increased conversion rates.</p> <p>To integrate review-based UGC into their marketing campaign, companies should <a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-collect-customer-feedback">encourage customers to leave reviews</a> for every product they purchase. Companies should also provide customers the option to leave reviews on multiple platforms, such as Facebook, Yelp, Google, TripAdvisor and third-party websites, to facilitate conversion rates.</p> <p>Another way to incorporate reviews into a marketing strategy is to incentivize them by exchanging reviews for coupons, reward points or gift cards. Emails with incentive keywords in the subject line can help motivate customers to rate products.</p> <p>Businesses should also remember that reviews can be both positive and negative. However, both serve a purpose in building a brand's identity. Any negative reviews should be taken as an opportunity for a business to earn <a href="https://www.informatechtarget.com/blog/how-to-build-trust-with-prospective-and-current-customers/">customer trust</a>. Personally responding to every review with genuine courtesy and concern can facilitate this trust.</p> <h3>Hashtag contests</h3> <p><a href="https://www.techtarget.com/whatis/feature/20-social-media-terms-to-know">Hashtag</a> contests can motivate followers to contribute to a brand's hashtag. Followers can use a specific hashtag to share content, such as photos and videos, on a social media platform to win prizes. These <a href="https://www.techtarget.com/searchcustomerexperience/answer/What-are-the-different-types-of-SMS-marketing">contests</a> are a great option for brands that want to popularize their hashtags, as it helps with brand awareness and can help boost sales.</p> <p>To incorporate this popular UGC strategy, companies should create content with hashtags that are unique and easy to remember. For example, a hotel comparison site, Trivago, launched an Instagram photo contest using the hashtag #trivagofaves. Participants had to share original photos of their favorite hotels listed on Trivago by tagging them with the given hashtag to win $500. The contest generated over 37,000 views and produced tons of posts featuring top hotels along with partner promotions.</p> <h3>Gamification</h3> <p>This incentive-based strategy makes UGC entertaining and rewarding for customers. Users are recognized and rewarded in return for completing a few tasks. Brands use concepts such as high scores, badges, leaderboards, levels and points to encourage people to complete tasks and share their experiences with the brand.</p> <p>To reap the benefits of <a href="https://www.techtarget.com/searchhrsoftware/definition/gamification">gamification</a>, companies can grant customers points for writing social media posts. Customers can then use those points for discounts and coupons. Other options, such as receiving unlockable freebies with repeat purchases, can also be part of the incentives.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/yXrnCb57sZU?si=5DvyPuhh9CEDkBQf?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <h3>Video content</h3> <p><a href="https://www.techtarget.com/searchcustomerexperience/feature/Benefits-of-video-marketing">Videos can connect to customers</a> in a unique way. Their potential for shareability and the possibility of going viral can substantially boost a business's following. Also, when people see real customers filming their shopping experiences, traveling or using certain products, it automatically instills confidence in those products and services.</p> <p>Using curated content from customers, brands can create UGC videos that showcase original perspectives and genuine insights into their brands. UGC videos tend to gain higher consumer trust compared to branded videos, as they can engage the audience at a personal level.</p> <h3>Seasonal content</h3> <p>The changing seasons and holidays offer myriad opportunities for businesses to promote through UGC. During special occasions and holidays, brands can connect to their followers on an emotional level.</p> <p>Businesses should study their target audience and holiday season goals to integrate seasonal UGC into their marketing strategy successfully. Brands can also ask followers to share images, post videos, use hashtags, write testimonials and participate in contests. For example, Starbucks used to launch the yearly #RedCupContest in December, where fans would share photos of their customized coffee cups on social media to get a chance to win a Starbucks gift card.</p> </section> <section class="section main-article-chapter" data-menu-title="Best practices to obtain user-generated content for your business"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Best practices to obtain user-generated content for your business</h2> <p>Obtaining usable UGC for a business's marketing campaign is not a given. Creators of UGC must have a good reason for providing usable content. Following are some <a href="https://www.techtarget.com/searchcustomerexperience/feature/Influencer-marketing-best-practices-for-B2B-brands">best practices</a> for soliciting and obtaining UGC:</p> <ul class="default-list"> <li><b>Make the process as easy as possible.</b> Use fill-in-the-blank templates, questions that only need a yes or no response, and other approaches.</li> <li><b>Provide incentives to encourage participation.</b> This can include offering prizes for participation, prepaid cards, putting the user's name into a drawing.</li> <li><b>Get the timing right.</b> Ask for participation in a survey immediately after completing a successful purchase or resolving a problem.</li> <li><b>Secure permission. </b>Always obtain the user's <a href="https://www.techtarget.com/whatis/feature/6-common-social-media-privacy-issues">permission</a> before taking UGC and posting it on a social media platform or a company website.</li> <li><b>Make sure the content reflects the brand at its best.</b> Select the content that best reinforces and complements the brand message.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Examples of user-generated content"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Examples of user-generated content</h2> <p>The following companies have successfully promoted their brands through UGC.</p> <h3>Coca-Cola: Share a Coke campaign</h3> <p>Coca-Cola launched this popular UGC campaign when it decided to print the most common male and female names on their bottles in Australia. The idea was to inspire people to share a Coke with loved ones. The idea went viral, and people started taking pictures of their personalized bottles and sharing them on social media with the #ShareaCoke hashtag.</p> <h3>Starbucks White Cup Contest</h3> <p>Thousands of customers decorated their white coffee cups with original artwork. The winner's cup was turned into a limited-edition reusable cup.</p> <h3>Apple Shot on iPhone Campaign</h3> <p>Using the hashtag #ShotOniPhone, Apple invited iPhone customers to take photos with their cameras and share them with the iPhone community.</p> <h3>National Geographic's Wanderlust contest</h3> <p>Using photography-based UGC to increase brand awareness and development, National Geographic launched a Wanderlust contest wherein users shared their best nature photographs using the #WanderlustContest hashtag to enter the contest. The contest encouraged more people to go outdoors and boosted the engagement rates for National Geographic.</p> <h3>T-Mobile breakup campaign</h3> <p>Leading mobile carrier T-Mobile launched a UGC campaign inviting users to submit breakup letters detailing reasons for canceling their current cellular providers. In return, T-Mobile promised to shoulder the costs associated with switching providers.</p> <p><i>Video is a popular use case of UGC that requires extensive monitoring to prevent security problems. Learn how to </i><a href="https://www.techtarget.com/searchunifiedcommunications/feature/How-to-monitor-user-generated-content-in-a-video-world"><i>efficiently monitor video-based UGC.</i></a></p> </section> User-generated content (UGC) is published information that an unpaid contributor provides to a website. https://cdn.ttgtmedia.com/visuals/digdeeper/3.jpg https://www.techtarget.com/searchcio/definition/user-generated-content-UGC Thu, 30 Oct 2025 09:45:00 GMT <p>Business process outsourcing (BPO) is a business practice in which an organization contracts with an external service provider to perform an essential business function or task. Organizations in many sectors have adopted the BPO model, including manufacturing, healthcare, energy, pharmaceuticals and e-commerce with the goal of reducing costs and increasing business efficiency, productivity, and profitability.</p> <p>An organization typically outsources with another business to handle select <a href="https://www.techtarget.com/searchcio/definition/business-process">processes</a> that, although necessary for its operations, are not part of its core <a href="https://www.techtarget.com/searchcio/definition/value-proposition-VP">value proposition</a>. At the same time, some companies outsource core or critical tasks if outsourcing is expected to provide efficiency or cost benefits that may not be available if the tasks are retained in-house.</p> <p>To maximize the benefits of BPO, it's crucial to identify these processes before kickstarting the outsourcing engagement. This step requires a good understanding of the processes within the organization and strong <a href="https://www.techtarget.com/searchcio/definition/business-process-management">business process management</a>.</p> <p>Many organizations consider processes that are performed the same or similarly from company to company, such as payroll and accounting, as good candidates for BPO.</p> <p>BPO typically offers flexibility and cost efficiency to organizations that implement it. Companies calculate that outsourcing these processes to a provider that specializes in them could deliver better results.</p> <p>BPO has its roots in the manufacturing industry. Manufacturers hired third-party vendors to handle parts of their <a href="https://www.techtarget.com/whatis/definition/supply-chain">supply chains</a> after determining that the vendors could bring more skills, speed and cost efficiencies to those processes than an in-house team could deliver. Over time, organizations in other industries adopted the practice.</p> <p>Today, the use of BPO has expanded with for-profit businesses, nonprofits and even government agencies outsourcing a range of tasks to service providers located in the U.S., throughout North America and across the world.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/commonly_outsourced_business_processes-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/commonly_outsourced_business_processes-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/commonly_outsourced_business_processes-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/commonly_outsourced_business_processes-f.png 1280w" alt="Diagram highlighting commonly outsourced business processes." height="281" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Organizations often outsource an entire function to a single vendor, whereas other companies outsource only specific processes within a functional area. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>To truly understand the main ideas and benefits of BPO, it's important to differentiate between BPO vs. <a href="https://www.techtarget.com/searchcio/definition/Shared-services">shared services</a>.</p> <p>Shared services refer to the practice of consolidating several back-office business functions, such as HR, IT and finance, into a dedicated business unit. The single unit delivers all these services to the organization, acting as a vendor. The <a href="https://www.techtarget.com/searcherp/tip/Building-a-shared-services-organization-structure">goal of shared services</a> is to leverage economies of scale in order to standardize processes, reduce costs and empower the individual units to focus on their core tasks.</p> <p>Business process outsourcing refers to outsourcing certain business processes to an <a href="https://www.techtarget.com/searchsecurity/tip/How-to-build-an-effective-third-party-risk-assessment-framework">external, third-party service provider</a>. It offers similar benefits as shared services. However, these benefits are larger. For instance, the client organization can save more by investing in BPO compared to shared services. This is because BPO eliminates the need to hire and train specialist personnel (if they're not already available). Also, organizations can access cutting-edge technologies at a lower cost with BPO to optimize their processes and boost business efficiency.</p> <section class="section main-article-chapter" data-menu-title="What is business process outsourcing used for?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is business process outsourcing used for?</h2> <p>Organizations engage in business process outsourcing for two main areas of work: back- and front-office functions.</p> <p>Back-office outsourcing refers to <i>internal business functions</i>, such as accounting, IT services, HR, <a href="https://www.techtarget.com/searchsoftwarequality/definition/quality-assurance">quality assurance</a> and payment processing.</p> <p>Front-office functions are processes and business operations that serve or relate to existing and potential customers, such as customer relation services, <a href="https://www.techtarget.com/searchcustomerexperience/tip/Ways-to-successfully-align-your-sales-and-marketing-teams">marketing and sales</a>.</p> <p>Some organizations outsource an entire function, such as the HR department, to a single vendor. Other companies outsource only specific processes within a functional area, such as payroll processing, while having their own team perform all other HR processes.</p> <p>Commonly outsourced processes include the following:</p> <ul class="default-list"> <li>Payroll and accounting.</li> <li>Administration.</li> <li>Customer support.</li> <li>IT management and services.</li> <li>Manufacturing.</li> <li>Marketing.</li> <li>Research.</li> <li>Sales.</li> <li>Shipping and logistics.</li> </ul> <p>Some companies also outsource strategic tasks, such as <a href="https://www.techtarget.com/searchbusinessanalytics/definition/data-mining">data mining</a> and <a href="https://www.techtarget.com/searchdatamanagement/definition/data-analytics">data analytics</a>, both of which have become essential elements for maintaining a <a href="https://www.techtarget.com/searchcio/definition/competitive-advantage">competitive advantage</a> in a digital economy.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/1nIQu6eICY0?si=BjVTIsO3rrii7DWj?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Why companies adopt business process outsourcing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why companies adopt business process outsourcing</h2> <p>Enterprise executives opt to outsource a business process for a variety of reasons. Those reasons vary based on the type, age and size of the organization, as well as market forces and economic conditions.</p> <p>Startup companies, for example, often need to outsource back-office and front-office functions as they do not have the <a href="https://www.techtarget.com/searchitoperations/tip/Close-the-tech-skills-gap-with-the-right-training">in-house resources</a> to perform them.</p> <p>An established company might opt to outsource a task that it had been performing after determining that a third-party service provider could do the job better or cheaper. Management experts advise enterprise executives to identify functions that can be outsourced and then determine if shifting that task to an outsourcing provider makes sense.</p> <p>If so, the organization must go through the process of not only identifying the best vendor for the work, but also shifting the work from in-house to the external provider. This requires a significant amount of <a href="https://www.techtarget.com/searchcio/definition/change-management">change management</a>, as the move to an outsourced provider generally affects staff, <a href="https://www.techtarget.com/searchcio/tip/How-to-improve-and-optimize-business-processes-step-by-step">established processes</a> and existing workflows.</p> <p>The shift to an outsourced provider also affects the organization's finances -- not only in terms of shifting costs from the internal function to the outsourced providers, but often in terms of corporate taxes and reporting requirements.</p> <p>The organization may also need to invest in new technology to enable the smooth flow of work to the outsourced provider. The extent and <a href="https://www.techtarget.com/whatis/feature/Ways-to-prevent-tech-buyers-remorse">cost of that technology</a> depend on the scope of the function being outsourced and the maturity of the technology infrastructure in place at both enterprises.</p> <p>Business process outsourcing typically starts with enterprise leaders identifying specific functions or business processes to outsource as a way to save money, gain flexibility, improve performance and redirect resources to core <a href="https://www.techtarget.com/searchapparchitecture/definition/business-capability">business capabilities</a>.</p> <p>Business leaders then consider whether one vendor should handle all the work being outsourced or whether contracting multiple providers for the various tasks delivers the best value. For example, a company could decide to outsource most of its HR functions and then either contract for a single provider to perform all the outsourced processes or hire one for payroll and another for <a href="https://www.techtarget.com/searchhrsoftware/definition/benefits-administration">benefits administration</a>.</p> <p>To help with this decision, it's advised to follow these steps:</p> <ul class="default-list"> <li>Do a self-assessment of the organization's needs.</li> <li>Assess service providers and their offerings.</li> <li>Compare the offerings of different vendors.</li> </ul> <p>Those considerations should lead to a list of requirements and a detailed scope of work for outsourcing. Organizations use those to shape a request for proposal (<a href="https://www.techtarget.com/searchitchannel/definition/request-for-proposal">RFP</a>) to share with vendors that determine whether they can meet the requirements, at what price and with what value-adds. Comparing the offers of various vendors against the requirements can aid in selecting the right vendor (or vendors) for the outsourcing engagement.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/crm-request_for_x.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/crm-request_for_x_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/crm-request_for_x_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/crm-request_for_x.jpg 1280w" alt="Info box outlining the types of documents used to procure products including RFP." height="252" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>An RFP is one of several documents a customer can use to procure products and services. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>Once an organization has selected the provider or providers it wants to hire, it must determine the type of contract. Such contracts generally fall into one of the following categories:</p> <ol class="default-list"> <li><b>Time and materials contracts</b><b>.</b> The business pays the provider for the time worked and the materials used.</li> <li><b>Fixed-price contracts</b><b>.</b> Parties set an upfront price for the specified work.</li> </ol> <p>Additionally, organizations must, with their vendors, draft the service-level agreement (<a href="https://www.techtarget.com/searchitchannel/definition/service-level-agreement">SLA</a>) detailing the quality of the provided services and the <a href="https://www.techtarget.com/searchcustomerexperience/definition/business-metric">metrics</a> for evaluating vendor performance for determining a successful engagement.</p> <p>Depending on the needs and nature of the outsourced work, some organizations also negotiate with providers on whether to have the following:</p> <ul class="default-list"> <li>Specific workers on teams dedicated to their outsourced work.</li> <li>Workers located only onshore or, conversely, globally distributed.</li> <li>Workers available 24/7 or only during set hours.</li> </ul> <p>When both parties agree to its terms, the SLA is finalized. The client company then moves the <a href="https://www.techtarget.com/searchdatacenter/definition/workload">workloads</a> for the outsourced process to the vendor in a systematic and planned manner. The BPO strategy for enterprises should also clarify how the organization and vendor will communicate during the transition. Ideally, both parties should communicate frequently to minimize hiccups and ensure a smooth work handover.</p> <p>Once the transition is complete, the vendor starts managing the outsourced processes. The best vendors use the latest technologies and assign skilled personnel to work on the client's tasks. On transferring processes and roles to the vendor, the client organization's in-house resources can be freed up and reassigned to other processes as needed. The firm can regularly <a href="https://www.techtarget.com/searchcio/tip/Why-SLA-compliance-should-be-top-of-mind-for-IT-leaders">evaluate the vendor's performance</a> against the SLA and other terms outlined in the contract. These evaluations enable organizations to decide whether to renew or terminate the contract. Organizations might also choose to amend the contract (with the vendor's agreement).</p> <p>To increase BPO value, it can be useful to set up an outsourcing governance <a href="https://www.techtarget.com/whatis/definition/framework">framework</a>. This framework should include the practices and processes the organization will use to manage its vendor relationships, minimize risk and maximize the value of the partnership.</p> <p>In summary, here's how business process outsourcing works:</p> <ul class="default-list"> <li><b>Identify outsourcing candidates. </b>Identify<b> </b>the specific functions or business processes that can be outsourced to reduce costs or improve organizational performance.</li> <li><b>Decide on outsourcing scope.</b> Consider whether to outsource to one vendor or multiple vendors, depending on the organization's needs and vendor offerings.</li> <li><b>Request vendors for proposals.</b> Create and send out an RFP to vendors to help with vendor selection.</li> <li><b>Determine the contract type.</b> After selecting the vendor, decide whether the contract will be a time and materials contract or a fixed-price contract.</li> <li><b>Draft and finalize the SLA. </b>Clearly state the organization's expectations and the metrics that will be used to gauge vendor performance.</li> <li><b>Move workloads to the vendor. </b>Plan for the transition and communicate frequently with the vendor to minimize transition hiccups and avoid business disruptions.</li> <li><b>Evaluate vendor performance.</b> Assess the vendor's performance against the SLA on a quarterly or half-yearly basis, and decide whether to renew, modify, or terminate the outsourcing contract.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="What are the benefits of business process outsourcing (BPO)?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the benefits of business process outsourcing (BPO)?</h2> <p>Benefits of BPO typically cited by proponents include the following:</p> <ul class="default-list"> <li><b>Financial benefits.</b> BPO providers can often perform a business process at lower costs or save the company money in other ways, such as in tax savings.</li> <li><b>Improved flexibility.</b> BPO contracts can offer the ability to modify how an outsourced business process is done, enabling companies to react more nimbly to changing market dynamics.</li> <li><b>Increased competitive advantage.</b> BPO enables an organization to focus more of its resources on operations that distinguish it in the marketplace.</li> <li><b>Higher quality and better performance.</b> Because business processes are their core business, BPO providers are well positioned to complete the work with greater accuracy, efficiency and speed.</li> <li><b>Access to innovations in the business process.</b> BPO providers are more likely to know about advances in the process areas they specialize in. That means they are more likely to invest in new technologies, such as <a href="https://www.techtarget.com/searchitoperations/definition/IT-automation">automation</a>, that can improve the speed, cost and quality of the work.</li> <li><b>Expanded coverage.</b> Organizations that need 24/7 <a href="https://www.techtarget.com/searchcustomerexperience/definition/Call-Center">call center</a> operations can often quickly gain that capability by contracting with a BPO company with around-the-clock capabilities and multiple geographic locations, enabling a <a href="https://www.techtarget.com/searchcio/tip/BPO-vs-BPM-What-is-the-difference">follow-the-sun</a> business model.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="What are the risks of business process outsourcing?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the risks of business process outsourcing?</h2> <p>BPO risks include the following:</p> <ul class="default-list"> <li><b>Security breaches.</b> The technology connection between the hiring company and the BPO provider creates another point of entry for <a href="https://www.techtarget.com/whatis/definition/threat-actor">bad actors</a>, as organizations often need to share sensitive and regulated data with their service providers.</li> <li><b>Regulatory compliance requirements.</b> An organization's <a href="https://www.techtarget.com/searchcio/definition/regulatory-compliance">regulatory</a> requirements extend even to outsourced work, so it must ensure that the vendors it hires align with the laws the organization must follow. It must also ensure that the vendors adhere to the rules that govern the organization's outsourced work.</li> <li><b>Unanticipated or higher costs.</b> Organizations can underestimate the amount of work that needs to be done, which can lead to higher-than-anticipated costs.</li> <li><b>Relationship challenges.</b> Organizations can face communication problems with their outsourced providers, or they might find that there are <a href="https://www.techtarget.com/whatis/definition/corporate-culture">cultural barriers</a>.</li> <li><b>Overdependence on the external provider.</b> An organization that outsources a function or service is tethered to the partner that performs the work. The organization must manage that relationship to ensure key objectives are met at the agreed-upon cost. If not, the organization may find it difficult to bring the operation back in-house or even move the contract to another outsourced provider.</li> <li><b>Increased potential for disruption.</b> An organization must monitor for issues that could interrupt or permanently end the relationship with an outsourced provider. These include financial or workplace problems at the outsourced provider, geopolitical instability, natural disasters or changes in economic circumstances. Organizations must consider such risks and devise strategies on how to cope, which, in turn, adds complexity to their <a href="https://www.techtarget.com/searchdisasterrecovery/definition/Business-Continuity-and-Disaster-Recovery-BCDR">business continuity and disaster recovery</a>.</li> <li><b>Public backlash.</b> The public perception of an organization might negatively change if the public views that an organization is sacrificing domestic jobs for a better bottom line.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="What are the different types of BPO?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the different types of BPO?</h2> <p>BPO is often divided into the following types based on the service provider's location:</p> <ol class="default-list"> <li><b>Offshore outsourcing.</b> It occurs when an organization contracts for services provided by a company in a foreign country. Often, the decision to adopt offshore outsourcing is driven by cost considerations. One example is a large retailer in the U.S. <a href="https://www.techtarget.com/whatis/feature/10-myths-about-outsourcing-contact-centers">outsourcing its call center</a> operations to India.</li> <li><b>Onshore outsourcing</b><b>.</b> Also known as <a href="https://www.techtarget.com/searchcio/definition/onshore-outsourcing">domestic outsourcing</a>, onshore outsourcing happens when an organization contracts for services provided by a company that operates in the same country as the hiring organization. Onshore outsourcing might not offer the same cost benefits as offshore outsourcing. However, there are many reasons organizations choose this outsourcing model:</li> </ol> <ul class="default-list"> <li style="list-style-type: none;"> <ul class="default-list"> <li>Cultural and time-zone alignment ease communication between the client's and vendor's personnel.</li> <li>Proximity between client and vendor teams enhances oversight and quality control, and accelerates problem-solving.</li> <li>Data remains within national borders, making it easier to protect from leaks and <a href="https://www.techtarget.com/searchsecurity/tip/How-to-prevent-a-data-breach-10-best-practices-and-tactics">breaches</a>.</li> <li>Vendors' knowledge of local laws and regulations eases the client's regulatory compliance burden.</li> </ul> </li> </ul> <ol start="3" class="default-list"> <li><b>Nearshore outsourcing. </b>When an organization contracts for services provided by companies based in neighboring countries, this is referred to as <a href="https://www.techtarget.com/searchcio/definition/nearshore-outsourcing">nearshore outsourcing</a>. This type of outsourcing also offers a cost benefit, although it might be muted compared to offshore outsourcing. Additionally, organizations that opt for this model can gain the advantages offered by onshore outsourcing, such as proximity to the vendor, time-zone alignment, cultural alignment (or at least similarities), and the ability to engage in real-time or near-real-time collaboration and problem-solving.</li> </ol> <p>Another way to categorize BPO is as either <i>horizontal BPO</i> or <i>vertical BPO. </i>This approach, suggested by <a target="_blank" href="https://www.gartner.com/en/information-technology/glossary/business-process-outsourcing-bpo" rel="noopener">Gartner</a>, differentiates BPO providers on the basis of their offerings: whether these offerings can be applied across industries or are industry-specific.</p> <p>Horizontal BPO offerings are functions that are used across multiple industries, i.e., they have cross-industry applications. Examples include customer support, HR, finance, accounting and facilities management.</p> <p>In contrast, <a href="https://www.techtarget.com/searchitchannel/definition/vertical-market">vertical-specific</a> offerings are industry-specific. To offer these services, the vendor must have specific knowledge about the industry. For example, a vendor that offers ATM outsourcing to banks must have deep knowledge about the banking sector, in addition to knowledge about installing, replenishing, security, compliance and general management of ATMs.</p> <p>Similarly, a service provider that specializes in healthcare outsourcing processes like medical billing or patient data management must have domain-specific skills to manage these processes. They must also understand the various constraints and regulations that healthcare organizations operate in. The vendor might also be required to implement controls to comply with healthcare regulations concerned with patient privacy and data security (e.g., the <a href="https://www.techtarget.com/searchhealthit/definition/HIPAA">Health Insurance Portability and Accountability Act</a>).</p> <p>Regardless of which BPO model they choose, organizations usually garner tangible benefits from it. In addition to cost savings and efficiency gains, outsourcing enables organizations to access skilled talent who can handle their workloads easily and consistently provide high-quality output.</p> </section> <section class="section main-article-chapter" data-menu-title="KPO, LPO and RPO"> <h2 class="section-title"><i class="icon" data-icon="1"></i>KPO, LPO and RPO</h2> <p>Business process outsourcing is sometimes categorized by the types of services being provided; the following three categories are commonly cited:</p> <ul class="default-list"> <li><b>Knowledge process outsourcing</b>. KPO is when the outsourced service provider is hired not only for its capacity to perform a <a href="https://www.techtarget.com/searchcio/tip/How-to-develop-a-business-process-in-8-steps">particular business process or function</a>, but also to provide expertise around it. KPO is ideal for receiving high-quality work that is quick and efficient.</li> <li><b>Legal process outsourcing. </b>LPO is a type of KPO that is specific to legal services; these range from drafting legal documents and performing legal research to offering advice.</li> <li><b>Research process outsourcing. </b>RPO -- another type of KPO -- refers to outsourcing research and analysis functions. Biotech companies, investment firms and marketing agencies are among the types of organizations that engage in RPO for services.</li> </ul> <p>RPO can also refer to <i><a href="https://www.techtarget.com/searchhrsoftware/definition/recruitment-process-outsourcing-RPO">recruitment process outsourcing</a></i>, which outsources an organization's recruitment process, including sourcing, screening, interviewing and finalizing offers.</p> </section> <section class="section main-article-chapter" data-menu-title="Business process outsourcing examples"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Business process outsourcing examples</h2> <p>One example of an organization using BPO might be if it's struggling to maintain its HR department, say, due to labor shortages or an inability to keep up with rising salaries of HR specialists. In the first situation, skilled HR workers may be needed to keep this business function going. In the second scenario, the priority might be to lower the cost of the HR function.</p> <p>In both scenarios, the organization can partner with a <a href="https://www.techtarget.com/searchhrsoftware/tip/6-top-considerations-for-outsourcing-in-HR">BPO provider that specializes in HR</a> and offers HR services, including the following:</p> <ul class="default-list"> <li>Payroll and benefits management.</li> <li>Payroll tax administration.</li> <li>Talent acquisition and onboarding.</li> <li>Employee time, attendance, and leave tracking.</li> <li>Data management.</li> <li>HR helpdesk.</li> <li>General HR administration.</li> <li>HR reporting.</li> <li>Compliance reporting.</li> <li>Terminations and exit interviews.</li> </ul> <p>When these tasks are outsourced, it frees up the company's HR team to focus on more strategic initiatives related to employee engagement, learning and development, and experience management.</p> <p>Another example is a business that hires a BPO provider for <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-service-and-support">customer support services</a>. A small business might not be able to dedicate the time or resources needed to set up and manage a contact center (particularly, a multichannel or omnichannel contact center). It can, instead, invest in a BPO provider that specializes in providing customer support services. The provider can handle tasks like order processing, customer support, appointment setting and helpdesk. Some providers offer multichannel support, which enables client organizations to elevate <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-engagement">customer engagement</a> while also reducing the costs of meeting their customers' demands.</p> <p>A third example of BPO is IT outsourcing. Many companies outsource parts of their IT operations to BPO providers to reduce costs and improve IT outcomes. The IT tasks that are commonly outsourced include the following:</p> <ul class="default-list"> <li>Software development.</li> <li><a href="https://www.techtarget.com/searchsecurity/definition/cybersecurity">Cybersecurity</a>.</li> <li>IT infrastructure management.</li> <li>IT helpdesk.</li> <li>Data center management.</li> <li>Data backup.</li> <li>Disaster recovery.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="How to choose a business process outsourcing provider"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to choose a business process outsourcing provider</h2> <p>Enterprise executives should select BPO providers that can support their business objectives, as well as help them be more flexible, innovative and competitive. As such, organizations should consider more than just the price of a BPO contract when choosing a provider. They must also consider how well the provider can deliver on those other points, evaluating each provider to determine whether it has the following:</p> <ul class="default-list"> <li>An adequate understanding of the organization's business and industry.</li> <li>The capacity to meet current requirements, as well as to scale to meet future needs.</li> <li>An understanding and ability to meet <a href="https://www.techtarget.com/searchdatamanagement/definition/compliance">compliance</a> and regulatory requirements, as well as <a href="https://www.techtarget.com/searchcio/definition/data-privacy-information-privacy">data privacy</a> needs.</li> <li>Reporting metrics to demonstrate it is delivering on contractual standards.</li> <li>The geographical locations to meet business needs and regulatory requirements.</li> </ul> <p>Organizations should conduct their own needs assessment to identify business processes that would benefit from outsourcing. They should then get in contact with different BPO providers to determine which one best suits their needs and which creates the best RFP. After it picks one and agrees to the terms of the RFP, the organization should begin the transition process of shifting agreed-upon processes.</p> </section> <section class="section main-article-chapter" data-menu-title="Business process outsourcing market size"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Business process outsourcing market size</h2> <p>The widely known benefits of BPO explain why the global BPO market is consistently growing. Research firms predict that the market will continue to grow through the coming decade.</p> <p>For example, per Grand View Research, the size of the BPO market was approximately $302.62 billion in 2024. By 2030, the firm predicts that the size will grow to $525.23 billion, representing a CAGR of 9.8% from 2025 to 2030.</p> <p>Research firm Statista also maintains a positive outlook toward the BPO market. It predicts that the market volume will grow steadily at a CAGR of 3.39% (2025-2030) to reach $491.15 billion by 2030. Statista also forecasts that the market will generate revenues of $415.73 billion worldwide in 2025. Most of this revenue ($159.75 billion) will come from the U.S. Also, BPO providers in India will continue to dominate the market over the coming decade, according to Statista.</p> <p>The growth of the BPO market is driven by an increasing demand for outsourcing various business functions, like HR, customer services, data entry and other <a href="https://www.techtarget.com/searchcio/definition/core-competency">core competencies</a>.</p> </section> <section class="section main-article-chapter" data-menu-title="Current trends and future directions of the BPO industry"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Current trends and future directions of the BPO industry</h2> <p>The BPO industry is seeing numerous trends that highlight the industry's positive outlook. Key trends include the following:</p> <ul class="default-list"> <li><b>Cloud-based BPO offerings.</b> BPO vendors are increasingly offering cloud-based services that save on cost when compared to traditional BPO models that relied on expensive, proprietary on-premises systems. The <a href="https://www.techtarget.com/searchcloudcomputing/definition/cloud-computing">cloud model</a> also offers benefits such as flexibility and elasticity to meet demand spikes, real-time reporting and access to advanced technologies like <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence">AI</a> that can improve business productivity and efficiency.</li> <li><b>Hybrid working models.</b> BPO vendors that provide traditionally outsourced business processes, such as call centers, are now able to work remotely. This minimizes business disruptions and keeps the outsourced processes running smoothly. Also, the provider can access a bigger talent pool to build a more competent team.</li> <li><b>Nearshoring operations becoming more popular.</b> Technologies, such as video conferencing, AI-enabled tools and robotic process automation (<a href="https://www.techtarget.com/searchcio/definition/RPA">RPA</a>) are driving down BPO costs, enabling vendors that nearshore business processes to offer more cost-effective services, almost on par with offshore vendors.</li> <li><b>Focus on data privacy and security. </b>The evolving regulatory environment coupled with the expanding <a href="https://www.techtarget.com/searchsecurity/tip/How-can-security-benefit-from-cyberthreat-intelligence">cyberthreat landscape</a> are forcing companies to revisit their data privacy and security controls. To protect sensitive data, they are implementing stringent measures -- and expecting their BPO vendors to do the same. Contracts and SLAs might include specific terms around data protection that providers must comply with.</li> </ul> <p>In general, the BPO industry continues to evolve, with more vendors emerging to offer specialized services or catering to specific sectors. Where previously only large companies opted to outsource some non-core processes, smaller businesses are also taking the BPO plunge, mainly to save money, tap into a global talent pool, and garner the benefits of cutting-edge technologies (without having to invest in those technologies).</p> <p>Also, BPO is no longer restricted to non-core processes and activities. Many companies outsource some strategic activities as well, in areas like finance, HR, sales, marketing, infrastructure management, software development and cybersecurity. Typically, these firms lack in-house skills to manage these tasks and acknowledge that outsourcing may be the right strategy to improve <a href="https://www.techtarget.com/searchbusinessanalytics/definition/operational-efficiency">operational efficiency</a> and ensure higher-quality outcomes.</p> <p>BPO vendors are contending with disruptions by taking advantage of the increased demand for their services. Many acknowledge that the practice of business process outsourcing could be at least partially displaced in <a href="https://www.techtarget.com/searchcio/tip/Process-automation-technologies-evolve-RPA-vs-BPA-vs-DPA">upcoming years by technology</a>. For example, RPA and AI can handle some frequently outsourced functions at lower costs and higher speeds, minimizing the need for organizations to invest in long-term BPO engagements.</p> <p>On the plus side, technology could also improve the efficiency and quality of BPO offerings. For example, <a href="https://www.techtarget.com/searchcustomerexperience/feature/How-AI-is-transforming-the-BPO-industry-and-contact-centers">AI intelligence</a> tools and machine learning models are facilitating smart automation and providing actionable insights that enable vendors to add new offerings to their service portfolio, improve existing offerings and offer greater value to clients. These advantages could convince more organizations that BPO is the optimal strategy to reduce costs and improve business efficiency.</p> <p><i>Organizations are deploying RPA at increasing rates to boost efficiency and accuracy. Learn how </i><a href="https://www.computerweekly.com/feature/How-robotic-process-automation-is-getting-smarter-as-it-evolves"><i>RPA is adding AI</i></a><i> to make it even more resilient and nimble.</i></p> </section> Business process outsourcing (BPO) is a business practice in which an organization contracts with an external service provider to perform an essential business function or task. https://cdn.ttgtmedia.com/visuals/digdeeper/3.jpg https://www.techtarget.com/searchcio/definition/business-process-outsourcing Tue, 28 Oct 2025 09:00:00 GMT <p>User experience design, or UX design, is the process of building a product that's user-friendly and provides enhanced user experiences through elements like the user interface (<a href="https://www.techtarget.com/searchapparchitecture/definition/user-interface-UI">UI</a>), visuals and navigation features. The main objective of UX design is to focus on the end user's needs and accordingly design (or redesign) a product that effectively meets those needs. Such products tend to resonate more with users, which then enables organizations to drive customer satisfaction and garner their loyalty.</p> <section class="section main-article-chapter" data-menu-title="What is user experience design?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is user experience design?</h2> <p>The goal of UX design is to design and implement a product that will provide positive and relevant interactions with users. UX design, sometimes called <i>user-centric</i> or <i>user-centered design</i>, involves all aspects of <a href="https://www.techtarget.com/searchcio/definition/product-development-or-new-product-development-NPD">product development</a> and design, such as the following:</p> <ul class="default-list"> <li>Packaging and branding.</li> <li>Installation and setup.</li> <li>Operation, usability and performance.</li> </ul> <p>In short, UX design helps designers create products that are both practical and usable. <a href="https://www.techtarget.com/searchsoftwarequality/tip/UX-design-principles-Why-should-testers-know-them">UX design addresses</a> six major areas:</p> <ul class="default-list"> <li><b>Usefulness.</b> The product must fill a practical need for the user.</li> <li><b>Desirability. </b>The product should use attractive and consistent aesthetics, such as visual design.</li> <li><b>Usability.</b> The product must be simple to use and provide a familiar suite of features and functions.</li> <li><b>Accessibility.</b> The product must be usable by everyone, including users with disabilities.</li> <li><b>Supportability.</b> The product must be well-supported so that users can resolve problems quickly and easily.</li> <li><b>Credibility.</b> The product must be trustworthy, such as from a reputable company or implementing effective security.</li> </ul> <p>While UX design is often associated with <a href="https://www.techtarget.com/searchsoftwarequality/tip/A-guide-to-software-design-documentation-and-specifications">software design</a> or digital services design, the term is also readily applied to any physical product or construct.</p> <p>Furthermore, the scope of UX design is not limited to external users or customers. UX teams can also implement UX design best practices to enhance UX for internal and/or business users rather than individual consumers.</p> <p>For example, UX in <a href="https://www.techtarget.com/searchcio/definition/enterprise-IT-enterprise-class-IT">enterprise IT</a> involves designing software and applications for businesses and their employees. For such projects, UX teams perform <a href="https://www.techtarget.com/searchsoftwarequality/definition/UX-research">UX research</a> to understand business requirements so they can focus on meeting business needs for specific user groups and improving complex or unique business workflows.</p> </section> <section class="section main-article-chapter" data-menu-title="Why is UX design important?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why is UX design important?</h2> <p>The user experience is a critical consideration in attracting and retaining users or customers.</p> <p>Consider any physical or <a href="https://www.techtarget.com/whatis/definition/digital">digital</a> product. If users don't need the product, don't enjoy using the product or can't reasonably use the product without undue difficulty, they will simply stop using the product and possibly adopt a competitor's product instead.</p> <p>Conversely, an effective and reliable product that meets a clear need and offers good performance and support can drive business revenue, boost business reputation and enhance user loyalty to the business and its brand.</p> <p>Because users provide the business revenue derived from products or services, a good user experience is critical for the businesses that provide those products and services. Ignoring or taking shortcuts around UX processes, such as usability testing or <a href="https://www.techtarget.com/searchsoftwarequality/definition/user-acceptance-testing-UAT">user acceptance testing</a>, can be a risky decision for <a href="https://www.techtarget.com/searchcio/definition/project-management">project managers</a> and product <a href="https://www.techtarget.com/searchcio/definition/stakeholder">stakeholders</a>.</p> <p>Finally, UX design should be treated as a dynamic part of any product design. UX design decisions aren't permanent, so user experience strategies can be regularly updated and modified as market demands, competitive forces, user expectations and enabling technologies evolve. User research and user experience testing are often employed to periodically reassess UX design choices.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/software_quality-ux_into_devops.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/software_quality-ux_into_devops_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/software_quality-ux_into_devops_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/software_quality-ux_into_devops.png 1280w" alt="A chart showing how to bring UX into DevOps." height="359" width="520"> <figcaption> <i class="icon pictures" data-icon="z"></i>For UX design to be successful, it should be considered an essential component of product design and development. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="UX design principles and best practices"> <h2 class="section-title"><i class="icon" data-icon="1"></i>UX design principles and best practices</h2> <p>UX design should not be a haphazard or unstructured effort which could result in poor quality products that negatively affect UX. UX design should be a systematic, structured and repeatable process that helps in the development of products that are usable, accessible and intuitive. Such products deliver <a href="https://www.techtarget.com/searchcontentmanagement/definition/digital-user-experience">digital user experiences</a> that are frictionless, enjoyable and foster customer engagement and loyalty.</p> <p>A structured UX process is made possible by applying several UX design best practices and principles that enhance the business value of UX, including the following:</p> <ul class="default-list"> <li><b>Focus on the end user. </b>UX design should always consider user needs and pain points at every step of the design and <a href="https://www.techtarget.com/searchcustomerexperience/definition/implementation">implementation</a> process. A user-centric design process never loses sight of the end goal: to create a product that enables target users to solve their problems and reach their goals in an easy, quick and enjoyable way.</li> <li><b>Prioritize product simplicity and usability.</b> A simple product tends to be easy to use, allowing users to effortlessly find what they need and accomplish what they set out to do. One way to determine what users are looking for is usability testing. Usability testing enables designers to understand how users want to navigate within the product, and whether they are facing any issues impeding navigation that should be addressed. It also provides useful insights that can pinpoint design problems and highlight gaps that should be closed to improve the product's UX.</li> <li><b>Ensure a visually consistent design.</b> A visually consistent design goes a long way toward improving UX. Consistency in the layout, format, elements, visuals and other interface elements makes the product more intuitive and helps to eliminate confusion for users during product navigation.</li> <li><b>Balance simplicity with function.</b> Simplicity should not come at the cost of functionality. A simple design can also deliver great functionality when UX designers aim to balance both. <a href="https://www.techtarget.com/searchsoftwarequality/definition/functional-testing">Functional testing</a> will help ensure that the end product functions as intended without inconveniencing the user.</li> <li><b>Focus on hierarchical design</b>. A well-thought-out visual hierarchy enables users to intuitively understand the various product elements and navigate to them easily. It focuses on key aspects like scale, color and contrast to create a user-friendly and engaging product. Within such products, users can easily understand the content and find what they are looking for without losing their way or getting frustrated.</li> <li><b>Simplify accessibility and navigability.</b> UX-focused products are intuitive and easy to use by all kinds of users, even users with vision, hearing or other limitations. To design accessible products, UX designers can refer to reliable sources, such as the W3C consortium's <i>Web Content Accessibility Guidelines</i> (<a href="https://www.w3.org/WAI/standards-guidelines/wcag/">WCAG</a>). These recommendations are meant to help product designers and developers to "make web content more accessible to people with disabilities." The term <i>web content</i> means the information provided in both web pages and web applications.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="UX vs. UI vs. CX: What's the difference?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>UX vs. UI vs. CX: What's the difference?</h2> <p>The terms UI and UX are often used interchangeably. This is a common mistake because the UI is the primary mechanism for user interaction with a product and is central to the overall user experience.</p> <p>In practice, UI design is a subset of UX design. User experience design involves all aspects of a product and its behavior, while user interface design focuses on the look, shape and other user interactions with the overall product.</p> <p>Consider a software product with a menu-based UI. Even though the software product might fill a practical need and operate flawlessly as part of the overall UX, a software UI with cumbersome, inconsistent, poorly defined, multilayered menus or visually confusing button placement can have a negative effect on the user experience.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/software_quality-ux_and_ui_table.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/software_quality-ux_and_ui_table_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/software_quality-ux_and_ui_table_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/software_quality-ux_and_ui_table.jpg 1280w" alt="Compairson of UX and UI." height="168" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>While both are user-centric, there are some differences in the approaches and methodologies employed for UX and user interface design. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>Similarly, the terms customer experience (<a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-experience-CX">CX</a>) and UX are also used synonymously. The two concepts both aim to improve user interactions with a brand and ultimately enhance their experiences during interactions. However, the scope and focus of a customer experience strategy is much broader than that of UX.</p> <p>Where UX focuses on enhancing user interactions with a specific product or service, CX aims to enhance the entire user journey with a brand. Customer brand journeys typically include multiple interactions over multiple touchpoints. These touchpoints in the <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-journey-map">customer journey map</a> might be offline or online, direct or indirect.</p> <p>For example, User A might see an ad for a product on social media, prompting them to think about purchasing it. They might then research the product through a Google search and then go to the company's website to purchase it. A few days later, they might interact with the company's <a href="https://www.techtarget.com/searchcustomerexperience/definition/contact-center">contact center</a> via a phone call or an automated <a href="https://www.techtarget.com/searchcustomerexperience/definition/chatbot">chatbot</a> to get clarification about a specific feature or functionality. A couple of months later, they might fill out a survey form to provide product feedback or they might join the brand's online community to share their experiences using the product. They might also purchase other products from the same company after receiving email newsletters.</p> <p>All of these are various touchpoints and CX aims to improve user-brand interactions on all of them. Thus, where UX focuses on ensuring that users can easily achieve their objectives with a particular product, CX is about enhancing user perceptions and experiences across all stages of their relationship with the brand.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/lqaO53DJsYk?si=uaI_yv_W2PFDOtwo?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p></p> </section> <section class="section main-article-chapter" data-menu-title="Benefits of a strong user experience"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Benefits of a strong user experience</h2> <p>By designing products that enhance user experiences, companies can enjoy the following benefits:</p> <ul class="default-list"> <li><b>Enhanced customer satisfaction.</b> User-centric products enable users to easily find what they need, solve their problems and reach their goals. Users don't encounter issues that might otherwise cause resistance, so they enjoy their interactions with the product.</li> <li><b>Increased customer loyalty and retention. </b>Customers are more likely to be loyal to user-friendly, intuitive, consistent products with enhanced UXs, which can result in higher <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-retention">customer retention</a>.</li> <li><b>Stronger revenues and profitability</b>. When users enjoy seamless product experiences, they are more open to interacting with the product, engaging with its content and taking actions such as purchasing more products (cross-sell) or higher-value products (upsell).</li> <li><b>Elevated brand reputation. </b>Products that consistently deliver an improved UX enhance the brand's reputation. Brands that are considered customer-focused, trustworthy and reliable can boost the company's market standing and <a href="https://www.techtarget.com/searchcio/definition/competitive-advantage">competitive posture</a>.</li> <li><b>Lower customer acquisition costs.</b> Products that have a reputation for offering a superior UX stand out from competitor products. This can be an important unique selling point (<a href="https://www.techtarget.com/whatis/definition/unique-selling-point-USP">USP</a>) in crowded markets saturated with similar products. By prioritizing UX, businesses can attract more potential customers while reducing the cost of acquiring those customers.</li> <li><b>Lower support costs.</b> User-friendly products allow users to easily work with the product the way it's intended to be used, so they are less likely to contact customer support with enquiries or complaints.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="How to measure and evaluate the user experience"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to measure and evaluate the user experience</h2> <p>UX is a measurable concept that informs how businesses approach and optimize product design. It's important to evaluate and measure the impact of UX to ensure that the product is enhancing user lives in some way and empowering them to meet their goals.</p> <p>Some effective ways to measure UX include:</p> <ul class="default-list"> <li><b>Conduct usability testing and gather user feedback.</b> A usability test involves a small group of actual users who interact with a product to assess its usefulness, features, intuitiveness and accessibility. The product's designers and developers observe the behaviors of these users and ask them for detailed feedback via forms or surveys to identify issues and pinpoint improvement areas. They then implement these findings to improve the product design and, ultimately, deliver a more intuitive, user-centric product.</li> <li><b>Run a split test (A/B test).</b> In an <a href="https://www.techtarget.com/searchmobilecomputing/tip/Benefits-of-mobile-app-A-B-testing-for-developers">A/B test</a>, different groups of users are shown different versions of the same product to determine which version performs better against a certain goal, such as more newsletter sign-ups, more button clicks, more in-app purchases and so on. The two versions might differ in terms of layout, theme, color scheme, navigation elements, headlines, etc. The tester tracks user behaviors with each version and measures the outcomes of each group to identify the winning product version to implement real-world deployment.</li> <li><b>Collect UX metrics for executives and business decision-makers. </b>Executives and decision-makers can use many metrics to measure UX and gauge whether the product meets user expectations and needs. These metrics include the following: <ul style="list-style-type: circle;" class="default-list"> <li><b>Page load time.</b> How long a page takes to load -- a lower load time is desirable.</li> <li><b>Bounce rate.</b> The percentage of users who leave the product after viewing only a single page -- a lower bounce rate is desirable.</li> <li><b>Time on task.</b> The amount of time a user takes to complete a specific activity -- the lower this time, the easier the product is to use and navigate.</li> <li><b>Error rate.</b> The number of <a href="https://www.techtarget.com/searchsoftwarequality/definition/bug">bugs</a> or crashes that negatively impact UX -- fewer errors means that users encountered fewer problems while interacting with the product.</li> <li><b>Session length.</b> The amount of time users spend per visit -- a longer session along with a higher interaction rate suggests that users like the product and are willing to spend more time using it.</li> <li><b>Click-through rate (CTR).</b> The percentage of users who click on a button or call-to-action link -- a higher CTR indicates greater user satisfaction and a willingness to keep engaging with the product.</li> </ul> </li> </ul> <p>In addition to gathering the above metrics, UX teams can implement end-user experience monitoring (<a href="https://www.techtarget.com/searchenterprisedesktop/definition/end-user-experience-monitoring-EUEM">EUEM</a>) to monitor the product performance from a user's perspective. EUEM helps highlight performance issues that need to be resolved to improve UX.</p> <ul class="default-list"> <li><b>Use customer service metrics (NPS/CSAT/CES).</b> Quantitative metrics like Net Promoter Score (<a href="https://www.techtarget.com/searchcustomerexperience/definition/Net-Promoter-Score-NPS">NPS</a>) and customer satisfaction (<a href="https://www.techtarget.com/whatis/definition/customer-satisfaction-CSAT">CSAT</a>) are typically used to measure CX. However, they can also be used to measure and optimize UX. For example, NPS can highlight how pleased a user is with the product and how likely they are to recommend it to others. The company can then determine what they need to do to improve UX and NPS to try to enhance the user's product (and brand) loyalty. Similarly, a CSAT score shows how satisfied a user is with their product experience. A low score indicates that there is room for improvement. Brands can also use customer effort score (<a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-effort-score-CES">CES</a>) to measure how easily a customer is able to use the product. They can then determine what changes are required to improve the product's usability, accessibility or navigability.</li> <li><b>Determine actions from measured data points.</b> It's important to analyze all the gathered data points. Deep analyses enable teams to identify improvement areas and take appropriate actions to resolve issues and enhance UX.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="What does a UX designer do?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What does a UX designer do?</h2> <p>In general terms, a UX designer plays a central role in product design and is typically responsible for the user's overall product or service satisfaction. A UX designer can often approach the role as a customer advocate by looking for new and innovative ways to improve the customer's experience through the product or service using the following <i>why</i>, <i>what </i>and <i>how </i>considerations:</p> <ul class="default-list"> <li><b>Why. </b>Addresses user motivations in selecting and using a product.</li> <li><b>What. </b>Addresses the features and functionalities of the product.</li> <li><b>How. </b>Addresses the accessibility and aesthetics of the product.</li> </ul> <p>In more specific terms, UX designers perform a variety of design-related tasks, including the following:</p> <ul class="default-list"> <li>Understand the business, the brand and the user base, as well as the problem the product is intended to solve.</li> <li>Research users to identify behaviors, needs, goals and challenges through tools such as surveys, interviews, focus groups and user acceptance testing.</li> <li>Use that understanding and research to visualize how user <a href="https://www.techtarget.com/searchcio/definition/workflow">workflows</a> should operate; for example, what does a clear and concise software menu or interface look like?</li> <li>Design the product using mockups, wireframes, models or other <a href="https://www.techtarget.com/searcherp/definition/prototype">prototypes</a> to give other stakeholders and designers a clear picture of the product, including the UI.</li> <li>Test the product to validate user interactions and acceptance; make changes to the design as needed to optimize the design for user experience.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/steps_in_the_ux_design_process-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/steps_in_the_ux_design_process-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/steps_in_the_ux_design_process-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/steps_in_the_ux_design_process-f.png 1280w" alt="Visual showing 6 steps of the UX design process." height="255" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>These six steps are part of virtually all UX design projects, and might require the participation of a number of business groups besides the interface design team. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>UX designers employ a wide range of technical and interpersonal skills to accomplish their tasks successfully. Technical skills can involve strong research, data organization and prototyping skills, as well as basic visual design and coding skills for software development environments. Interpersonal skills include strong communication, collaboration and critical thinking.</p> </section> <section class="section main-article-chapter" data-menu-title="How to become a UX designer"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to become a UX designer</h2> <p>There are no formal requirements to become a UX designer. Most engineers and developers start with a basic technical degree and gain experience in UX concepts through their day-to-day projects.</p> <p>Professionals who seek a dedicated <a target="_blank" href="https://www.coursera.org/professional-certificates/google-ux-design" rel="noopener">UX design role</a> can:</p> <ul class="default-list"> <li>Take advantage of educational opportunities to study UX concepts and tools.</li> <li>Become involved with projects that use UX design skills and perhaps volunteer as a member of a product design/UX team.</li> <li>Develop a portfolio of successful UX designs.</li> <li>Apply for related UX design jobs inside or outside of the company.</li> </ul> <p>UX roles can go by many names, including product designer, service designer, user interaction designer and UX designer. Smaller organizations typically provide a broader scope of UX roles and responsibilities, while larger organizations might expect greater levels of specialization from UX designers, such as research, analysis or engineering. Senior UX designers can often move into management roles, such as project manager or UX director.</p> </section> <section class="section main-article-chapter" data-menu-title="How to align enterprise goals with UX strategy"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to align enterprise goals with UX strategy</h2> <p>Aligning UX strategy with broader enterprise goals enables organizations to enhance customer engagement and retention. Satisfied customers are more loyal and play a big role in boosting enterprise revenues, profits and growth. Alignment between UX and business goals also reduces support costs, which again, contributes to higher profits.</p> <p>Some strategies to achieve alignment between UX strategy and enterprise goals include the following:</p> <ul class="default-list"> <li><b>Define measurable UX goals.</b> Vague goals like "we want to increase our customer base" or "we want to increase revenues from Product X" are hard to understand and even harder to achieve. Instead, organizations should define clear UX goals like "decrease bounce rates by 10%" or "reduce page load time from 7 seconds to 3 seconds." It's also helpful to tie UX goals with business <a href="https://www.techtarget.com/searchbusinessanalytics/definition/key-performance-indicators-KPIs">KPIs</a> like NPS, CSAT or customer acquisition cost (<a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-acquisition-cost">CAC</a>). Such alignment ensures that the UX team never loses sight of the company's broader goals and consistently works toward achieving them during the UX design process.</li> <li><b>Break down larger goals into smaller more specific tasks.</b> A broad goal can be overwhelming for some teams because it often states the "what" but does not clarify the "how." One way to remedy this situation is to break down the goal into smaller action items. For example, goal of "reduce page load time from 7 seconds to 3 seconds" can be split into the following smaller goals: <ul class="default-list"> <li>Resize images to reduce their file size.</li> <li>Implement <a href="https://www.techtarget.com/searchsoftwarequality/definition/lazy-loading">lazy loading</a> for images to improve initial load size.</li> <li>Reduce the size of <a href="https://www.theserverside.com/definition/HTML-Hypertext-Markup-Language">HTML</a>, <a href="https://www.theserverside.com/definition/cascading-style-sheet-CSS">CSS</a> and <a href="https://www.theserverside.com/definition/JavaScript">JavaScript</a> files.</li> <li>Reduce page size.</li> <li>Distribute content across multiple servers with a content delivery network (<a href="https://www.techtarget.com/searchnetworking/definition/CDN-content-delivery-network">CDN</a>).</li> <li>Minimize redirects.</li> <li>Limit third-party scripts.</li> <li>Change or upgrade hosting to boost server response time.</li> </ul> </li> <li><b>Encourage cross-functional collaboration. </b>Successful organizations don't just build customer-centric products, they <i>are</i> customer-centric. In a customer-centric organization, all departments collaborate closely to define UX goals and the various tactics that are most likely to achieve those goals. This means removing communication siloes between product, design, engineering, sales, marketing, support and any other department that is directly or indirectly involved in UX or CX design and optimization. Breaking down siloes ensures that everyone is always on the same page and working together to solve user problems and deliver useful, user-centric products.</li> <li><b>Build a </b><strong>feedback loop</strong><b> into the design process</b>. User <a href="https://www.techtarget.com/searchitchannel/definition/feedback-loop">feedback</a> can help firms to continually improve their products and ensure that those products align with their business goals. Real-world inputs received via surveys, interviews, usability testing, A/B testing and so forth, reflect the behavior of real users. Design teams can then analyze the information to bridge the gap between what users want and what the product actually delivers.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/7_ux_design_principles-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/7_ux_design_principles-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/7_ux_design_principles-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/7_ux_design_principles-f.png 1280w" alt="Visual of 7 principles of UX design" height="280" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>These seven UX design principles outline the process of developing user-friendly application and web page experiences. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Common UX design mistakes"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Common UX design mistakes</h2> <p>Some common UX design mistakes that limit digital product usability and might diminish UX include:</p> <ul class="default-list"> <li><b>Not putting the user at the center of all product decisions. </b>Teams that don't put the user first might end up with products that fail to satisfy user needs. Conducting user surveys and gathering user feedback can help them to design products where the user is front and center.</li> <li><b>Not defining clear UX goals. </b>Every part of the product design should be aimed at enhancing UX. This requires defining clear goals and <a href="https://www.techtarget.com/searchcustomerexperience/definition/business-metric">metrics</a> that inform design strategies and decisions and also enable UX teams to measure whether they are progressing appropriately.</li> <li><b>Making too many changes.</b> Too many or too frequent design changes in an ad hoc manner can confuse users and diminish UX. When making changes, it's vital to consider the user's perspective and the expected benefits of the changes. It's also important to make a clear business case for the changes. If the benefits and business case are not clear, it's better to pause or abandon the redesign effort or to reduce the redesign scope.</li> <li><b>Not gathering user feedback.</b> Many teams fail to gather user feedback prior to product launch, usually due to time constraints and tight schedules.</li> <li><b>Not testing the product regularly. </b>Regular testing can reveal bugs and usability issues<b> </b>early during development. It's easier and less expensive to fix issues early in the design and development cycle. Testing pre-launch product iterations also ensures that the end product actually meets user needs and improves UX.</li> <li><b>Complicating the design.</b> A simple, user-friendly design is usually better than a design that offers too many options and features. If a feature (button, link, text, etc.) is not absolutely necessary, it shouldn't be included.</li> <li><b>Not coordinating with other customer-facing teams.</b> UX and CX are closely related, so the UX and design teams must collaborate with other customer-facing teams, such as marketing and support. Regular check-ins and clear communication among all teams will help ensure that they can coordinate their efforts to improve UX and build a customer-centric organization.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="History of UX"> <h2 class="section-title"><i class="icon" data-icon="1"></i>History of UX</h2> <p>User experience is basically the notion of how well people and machines interact. Thus, UX as a discipline can trace its roots back to the 19th-century industrial era when factories proliferated and required people to operate the factory production machines. The ways that production equipment and factory workflows brought efficiency to manufacturing are often considered the precursor to UX.</p> <p>Eventually, traditional factory environments and workflows evolved to improve working conditions for people, bringing concepts of human factors, safety and <a href="https://www.techtarget.com/whatis/feature/5-workplace-ergonomic-tools-to-improve-employee-experience">ergonomics</a> into the design of equipment and devices -- designing systems and workflows that better fit human capabilities and behaviors.</p> <p>As computer technology emerged and evolved, the ideas of UX translated into early computer designs. These early innovations included the graphical user interface (GUI) and the mouse, physical and virtual mechanisms still standard today. The actual term <i>user experience</i> is thought to have originated in the 1990s when cognitive psychologist Donald Norman joined Apple with the title <i>user experience architect</i>. Norman's book, <i>The Design of Everyday Things</i>, is still standard reading for UX studies.</p> <p>By the 1990s, the field of human-computer interaction emerged, blending fields of GUIs, <a href="https://www.techtarget.com/searchenterpriseai/definition/cognitive-modeling">cognitive sciences</a> and human-centric design concepts to refine and expand what UX entails. As technology introduced devices such as PCs, tablets and smartphones, the role and importance of UX in technology continued to expand.</p> </section> <section class="section main-article-chapter" data-menu-title="The future of UX and UX design"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The future of UX and UX design</h2> <p>Enhancing UX and focusing on UX design continue to be high priorities for customer-centric organizations. In the coming years, it's likely that these businesses will continue to maintain this focus, but they will also explore newer ways to design and deliver memorable UX to their users and customers.</p> <p>To do this consistently and cost-effectively, they will leverage advanced technologies like <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence">AI</a> and machine learning (<a href="https://www.techtarget.com/searchenterpriseai/definition/machine-learning-ML">ML</a>) to inform their UX design strategies. These technologies will enable UX teams to design hyper-personalized UX. AI will allow them to deliver tailored content to match the needs and expectations of individual users. AI tools will help them to seamlessly adapt product interfaces in response to user actions, thus ensuring natural and intuitive real-time user-product interactions.</p> <p>AI features and <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-agents">AI agents</a> are already being integrated into popular UX tools like Figma and Dovetail. As AI technology develops further, more tools will include AI capabilities that will help to streamline many time-consuming UX-related tasks, such as user research. This will enable UX designers and developers to save time and focus on more strategic tasks where their human skills can provide more value than AI, such as conducting qualitative research, building user maps and personas, and analyzing user feedback to inform design decisions.</p> <p>Also, small and domain-specific LLMs will improve in the near future. These models will power AI-enabled UX products for specific domains and environments. For example, organizations in regulated industries like healthcare and finance will be able to use these products to enhance UX for their user base, while also maintaining compliance with applicable user <a href="https://www.techtarget.com/searchcio/definition/privacy-compliance">privacy laws</a> and regulations.</p> <p><a target="_blank" href="https://uxpa.org/wp-content/uploads/sites/9/2024/11/UXPA_SalarySurvey_2024_v1.pdf" rel="noopener">Recent research</a> by the User Experience Professionals Association (<a target="_blank" href="https://uxpa.org/" rel="noopener">UXPA</a>) International, an organization that champions the advancement of UX through education, community, shared knowledge and collective action, suggests that many UX professionals are already using AI in their roles. According to the research report, in 2024, 47% of them said that they "found some value" by applying AI to their work. Many more (53%) expect to use AI in the coming years as they gain a better understanding of not only the appropriate uses of AI for enhancing UX, but also the potential pitfalls and weaknesses of AI that might lead to UX deterioration.</p> <p>Apart from AI and ML, UX specialists will also embrace technologies like augmented reality (<a href="https://www.techtarget.com/whatis/definition/augmented-reality-AR">AR</a>), virtual reality (<a href="https://www.techtarget.com/whatis/definition/virtual-reality">VR</a>) and the internet of things (<a href="https://www.techtarget.com/iotagenda/definition/Internet-of-Things-IoT">IoT</a>) to reshape how users interact with products and to enhance the experiences delivered by those products. They will also leverage the human-centered <i>design thinking</i> approach to develop innovative solutions that effectively address human problems and needs.</p> <p>To effectively use these technologies, UX professionals should invest in continuous learning. They should also keep themselves updated on emerging developments in areas like human-centered ethics, data privacy, CX and even cognitive psychology. An understanding of the key concepts within these areas will enable UX specialists to create products that resonate with users and deliver memorable UX.</p> </section> User experience design, or UX design, is the process of building a product that's user-friendly and provides enhanced user experiences through elements like the user interface (UI), visuals and navigation features. https://cdn.ttgtmedia.com/visuals/digdeeper/3.jpg https://www.techtarget.com/searchcio/definition/UX-user-experience Tue, 21 Oct 2025 13:02:00 GMT <p>An enterprise architecture (EA) is a conceptual blueprint that defines an organization's structure and operation. Its intent is to determine how an organization can effectively achieve its current and future objectives.</p> <p>Enterprise architecture involves analyzing, planning, designing and eventually implementing the analysis in an enterprise. Its use helps businesses going through digital transformation, since EA focuses on bringing legacy applications and processes together to form a seamless environment.</p> <p>EA frameworks emerged in response to the increased use of business technologies during the 1980s. They were a way to respond to rapid technology growth. EA later expanded to encompass the entirety of a business, not just IT. This way, the rest of the company would be aligned with <a href="https://www.techtarget.com/searchcio/definition/digital-transformation">digital transformation</a>.</p> <p>Enterprise architecture concepts vary; they won't look the same for different organizations. Parts of an organization might also view EA differently. For example, programmers and other technical IT professionals regard enterprise architecture strategies in terms of the infrastructure, applications and management components they control. Enterprise architects, on the other hand, take a broader view, seeing EA as part of their business structure analysis.</p> <section class="section main-article-chapter" data-menu-title="The purpose of enterprise architecture"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The purpose of enterprise architecture</h2> <p>EA helps various departments in a business understand the broader business model and articulate challenges and business risks. It is vital in unifying and coordinating departmental processes across an organization. Accessing and understanding business capability should also help individuals identify gaps in their business and make more informed decisions based on this <a href="https://www.techtarget.com/searchcio/definition/gap-analysis">gap analysis</a>.</p> <p>One main goal of EA is to create a map or blueprint of an organization's structure and operations. This blueprint should include information, such as a map of IT assets and <a href="https://www.techtarget.com/searchcio/definition/business-process">business processes</a>.</p> <p>Other common goals include promoting team alignment and standardization. This can be done, in part, by unifying environments across teams and organizations. Guidance is usually based on an organization's business requirements.</p> </section> <section class="section main-article-chapter" data-menu-title="The enterprise architecture process"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The enterprise architecture process</h2> <p>Microsoft's Michael Platt, a director in the strategic projects group, describes EA as having four points of view:</p> <ol class="default-list"> <li>The business perspective. This defines the processes and standards by which the business operates daily.</li> <li>The application perspective. This defines the interactions among the processes and standards the organization uses.</li> <li>The information perspective. This defines and classifies the raw data -- such as document files, databases, images, presentations and spreadsheets -- that the organization requires to operate efficiently.</li> <li>The technology perspective. This defines the hardware, operating systems, programming and networking tools the organization uses.</li> </ol> <p>The term <i>enterprise architecture</i> has various meanings for different professionals, depending on where they work. For example, programmers and other technical IT professionals regard enterprise architecture strategies in terms of the <a href="https://www.techtarget.com/searchdatacenter/definition/infrastructure">infrastructure</a>, application and management components they control.</p> <p>High-level programmers use enterprise architecture to refer to the hardware and software components in a design. For a website, that might comprise a web server, database, the NoSQL database cache, the application programming interface endpoints and the content delivery network. Technical enterprise architects look at EA in the context of software architecture, systems architecture deployment types and other steps like testing.</p> <p>Other IT professionals view enterprise architecture based on quality attributes. These attributes must exist for software to work and are unlikely to fit in a specification document. Examples include reliability, capacity, scalability and security. Quality elements aren't functional requirements but are ways to determine acceptable operating conditions and necessary tradeoffs to get there.</p> <p>In a business context, enterprise architecture differs from the technical architecture required to build and run applications. Working from within an enterprise architecture framework helps define this.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/app_arch-architecture_framework-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/app_arch-architecture_framework-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/app_arch-architecture_framework-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/app_arch-architecture_framework-f.png 1280w" alt="Diagram of the enterprise architecture framework pyramid" height="314" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>The enterprise architecture framework includes business processes, data collection, software tools and other supporting technology. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="EA models and methodologies"> <h2 class="section-title"><i class="icon" data-icon="1"></i>EA models and methodologies</h2> <p>Enterprise architectures are typically implemented as frameworks. There are many different frameworks; some are a better fit than others for a specific organization.</p> <p>For example, a large organization with many moving parts might find a framework focused on consistency and relationships between various parts of an overarching enterprise more useful.</p> <p>Some examples of EA frameworks include the following:</p> <ul class="default-list"> <li><b>Zachman Framework for Enterprise Architecture</b>. This covers six architectural points and six primary stakeholders who define and standardize IT architecture components.</li> <li><b>Unified Architecture Framework.</b> This complex but flexible enterprise architecture framework is suitable for military and government software development. It's also used in commercial businesses and implemented as a <a href="https://www.techtarget.com/searchsoftwarequality/definition/Unified-Modeling-Language">Unified Modeling Language profile</a>.</li> <li><b>Agile enterprise architecture.</b> This focuses an organization around a flexible, extended collection of structures and processes that can grow. It can become an important part of <a href="https://www.techtarget.com/searchsoftwarequality/definition/agile-software-development">Agile software delivery</a>.</li> <li><b>Federal Enterprise Architecture Framework.</b> This reference model was introduced in 1996 to improve IT effectiveness. It was designed for the U.S. government but is also used by private companies.</li> </ul> <p>Other frameworks include The Open Group Architectural Framework, the European Space Agency Architectural Framework, the SAP Enterprise Architecture Framework and the Ministry of Defence Architecture Framework.</p> </section> <section class="section main-article-chapter" data-menu-title="Benefits of enterprise architecture"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Benefits of enterprise architecture</h2> <p>Some advantages of having an enterprise architecture are the following:</p> <ul class="default-list"> <li>Improving decision-making.</li> <li>Enhancing adaptability to changing demands or market conditions.</li> <li>Eliminating inefficient and redundant processes.</li> <li>Optimizing the use of organizational assets.</li> <li>Minimizing employee turnover.</li> <li>Supporting organization redesigns and reorganizations.</li> <li>Facilitating the evaluation of architecture against long-term goals.</li> <li>Explaining IT architectures to those outside IT.</li> <li>Helping unify IT processes.</li> <li>Simplifying finance teams' work.</li> <li>Facilitating <a href="https://www.techtarget.com/searchcio/definition/project-management">project management</a> collaboration.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="The role of enterprise architects"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The role of enterprise architects</h2> <p>The enterprise architect is responsible for aligning an organization's IT strategy with its business objectives. They are charged with developing and maintaining an enterprise architecture management approach or framework that guides an organization on the technology needed to support its goals.</p> <p>This guidance can include best practices that ensure IT investments in enterprise architecture contribute to efficiency and scalability, using continuously innovating technologies. Gartner considers this one of the <a target="_blank" href="https://www.gartner.com/en/information-technology/role/enterprise-architecture-technology-leaders" rel="noopener">most important roles</a> of the enterprise architect. A successful enterprise architect can help organizations optimize resources and improve decision-making.</p> <p>To create a cohesive architecture strategy, enterprise architects must collaborate with stakeholders such as business leaders and IT teams. This collaboration should involve assessing current systems, identifying gaps and recommending improvements.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/app_arch-duties_of_enterprise_architect-f.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/app_arch-duties_of_enterprise_architect-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/app_arch-duties_of_enterprise_architect-f_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/app_arch-duties_of_enterprise_architect-f.png 1280w" alt="Descriptions of enterprise architect duties" height="317" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>The duties of an enterprise architect include proficiency in code and leadership responsibilities. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Enterprise architecture stakeholders"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Enterprise architecture stakeholders</h2> <p>Several important enterprise architecture stakeholders are involved in acquiring and maintaining an enterprise architecture. The most important are the following:</p> <ul class="default-list"> <li>Executives and business leaders.</li> <li>IT teams and developers.</li> <li>Project managers.</li> <li>Security and compliance teams.</li> <li>Operations and infrastructure teams.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="EA vendors, tools and certifications"> <h2 class="section-title"><i class="icon" data-icon="1"></i>EA vendors, tools and certifications</h2> <p>Several vendors sell enterprise architecture products and certifications focused on related skills. According to Gartner, examples of leading EA vendors include Ardoq, Bizdesign's Mega, Orbus Software and SAP.</p> <p>Some EA tools provide visibility, keeping everyone from different departments on the same page. They can be easy to configure and let users pick the management type -- such as agile -- for each project.</p> <p>Other EA software helps users develop strategic roadmaps and architectures that enable business and IT alignment. These tools enable business strategies and simplify technical architectures.</p> <p>Some example certifications include the following:</p> <ul class="default-list"> <li>Amazon Web Services Certified Solutions Architect</li> <li>Cloud Credential Council's Professional Cloud Solutions Architect Certification</li> <li>ISC2's Information Systems Security Architecture Professional</li> <li>Open Group Certified Architect</li> <li>Salesforce Certified Technical Architect</li> </ul> <p><i>Enterprise architecture is critical to success in the modern enterprise. Learn the </i><a href="https://www.techtarget.com/searchapparchitecture/tip/Enterprise-architect-skills-you-should-never-overlook"><i>four skills you shouldn't overlook as an enterprise architect</i></a><i>.</i></p> </section> An enterprise architecture (EA) is a conceptual blueprint that defines an organization's structure and operation. https://cdn.ttgtmedia.com/visuals/digdeeper/2.jpg https://www.techtarget.com/searchcio/definition/enterprise-architecture Fri, 12 Sep 2025 09:00:00 GMT <p>An effective IT strategy plan clearly defines an <a href="https://www.techtarget.com/searchcio/tip/Free-IT-mission-statement-examples-for-CIOs">IT organization's mission</a> and requirements, and it translates that mission into long- and short-range actionable goals. An effective IT strategic plan also reflects and drives the enterprise's business strategy and goals. Sounds straightforward enough, right? But as technology has become a <a href="https://www.techtarget.com/searchcio/definition/competitive-differentiation">business differentiator</a>, IT strategic planning is both more crucial and more challenging than ever. The IT function no longer exists to simply support business goals; IT must help drive the business.</p> <section class="section main-article-chapter" data-menu-title="What goes into IT strategic planning: Free templates and in-depth guides"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What goes into IT strategic planning: Free templates and in-depth guides</h2> <p>These free IT strategic planning templates and examples of IT strategic plans can <a href="https://www.techtarget.com/searchcio/cio-role">help CIOs develop strategies</a> that become powerful tools for the business.</p> <h3>1. Gartner</h3> <p><b>Offering:</b> <a target="_blank" href="https://emt.gartnerweb.com/ngw/globalassets/en/insights/strategic-planning/2021/asset/2021-strategy-on-a-page-for-technology.pdf" rel="noopener">Your One-Page IT Strategy</a></p> <p>Gartner is of the mind that IT strategic plans are WORN: written once, read never. To address the sit-on-the-shelf fate of such documents, Gartner analyst Heather Colella offers a template and guide for a one-page IT strategic plan. A central tenet of this plan -- besides being on one page -- is that CIOs will help their companies perform better through storytelling that shows how IT strategies drive business success. "Storytelling helps CIOs and IT leaders to engage business leaders in a strategy business conversation by visualizing the business model in a way that can be easily shared for collaboration across the enterprise," Colella explained.</p> <p>Gartner recommends the following four steps in preparation for a one-page plan:</p> <ul class="default-list"> <li><b>Step 1.</b> Know how you succeed.</li> <li><b>Step 2.</b> Understand your differentiators.</li> <li><b>Step 3.</b> Develop a rich story from a specific viewpoint.</li> <li><b>Step 4.</b> Draw a picture to commit your strategy to paper.</li> </ul> <p>The details on translating a strategy story into a strategic plan are spelled out in this guide. It also discusses the three foundational elements of any strategic plan: business objectives, business capabilities and key performance indicators (<a href="https://www.techtarget.com/searchbusinessanalytics/definition/key-performance-indicators-KPIs">KPIs</a>).</p> <h3>2. Info-Tech Research Group</h3> <p><b>Offering:</b> <a target="_blank" href="https://www.infotech.com/research/sme-it-strategic-plan-template" rel="noopener">SME IT Strategic Plan Template</a></p> <p>This free IT strategic plan template spells out simple yet effective procedures for aligning IT strategy with the company's strategic objectives and initiatives. It's designed for small and midsize enterprises. Note that registration is required and can take a few minutes to gain access.</p> <p>The template includes the following sections:</p> <ul class="default-list"> <li>Purpose of plan.</li> <li>Corporate strategy.</li> <li>Business initiatives to support corporate strategy.</li> <li>IT strategy.</li> <li>IT strategic plan to support business initiatives.</li> <li>IT strategic plan <a href="https://www.techtarget.com/searchsoftwarequality/definition/Gantt-chart">Gantt chart</a>.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/cio_IT-strategic-plan_checklist.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/cio_IT-strategic-plan_checklist_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/cio_IT-strategic-plan_checklist_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/cio_IT-strategic-plan_checklist.jpg 1280w" alt="Descriptions of the five essential elements of a CIO's IT strategic plan." height="365" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>There are five key components in a comprehensive IT strategic plan. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>3. CIO Index</h3> <p><b>Offering:</b> <a target="_blank" href="https://cioindex.com/reference/it-strategy-template/" rel="noopener">IT Strategy Template</a></p> <p>This IT strategic planning template lists 21 questions aimed at helping IT executives develop a plan that reflects business pain points and objectives. Registration is required for the downloadable template.</p> <p>The 21 questions are grouped in five categories:</p> <ul class="default-list"> <li><b>Baseline.</b> This section is designed to establish a baseline for IT and the business leaders by asking questions such as: "What are your top five business pain points?" "What are your top five business objectives?" "How do you plan to achieve these objectives?" "What will we gain by leveraging IT capability across the business?" Charts and tables help build an accurate picture of the current state of IT and the business.</li> <li><b>Business analysis.</b> This category deals with the company's customers, products and competition. Questions include: "Who is your customer?" "What is [your] current business model?" "What is each products' profitability, market and channel?" This section includes a <a href="https://www.techtarget.com/searchcio/definition/SWOT-analysis-strengths-weaknesses-opportunities-and-threats-analysis">SWOT chart</a> to analyze the company's strengths, weaknesses, opportunities and threats.</li> <li><b>IT strategy analysis.</b> This section of the IT strategy template digs into factors that thwart business success. Questions include: "What is in the way of achieving business imperatives?" (The template offers examples of several possible complications that hinder success.) "Can IT help achieve your business imperatives?" "What will we gain by leveraging IT capability (selling, manufacturing, buying or servicing) across the business?"</li> <li><b>Environment trend analysis.</b> The two questions in this category ask leaders to think about the five top business trends and the five top technology trends, then assess which of the five in each area will affect their business and how.</li> <li><b>Current IT capability analysis.</b> This section asks organizations to analyze how much they spend on IT, where they spend it and why. Questions include: "What is your technology <a href="https://www.techtarget.com/searchcio/definition/ROI">ROI</a>?" "Does your <a href="https://www.techtarget.com/whatis/definition/business-plan">business plan</a> include a technology plan?"</li> </ul> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/WI1qXpaAbJs?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <h3>4. Process Street</h3> <p><b>Offering:</b> <a target="_blank" href="https://www.process.st/templates/it-strategic-planning-template" rel="noopener">IT Strategic Planning Template</a></p> <p>The Process Street IT Strategic Planning Template is a prebuilt workflow and checklist designed to help organizations develop, implement and manage their IT strategy. This template is suitable for teams that prefer a task-oriented, actionable approach to strategic planning, with built-in checkpoints for feedback, <a href="https://www.techtarget.com/searchdatamanagement/definition/data-governance">data governance</a> and continuous improvement. Registration is required to access and edit the template.</p> <p>The template guides users through the following step-by-step workflow:</p> <ul class="default-list"> <li>Audit the existing IT infrastructure.</li> <li>Identify improvements and business-aligned opportunities.</li> <li>Conduct a <a href="https://www.techtarget.com/searchcio/definition/gap-analysis">gap analysis</a> to compare current capabilities with desired outcomes.</li> <li>Develop the IT roadmap, prioritize initiatives, estimate budget requirements and secure stakeholder approvals.</li> <li>Implement the strategy, monitor progress and make ongoing adjustments as needed.</li> </ul> <p>Instead of starting from scratch, teams can run this template in Process Street. Each step in the template becomes a task that can be assigned to individuals, be tracked for completion and has relevant information or documents attached.</p> <h3>5. Apptio</h3> <p><b>Offering:</b> <a target="_blank" href="https://www.apptio.com/resources/executive-briefs/essential-kpis-it-strategic-planning-process" rel="noopener">10 Essential KPIs for the IT Strategic Planning Process</a></p> <p>Apptio's guide to developing an effective IT strategic plan lays out the 10 KPIs deemed essential for delivering business value. These KPIs focus on financial fundamentals, delivery, innovation and agility to support the business strategy. Apptio notes that these aren't "operational measures of 'feeds and speeds' -- they are proof points that IT is delivering business value." Registration is required to access the full guide.</p> <p>The following comprise Apptio's 10 KPIs for the IT strategic plan:</p> <ul class="default-list"> <li>IT spend vs. plan (Opex and <a href="https://www.techtarget.com/whatis/definition/CAPEX-capital-expenditure">Capex</a> variance).</li> <li>Application and service total cost.</li> <li>Percent of IT spend on cloud.</li> <li>Product lead time.</li> <li>Business value delivered by portfolio per quarter.</li> <li>Percent of IT investment on run, grow and transform-the-business.</li> <li>Percent of project spend on customer-centric initiatives.</li> <li>IT spend by business unit.</li> <li>Customer satisfaction scores for business-facing services.</li> <li>Percent of IT investment by business initiative.</li> </ul> <h3>6. Cascade</h3> <p><b>Offering:</b> <a target="_blank" href="https://www.cascade.app/templates/it-strategy-template" rel="noopener">IT Strategy Template</a></p> <p>The Cascade IT Strategy Template is designed to help IT teams align their technology initiatives with broader business goals while making execution measurable and manageable. Registration is required to access and use the template. It is built around five key components that ensure clarity, alignment and accountability:</p> <ul class="default-list"> <li><b>Focus areas.</b> Broad strategic themes that guide the IT strategy.</li> <li><b>Objectives.</b> Specific, measurable goals under each focus area.</li> <li><b>Projects.</b> Initiatives that drive progress toward objectives.</li> <li><b>KPIs.</b> Metrics to track success and progress.</li> <li><b>Execution platforms.</b> The Cascade platform provides <a href="https://www.techtarget.com/searchcustomerexperience/definition/real-time-analytics">real-time analytics</a>, progress dashboards and cross-functional collaboration tools.</li> </ul> <p>Cascade's IT strategy template is highly scalable. Its visual and intuitive design makes it ideal for stakeholder presentations. Its execution-focused approach ensures that teams move beyond planning to track progress and adapt strategies as needed. The template is designed for CIOs, IT directors and strategy leads, as well as teams overseeing digital transformation, <a href="https://www.techtarget.com/searchcloudcomputing/definition/cloud-migration">cloud migration</a> or cybersecurity initiatives.</p> <h3>7. GroWrk</h3> <p><b>Offering:</b> <a target="_blank" href="https://growrk.com/hubfs/How%20to%20create%20an%20IT%20strategy%20plan%20images/Basic%20IT%20Strategy%20Template.pdf" rel="noopener">Basic IT Strategy Template</a></p> <p>The GroWrk Basic IT Strategy Template is a two-page framework designed to help IT leaders align technology initiatives with business goals. Here's a breakdown of its key components:</p> <ul class="default-list"> <li><b>Vision and mission.</b> The vision sets long-term goals, such as driving innovation through secure, scalable tech. The mission defines the IT team's daily focus on delivering reliable, user-focused services that boost business productivity.</li> <li><b>Goals and objectives.</b> Strategic goals align IT with business priorities through measurable, time-bound objectives. These include boosting uptime, migrating to the cloud and improving support to ensure clear and actionable progress.</li> <li><b>SWOT analysis.</b> SWOT offers a clear view of IT strengths and weaknesses, opportunities including <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence">AI</a> and cloud, and threats from cyber-risks and compliance shifts.</li> <li><b>Technology roadmap.</b> The roadmap presents a phased timeline: short-term upgrades, such as <a href="https://www.techtarget.com/searchsecurity/definition/multifactor-authentication-MFA">multifactor authentication</a> and network improvements; medium-term goals, such as cloud migration; and long-term strategies involving AI analytics and <a href="https://www.techtarget.com/searcherp/feature/How-to-modernize-your-legacy-ERP-system">ERP modernization</a>.</li> <li><b>Implementation plan.</b> The implementation plan defines how initiatives will be executed. It assigns roles and responsibilities to project leads, sets timelines and allocates budgets. This ensures accountability and helps stakeholders track progress across departments and vendors.</li> <li><b>Governance and framework.</b> A governance framework establishes decision-making protocols and policy guidelines. For example, IT investments above a certain threshold might require executive approval.</li> <li><b>KPIs.</b> These metrics are essential for measuring the success of IT initiatives. Common ones include system uptime, ROI on technology investments and employee satisfaction with IT services.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="3 IT strategic plan examples"> <h2 class="section-title"><i class="icon" data-icon="1"></i>3 IT strategic plan examples</h2> <p>IT strategic plans for higher education institutions and government agencies are readily found on the web. Here are three examples.</p> <h3>8. Harvard University</h3> <p><strong>Example:</strong> <a target="_blank" href="https://www.huit.harvard.edu/strategy" rel="noopener">IT Strategic Plan</a></p> <p>Harvard's IT strategic plan is a collaborative effort overseen by its CIO Council and Harvard University Information Technology. Its goal is to empower the Harvard community with advanced technology that drives progress in education, knowledge and discovery. This mission is rooted in these three key values: innovation, collaboration and human-centered service.</p> <p>In 2022, the CIO Council began assessing progress on its 2018 strategic plan and developed a more agile, annual initiative-based approach. For fiscal year 2025, three key university-wide priority areas were identified:</p> <ul class="default-list"> <li><b>Asset management.</b> This involves automating inventories of servers and workstations to identify unmanaged systems and formulating policies around <a href="https://www.techtarget.com/iotagenda/definition/Internet-of-Things-IoT">IoT</a> and personal devices.</li> <li><b>Generative AI.</b> This area focuses on supporting secure and responsible experimentation with <a href="https://www.techtarget.com/searchenterpriseai/tip/Top-generative-AI-tool-categories">generative AI tools</a> across schools. It involves consolidating procurement and training and fostering collaboration through an AI Community of Practice.</li> <li><b>Information security and data privacy.</b> This area focuses on enhancing <a href="https://www.techtarget.com/searchsecurity/definition/vulnerability-management">vulnerability management</a> and fortifying systems to mitigate privacy issues and cyber-risks across campus.</li> </ul> <h3>9. University of South Florida System</h3> <p><b>Example:</b> <a target="_blank" href="https://www.stpetersburg.usf.edu/resources/computing/about/strategic-plan.aspx" rel="noopener">Information Technology Strategic Plan 2019-2023</a></p> <p>The University of South Florida Information Technology Plan includes an executive summary, mission statement, vision statement, list of current services, guiding principles and strategic goals. The executive summary notes that the Office of Campus Computing typically has a much faster planning cycle than other disciplines due to rapid technological changes. It also states that the system's IT requests "continue to grow at unprecedented rates, and place significant stress on existing Campus Computing infrastructure."</p> <p>The plan lays out estimated costs per year to meet Campus Computing's strategic goals. It is <a target="_blank" href="https://www.stpetersburg.usf.edu/resources/computing/documents/strategic-plan-2019-2023.pdf" rel="noopener">downloadable as a PDF</a>.</p> <h3>10. Department of Homeland Security</h3> <p><b>Example:</b> <a target="_blank" href="https://www.dhs.gov/publication/dhs-information-technology-strategic-plan-2019-2023" rel="noopener">DHS Information Technology Strategic Plan 2019-2023</a></p> <p>As the introduction notes, the IT department of the Department of Homeland Security plays a powerful role in supporting the agency's mission to keep the country safe and secure. The eight-page plan includes a mission statement, vision statement and seven guiding principles. The plan is built around four goals: culture, connectivity, <a href="https://www.techtarget.com/searchsecurity/definition/cybersecurity">cybersecurity</a> and customers. Each goal is broken down into a list of objectives and their focus areas.</p> <p><i>Kinza Yasar is a technical writer for WhatIs and has a background in computer networking.</i></p> <p><i>Linda Tucci is an executive industry editor at Informa TechTarget. A technology writer for 20 years, she focuses on the CIO role, business transformation and AI technologies. </i></p> </section> As technology becomes a business differentiator, a well-thought-out IT strategy plan is more crucial than ever. These IT strategy templates help CIOs make IT a business driver. https://cdn.ttgtmedia.com/rms/onlineimages/check_g1182594295.jpg https://www.techtarget.com/searchcio/tip/Free-IT-strategic-planning-templates-for-CIOs Tue, 26 Aug 2025 00:00:00 GMT <p>With the growth and evolution of blockchain technologies, there is a new era of web development with Web 3.0.</p> <p><a href="https://www.techtarget.com/whatis/definition/Web-30">Web 3.0</a> is all about enabling a more decentralized web. It is a web experience with blockchain at the core, providing a foundation for decentralized finance (<a href="https://www.techtarget.com/whatis/definition/decentralized-finance-DeFi">DeFi</a>), decentralized applications (<a href="https://www.techtarget.com/iotagenda/definition/blockchain-dApp">dApps</a>), smart contracts and non-fungible tokens (<a href="https://www.techtarget.com/whatis/definition/nonfungible-token-NFT">NFTs</a>) -- among other emerging concepts.</p> <section class="section main-article-chapter" data-menu-title="What is a Web 3.0 developer?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is a Web 3.0 developer?</h2> <p>Web 3.0 developers are developers who build the applications, services and infrastructure that define the Web 3.0 era.</p> <p>More specifically, a Web 3.0 developer is a software developer who specializes in building applications using decentralized technologies. Those technologies <a href="https://www.theserverside.com/tip/Smart-contracts-blockchain-and-decentralized-computing">include blockchain networks</a>, peer-to-peer data-sharing protocols and distributed storage systems.</p> </section> <section class="section main-article-chapter" data-menu-title="What do Web 3.0 developers do?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What do Web 3.0 developers do?</h2> <p>Web 3.0 developers are generally responsible for the development and management of Web 3.0 applications and services. Common tasks that Web 3.0 developers do include the following:</p> <ul class="default-list"> <li><b>Work with blockchain platforms.</b> Web 3.0 developers often work with multiple blockchain ecosystems. Among the commonly used options are <a href="https://www.techtarget.com/whatis/definition/Ethereum">Ethereum</a> and <a href="https://www.techtarget.com/searchcio/definition/Hyperledger">Hyperledger Fabric</a>. Developers work on building new applications as well as integrating existing applications with blockchain technology. They might also contribute to developing new blockchain protocols and platforms.</li> <li><b>Develop smart contracts.</b> Creating smart contracts is often a major part of a Web 3.0 developer's job. A smart contract is a type of self-executing program that automatically enforces agreements on blockchain networks.</li> <li><b>Build decentralized applications.</b> Web 3.0 developers create dApps that integrate blockchain technology with functional user interfaces. These applications aim to provide fault tolerance, data integrity and platform flexibility compared with traditional centralized applications.</li> <li><b>Work with decentralized finance.</b> Another core area of focus for Web 3.0 developers is creating DeFi applications. These systems rely on smart contracts and peer-to-peer approaches to enable lending, borrowing and trading.</li> <li><b>API and infrastructure development.</b> Web 3.0 developers often build the necessary APIs and infrastructure components that enable decentralized applications to interact with blockchain networks efficiently, including developing Web 3.0 libraries and tools.</li> <li><b>Implement security protocols.</b> As is the case with any modern application development, security is a priority. Web 3.0 developers implement secure software development practices and conduct regular security audits to help minimize risk.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="How to become a Web 3.0 developer"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to become a Web 3.0 developer</h2> <p>There are several ways that an individual can <a href="https://www.theserverside.com/blog/Coffee-Talk-Java-News-Stories-and-Opinions/Six-key-stops-on-the-Web3-developers-roadmap">become a Web 3.0 developer</a>. At the most basic level, a good understanding of the fundamentals of application development is a good start. Becoming a Web 3.0 developer requires following a learning path that builds both foundational programming knowledge and specialized expertise in Web 3.0 tools and frameworks.</p> <p>Consider the following key steps to become a Web 3.0 developer:</p> <ol class="default-list"> <li><b>Learn the basics of blockchain.</b> Blockchain is a primary area of expertise for Web 3.0 developers. To be a blockchain expert, developers must understand <a href="https://www.theserverside.com/tip/Distributed-ledger-technology-risks-and-how-to-solve-them">distributed ledger</a> technology, <a href="https://www.techtarget.com/whatis/definition/consensus-algorithm">consensus algorithms</a> such as proof-of-work and <a href="https://www.techtarget.com/whatis/definition/proof-of-stake-PoS">proof-of-stake</a>, and cryptographic principles. Developers must also grasp concepts such as gas optimization, smart contract architecture and blockchain interoperability.</li> <li><b>Gain hands-on experience with development tools.</b> Become familiar with <a href="https://www.techtarget.com/searchcio/tip/The-most-promising-tools-for-Web-30-development">Web 3.0 development tools</a>, libraries and frameworks for blockchain interaction and smart contract development. Popular tools include Hardhat, OpenZeppelin and Alchemy.</li> <li><b>Build a portfolio of sample applications.</b> The best way to become a Web 3.0 developer is to actually develop Web 3.0 applications. Create projects that demonstrate Web 3.0 skills <a href="https://www.theserverside.com/tip/Know-how-and-when-to-use-blockchain-vs-distributed-ledgers">with blockchain</a>, including NFTs and even simple DeFi applications.</li> <li><b>Contribute to open source projects.</b> Engage with major Web 3.0 open source projects <a href="https://www.theserverside.com/tip/Introduction-to-Solidity-Build-an-Ethereum-smart-contract">such as Ethereum</a> core development, popular DeFi protocols or development tool frameworks. This provides real-world experience and networking opportunities.</li> <li><b>Join the Web 3.0 community.</b> Participate actively in Web 3.0 communities, engage on social media with industry leaders and attend hackathons.</li> </ol> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/the_path_to_web_30_expertise-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/the_path_to_web_30_expertise-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/the_path_to_web_30_expertise-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/the_path_to_web_30_expertise-f.png 1280w" alt="List of steps required to gain Web 3.0 expertise." height="224" width="560"> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Required skills for Web 3.0 developers"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Required skills for Web 3.0 developers</h2> <p>To fully enable and build out decentralized, blockchain-based applications, Web 3.0 developers need to combine traditional software development expertise with more specialized skills.</p> <p>The following are critical skills required for Web 3.0 developers:</p> <ul class="default-list"> <li><b>Smart contract skills.</b> Smart contracts are a foundational element of Web 3.0. Among the most critical skills for smart contract development is familiarity with the Solidity programming language. Solidity is widely used to <a href="https://www.techtarget.com/searchapparchitecture/tip/How-to-create-a-smart-contract-using-Ethereum">create smart contracts using Ethereum</a>.</li> <li><b>Programming skills.</b> While Solidity is specifically for smart contracts, Web 3.0 developers need to have a solid base in a core set of programming languages that are widely used in decentralized application development. Required language skills include <a href="https://www.theserverside.com/definition/JavaScript">JavaScript</a>, which is used to interact with blockchain and for front-end development. For those working with the Solana blockchain in particular, the <a href="https://www.techtarget.com/searchapparchitecture/tip/The-fundamental-benefits-of-programming-in-Rust">Rust programming language</a> is a required skill. <a href="https://www.techtarget.com/whatis/definition/Python">Python</a> is also critical because it is used for both application development and data analysis.</li> <li><b>Development frameworks.</b> Beyond just programming skills in particular languages, Web 3.0 development also tends to rely on a common set of development frameworks. Developers should be familiar with the <a target="_blank" href="https://hardhat.org/" rel="noopener">Hardhat</a> development environments, <a target="_blank" href="https://web3js.readthedocs.io/en/v1.10.0/" rel="noopener">Web3.js</a> or <a target="_blank" href="https://ethers.org/" rel="noopener">Ethers.js</a> for blockchain interactions, and testing frameworks for comprehensive smart contract verification.</li> <li><b>Security expertise.</b> Web 3.0 developers must understand common vulnerabilities, implement security best practices, conduct code audits and follow established best practices for security.</li> </ul> <p><i>Sean Michael Kerner is an IT consultant, technology enthusiast and tinkerer. He has pulled Token Ring, configured NetWare and been known to compile his own Linux kernel. He consults with industry and media organizations on technology issues.</i></p> </section> Becoming a Web 3.0 expert means mixing old and new skills. https://cdn.ttgtmedia.com/rms/onlineimages/code_g1289411982.jpg https://www.techtarget.com/searchcio/tip/How-to-become-a-Web-30-developer-Required-skills-and-guide Wed, 13 Aug 2025 09:00:00 GMT <p>IDoc (intermediate document) is a standard data structure used in SAP applications to transfer data to and from SAP system applications and external systems. Using IDocs, companies with <a href="https://www.techtarget.com/searchsap/definition/SAP">SAP ERP</a> systems, for example, can exchange data with external entities like their partners or customers.</p> <p>The transfer between SAP systems is done through SAP's Application Link Enabling (ALE) system, while the transfer from an SAP system to an external system happens through electronic data interchange (<a href="https://www.techtarget.com/searchdatacenter/definition/EDI">EDI</a>). This enables data to be exchanged between the different systems without having to convert it from one format to another.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/erp-simplified_erp.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/erp-simplified_erp_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/erp-simplified_erp_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/erp-simplified_erp.png 1280w" alt="A simplified look at how ERP works." height="314" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>An explainer of how ERP systems work using a shared database. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <section class="section main-article-chapter" data-menu-title="IDoc structure"> <h2 class="section-title"><i class="icon" data-icon="1"></i>IDoc structure</h2> <p>IDocs are used for <a href="https://www.techtarget.com/searchnetworking/definition/asynchronous">asynchronous</a> transactions: Each IDoc generated exists as a self-contained text file that can then be transmitted to the requesting workstation without connecting to the central database. By comparison, another SAP mechanism, the Business Application Programming Interface, or <a href="https://www.techtarget.com/searchsap/definition/BAPI">SAP BAPI</a>, is used for <a href="https://www.techtarget.com/searchapparchitecture/tip/Synchronous-vs-asynchronous-communication-The-differences">synchronous</a> transactions.</p> <p>An SAP IDoc consists of three parts:</p> <ul class="default-list"> <li><b>Control record.</b> Contains administrative information such as the IDoc type, message type, current status, sender and receiver.</li> <li><b>Data record.</b> Contains all the IDoc data, which is stored in groups called segments. Each IDoc can contain standard segments and custom segments.</li> <li><b>Status record.</b> Provides information about the various stages the IDoc has passed through.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Types of IDocs"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Types of IDocs</h2> <p>IDocs can be triggered in the SAP system or in the EDI subsystem. An IDoc coming into an SAP system is called an Inbound IDoc, while an IDoc going out of a system is called an Outbound IDoc. An Outbound IDoc is triggered through document message control to the EDI subsystem. EDI then converts the IDoc data into Extensible Markup Language (<a href="https://www.techtarget.com/whatis/definition/XML-Extensible-Markup-Language">XML</a>), or an equivalent format, and sends the data to the outside system using the internet.</p> <p>For Inbound IDocs, EDI converts the outside system data, and the IDoc is created in SAP. An application document is then posted in the SAP system after it processes the IDoc.</p> <p>IDoc types define different categories of data, such as purchase orders or invoices, which can then be broken down into more specific categories called message types. Greater specificity means that an IDoc type is capable of storing only the data required for a particular transaction, which increases efficiency and decreases resource demands.</p> </section> <section class="section main-article-chapter" data-menu-title="How IDoc is used in SAP"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How IDoc is used in SAP</h2> <p>An IDoc can be generated at any point in a transaction process. For example, <a href="https://www.techtarget.com/searcherp/feature/What-role-do-ERP-systems-play-in-supply-chain-management">during a shipping transaction process</a>, an IDoc can be generated that includes the data fields required to print a shipping manifest.</p> <p>After a user performs an SAP transaction, one or more IDocs are generated in the sending <a href="https://www.techtarget.com/searchdatamanagement/definition/database">database</a> and passed to the <a target="_blank" href="https://help.sap.com/doc/saphelp_nw73ehp1/7.31.19/en-US/4d/5a4aa4a3d8230ae10000000a15822b/frameset.htm" rel="noopener">ALE</a> communication layer. The communication layer performs a Remote Function Call, using the <a href="https://www.techtarget.com/searchnetworking/definition/port">port</a> definition and RFC destination specified by the customer model. The IDoc is transmitted to the receiver, which might be an <a href="https://www.techtarget.com/searchsap/definition/SAP-S-4HANA">S/4HANA</a>, R/3 or other external system.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/3fhHnRPrdIw?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="IDoc vs. XML"> <h2 class="section-title"><i class="icon" data-icon="1"></i>IDoc vs. XML</h2> <p>IDoc serves a similar purpose to XML. They are both standard languages and document formats to facilitate text-only data transfer between systems. Many systems convert XML and IDocs between formats depending on the sender and recipient.</p> <p>XML is a generic format that can be customized for many purposes. IDocs are a format designed by <a href="https://www.techtarget.com/searchsap/feature/Grow-with-SAP-tries-to-make-midmarket-a-big-market">SAP for business purposes</a>. IDocs has additional attributes, such as requirements for creation time, sender and recipient. This makes IDocs better for traceability and <a href="https://www.techtarget.com/searchcio/definition/compliance-audit">auditing</a>.</p> </section> <section class="section main-article-chapter" data-menu-title="IDoc processing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>IDoc processing</h2> <p>The lifecycle of an IDoc is divided between an outbound step, where it is generated and sent, and an inbound step, where it is received and processed.</p> <p>First, some event or action triggers the creation of an IDoc. This might be an order, purchase or stock notice. The IDoc is then created according to the rules and configuration needed for the specific process. The document is validated and assigned a unique IDoc ID number. It is then sent through the interface or integration engine, according to predefined rules.</p> <p>The IDoc is received by the target system, where it is parsed and interpreted. Error checking is performed to make sure that it was transmitted without being changed. The receiving SAP program then performs the action requested by the IDoc, such as placing an order or updating a database. The IDoc is then marked as complete. Sometimes an acknowledgement IDoc is returned to the sending module to close the communication link.</p> </section> <section class="section main-article-chapter" data-menu-title="IDoc advantages and disadvantages"> <h2 class="section-title"><i class="icon" data-icon="1"></i>IDoc advantages and disadvantages</h2> <p>The IDoc format has its pros and cons:</p> <h3>Advantages</h3> <ul class="default-list"> <li><b>Standardization.</b> IDocs are a well-documented standard that can be used by several vendors.</li> <li><b>Asynchronous.</b> They enable batch processing and systems to process when they come online.</li> <li><b>Audit trail.</b> All IDocs include timestamps and processing information, making them easier to <a href="https://www.techtarget.com/whatis/definition/troubleshooting">troubleshoot</a> and track.</li> <li><b>Automation.</b> IDocs enable a high degree of <a href="https://www.techtarget.com/searchitoperations/definition/IT-automation">automatic</a> processing.</li> </ul> <h3>Disadvantages</h3> <ul class="default-list"> <li><b>Complexity.</b> IDocs include many advanced features that might not be needed for some deployments.</li> <li><b>Overhead.</b> The additional complexity adds more information to process.</li> <li><b>Not real-time.</b> IDocs do not guarantee delivery or processing time, making them unfit for real-time or highly time-sensitive operations.</li> <li><b>Version conflicts.</b> IDocs have several versions, revisions and extensions. It requires careful management to avoid conflicts or oversights.</li> </ul> <p><i>Choosing the right ERP system involves evaluating factors like company size and objectives. Here are </i><a href="https://www.techtarget.com/searcherp/feature/ERP-software-selection-Is-ERP-right-for-you"><i>common ERP use cases to simplify your research</i></a><i>.</i></p> </section> IDoc (intermediate document) is a standard data structure used in SAP applications to transfer data to and from SAP system applications and external systems. https://cdn.ttgtmedia.com/visuals/digdeeper/3.jpg https://www.techtarget.com/searchsap/definition/IDoc Thu, 07 Aug 2025 13:00:00 GMT <p>The world underwent a radical shift at the turn of the last century, moving from an analog world to a largely digital one.</p> <p>This <a href="https://www.techtarget.com/searchcio/definition/digital-transformation">digital transformation</a> changed how people communicated, collaborated and worked, requiring many to learn how to interact with and use new technologies. Those who possess these skills have what is called digital literacy.</p> <p>For many people today, digital literacy is an important job skill. Learn more about digital literacy, why it's important, and how CIOs and other IT leaders can help improve employees' digital literacy.</p> <section class="section main-article-chapter" data-menu-title="What is digital literacy?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is digital literacy?</h2> <p>Digital literacy is commonly defined as the ability to use technology to accomplish everyday tasks in ways that are faster or easier than performing those activities manually. In other words, possessing digital literacy is a person knowing how to use <a href="https://www.techtarget.com/searchunifiedcommunications/ehandbook/A-detailed-guide-to-unified-communications-platforms">digital tools to communicate</a> and collaborate in both their personal and professional lives.</p> <p>"Digital literacy is knowing what digital tools are available, knowing how to find them and knowing the appropriate digital tool for the task you have to complete," said Quentin McAndrew, global academic strategist at e-learning provider Coursera.</p> <p>The ability to learn new concepts is also an important part of digital literacy.</p> <p>"[Digital literacy] implies a certain level of comfort with the tools that exist now," McAndrew said. "It also implies a level of digital agility, where you have the ability to learn to use new [digital] tools as they evolve."</p> <p>Another important part of digital literacy is <a href="https://www.techtarget.com/searchsecurity/tip/10-cybersecurity-best-practices-and-tips-for-businesses">awareness of best practices</a>.</p> <p>Digital literacy also requires an understanding of cybersecurity, data privacy and ethical technology use in addition to being able to use computers and digital platforms, said Karen Panetta, a professor of electrical and computer engineering at Tufts University and a fellow with the Institute of Electrical and Electronics Engineers.</p> </section> <section class="section main-article-chapter" data-menu-title="Why does digital literacy matter?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why does digital literacy matter?</h2> <p>Digital literacy can help employees succeed.</p> <p>Individuals who are competent with digital tools have greater chances of thriving in their personal and professional pursuits, McAndrew said. That ability to learn new technology gives those with digital literacy -- and the companies that employ them -- an advantage.</p> <p>In addition, digital tools are now simply a required part of many jobs.</p> <p>More than 90% of the job ads analyzed in the U.S. labor market demand digital skills, according to the 2023 report "Closing the Digital Skill Divide" by the National Skills Coalition in partnership with the Federal Reserve Bank of Atlanta.</p> <p>Technologies like <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence">AI</a> mean that digital literacy continues to be important in the workplace.</p> <p>Individuals need to be digitally literate to get through their daily lives and their work, said Seth Robinson, vice president of industry research at CompTIA, a global trade association that provides IT training and certifications. People must know how to securely access online sites, securely share information via electronic means and communicate via digital channels. They must also know how to protect themselves from cyberthreats of all kinds.</p> </section> <section class="section main-article-chapter" data-menu-title="5 examples of digital literacy in the workplace"> <h2 class="section-title"><i class="icon" data-icon="1"></i>5 examples of digital literacy in the workplace</h2> <p>Here are five examples of required digital literacy in the workplace.</p> <h3>1. Familiarity with basic digital tools</h3> <p>Workers must be able to use fundamental programs to get basic tasks done. For instance, many workers now need to know <a href="https://www.techtarget.com/searcherp/answer/Finding-the-top-three-values-using-the-Excel-LARGE-function">how to use Excel</a>, including how to build a formula in the program, import data and produce results.</p> <p>"You have to show you know how to use the tool and how to make it work," Robinson said.</p> <h3>2. Video conferencing competency</h3> <p>With some teams now spread out geographically, many employees need to know how to effectively <a href="https://www.techtarget.com/searchunifiedcommunications/The-enterprise-guide-to-video-conferencing">participate in virtual meetings</a>.</p> <p>Required skills include being able to schedule a meeting, establish the right security settings to protect it from unauthorized access, and engage and collaborate on whichever technology platform the team chooses for its virtual meeting, Panetta said. For example, users should know how to raise their hand in a virtual meeting.</p> <h3>3. Data skills</h3> <p>Many employees need to not only <a href="https://www.techtarget.com/searchbusinessanalytics/tip/Key-steps-form-a-data-driven-decision-making-framework">make data-driven decisions</a>, but know where to find the information on which to base those decisions.</p> <p>In order to make data-driven decisions, workers need to know how to access and analyze data, McAndrew said. They also need to know which tools are appropriate for which tasks. For instance, they should know how to use business intelligence software to report on past performance, and data analytics tools for prediction modeling and forecasting.</p> <h3>4. Cybersecurity literacy</h3> <p>Digitally literate workers are also cognizant of the cybersecurity risks and <a href="https://www.techtarget.com/searchhrsoftware/answer/How-can-HR-protect-health-data-privacy">data privacy concerns</a> that come with the use of digital tools.</p> <p>For example, everyone should be on the lookout for phishing attacks when using email, and they should know which data privacy laws apply to the data that they handle, Robinson said.</p> <h3>5. Familiarity with AI</h3> <p>Digitally literate employees should be aware of the advantages and the pitfalls of <a href="https://www.techtarget.com/searchenterpriseai/tip/Top-generative-AI-courses-and-training-resources">AI in the workplace</a>.</p> <p>Possessing digital literacy in the workplace increasingly means being able to use generative AI to tackle tasks more effectively and efficiently, Robinson said. Workers need to know what tasks they can use AI for, how to include it in their workflows and how to check the results.</p> <p>They also need to know the potential ethical, legal and security concerns around their use of generative AI, as well as their own organization's policies and prohibitions about its use.</p> </section> <section class="section main-article-chapter" data-menu-title="3 tips to help improve digital literacy at work"> <h2 class="section-title"><i class="icon" data-icon="1"></i>3 tips to help improve digital literacy at work</h2> <p>CIOs and other IT leaders can work with others at their company to help improve employees' digital literacy. Here are some approaches:</p> <h3>1. Encourage employee experimentation</h3> <p>One of the best ways to learn is by doing, McAndrew said, and that's no different in the digital realm.</p> <p>"Start using [the tool], and figure out what you know and what you don't know," she said.</p> <h3>2. Determine how to upskill workers</h3> <p>Organizations should have a plan for how employees will learn the skills they will need to succeed as new technologies come into the workplace, Robinson said.</p> <p>CIOs can collaborate with other company leaders to determine how workers <a target="_blank" href="https://hbr.org/2022/01/how-to-build-a-successful-upskilling-program" rel="noopener">will upskill</a> and which employees need to learn which skills.</p> <h3>3. Don't forget the core skills</h3> <p>Many skills that were important in the workplace in the past are still crucial.</p> <p>The abilities to think critically and creatively, communicate effectively and collaborate well are essential for identifying the next big technology that employees can use to improve their work, McAndrew said.</p> <p><i>Mary K. Pratt is an award-winning freelance journalist with a focus on covering enterprise IT and cybersecurity management.</i></p> </section> Some examples of digital literacy that are necessary for the contemporary workplace are knowing how to use Excel and generative AI. Learn more about why digital literacy matters. https://cdn.ttgtmedia.com/rms/onlineimages/certification_g1172642339.jpg https://www.techtarget.com/searchcio/feature/Why-digital-literacy-in-the-workplace-is-important Mon, 04 Aug 2025 15:16:00 GMT <p>Setting goals is imperative for business success, and its value is no less critical for the IT department. IT leaders should make sure that they are setting the proper goals for their department, and learning some examples of goals can help.</p> <p>Setting goals enables <a href="https://www.techtarget.com/searchcio/tip/Free-IT-strategic-planning-templates-for-CIOs">IT leaders to focus their resources</a> in the right way and bring teams together. While some goals are specific to a certain organization, many goals for IT departments can apply across companies.</p> <p>Learn more about the benefits of setting IT goals and some example goals to set.</p> <section class="section main-article-chapter" data-menu-title="What is an IT goal?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is an IT goal?</h2> <p>As is the case with any goal, an IT department goal is a statement of the <a href="https://www.techtarget.com/searchitoperations/tip/IT-operations-management-best-practices-you-need-to-know">actions that IT needs to achieve</a> by a specific date.</p> <p>Goals give stakeholders -- namely, the IT team, the C-suite and others in the enterprise -- a clear idea of where IT needs to go, said Jenica McHugh, a managing director in the technology strategy and advisory practice at Accenture.</p> <p>IT goals help give the department a clear achievement to aim for.</p> <p>"They provide a direction for the work that has to be performed," said Eric Bloom, executive director of the IT Management and Leadership Institute, an IT executive education provider located in Ashland, Mass.</p> </section> <section class="section main-article-chapter" data-menu-title="How to set IT goals"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to set IT goals</h2> <p>Many organizations follow the <a href="https://www.techtarget.com/whatis/definition/SMART-SMART-goals">SMART framework</a> for goal setting, which requires that goals be specific, measurable, achievable, relevant and time-bound.</p> <p>An important consideration for setting IT goals is aligning them with the <a href="https://www.techtarget.com/searcherp/tip/Digital-transformation-goals-to-consider">overall goals of the larger organization</a>. Achieving that alignment requires that CIOs understand their company's vision as well as its goals.</p> <p>"This requires strong business alignment and ongoing conversations," said Charles Betz, principal analyst for the enterprise architecture priority at Forrester Research. "The CIO must be a business strategist, first and foremost."</p> <p>Breaking down a goal into smaller pieces can make it seem less intimidating.</p> <p>Creating a list of the steps required to reach goals is necessary, as is establishing details on how progress and success will be measured, McHugh said. A frequent practice for both organizations and IT departments specifically is to list those details out as the objectives and key results (OKRs) that must be achieved, and specify the deadlines.</p> </section> <section class="section main-article-chapter" data-menu-title="How can goals help IT departments?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How can goals help IT departments?</h2> <p><a href="https://www.datasciencecentral.com/aligning-it-infrastructure-with-business-objectives/">Setting goals</a> can improve IT operations in a few different ways.</p> <p>Goals give the CIO and others in IT insight into where they should be focusing their resources, including time, effort and money, Bloom said. That focus can also boost productivity, as workers spend less time on activities that aren't contributing to desired business outcomes.</p> <p>Setting goals can help improve <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-experience">employee experience</a> as well.</p> <p>Goal setting often motivates employees because it provides clarity about the effect of their individual work on the IT department's and the organization's overall success, Bloom said. Tracking the progress of the goals also promotes accountability.</p> </section> <section class="section main-article-chapter" data-menu-title="4 examples of IT department goals"> <h2 class="section-title"><i class="icon" data-icon="1"></i>4 examples of IT department goals</h2> <p>Each CIO will create a unique <a target="_blank" href="https://web.sas.upenn.edu/sas-hr/goals/" rel="noopener">list of goals</a>. In addition, CIOs might opt to ask each division within the IT department to adopt its own specific goals, Bloom said.</p> <p>However, IT goals are often similar from one organization to the next, so learning about examples can help inspire CIOs. Here are some examples of representative IT goals:</p> <ol class="default-list"> <li>One potential IT goal is to "accelerate software delivery and deployment," Bloom said. The OKRs for that particular goal could be "Reduce application deployment time by 50% within six months through CI/CD pipeline enhancements," "Implement automated deployment processes for 100% of production applications by the end of the year" and "Increase release frequency by 30% without compromising quality."</li> <li>Another potential IT goal is to improve the performance of the IT help desk, Bloom said. Potential OKRs for that goal are "Achieve a customer satisfaction score of 90% or higher within 12 months" and "Implement a post-ticket survey system by [X date] to collect user feedback."</li> <li>One of McHugh's CIO clients set a goal to make a 5% improvement to the ROIs of their initiatives over the next two years, she said.</li> <li>Another real-life goal from one of McHugh's clients is to get to 99% compliance with their service-level agreements and 90% adoption of their technology within a year.</li> </ol> <p>Setting specific goals is essential for IT and all departments within any organization, McHugh said.</p> <p>"The companies that are more successful are those that have clear measurable goals and whose people understand them," McHugh said. "[Companies must be] flexible and adaptable, and revisit their goals regularly -- maybe monthly or quarterly -- to make sure they don't need to evolve."</p> <p><i>Mary K. Pratt is an award-winning freelance journalist with a focus on covering enterprise IT and cybersecurity management.</i></p> </section> An important consideration for setting IT goals specifically is aligning them with the overall goals of the larger organization. Learn more about how to set IT department goals. https://cdn.ttgtmedia.com/rms/onlineimages/check_g638976392.jpg https://www.techtarget.com/searchcio/feature/Examples-of-IT-department-goals Thu, 24 Jul 2025 11:07:00 GMT <p><i>In this video, Informa TechTarget managing editor and multimedia editor Kelsey Waddill gives an overview of quantum computing and why it's generating so much buzz.</i></p> <p>Step into the next era of computing with quantum technology.</p> <p>Few technologies have been as revolutionary -- or exciting -- as <a href="https://www.techtarget.com/whatis/definition/quantum-theory">quantum mechanics</a>. Just a mention of the term is like pulling a page from a sci-fi franchise and putting some incredibly advanced technology inside our own <a href="https://www.techtarget.com/searchdatacenter/definition/data-center">data centers</a>. Quantum technologies promise to revolutionize computing, and their capabilities are already being felt in research and scientific endeavors.</p> <p>But where does the term <i>quantum</i> come from, and what does it really mean?</p> <p>Here, we'll go over the basics of <a href="https://www.techtarget.com/whatis/definition/quantum">quantum computing</a> and why it causes such a buzz in the computing world.</p> <p>The term <i>quantum</i> originates from the Latin word <i>quantus</i>, meaning "how much" or "amount." But the term really took hold in modern physics, where <i>quantum</i> refers to the smallest distinct units of matter or energy. These include photons of light and other subatomic particles, such as <a href="https://www.techtarget.com/whatis/definition/electron">electrons</a>.</p> <p>Quantum physics, meaning the study of these various quantum atomic and subatomic particles, focuses on the unique relationships and behaviors that these particles exhibit.</p> <p>Quantum particles show several important behaviors, including the following:</p> <ul class="default-list"> <li><a href="https://www.techtarget.com/whatis/definition/superposition">Superposition</a>, which enables a quantum particle to exist in many possible states simultaneously.</li> <li>Uncertainty, which states that it's impossible to know the state of a particle with perfect accuracy all the time.</li> <li><a href="https://www.techtarget.com/searchcio/definition/quantum-coherence-and-decoherence">Coherence</a>, which is the continued predictable state of the particle.</li> <li>Decoherence, which is the loss of coherence and superposition.</li> <li><a href="https://www.techtarget.com/searchcio/definition/quantum-entanglement">Entanglement</a>, which is the relationship and interaction of particles over a distance.</li> <li>Wave-particle duality, which describes how particles can behave like both waves and particles.</li> </ul> <p><a href="https://www.techtarget.com/searchcio/feature/The-top-quantum-computing-jobs">Researchers and engineers</a> can harness these quantum particles for practical applications, such as processing quantum information, performing quantum calculations and facilitating quantum communication -- all because of a quantum particle's "spin."</p> <p>In traditional computing, a bit is either 0 or 1. But a quantum particle's superposition characteristics enable the particle to represent any state between the two with a degree of uncertainty.</p> <p>A quantum bit is called a <a href="https://www.techtarget.com/whatis/definition/qubit">qubit</a>, and it can exist in a superposition of both 0 and 1 simultaneously. This means that qubits can represent and process more complex information at the particle level, enabling quantum computers to perform certain calculations much faster than classical computers.</p> <p>It's this speed that makes quantum computers so appealing for computing and scientific work.</p> <p>The profession dedicated to designing and building practical applications for quantum particle behaviors is called <a href="https://www.techtarget.com/searchcio/definition/quantum-engineer">quantum engineering</a>.</p> <p>Experts anticipate that quantum computing will bring notable changes to technology, cybersecurity, healthcare and many other fields, but there are still significant challenges to overcome before these technologies become mainstream.</p> <p>Do you think the future is quantum? Why or why not? Share your thoughts in the comments, and remember to like and subscribe too.</p> <p><i>Sabrina Polin is a senior managing editor of video content for the Learning Content team. She plans and develops video content for Informa TechTarget's editorial YouTube channel, Eye on Tech. Previously, Sabrina was a reporter for the Products Content team. Stephen J. Bigelow, senior technology editor at Informa TechTarget, has more than 30 years of technical writing experience in the PC and technology industry.</i></p> Quantum particles have unique behaviors that enable engineers to perform more complex calculations, which could have a significant effect across industries and operations. https://www.techtarget.com/searchcio/video/An-explanation-of-quantum-in-computing Thu, 24 Jul 2025 10:00:00 GMT <p>SAP Business Technology Platform (BTP), formerly SAP Cloud Platform, is SAP's platform as a service (<a href="https://www.techtarget.com/searchcloudcomputing/definition/Platform-as-a-Service-PaaS">PaaS</a>) product that provides a feature-rich development and <a href="https://www.techtarget.com/searchsoftwarequality/definition/runtime">runtime</a> environment for building scalable, cloud-based enterprise applications. These applications tend to complement and extend organizations' SAP and non-SAP applications, both on-premises and on-demand.</p> <p>SAP BTP provides numerous services for application integration, enterprise mobility, collaboration and analytics. It includes persistence powered by the <a href="https://www.techtarget.com/searchsap/definition/HANA-SAP-HANA">SAP HANA</a> database, which is an in-memory cloud platform that stores and processes data directly in the computer's <a href="https://www.techtarget.com/searchstorage/definition/RAM-random-access-memory">RAM</a> rather than from a <a href="https://www.techtarget.com/searchstorage/definition/hard-disk-drive">hard disk</a>. This speeds up data processing and application performance.</p> <p>BTP is a PaaS operated by SAP that enables organizations to minimize infrastructure management and costs. SAP also offers <a href="https://www.techtarget.com/searchunifiedcommunications/definition/QoS-Quality-of-Service">quality of service</a> features to BTP customers.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/3fhHnRPrdIw?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <section class="section main-article-chapter" data-menu-title="Uses of SAP BTP"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Uses of SAP BTP</h2> <p>SAP Business Technology Platform is designed to provide a secure, scalable development environment, tools and reusable platform services to help business users develop new <a href="https://www.techtarget.com/searchcloudcomputing/definition/cloud-application">cloud-based applications</a> from scratch. BTP requires only a relatively small capital investment in software and hardware to start using the platform and build new cloud applications. These applications run in a <a href="https://www.techtarget.com/searchsoftwarequality/definition/structured-programming-modular-programming">modular</a> and lightweight runtime <a href="https://www.techtarget.com/searchitoperations/definition/container-containerization-or-container-based-virtualization">container</a>.</p> <p>The platform is also suitable for developing on-premises system extensions. These extensions can then be seamlessly integrated with the relevant on-premises components using SAP Connectivity Service, which is a service to establish connections between cloud applications and on-premises systems, and SAP Cloud Connector, an application that creates a secure connection to enable the extension to communicate with on-prem systems.</p> <p>Another use case for SAP Business Technology Platform is to develop cloud extensions. These extensions, which can be built for many other cloud applications and services, expand the existing functionalities of those applications. Some extensions also enable users to integrate the cloud service with other systems.</p> <p>Finally, SAP BTP can be ideal for securely integrating cloud-based applications to on-premises SAP and non-SAP software. Customers can use the platform's connectivity service to set up these integrations.</p> </section> <section class="section main-article-chapter" data-menu-title="Using SAP BTP with SAP HANA"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Using SAP BTP with SAP HANA</h2> <p>SAP HANA, or High-Performance Analytic Appliance, is a multimodel, in-memory database. It is column-oriented, meaning that it stores data in column-based tables within RAM. Additionally, it combines online analytical processing, or <a href="https://www.techtarget.com/searchdatamanagement/definition/OLAP">OLAP</a>, and online transactional processing, or <a href="https://www.techtarget.com/searchdatacenter/definition/OLTP">OLTP</a>, and has parallel execution capabilities. These capabilities enable faster transactions and data retrieval compared with other <a href="https://www.techtarget.com/searchdatamanagement/definition/database-management-system">database management systems</a>.</p> <p>SAP HANA provides numerous development tools for multiple programming languages and data modeling techniques:</p> <ul class="default-list"> <li><b>SAP HANA Studio.</b> An open source-based Eclipse development and administration tool to develop HANA-native applications.</li> <li><b>SAP Web IDE for SAP HANA.</b> A browser-based integrated development environment for developing HANA-native applications with web-based or mobile user interfaces, business logic, and extensive SAP HANA data models.</li> <li><b>SAP HANA XSA.</b> A comprehensive platform and embedded services for developing and executing microservice-oriented applications.</li> <li><b>SAP HANA Deployment Infrastructure.</b> A service to deploy database development artifacts to lightweight, portable containers.</li> <li><b>SAP HANA Graph.</b> A model that provides native support for graph processing and graph operations executed on the data stored in an SAP HANA system.</li> </ul> <p>These and other tools -- along with SAP HANA programmatic interfaces -- enable business users to create comprehensive analytical models and build high-quality applications for SAP HANA.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/sap_s4hana_versions-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/sap_s4hana_versions-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/sap_s4hana_versions-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/sap_s4hana_versions-f.png 1280w" alt="Table listing the various SAP S/4HANA versions." height="367" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>SAP S/4HANA Cloud Private Edition has the same functional scope as S/4HANA on-premises, while S/4HANA Cloud Public Edition has the more limited, noncustomizable functions typical of multi-tenant SaaS ERP. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="SAP Business Technology Platform licensing models"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP Business Technology Platform licensing models</h2> <p>The product now branded as SAP BTP is available in two commercial models: <a href="https://www.techtarget.com/searchcloudcomputing/definition/subscription-based-pricing-model">subscription-based</a> and <a href="https://www.techtarget.com/searchcloudcomputing/definition/consumption-based-pricing-model">consumption-based</a>. According to SAP, these options offer companies flexibility in matching BTP services with organizational needs.</p> <p>Under the subscription model, customers get access to cloud services for a fixed price and for a defined time, and they can use as much of the service as they want. This model enables organizations to protect their IT investments with predictable costs.</p> <p>Under the consumption model, customers can buy BTP services through credits and use them as they see fit. This setup enables companies to start and scale up development projects quickly whenever business requirements change. Customers purchase BTP credits upfront and keep a cloud credit balance for services used.</p> </section> <section class="section main-article-chapter" data-menu-title="SAP Business Technology Platform SDK for Android"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP Business Technology Platform SDK for Android</h2> <p>SAP BTP can be used to build enterprise-ready mobile <a href="https://www.techtarget.com/searchsoftwarequality/definition/native-application-native-app">native apps</a> using its software development kit for Android. This <a href="https://www.techtarget.com/whatis/definition/software-developers-kit-SDK">SDK</a> includes numerous frameworks, components, platform services and predefined <a href="https://www.techtarget.com/searchcio/definition/UX-user-experience">user experience</a> tools that simplify the development of Android-based apps. Developers can build the apps directly in <a href="https://www.techtarget.com/searchsoftwarequality/feature/Learn-more-about-the-Android-Studio-IDE-from-Google">Google's Android Studio</a>. Key Android enterprise features available include managed configurations and Android management features such as work profile.</p> <p>The SDK is tightly integrated with the SAP BTP Mobile Services Cockpit. Cockpit is a tool that helps app developers manage and monitor their apps. These can be native apps, cross-platform apps, web apps or mobile development kit clients.</p> <p>The integration between the platform and Cockpit helps to ensure end-to-end integrated security for Android apps. It also enables developers to access core <a href="https://www.techtarget.com/searchsap/definition/SAP">SAP ERP</a> or SAP S/⁠4HANA data and business processes, third-party data sources, and the available capabilities and services in SAP BTP.</p> <p>Additionally, the SDK enables development teams to take advantage of SAP's enterprise service. They can leverage push notifications, diagnostics and security tools to streamline the development process and build enterprise-ready apps.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/sap-ecc.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/sap-ecc_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/sap-ecc_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/sap-ecc.png 1280w" alt="Diagram of the SAP ERP Central Component core modules." height="490" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>SAP ECC is a collection of SAP ERP core modules. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="SAP Cloud Platform vs. SAP Business Technology Platform"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP Cloud Platform vs. SAP Business Technology Platform</h2> <p>SAP BTP is the rebranded avatar of SAP Cloud Platform, along with many enhancements. As SAP Cloud Platform, the offering provided cloud-based services for application development, integration and analytics. As SAP BTP, it goes several steps further by providing tools and services for the following:</p> <ul class="default-list"> <li>Application development.</li> <li><a href="https://www.techtarget.com/searchcio/definition/business-process-automation">Process automation</a>.</li> <li>Digital workspace development.</li> <li><a href="https://www.techtarget.com/searchenterpriseai/definition/AI-agents">AI agent</a> deployment.</li> </ul> <p>Thus, while SAP Cloud Platform only provided application development, <a href="https://www.techtarget.com/searchapparchitecture/definition/EAI-enterprise-application-integration">integration</a> and analytics, SAP BTP also provides an AI toolbox to enhance business productivity and enable <a href="https://www.techtarget.com/searchcio/definition/business-innovation">business innovation</a>.</p> <p>Launched in 2021, SAP BTP enables businesses to integrate, automate, extend and build AI-powered business applications and processes. With this more powerful platform, enterprise users can do the following:</p> <ul class="default-list"> <li>Build smarter, contextual business and AI applications.</li> <li>Integrate and extend applications across finance, HR, <a href="https://www.techtarget.com/whatis/definition/supply-chain">supply chain</a> and procurement.</li> <li>Automate processes with <a href="https://www.techtarget.com/searchenterpriseai/definition/generative-AI">generative AI</a>.</li> <li>Streamline complex, multistep <a href="https://www.techtarget.com/searchcio/definition/workflow">workflows</a> with collaborative AI agents.</li> </ul> <p>SAP BTP provides prebuilt integrations and workflows as well as purpose-built <a href="https://www.techtarget.com/whatis/definition/framework">frameworks</a> for various kinds of applications. It is optimized for business processes across both SAP and non-SAP applications.</p> <p>The platform is designed to provide all the necessary resources needed to create business applications for mission-critical business processes. Offering the ability to perform enterprise content management, automated testing, data analytics and application integration, SAP BTP can help companies unlock the full potential of their applications, AI and data.</p> </section> <section class="section main-article-chapter" data-menu-title="SAP Cloud Platform vs. SAP HANA Enterprise Cloud"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP Cloud Platform vs. SAP HANA Enterprise Cloud</h2> <p>One of SAP's first PaaS products was SAP NetWeaver Cloud, released in 2012. This product was renamed SAP HANA Cloud Platform in 2013. In 2017, <i>HANA</i> was dropped from the name, and the platform became known as simply SAP Cloud Platform.</p> <p>SAP Cloud Platform, now Business Technology Platform, shared a similar name with SAP HANA Enterprise Cloud (<a href="https://www.techtarget.com/searchsap/definition/SAP-HANA-Enterprise-Cloud">HEC</a>), but the two platforms have different intents and purposes.</p> <p>While BTP is a PaaS tool intended for developing and running cloud-based applications, HEC is a subscription-based cloud service and private cloud on the SAP S/4HANA environment. Many organizations use HEC as an extension of their existing on-premises <a href="https://www.techtarget.com/searchdatacenter/definition/infrastructure">infrastructure</a> and to run SAP HANA applications in a managed cloud environment.</p> <p>HEC provides the following:</p> <ul class="default-list"> <li>Managed private cloud service to host and run SAP HANA applications.</li> <li>Hosting capabilities for those applications.</li> <li>Relevant application, data and infrastructure services.</li> </ul> <p>SAP HEC is an in-memory platform that improves app performance. It also removes redundances, improves data structures, and ensures tighter integration between applications and the underlying platform. Also, SAP optimizes the platform for every customer organization, which reduces the risks associated with complex migrations and replatforming.</p> <p>SAP HEC is compliant with major data security and <a href="https://www.techtarget.com/searchsecurity/tip/State-of-data-privacy-laws">privacy regulations</a>, improving security and compliance for enterprise users. It also provides greater flexibility and scalability, enabling companies to easily change their capacity requirements as business needs change.</p> <p>As a managed private cloud service, SAP HEC is entirely responsible for managing the underlying infrastructure. Customer organizations don't need to be involved for most technical and management tasks. The only time they might need to get involved is to integrate the systems located in HEC into existing <a href="https://www.techtarget.com/searchsoftwarequality/definition/application-lifecycle-management-ALM">application lifecycle management</a> processes.</p> <p><em>Moving businesses to S/4HANA involves several risks, but it is also a great chance for digital transformation. Explore our <a href="https://www.techtarget.com/searchsap/SAP-S4HANA-migration-A-definitive-guide">definitive SAP S/4HANA migration guide</a>, which includes information and best practices to ensure success. Also, see how the BBC <a href="https://www.techtarget.com/searchsap/feature/BBC-structures-app-development-with-SAP-BTP">structures app development with SAP Business Technology Platform</a>.</em></p> </section> SAP Business Technology Platform (BTP), formerly SAP Cloud Platform, is SAP's platform as a service (PaaS) product that provides a feature-rich development and runtime environment for building scalable, cloud-based enterprise applications. https://cdn.ttgtmedia.com/visuals/digdeeper/5.jpg https://www.techtarget.com/searchsap/definition/SAP-HANA-Cloud-Platform Wed, 23 Jul 2025 10:00:00 GMT <p>SAP MM (SAP Materials Management) is a functional module in the <a href="https://www.techtarget.com/searchsap/definition/SAP-ERP-Central-Component-SAP-ECC">SAP ECC</a> (SAP ERP Central Component) and <a href="https://www.techtarget.com/searchsap/definition/SAP-S-4HANA">SAP S/4HANA</a> software suites that provides the logic, data structures and integration needed to support procurement and inventory management. The module, which runs in the background, integrates with other SAP ERP modules to facilitate the <a href="https://www.techtarget.com/searcherp/definition/procure-to-pay-P2P">procure-to-pay</a> (P2P) process in materials management from the time a purchase requirement is identified to the time the supplier's invoice is sent to finance for payment.</p> <p>Materials management is a core business function that focuses on planning, sourcing, purchasing, receiving, storing and tracking materials used in production or operations. The primary goal of materials management is to make sure that the right materials are available in the right quantity at the right time and place, while minimizing costs and avoiding shortages, outages or excess inventory.</p> <p>SAP MM supports materials management by seamlessly integrating materials management tools and data with other core business functions like finance, production planning and warehouse operations. This helps eliminate <a href="https://www.techtarget.com/searchdatamanagement/definition/data-silo">data silos</a> and provides <a href="https://www.techtarget.com/searcherp/definition/supply-chain-visibility-SCV">supply chain visibility</a> for inbound supply chain data across all relevant departments in the organization.</p> <section class="section main-article-chapter" data-menu-title="What is the purpose of SAP MM?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is the purpose of SAP MM?</h2> <p>In SAP's enterprise resource planning (<a href="https://www.techtarget.com/searcherp/definition/ERP-enterprise-resource-planning">ERP</a>) platforms, the MM module acts as a centralized data hub and transactional engine for all materials-related workflows. It provides the database <a href="https://www.techtarget.com/whatis/definition/table">tables</a> for storing materials management master data, the transaction logic that governs P2P processes, and the integration points that ensure consistent and accurate data flow across finance, production, sales and other core business modules.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/erp-simplified_erp.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/erp-simplified_erp_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/erp-simplified_erp_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/erp-simplified_erp.png 1280w" alt="Diagram showing how an ERP system uses a shared database to enable real-time data sharing across business functions." height="314" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>When materials management data is updated, that information is immediately available to other modules in an ERP system. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Business benefits of SAP MM"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Business benefits of SAP MM</h2> <p>SAP MM helps businesses streamline procurement and inventory management by automating routine purchasing and inventory-related tasks and by providing authorized users with real-time visibility into the inbound <a href="https://www.techtarget.com/whatis/definition/supply-chain">supply chain</a>. It provides stakeholders with a <a href="https://www.techtarget.com/searchdatamanagement/opinion/Avoid-data-sprawl-with-a-single-source-of-truth">single source of truth</a> for all data related to acquiring materials and then managing their movement, storage, valuation and usage across the organization.</p> <p>Perhaps the biggest business benefit is that SAP MM turns materials management into a strategic business asset that improves supply chain efficiency and drives business value by making it easier for an organization to optimize stock levels, reduce excess inventory and prevent stockouts.</p> </section> <section class="section main-article-chapter" data-menu-title="Key features of SAP MM"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Key features of SAP MM</h2> <p>SAP MM's integrated features support accurate, data-driven decisions that enable organizations to optimize procurement and manage inventory more efficiently. Key features in the SAP MM logistics catalog include the following:</p> <ul class="default-list"> <li><b>Purchase requisition creation.</b> An internal request to purchase materials or services based on operational needs.</li> <li><b>Purchase order (PO) creation.</b> A formal order issued to the selected supplier specifying items, quantities and delivery dates.</li> <li><b>Goods receipt (GR).</b> Confirms the physical receipt of materials from the supplier and updates inventory.</li> <li><b>Quality inspection.</b> Verifies that incoming materials meet defined specifications and quality standards.</li> <li><b>Stock posting.</b> Moves materials to the correct inventory category or location.</li> <li><b>Invoice verification.</b> Compares the supplier's invoice with the PO and GR to determine invoice accuracy before payment.</li> <li><b>Vendor payment processing.</b> Ensures timely payment to the supplier after successful invoice verification.</li> <li><b>Material master data management.</b> Keeps all material-related information accurate, consistent and accessible across the SAP platform.</li> <li><b>Vendor master data management.</b> Stores key supplier information such as payment terms, addresses and tax data.</li> <li><b>Source determination and source lists.</b> Helps automatically identify the preferred vendor for specific materials.</li> <li><b>Quota arrangement management.</b> Allocates procurement quantities across multiple suppliers based on predefined quotas.</li> <li><b>Outline agreements.</b> Supports long-term contracts and scheduling agreements for recurring procurement needs.</li> <li><b>Automatic PO generation.</b> Converts approved purchase requisitions or planning proposals into purchase orders automatically.</li> <li><b>Inventory valuation and price control.</b> Assigns a monetary value to materials held in stock.</li> <li><b>Batch and serial number management.</b> Tracks individual material lots or items for compliance, traceability and quality control.</li> <li><b>Physical inventory management.</b> Supports inventory counting and reconciliation processes to ensure data accuracy.</li> <li><b>Subcontracting.</b> Manages and tracks materials sent to subcontractors.</li> <li><b>Service procurement.</b> Enables services to be purchased just like materials.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="SAP MM in SAP ECC vs. SAP MM in SAP S/4HANA"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP MM in SAP ECC vs. SAP MM in SAP S/4HANA</h2> <p>SAP ECC is SAP's legacy ERP system. On the back end, it uses a <a href="https://www.techtarget.com/searchdatamanagement/definition/relational-database">relational database</a> and has a modular structure with separate components like materials management and finance. In contrast, SAP S/4HANA, the next-generation ERP suite, was built for the SAP HANA <a href="https://www.techtarget.com/whatis/definition/in-memory-database">in-memory database</a>. It has a simplified data structure, can process data faster, has embedded analytics tools and groups modules together in SAP Fiori <a target="_blank" href="https://help.sap.com/docs/SAP_FIORI_OVERVIEW/f42cbf488a3c4f18a570b20c57b77cfa/d88d371a9aa54fb89fe19a16d8eb527b.html" rel="noopener">apps</a>.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/vsp0aC-U_sI?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p>SAP ECC and SAP S/4HANA both have materials management components, but the way that users interact with MM functions is different. SAP ECC users interact with SAP MM by entering a transaction code or navigating through the SAP GUI menu to access specific materials management functions.</p> <p>SAP S/4HANA on-premises and Cloud Private Edition users can interact with SAP MM in the same way, but they also have the option of interacting with MM functions by clicking and opening a Fiori app. In contrast, SAP S/4HANA Cloud Public Edition users can only take advantage of SAP MM's capabilities through Fiori apps.</p> </section> <section class="section main-article-chapter" data-menu-title="SAP MM submodules"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP MM submodules</h2> <p>SAP ECC platforms include submodules for SAP MM, each of which supports specific business processes related to procurement and inventory management:</p> <ul class="default-list"> <li><b>MM-PUR.</b> Supports the operational processes related to manual or automated purchasing.</li> <li><b>MM-IM.</b> Supports inventory management.</li> <li><b>MM-MD.</b> Supports centralized records management for materials and vendors.</li> <li><b>MM-IV.</b> Supports invoice verification.</li> <li><b>MM-CBP.</b> Supports consumption-based planning.</li> <li><b>MM-SRV.</b> Supports procurement for external services.</li> </ul> <p>S/4HANA implementations and documentation do not use the label <i>submodule</i>, but the underlying business processes and functional areas still exist. To take advantage of the SAP HANA in-memory database and architecture, SAP S/4HANA organizes submodule functions around end-to-end business processes in Fiori apps. For example, purchasing functions are part of the Sourcing and Procurement line of business, and inventory management is part of Inventory Management and Warehouse Management.</p> </section> <section class="section main-article-chapter" data-menu-title="The importance of roles within SAP MM"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The importance of roles within SAP MM</h2> <p>SAP MM uses roles to define each user's access rights. The purpose of roles is to control what data and transactions a user can access, and what actions they are allowed to perform.</p> <p>In SAP ECC, roles are created and managed using the transaction code PFCG (Profile Generator). ECC roles are customized, and authorization profiles provide a list of the other transaction codes that a user is allowed to run.</p> <p>Important ECC roles include the following:</p> <ul class="default-list"> <li><b>SAP MM Purchaser.</b> This role can use transaction codes for creating purchase requisitions, purchase orders and goods receipts, and viewing material and vendor master data.</li> <li><b>SAP MM Clerk.</b> This role can use transaction codes for goods receipts, stock transfers and viewing stock levels across various storage locations.</li> <li><b>SAP MM Master Data Specialist.</b> This role is able to use transaction codes for creating and managing material master records, vendor master records and purchasing info records.</li> <li><b>SAP MM Invoice Verifier.</b> This role can verify invoices against purchase orders and goods receipts, resolve discrepancies, and prepare invoices for payment.</li> <li><b>SAP MM Reporting User.</b> This role can use transaction codes to run procurement and inventory reports and analyze transactions within MM to gain insight into specific transactions like procurement spend, inventory turnover and vendor performance.</li> </ul> <p>In <a href="https://www.techtarget.com/searchsap/tip/Understand-your-S-4HANA-deployment-options">SAP S/4HANA on-premises</a> or <a href="https://www.techtarget.com/searchsap/feature/S-4HANA-Cloud-Private-Edition-Buying-team-overview">SAP S/4HANA Cloud Private Edition</a>, roles can still be created and managed with the transaction code PFCG, but SAP encourages organizations to adopt SAP's Fiori-based roles, which are preconfigured by SAP and tied to specific Fiori apps.</p> <p><a href="https://www.techtarget.com/searchsap/feature/S-4HANA-Cloud-SaaS-ERP-Buying-team-overview">SAP S/4HANA Cloud Public Edition</a> roles are always tied to specific Fiori apps. On the back end, authorization and access rights are still managed in PFCG, but the user's interaction points are determined by which apps they see in their Fiori Launchpad.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/sap_ecc_vs_s_4hana_materials_management_roles-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/sap_ecc_vs_s_4hana_materials_management_roles-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/sap_ecc_vs_s_4hana_materials_management_roles-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/sap_ecc_vs_s_4hana_materials_management_roles-f.png 1280w" alt="Equivalent SAP ECC vs. S/4HANA materials management roles and key activities." height="420" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>This table compares SAP ECC roles and corresponding SAP S/4HANA Fiori business roles in materials management. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p><em>SAP is encouraging customers to move to S/4HANA because it will stop mainstream support for SAP ECC on Dec. 31, 2027. Learn about the advantages and challenges of <a href="https://www.techtarget.com/searchsap/SAP-S4HANA-migration-A-definitive-guide">migrating to S/4HANA in this comprehensive guide</a>.</em></p> </section> SAP MM (SAP Materials Management) is a module in the SAP ECC and SAP S/4HANA software suites that enables authorized users to centrally manage purchasing and inventory processes across an entire organization. https://cdn.ttgtmedia.com/visuals/digdeeper/1.jpg https://www.techtarget.com/searchsap/definition/SAP-Materials-Management-MM Mon, 21 Jul 2025 12:00:00 GMT <p>One of the most important contractual agreements that an organization can execute with a partner is a service-level agreement, or SLA. IT leaders should make sure that their organization is following some best practices to ensure that their partner is compliant with the SLA.</p> <p>An SLA documents the products or services that the service provider will furnish and defines the service standards that the provider is obligated to meet. Creating an SLA helps organizations avoid potential issues in the future, including subpar service from the provider.</p> <p>Learn more about some best practices for ensuring SLA compliance.</p> <section class="section main-article-chapter" data-menu-title="Why are SLAs important?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why are SLAs important?</h2> <p>Service providers of all kinds, including managed service providers, use SLAs to ensure that their customers are satisfied. SLAs also define the circumstances in which a provider could be penalized for unsatisfactory performance.</p> <p>Companies that work with service providers benefit from SLAs because the contract outlines the criteria for acceptable provider performance and specifies how to address service delivery issues.</p> <p>SLAs are external if they are established with a third-party organization and internal if they are established with another department within an organization. The former is very common, and the contents of an SLA can be an important deciding factor for companies when evaluating prospective service providers. SLAs have become increasingly important as cloud vendors and <a href="https://www.techtarget.com/searchitchannel/Guide-to-building-and-executing-an-MSP-business-model">MSPs</a>, which might support some or all of an organization's IT operations, have grown in popularity.</p> <p>Meanwhile, a company might <a href="https://www.techtarget.com/searchnetworking/tip/SD-WAN-and-SLAs-Why-crafting-internal-SLAs-is-a-smart-move">use an internal SLA</a> if, for example, an IT department develops a product for the customer service department. The SLA would lay out the customer service department's expectations for the IT department.</p> <p>Service providers might establish two service agreements with companies. One is a master service agreement that defines the general terms and conditions for the working relationship. The second is the SLA, which goes into greater detail on specific provider activities, defines required performance levels and discusses the penalties for failing to achieve the desired results.</p> </section> <section class="section main-article-chapter" data-menu-title="What is SLA compliance?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is SLA compliance?</h2> <p>SLA compliance is achieved when service providers satisfy SLA requirements. SLAs must be clearly written and provide sufficient detail to avoid any uncertainty about expectations.</p> <p>SLAs are often linked with an organization's KPIs. Here are some examples of SLA performance metrics that are based on a company's KPIs:</p> <ul class="default-list"> <li>Achieve four-nines, or 99.99%, uptime and availability for a particular system.</li> <li>Reduce mean time to repair, or MTTR, of a particular system by 75%.</li> <li><a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-improve-the-contact-center-experience-for-customers">Increase contact center first-call connections</a> to service representatives to 95%.</li> <li>Reduce carbon footprint readings by 50%.</li> <li><a href="https://www.techtarget.com/searchnetworking/answer/What-are-the-3-most-common-network-issues-to-troubleshoot">Reduce network latency</a> by 80%.</li> <li>Reduce system response times by 50%.</li> </ul> <p>Achieving compliance is a two-way street. The provider and the company receiving the services both have a vested interest in achieving compliance with SLA metrics.</p> <p>The company's employees must carefully monitor the systems and resources that the provider is working on. While doing so is relatively easy if a company uses on-site systems and <a href="https://www.techtarget.com/searchdatacenter/tip/Cloud-vs-traditional-data-center-Which-is-right-for-you">data centers</a>, monitoring the provider is more challenging if the provider manages systems and resources. Providers might not want customers looking over their shoulders.</p> <p>Providers should make every effort to achieve SLA compliance, as doing so ensures that they will get paid for their work and avoid costly litigation. SLA compliance is also key for maintaining good customer relations and renewing contracts.</p> </section> <section class="section main-article-chapter" data-menu-title="Types of SLAs"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Types of SLAs</h2> <p>There are three types of service-level agreements: customer, internal and multilevel.</p> <h3>1. Customer SLA</h3> <p>A customer SLA is also referred to as an external SLA and is established between a service provider and its customers. A customer SLA involves both parties negotiating an agreement about the services that the service provider will supply as well as penalties for nonperformance or poor performance.</p> <p>Components of a customer SLA typically include the following:</p> <ul class="default-list"> <li>A concise description of the service expected by the customer.</li> <li>Details about the service.</li> <li>Required performance levels for the service.</li> <li>The roles and responsibilities of each party.</li> <li>The procedures for reporting and escalating performance issues.</li> <li>Penalties for lack of compliance with SLA metrics.</li> <li>Terms and procedures for canceling the SLA.</li> </ul> <h3>2. Internal SLA</h3> <p>As discussed above, this agreement is typically used within an organization. An internal SLA would be created if an <a href="https://www.techtarget.com/searchitchannel/feature/How-to-write-an-IT-service-level-agreement">IT department and its internal customer</a> establish an agreement for delivery of a specific product or service.</p> <p>Companies might have multiple SLAs in progress. For example, an IT department could be working on projects for the customer service department and the finance department.</p> <h3>3. Multilevel SLA</h3> <p>A multilevel SLA is used when a provider is supplying different service performance levels to a series of customers using the same service.</p> <p>For example, a <a href="https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service">software-as-a-service</a> provider might deliver a package of basic services and support to all of its customers, but offer different price ranges for different service levels.</p> </section> <section class="section main-article-chapter" data-menu-title="Components of SLAs"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Components of SLAs</h2> <p>SLAs are legal contracts and should include some specific elements, such as the following.</p> <h3>Overview of the contract</h3> <p>This section discusses the basics of the agreement, including the parties involved and the date it will become effective, and gives a general introduction of the <a href="https://www.techtarget.com/searchitchannel/feature/Data-not-opinion-should-drive-MSP-best-practices">services that the provider will deliver</a>.</p> <h3>Product and service description</h3> <p>This section describes every service that the provider would potentially offer, along with performance completion dates and times, and delivery dates and times.</p> <p>The section also discusses the method of service delivery, availability of maintenance service, provider hours of operation and service locations, and a detailed list of all hardware, software and network services.</p> <h3>Exclusions</h3> <p>This section is a list of services that the provider does not offer. Discussing the services that are not available helps avoid confusion.</p> <h3>Service performance</h3> <p>This section discusses the specific performance metrics that both parties have agreed to, as well as the methods that will be used for monitoring and measuring them, and a description of unacceptable performance.</p> <h3>Penalties</h3> <p>This section spells out the compensation or payment that the customer will receive if a provider does not achieve SLA compliance.</p> <h3>All parties and stakeholders</h3> <p>This section defines the parties that are involved with the SLA as well as their responsibilities.</p> <h3>Provision of security</h3> <p><a href="https://www.techtarget.com/searchsecurity/news/366614215/Study-outlines-severe-security-issues-in-cloud-providers">Defining the security measures</a> that the provider must carry out is important for ensuring the continued operation of the contracted resources.</p> <p>This section might include details on specific agreements about <a href="https://www.techtarget.com/searchsecurity/definition/security">IT security</a> and nondisclosure agreements.</p> <h3>Disaster recovery and risk management</h3> <p>Outlining disaster recovery and <a href="https://www.techtarget.com/searchsecurity/tip/How-do-SLAs-factor-into-cloud-risk-management">risk management requirements</a> is also important for ensuring that the contracted services are not disrupted by an unplanned event.</p> <p>This section can discuss any <a href="https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-it-important">risk management</a> activities that the provider will carry out as well as a technology disaster recovery plan.</p> <h3>Monitoring, tracking and reporting</h3> <p>This section defines the methods for monitoring service performance, as well as the mechanisms for tracking and reporting issues.</p> <p>It also identifies who will receive this information.</p> <h3>Testing, performance review, change processes and continuous improvement</h3> <p>The SLA should be regularly reviewed and improved in terms of quality, accuracy and legal language.</p> <p>This section should also include discussion of how <a href="https://www.techtarget.com/searchitoperations/tip/Get-familiar-with-these-SLA-maintenance-tips">changes to the SLA</a> should be carried out, including approved change management processes.</p> <h3>Agreement termination</h3> <p>The next-to-last part of an SLA should define the criteria for terminating the agreement or indicate an expiration date.</p> <p>Establishing a notice period for such activities can help avoid any confusion.</p> <h3>Authorized signatures</h3> <p>The final part of the SLA should consist of the signatures of all authorized parties and stakeholders.</p> </section> <section class="section main-article-chapter" data-menu-title="12 best practices for SLA compliance"> <h2 class="section-title"><i class="icon" data-icon="1"></i>12 best practices for SLA compliance</h2> <p>Here are some best practices that CIOs and IT leaders should follow when creating an SLA <a href="https://www.computerweekly.com/microscope/news/366572012/MSPs-seen-as-answer-by-skill-strapped-customers">with a service provider</a>:</p> <ul class="default-list"> <li>Establish an understanding of the necessary elements to include in an SLA, including KPIs to track and SLA-business goal alignment.</li> <li>Establish measurable SLA performance metrics.</li> <li>Identify the parties that will be involved in the services provided for both the provider and the company receiving the services.</li> <li>Decide who will serve as the daily contact on both the provider's side and the side of the company receiving the services.</li> <li>Secure approval from the company's legal department for the SLA as well as any future updates.</li> <li>Add an indemnification provision to the agreement so that the company receiving the services is protected.</li> <li>Establish who is responsible for monitoring and analyzing performance to confirm SLA compliance.</li> <li>Establish a step-by-step procedure for reporting any SLA-related performance issues.</li> <li>Establish a step-by-step procedure for presenting any SLA compliance violations to the provider and negotiating penalties.</li> <li>Review and update SLA performance criteria when company operations change.</li> <li>Establish a process for reporting SLA performance to senior management and stakeholders.</li> <li>Set up a schedule of meetings for reviewing SLA performance. SLA performance discussion can be part of a <a href="https://www.informationweek.com/it-leadership/how-to-hold-productive-it-team-meetings">weekly IT staff meeting</a> or a separate meeting that specifically covers SLAs.</li> </ul> <p><i>Paul Kirvan, FBCI, CISA, is an independent consultant and technical writer with more than 35 years of experience in business continuity, disaster recovery, resilience, cybersecurity, GRC, telecom and technical writing.</i></p> </section> SLAs outline the criteria for acceptable performance from a service provider. Learn best practices CIOs and IT leaders should follow when creating an SLA with a service provider. https://cdn.ttgtmedia.com/rms/onlineimages/check_g1197955140.jpg https://www.techtarget.com/searchcio/tip/Why-SLA-compliance-should-be-top-of-mind-for-IT-leaders Wed, 16 Jul 2025 14:00:00 GMT <p>SAP Fieldglass is a cloud-based vendor management system (<a href="https://www.techtarget.com/searchsap/definition/vendor-management-system-VMS">VMS</a>) that enables organizations to manage their external workforce. This includes contingent workers, freelancers, contractors, temporary staff and service providers employed through a <a href="https://www.techtarget.com/searchitchannel/definition/statement-of-work-SOW">statement of work</a>.</p> <p>Fieldglass, part of SAP's broader suite of enterprise software, is used by global businesses to gain visibility, control and compliance in managing their nonpayroll workforce. It supports processes like sourcing, <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-onboarding-and-offboarding">onboarding</a>, time tracking, invoicing and performance evaluation for external workers.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/cio-clearedge_statement_of_work-f.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/cio-clearedge_statement_of_work-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/cio-clearedge_statement_of_work-f_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/cio-clearedge_statement_of_work-f.png 1280w" alt="Graphic outlining features of a statement of work document." height="241" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Independent contractors, contingent workers, temporary staff and others make up a company's external workforce, providing agreed-upon services through a statement of work. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <section class="section main-article-chapter" data-menu-title="SAP Fieldglass core features and functionality"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP Fieldglass core features and functionality</h2> <p>Using SAP Fieldglass, companies can do the following:</p> <ul class="default-list"> <li>Source and procure external workers.</li> <li>Compare labor rates and supplier proposals.</li> <li>Onboard and offboard <a href="https://www.techtarget.com/searchcio/definition/contingent-workforce">contingent labor</a>.</li> <li>Track work progress, time and expenses.</li> <li>Ensure <a href="https://www.techtarget.com/searchdatamanagement/definition/compliance">compliance</a> with labor laws and company policies.</li> <li>Analyze and benchmark workforce performance and costs.</li> </ul> <p>The platform integrates with other SAP offerings such as <a href="https://www.techtarget.com/searchsap/definition/SAP-SuccessFactors">SAP SuccessFactors</a> for core HR processes and <a href="https://www.techtarget.com/searchsap/definition/Ariba-Ariba-Network">SAP Ariba</a> for procurement workflows, enabling seamless enterprise-wide management of both internal and external labor.</p> </section> <section class="section main-article-chapter" data-menu-title="SAP Fieldglass Flex"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP Fieldglass Flex</h2> <p>SAP Fieldglass Flex, introduced in 2016, is a streamlined version of the platform designed for small and medium-sized businesses (<a href="https://www.techtarget.com/whatis/definition/SMB-small-and-medium-sized-business-or-small-and-midsized-business">SMBs</a>). It provides out-of-the-box functionality and a lower implementation cost, making it more accessible to businesses.</p> <p>While SAP has not released major updates to Fieldglass Flex in recent years, it remains a relevant option for SMBs that need basic <a href="https://www.techtarget.com/whatis/feature/Gig-economy-vs-creator-economy-Whats-the-difference">external workforce</a> management features.</p> </section> <section class="section main-article-chapter" data-menu-title="SAP Fieldglass Live Insights"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP Fieldglass Live Insights</h2> <p>In 2017, SAP launched Fieldglass Live Insights, a real-time analytics engine powered by <a href="https://www.techtarget.com/searchsap/definition/SAP-S-4HANA">SAP HANA</a> and <a href="https://www.techtarget.com/searchenterpriseai/definition/machine-learning-ML">machine learning</a>. It provides predictive intelligence and market benchmarking, helping organizations do the following:</p> <ul class="default-list"> <li>Determine competitive pay rates.</li> <li>Compare supplier performance.</li> <li>Forecast labor demand based on historical trends.</li> <li>Run cost-benefit analyses of workforce decisions.</li> </ul> <p>SAP continues to refine the <a href="https://www.techtarget.com/searchenterpriseai/feature/5-AI-risks-businesses-must-confront-and-how-to-address-them">AI</a> and machine learning models.</p> </section> <section class="section main-article-chapter" data-menu-title="Integration with the SAP ecosystem"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Integration with the SAP ecosystem</h2> <p>One of Fieldglass' strongest advantages is its deep integration with other SAP products and services.</p> <p>SAP SuccessFactors provides employee lifecycle data, enabling seamless collaboration between internal HR and external workforce management. SAP Ariba facilitates the procurement processes related to service providers and contingent labor.</p> <p>Additionally, <a href="https://www.techtarget.com/searchsap/definition/SAP-Business-Suite">SAP Business Network</a> helps streamline communication between enterprises and their extended labor ecosystem.</p> </section> <section class="section main-article-chapter" data-menu-title="SAP Fieldglass competitors"> <h2 class="section-title"><i class="icon" data-icon="1"></i>SAP Fieldglass competitors</h2> <p>SAP Fieldglass competes in a crowded market of VMS vendors and similar companies with a focus on the management of contingent labor and vendor management. For example, a few well-known competitors include the following:</p> <ul class="default-list"> <li><b>WorkMarket, an ADP company.</b> Focused on freelance <a href="https://www.techtarget.com/searchcontentmanagement/definition/workflow-automation">workforce automation</a>.</li> <li><b>Magnit, formerly Pro Unlimited.</b> Strong in total <a href="https://www.techtarget.com/searchhrsoftware/tip/Top-AI-recruiting-tools-and-software-of-2022">talent intelligence</a>.</li> <li><b>Coupa Contingent Workforce.</b> An emerging player after acquiring DCR Workforce.</li> <li><b>PeopleFluent.</b> Integrated talent management with VMS capabilities.</li> <li><b>Upwork Enterprise.</b> Focused on large-scale freelance program management.</li> </ul> <p>Some <a href="https://www.techtarget.com/searcherp/definition/ERP-enterprise-resource-planning">enterprise resource planning</a> and <a href="https://www.techtarget.com/searchhrsoftware/definition/human-capital-management-HCM">human capital management</a> providers, such as <a href="https://www.techtarget.com/searchoracle/definition/Oracle">Oracle</a>, UKG and <a href="https://www.techtarget.com/searcherp/definition/Infor">Infor</a>, also offer contingent workforce functionality, although not all provide standalone VMS platforms.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/AcCBqn2bjdc?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p><em>New employees have specific needs during the various phases of onboarding, from pre-onboarding to their first months on the job. Use this <a href="https://www.techtarget.com/searchhrsoftware/feature/5-stage-remote-onboarding-checklist-for-new-hire-success">checklist to welcome -- and retain -- workers</a>.</em></p> </section> SAP Fieldglass is a cloud-based vendor management system (VMS) that enables organizations to manage their external workforce. https://cdn.ttgtmedia.com/visuals/digdeeper/2.jpg https://www.techtarget.com/searchsap/definition/Fieldglass Wed, 09 Jul 2025 14:00:00 GMT <p>A property management system (PMS) is a software application that supports the operations of hospitality accommodations and commercial or residential rental properties. Though sometimes referred to as a hotel operating system or hotel OS, a PMS transcends that industry; manufacturers, hospitals and government agencies also use them.</p> <p>A PMS provides a centralized system to organize, schedule and perform the daily functions and transactions involved in accommodation businesses. Computer record-keeping and PMS applications have significantly increased the efficiency of hospitality industries by making it possible to update and consult <a href="https://www.techtarget.com/searchcontentmanagement/definition/records-management-RM">centralized records</a> from multiple computers and devices. Enhancements targeted to hospitality industry needs have increased the ease of those operations.</p> <section class="section main-article-chapter" data-menu-title="Capabilities of a property management system"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Capabilities of a property management system</h2> <p>A PMS facilitates the automation of many common tasks, including the following:</p> <ul class="default-list"> <li><b>Bookings.</b> Automatically update availability and room occupancy.</li> <li><b>Check-in and checkout.</b> Assign rooms and mark for cleaning.</li> <li><b>Telephone system integration.</b> Manage phone calls from guests and charges for outbound calls.</li> <li><b>Point-of-sale integration.</b> Handle credit card and sales transactions.</li> <li><b>Event planning.</b> Schedule event spaces and other services.</li> <li><b>Food and beverage costing.</b> Manage hospitality orders.</li> <li><b>Hotel inventory supply management.</b> <a href="https://www.techtarget.com/searcherp/definition/inventory-management">Inventory supply management</a> tracks availability and costs of supplies and eases ordering.</li> <li><b>Reporting of key performance indicators.</b> Monitor <a href="https://www.techtarget.com/searchbusinessanalytics/definition/key-performance-indicators-KPIs">KPIs</a> such as occupancy and sales rates.</li> <li><b>Security and room locks.</b> Assign key cards and door access.</li> <li><b>Guest satisfaction.</b> Advance insight on guests' experiences with a goal of improving customer retention.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/custex-%20collect_customer_data.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/custex-%20collect_customer_data_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/custex-%20collect_customer_data_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/custex-%20collect_customer_data.png 1280w" alt="A chart listing ways customers knowingly or unknowingly produce data that companies use."> <figcaption> <i class="icon pictures" data-icon="z"></i>A PMS typically encompasses data that can help companies better serve customers. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Cloud property management systems"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Cloud property management systems</h2> <p>Hosting a PMS on-premises can be costly because managing the systems requires maintaining servers and software expertise. Many PMS platforms are now software as a service, or <a href="https://www.techtarget.com/searchcio/definition/Vertical-SaaS-Software-as-a-Service">SaaS</a>, and hosted as a cloud service.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/4oQjPlS2gSg?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p>Besides potentially lower costs, a centrally managed cloud PMS can offer advantages over on-premises deployments in the following areas:</p> <ul class="default-list"> <li>Guest mobile apps and services can address self check-in and checkout.</li> <li>Customer relationship management, or <a href="https://www.techtarget.com/searchcustomerexperience/definition/CRM-customer-relationship-management">CRM</a>, integration can advance automated campaigns based on guest and reservation data.</li> <li>Employee mobile apps give housekeepers and maintenance workers timely data, enhancing efficiency and morale.</li> <li>Centralized records can help unify sales, forecasting, occupancy and pricing data across several properties and support data-driven business decisions.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Property management systems in other industries"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Property management systems in other industries</h2> <p>Local governments sometimes use a PMS to manage numerous properties under their care. Centralized, electronic record-keeping helps to more efficiently manage diverse facilities such as schools, sports and recreational centers, or community gardens and parks.</p> <p>In manufacturing, a PMS helps companies monitor materials and supplies, as well as employee-owned property and equipment. Electronic maintenance logs can reduce unscheduled <a href="https://www.techtarget.com/whatis/definition/uptime-and-downtime">downtime</a>.</p> <p>Hospitals and medical facilities can use a hospital management system, or HMS, as a comprehensive tool to manage their facilities. This might encompass <a href="https://www.techtarget.com/searcherp/Guide-to-supply-chain-management">supply chain management</a> and inventory management for all hospital equipment.</p> <p><em>The integration of AI tools and systems is significantly shaping the real estate industry, offering valuable benefits for numerous ventures. Explore <a href="https://www.techtarget.com/searchenterpriseai/feature/How-AI-is-changing-the-real-estate-market">seven use cases for AI in real estate</a> as well as the challenges that might accompany its adoption.</em></p> </section> A property management system (PMS) is a software application that supports the operations of hospitality accommodations and commercial or residential rental properties. https://cdn.ttgtmedia.com/visuals/digdeeper/2.jpg https://www.techtarget.com/whatis/definition/property-management-system-PMS Tue, 01 Jul 2025 14:00:00 GMT <p>Prescriptive analytics is a type of data analytics that provides guidance on what should happen next. It's related to descriptive, diagnostic and <a href="https://www.techtarget.com/searchbusinessanalytics/definition/predictive-analytics">predictive analytics</a>. <i>Descriptive analytics</i> aims to provide insight into what has happened; <i>diagnostic analytics</i> identifies why it happened; and <i>predictive analytics</i> helps model and forecast what might happen. Given the known parameters, prescriptive analytics helps users determine the best option or outcome among various possibilities.</p> <p>At a high level, prescriptive analytics operationalizes insights from the other types of analytics through business tools, such as recommendation engines, dynamic pricing models, loan approval engines and machine repair scheduling. It is the cornerstone of business rules management systems.</p> <p>Business users might be unaware they are using prescriptive analytics capabilities since they are likely more concerned about the outcome than the specific analytics technique. The field of prescriptive analytics is growing in popularity, as its core techniques have become part of data science and machine learning (<a href="https://www.techtarget.com/searchenterpriseai/definition/machine-learning-ML">ML</a>) workflows.</p> <section class="section main-article-chapter" data-menu-title="How does prescriptive analytics work?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How does prescriptive analytics work?</h2> <p>Prescriptive analytics encompasses a continuum of capabilities. It could be as simple as making a yes or no decision, suggesting inventory levels, adjusting prices or automating stock trades based on market conditions.</p> <p>In more complex scenarios, prescriptive analytics can also suggest decision options for taking advantage of a future opportunity or <a href="https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-it-important">mitigating a future risk</a> and illustrate the implications of each decision option. One goal in developing predictive analytics is to continually and automatically process new data to improve the accuracy of predictions and provide better decision options.</p> <p>It is common for organizations implementing prescriptive analytics to have already explored descriptive analytics and predictive analytics. Past performance and anticipated trends are essential in deriving actionable insights to inform organizational strategy. Predictive analytics will surface selectable features that are optimal for predictive power and usefulness in model design.</p> <p>The most sophisticated prescriptive analytics models are enabled by <a href="https://www.techtarget.com/searchdatamanagement/definition/stream-processing">stream processing engines</a>, analyzing potential decisions, the interactions between decisions, the influences that bear upon these decisions and the effect of all the above on an outcome to ultimately prescribe an optimal course of action in real time.</p> <p>Teams develop prescriptive analytics applications using standard data science development processes and tools, including <a href="https://www.techtarget.com/searchbusinessanalytics/definition/data-mining">data mining</a>, ML and deep learning. This starts with specifying requirements, identifying relevant data sources, organizing the data, developing the model and deploying it into production.</p> <p>Deploying the model into production is one of the most challenging steps and is one area in which prescriptive analytics differs from other types of analytics. The prescriptive analytics engine often directly makes a decision, rather than presenting an analysis or prediction, so the stakes might be higher if the decision is wrong. Prescriptive analytics operationalizes decisions, introducing more stringent latency requirements on data processing.</p> <p>Prescriptive analytics takes advantage of <a href="https://www.techtarget.com/whatis/definition/structured-data">structured</a>, unstructured or mixed data. Data engineers and data scientists, either at an enterprise or working for vendors to develop prescriptive analytics products, must consider the best types of data and the most appropriate way of structuring it. For example, a product recommendation engine might ingest all customer transactions into a graph database to identify products purchased by similar customers. Similarly, data-driven decisions at the <a href="https://www.techtarget.com/searchcio/definition/C-level">C-level</a> might seek to determine actionable insights, future trends and future outcomes to make informed decisions based on prescriptive options derived from historical data on industry disruptions.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/5_modes_of_analytics-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/5_modes_of_analytics-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/5_modes_of_analytics-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/5_modes_of_analytics-f.png 1280w" alt="An image showing five different types of analytics: descriptive, real-time, diagnostic, predictive and prescriptive. " height="286" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Learn how the different types of analytics compare. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="What are the benefits and challenges of prescriptive analytics?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the benefits and challenges of prescriptive analytics?</h2> <p>Prescriptive analytics is not fail-proof. It is subject to the same distortions that can upend descriptive analytics and predictive analytics, including data limitations and unaccounted-for external forces. The effectiveness of prescriptive analytics also depends on how well the decision model captures the effect of the analyzed decisions. The following are some of the benefits and challenges of prescriptive analytics.</p> <h3>Benefits of prescriptive analytics</h3> <ul class="default-list"> <li><b>Provides high-quality, data-driven decisions.</b> Actionable insights derived from prescriptive processes can surface strategic options at a highly granular level.</li> <li><b>Speeds complex approval processes.</b> Automated decision-making enables faster time to value.</li> <li><b>Enables faster response to changing market conditions.</b> Automating stock trades faster than humans can, for example, reduces manual work and bolsters efficiency.</li> <li><b>Improves resilience to fast-changing circumstances.</b> Recommending specific actions can help enterprises better ride out supply chain disruptions, for example.</li> <li><b>Enhances customer experience (CX).</b> The ability to score individual transactions helps prescriptive analytics identify optimal CX improvements.</li> <li><b>Minimizes risk.</b> Prescriptive analytics can detect fraud by scoring individual transactions, singling out the most problematic.</li> <li><b>Operationalizes predictive analytics insights.</b> This increases the value of existing analytics.</li> </ul> <h3>Challenges of prescriptive analytics</h3> <ul class="default-list"> <li><b>Escalates bad decisions.</b> Prescriptive analytics accelerates the effect of bad decisions. One example of this is a stock market crash resulting from automated trading.</li> <li><b>Not all applications are feasible.</b> Because of the stringent data engineering requirements of prescriptive analytics, some applications might not be feasible for using this type of analytics. For example, a checkout app using prescriptive analytics might make customers wait too long.</li> <li><b>Susceptible to bias.</b> <a href="https://www.techtarget.com/searchenterpriseai/definition/machine-learning-bias-algorithm-bias-or-AI-bias">Bias</a> can be accidentally or intentionally baked into <a href="https://www.techtarget.com/searchenterpriseai/definition/predictive-modeling">analytics models</a> and is perpetuated by automation.</li> <li><b>Increases risk of noncompliance.</b> <a href="https://www.techtarget.com/searchcio/news/252440924/With-machine-learning-models-explainability-is-difficult-and-elusive">Explainability</a>, or the ability to explain how the model works, can be elusive in prescriptive analytics models, putting companies at risk of noncompliance with regulations such as the <a href="https://www.techtarget.com/whatis/definition/General-Data-Protection-Regulation-GDPR">General Data Protection Regulation</a>.</li> <li><b>Bad inputs can yield bad prescriptions.</b> The old "garbage in, garbage out" adage applies, as bad inputs yield bad prescriptions. If the data fed into prescriptive models is flawed, the recommendations generated will also be flawed.</li> <li><b>Expensive to implement and maintain.</b> Prescriptive models require performance infrastructure and processes for ongoing monitoring and adjustment.</li> <li><b>Models must be monitored for unintended consequences.</b> For example, a prescriptive analytics algorithm in a social media algorithm might promote shared content more widely. Viral content is sometimes driven by hate, so developers must consider ways to mitigate this unintended consequence.</li> </ul> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/LdXtLWdeS68?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Examples and uses of prescriptive analytics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Examples and uses of prescriptive analytics</h2> <p>Prescriptive analytics is the most sophisticated of the various types of data analytics and requires mature data processes to implement.</p> <p>Prescriptive analytics must be adaptive to accommodate changes in the economy, environment and business dynamics. Some of the scientific disciplines associated with prescriptive analytics include ML, natural language processing (<a href="https://www.techtarget.com/searchenterpriseai/definition/natural-language-processing-NLP">NLP</a>) and one or more of the other types of analytics.</p> <p>For example, customer lifetime value uses descriptive analytics to calculate a value for each customer. The analytics enables companies to find other high-value customers based on their similarity to existing high-value customers.</p> <p>Through various iterative modeling approaches, marketers and retailers can then use predictive analytics to predict when customers will purchase again or the time until purchase. Prescriptive analytics then provides the decisions and affect needed to influence a customer's path and time to purchase.</p> <p>The following are examples of prescriptive analytics uses in various vertical markets:</p> <ul class="default-list"> <li><b>Healthcare.</b> Analyzing historical resource consumption reports enables a hospital to plan optimal staff scheduling and better anticipate patient flow.</li> <li><b>Manufacturing.</b> A maintenance scheduling engine optimizes machine repair in response to a predictive maintenance engine that estimates the cost of downtime, cost of failure, production loads, technician availability and maintenance status of other machines.</li> <li><b>Transportation and supply chain.</b> A ride-sharing company introduces surge pricing to incentivize more drivers to act during peak demand, and a shipping company analyzes traffic patterns and conditions to update its fleet's routing in real time.</li> <li><b>Banking.</b> A loan approval engine automates the approval process based on income, credit score and profession; a fraud management application decides whether to approve a transaction based on its history, location, amount and type.</li> <li><b>Sales and marketing.</b> A product <a href="https://www.forbes.com/councils/forbestechcouncil/2025/06/16/why-product-analytics-and-experimentation-must-converge/?ctpv=searchpage" target="_blank" rel="noopener">recommendation engine</a> suggests other products based on prior purchase history and the purchases of similar customers.</li> <li><b>Security.</b> An AI-powered security management application looks for abnormal activity and blocks suspicious transactions.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Prescriptive vs. predictive analytics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Prescriptive vs. predictive analytics</h2> <p>Prescriptive analytics and predictive analytics have much in common at first glance. They are both about generating actionable insights and enabling more informed decisions, and both surface future outcomes. But they differ in the following ways:</p> <ul class="default-list"> <li><b>Results.</b> Predictive analytics answers the question, "What is going to happen?" Prescriptive analytics answers the question, "What should we do about it?"</li> <li><b>The role of people in the process.</b> Predictive analytics informs human decision-making, free of any specific guidance; prescriptive analytics removes people from the process, likewise removing human bias.</li> <li><b>Inputs.</b> Predictive analytics are typically built around predetermined scenarios; prescriptive analytics are broader, using inputs that incorporate the organization's operational dynamics.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Prescriptive analytics tools"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Prescriptive analytics tools</h2> <p>Advancements in the speed of computing and the development of complex mathematical algorithms applied to the data sets have made prescriptive analysis possible. Specific techniques used in prescriptive analytics include optimization, simulation, game theory and decision-analysis methods.</p> <p>Data science and ML tools form the foundation of a prescriptive analytics practice. These tools can help automate the process of creating the models required for prescriptive analytics. Enterprises can extend these capabilities to a broader base of users using new tools specifically designed for citizen analytics.</p> <p><a href="https://www.techtarget.com/searchdatamanagement/definition/data-management">Data management</a> and data processing can also improve prescriptive analytics at scale. Stream processing and stream analytics applications simplify data engineering tasks for ingesting data to support a particular recommendation or decision. Graph databases, data fabrics and data schema tools can simplify the data science task for mapping existing data to new use cases.</p> <p>Business process tools can help operationalize prescriptive analytics insights. Business rules management systems can provide the underlying frameworks for connecting multiple prescriptive models. Intelligent process automation tools can connect the dots between automated decisions and <a href="https://www.techtarget.com/searchcio/definition/RPA">robotic process automation</a>&nbsp;tools.</p> <p>The following is a sampling of vendor-provided prescriptive analytics options:</p> <ul class="default-list"> <li>Altair AI Studio.</li> <li>Altair RapidMiner.</li> <li>Alteryx One Platform.</li> <li>IBM Decision Optimization.</li> <li>SAS Decision Manager.</li> <li>Tableau.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="The future of prescriptive analytics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The future of prescriptive analytics</h2> <p>The future of prescriptive analytics will be driven by the explosion in big data, new modeling approaches and better AI techniques. Hurdles to adoption will include new regulations and pushback regarding privacy. Risks associated with bias, discrimination and unintended consequences will also affect prescriptive analytics applications.</p> <p>The rise in big data opens the potential to mine a far more extensive range and type of data to improve decision-making. For example, some firms are using data from social media and other third-party sources to consider loan approval for people lacking traditional credit scores. Enterprise data catalogs and new data wrangling techniques make it easier to discover and operationalize new patterns at scale.</p> <p>Sustainability concerns are driving collaboration on taxonomies and best practices for measuring business decisions' <a href="https://www.techtarget.com/whatis/definition/environmental-social-and-governance-ESG">environmental, social and governance</a> impact. Vendors are starting to offer services to measure the supply chain's carbon footprint, relate satellite imagery to business decisions, and detect data leaks and privacy violations.</p> <p>New modeling approaches enable teams to make more accurate decisions. For example, physics engines can improve predictive and prescriptive maintenance by enhancing AI models. <a href="https://www.techtarget.com/searcherp/definition/digital-twin">Digital twins</a> can help strengthen the context of complex decisions across multiple stakeholders. Improvements in AI NLP techniques can connect the dots between news reports and their likely effect on business operations.</p> <p>Despite the difficulty and expense of implementing and maintaining prescriptive analytics systems, it is rapidly becoming mission-critical across industries for organizations dependent on sustaining a competitive edge, ensuring that its uptake will continue to increase despite the challenges.</p> <p><i>Although <a href="https://www.techtarget.com/searcherp/feature/Advantages-and-disadvantages-of-digital-twin-technology">digital twin technology offers manufacturing operations many benefits</a>, it also has some drawbacks. Learn how organizations can implement this technology while avoiding the pitfalls. </i></p> </section> Prescriptive analytics is a type of data analytics that provides guidance on what should happen next. https://cdn.ttgtmedia.com/visuals/digdeeper/1.jpg https://www.techtarget.com/searchcio/definition/Prescriptive-analytics Tue, 24 Jun 2025 00:00:00 GMT 60 webmaster@techtarget.com