Green Quadrant EHS Software 2019 PDF

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VERDANTIX.COM

Green Quadrant EHS Software 2019

MARCH 2019

BY YAOW E N M A W I T H S T EVE BOLTON

This version of the report contains Verdantix’s two-page profile and summary of Intelex’s capabilities to help prospective customers evaluate whether the vendor is a good fit for their EHS information management requirements. It does not contain other vendor profiles.

ENVIRONMENT, HEALTH & SAFETY

Green Quadrant EHS Software 2019 This report provides Verdantix's fifth detailed, fact-based comparison of the most prominent EHS software vendors in the market. Based on the proprietary Verdantix Green Quadrant methodology, the analysis was based on three-hour live product demonstrations with pre-set scenarios as well as vendor responses to a 383point questionnaire covering 10 technical capabilities, 18 functional capabilities and 11 market momentum categories. Verdantix also leveraged vendor responses from prior questionnaires to maximize the accuracy of our analysis, as well as integrated findings from our recent global survey of 411 EHS decision-makers across 25 industries and 35 countries. The analysis found that 12 vendors currently lead the market: Enablon, Intelex, Cority, VelocityEHS, Sphera, UL, Gensuite, SAI Global, ETQ, Enviance, IsoMetrix and Quentic. Other vendors featured in the 2019 Green Quadrant are Airsweb, Alcumus Group, Dakota Software, DNV GL, INX Software, ProcessMAP, Red-on-line, SAP, SHE Software, TenForce and VisiumKMS.

TAB L E O F C O N T E N TS The State Of The Market For EHS Software ................................................................................................................................ 5 EHS Software Market Enters A Phase Of Growth Focused On Customer Satisfaction ........................................... 5 Recent Market Activity And New Product Benchmarks Future Market Advances And Product Objectives Safety Functionality, Operational Risk Functionality And Support To Strengthen Software Adoption Are Buyers’ Top Priorities Green Quadrant For EHS Software 2019 .................................................................................................................................... 11 Green Quadrant Methodology Scope And Methodology Updates For The 2019 EHS Software Green Quadrant Evaluated Firms: Selection Criteria Evaluation Criteria For EHS Software Intelex Offers Breadth And Depth Of Software Functionality Across EHS, Quality And Sustainability Management

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TAB L E O F F I G U R E S Figure 1. Adoption Of Software By EHS Processes In 2019 ........................................................................................................ 6 Figure 2. Adoption Of Training, Learning And Development Solutions In 2019 ................................................................ 7 Figure 3. Barriers To Use Of EHS Software For Analysis ............................................................................................................... 8 Figure 4. Evaluation Criteria For EHS Software Selection ............................................................................................................. 9 Figure 5. Factors During Sales Process That Influence EHS Software Selection ............................................................... 10 Figure 6. Involvement In Digital Transformation By EHS Function ........................................................................................ 11 Figure 7. EHS Software: Brand Awareness Ranking ...................................................................................................................... 12 Figure 8-1. Capabilities Criteria For EHS Software Applications ............................................................................................. 16 Figure 8-2. Capabilities Criteria For EHS Software Applications ............................................................................................ 17 Figure 8-3. Capabilities Criteria For EHS Software Applications ............................................................................................ 18 Figure 9. Momentum Criteria For EHS Software Applications ................................................................................................ 19 Figure 10. Green Quadrant EHS Software 2019 ........................................................................................................................... 20 Figure 11-1. Criteria Scores .................................................................................................................................................................. 21 Figure 11-2. Criteria Scores .................................................................................................................................................................. 22 Figure 11-3. Criteria Scores .................................................................................................................................................................. 23 Figure 11-4. Criteria Scores .................................................................................................................................................................. 24 Figure 11-5. Criteria Scores .................................................................................................................................................................. 25 Figure 11-6. Criteria Scores .................................................................................................................................................................. 26

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O R G A N I Z AT I ON S M E N T I ON E D 3M, Absa Group, AccountAbility, Accuvio, Actio, Actua Corporation, Adidas Group, Adobe Systems, AECOM, Aetna, Airsweb, AirWatch, AkzoNobel, Alcumus Group, Aleo Solar, Altice, Amazon, American Airlines, American Electric Power, Anadarko, Anglo American, AngloGold Ashanti, Anheuser -Busch InBev, Antero Resources, Ascend (formerly Monsanto), BadgerMail, Bahrain Public Transport Company, Baring Private Equity Asia, BASF, Bayer, BC Hydro, Bloomberg BNA, BLR, Borealis, Bosch, Box.com, BP, British Airways, British Sugar, Burberry, Cargill, Caterpillar, Chevron, Chevron Phillips Chemical, Chivas Brothers, Citgo, Citic Pacific Mining, City West Water, Coca-Cola, ConocoPhillips, Cooper Standard, Cooperative Bulk Handling CBH, Cority, Corning, Cortexica, CSX Transportation, CVC Growth Fund, Dakota Software, DANONE, Deutsche Transport, DNV GL, Documentum, Dow Chemical, Doyle Shipping Group, DuPont, Eandis, Eli Lilly, Enablon, ENGIE, Enhesa, Enviance, Equinor, Estee Lauder, ETQ, EVAL Europe, Experian, ExxonMobil, Facebook, FCA Chrysler, Ferrovial Agroman, First Quantum Minerals, Florida Power & Light, Fluor, Foskor, Fung Group, Genstar Capital, Gensuite, GM, Goldcorp, Guardhat, H&M, Heineken, Hernic, Honda, Honeywell, Humantech, IBM, INEOS, InfintyQS, Intelex, Intune, INX Software, Irving Oil, IsoMetrix, ITV Group, JMI Equity, JNJ, Johnson & Johnson, Joseph Rowntree Foundation, JP Morgan Chase, Kellogg’s, Kering, Kimberly-Clark, KMI, Koch Fertilizer, L’Oreal, Laing O’Rourke, Lanxess, Lendlease, Linde Group, Lloyds Banking Group, Lundin Gold, LyondellBasell, Maersk Oil & Gas, Mammoet, Marathon Petroleum, Mars, McCormick & Company, McDonald’s Restaurants, Mechanical Rock, Menzies Aviation, Microsoft, MMG Kinsevere, MobileIron, Monadelphous, Mondelēz, Monument Chemical, MTR Corporation, National Cooperative Refinery Association (now CHS Inc.), Nimonik, NOSA, Novo Nordisk, OceanaGold, Office for National Statistics, Omnia Fertilizer, Oracle, OSHA, Oxford Instruments, PepsiCo, Petrotechnics, PG&E Corporation, Piedmont Airlines, PPG, Princeton Plasma Physics Lab, ProcessMAP, Proctor & Gamble, Prodeco, Quentic, Randgold Resources, Red Rock Power Limited, Red-on-line, Regis Resources, Rivo Software, Rolls Royce, Royal Caribbean International, SABMiller, Safetec, SAI Global, Sandvik Mining & Rock Technology, SAP, Senwes, SharePoint, SHE Software, Shell, Siemens, SiteHawk, Skillsoft, Solvay, sparesFinder, Sphera, Spiramid, Sprint, Stanley Black & Decker, Staples, Starbucks, STP/STC, Sypol Noise and Pollution, Tableau Software, TapRoot, Teck Resources, TenForce, Terumo Medical, Tishman Speyer Properties, Transnet, Trevali, TriState, Tucson Electric Power, UL, Unilin, University of Leeds, Vector Aerospace International, Vector Solutions, VelocityEHS, Veolia, Verisk 3E, VisiumKMS, Walmart Logistics, Whirlpool, World Business Council for Sustainable Development (WBCSD), World Resources Institute (WRI)

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The State Of The Market For EHS Software The market for environment, health and safety (EHS) software continues to be driven by the major themes of regulatory compliance, corporate reputation protection, accident avoidance, worker well-being and process standardization. Over the past three to five years, the EHS software market has seen an influx of capital—such as CVC Growth Fund entering into an agreement with Actua Corporation to purchase VelocityEHS for $328 million in 2017 and JMI Equity leading the CAD 160 million ($119 million) round of funding for Intelex in 2015. As EHS software vendors compete for market share across a variety of modules—covering environment, health, safety, quality, sustainability and chemicals management categories—firms are finding increasing differentiation among vendors’ product offerings, price points, user interfaces, user-friendliness and other factors. At present, EHS software vendors range from 500-employee firms with over $100 million in annual revenues to entrepreneurial challengers with less than $5 million in annual revenues. Given the rapid pace of change in the EHS software market, this report provides a detailed description of the 23 most prominent vendors and their products to educate individuals who are responsible for selecting, implementing and deriving value from a software platform. Individuals who typically are involved in administering this software include EHS managers at corporate, division and site levels, as well as personnel in IT, operations, finance, sustainability and quality. When evaluating the available product options, these decisionmakers and users want to answer questions such as: • • • • •

Which EHS software applications lead the market? Which EHS software applications will best match the requirements of my firm? How can I benchmark the capabilities of EHS software applications? What factors indicate that EHS software vendors are a reliable partner for the future? How much budget should I allocate for an investment in EHS software?

To answer these questions, Verdantix assessed 23 suppliers using their responses to a 383-point questionnaire and their delivery of a three-hour live product demonstration. Since this is our fifth iteration of the Green Quadrant study of EHS software, Verdantix also leveraged vendor responses from prior questionnaires to maximize the accuracy of our analysis, as well as integrated findings from our recent global survey of 411 EHS decision-makers across 25 industries and 35 countries (see Verdantix Global EHS Leaders Survey 2018: Budgets, Priorities & Tech Preferences). The resulting analysis is based on the Verdantix proprietary Green Quadrant methodology, which is designed to provide an evidence-based, objective assessment of vendors that provide comparable products or services.

EHS Software Market Enters A Phase Of Growth Focused On Customer Satisfaction Recent Market Activity And New Product Benchmarks The three-year time period of 2015 to 2018 saw a surge in financial activity within the EHS software market. Verdantix market tracking alone has identified over 30 mergers, acquisitions, investments and buyouts during this time period. Witness Genstar Capital, which purchased the Operational Excellence and Risk Management assets of IHS to form Sphera in mid-2016, along with Baring Private Equity Asia taking ownership control of SAI Global in a market-leading transaction that reached $1 billion. Since the 2017 Green Quadrant EHS Software study, Verdantix has found that: • • • • •

Cloud-hosted deployment is becoming the new normal. EHS software price points are shifting to reflect the diversity of customers—including large firms, midmarket firms and small-to-medium enterprises (SMEs). Having a mobile application offering in addition to a desktop software platform is no longer a sufficient differentiation. EHS platforms are faced with multiple fronts of software convergence—including operational risk (OpRisk), quality management, chemicals compliance, sustainability measurements and communications, and product stewardship. Edge technology integrations such as digital environmental sensors and wearable devices increasingly are being adopted on a firm-wide scale by corporate EHS teams.

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FIGURE 1

Adoption Of Software By EHS Processes In 2019 “To what extent will your firm use software for the following processes in 2019?”

Safety and operational risk

24%

58%

Incident management

53%

Environmental compliance

52%

Occupational health and industrial hygiene

51%

Quality

45%

EHS reporting, metrics and analysis

45%

25%

18%

35%

24%

Chemicals and hazardous waste compliance

34%

26%

Sustainability programmes Wide usage across all operations Pilot project at one facility Don’t know

6% 8% 1 23%

5 4

32%

31%

9% 6%

32%

6% 9% 9%

1 8%

25%

40%

Product compliance for chemicals and components

13%

8%

33% 20%

13% 1

4

28% 23%

4 2 4

Usage at multiple facilities No plans to use in 2019

Note: Data labels are rounded to zero decimal places, percentages less than 6% have been written as numbers Source: Verdantix

n=411

Future Market Advances And Product Objectives Going into 2019 and beyond, vendors that have external investors will face increasing pressure to rapidly expand market share, strengthen profitability, increase return-on-investment (ROI) and achieve shareholder profits within a three to six-year time horizon. Examining the market dynamics further, Verdantix finds that EHS software vendors should work to: • • • • •

Retain their modular domain strengths, on top of offering a broad software platform of diverse EHS solutions. Strengthen software adoption through easy-to-use and user self-configurable functionality, a userfriendly interface, and customer support that help firms enhance both data collection and data quality. Maintain an interoperable, easy-to-integrate platform so customers can automate data capture and employ edge technologies. Provide preconfigured, industry-specific solutions that address customers’ increasing focus on the alignments of OpRisk-EHS, quality-EHS, chemicals-EHS and sustainability-EHS. Expand partnerships to deliver necessary software content, hardware linkages and service offerings, so that these tools are available without moving beyond one’s core competency of developing effective, scalable software products.

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FIGURE 2

Adoption Of Training, Learning And Development Solutions In 2019 “To what extent will your firm use the following types of training, learning and development solutions in 2019?”

Learning Management System (LMS) for health and safety

55%

34%

5 51

Online training courses and webinars

55%

32%

5 7%

Instructor-led classroom training

54%

37%

4 5

Training integrated with EHS workflows

48%

Video-based training

Mobile-accessible learning applications Microlearning Virtual Reality (VR) training

Wide usage across all operations No plans to use in 2019

35%

42%

33%

30%

28%

22% 6% 9%

23% 12%

Usage at multiple facilities Don’t know

9%

13%

4 12% 1 5

19%

28%

32% 70%

1 6%

9% 2

Pilot project at one facility

Note: Data labels are rounded to zero decimal places, percentages less than 6% have been written as numbers Source: Verdantix

n=411

Safety Functionality, Operational Risk Functionality And Support To Strengthen Software Adoption Are Buyers’ Top Priorities The EHS software market is facing multiple fronts of convergence across operational risk, quality management, chemicals compliance, sustainability measurements and communications, and product stewardship. Among the 23 vendors included in the 2019 Green Quadrant study, all but one offer a mobile application and 14 derive more than half their revenues from customers opting for cloud-hosted deployment. Among those 14 vendors, all offer the pricing options of a large upfront licence combined with smaller maintenance fees or a flat subscription contract that varies by renewal length—monthly, quarterly, annual or multi-year. When further examining the adoption of EHS technologies, Verdantix has found that (see Verdantix Global EHS Leaders Survey 2018: Budgets, Priorities & Tech Preferences): •

Compliance and risk-centric modules are the most commonly adopted for EHS information management. Among the 411 EHS decision-makers interviewed for our 2018 global survey, 58% of respondents reported that they are using EHS software for safety and operational risk processes widely across their firms (see Figure 1). This use case is followed closely by incident management, with 53% of respondents using it widely across their operations, and environmental compliance, with 52% of respondents using it

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FIGURE 3

Barriers To Use Of EHS Software For Analysis “How significant are the following factors in slowing down your use of software for EHS analysis?”

EHS software lacks analytical tools

29%

EHS team doesn't have data science expertise

28%

EHS data from different facilities is inconsistent

27%

EHS data is out of date

26%

EHS data at corporate level is of low quality

Executives too focused on lagging indicators Costs of analytics projects outweigh potential benefits

Very Significant

Significant

20%

20%

43%

25%

36%

21%

48%

16%

47%

13%

10%

19%