Enterprise content management is a rapidly growing market, with hundreds of emerging companies looking to tackle the content management problems faced by businesses around the world. But what exactly makes content management valuable? And is it worth investing in a company excelling in the world of enterprise content management?
What Is Enterprise Content Management?
Enterprise content management is all about helping companies improve their internal organization related to content. Increasingly, companies are dependent on content as a core part of their operations.
Content is used for:
- Contracts. Content management includes storing and organizing client contracts, helping companies stay legally compliant while making it faster and more efficient to onboard new customers.
- Content marketing. Content is a strong piece of the modern marketing puzzle. With informative and entertaining blog posts, whitepapers, and other forms of content, companies can reach a wider audience and expand their brand footprint.
- Training and education. Internally, content often focuses on training and education. Employees can consult the company’s content archive to find everything they need to be a more productive part of the team.
- Dozens of other functions. Content is an inherent part of almost every aspect of the business’s functioning.
Enterprise content management software attempts to make it easier to create, collaborate on, store, and access pieces of content in these categories and others. Often, it includes elements of project management software, allowing managers to delegate tasks, organize work, and track progress. It may also include robust security and privacy features, ensuring that companies can create and access their most important proprietary content without fear of intrusion.
Why Invest?
So why would you consider investing in this industry?
- Market size and growth. For starters, enterprise content management is considered a high growth industry. Software companies have historically achieved a high rate of growth and the projected rate of growth in the content management sector is even higher than average. It’s estimated that the global enterprise content management market will grow from 40.440 billion in 2020 to 84.740 billion by 2026, more than doubling in just six years.
- Diversity of industries served. Content management is also a need of practically every business in every industry. Companies of all different sizes, serving a wide range of different customers, will all need some kind of content management tool to help them create new content and stay organized. Accordingly, you won’t be exposed to much risk; if a particular industry or sector of the market collapses, your investment won’t be crushed.
- Potential for steady income. Most companies in the enterprise content management sector are software as a service (SaaS) companies, offering a subscription service for access to their software. Customers pay a regular monthly rate to retain access to all the content management features they need; since switching or abandoning the platform is difficult, they’re inclined to stick with the company for the long term. This ultimately represents a steady stream of revenue that will keep the content management software company running.
- Expanding content types. We’re also seeing a broadening of the types of content needed by companies. These days, to stand out in the world of content marketing, you need to create content in a wide range of different mediums – and personalize your content to appeal to your target demographics. The demands of content creation are becoming more complex, so companies are turning to more sophisticated tools to help them do it.
- Options. There are dozens, if not hundreds, of different cloud enterprise content management companies worth considering, and there will be hundreds more emerging in the coming years. You can select the individual company that serves as the best fit for your current investment strategy.
Signs of a Promising Enterprise Content Management Company
If you’re looking for a promising enterprise content management company to invest in, what should you look for? What are the signs that this is a solid investment opportunity?
- A competitive advantage. First, there are many different content management companies already in existence, and there will be many more to come. What makes this one different? What gives it a competitive advantage?
- Growth focus. Solid investment opportunities in this space are highly focused on growth. They want to attract as many customers as possible to this platform as fast as possible to establish a bigger and steadier stream of revenue.
- Customer support. Good companies stand by their products. Look for a company that’s willing to issue regular updates and help customers achieve success.
Before investing in any company, it’s important to do your due diligence. Research the industry and individual company for yourself, come to your own conclusions, and determine whether this is a good fit for your current portfolio and goals.
