First Coffee for August 4, 2005

David Sims : First Coffee
David Sims
| CRM, ERP, Contact Center, Turkish Coffee and Astroichthiology:

First Coffee for August 4, 2005

By David Sims
[email protected]

The news as of the first coffee this morning, and the music is – still – Exile On Main Street, which just never seemed to get taken out of the CD player from yesterday. Might even see it again tomorrow:

Yesterday afternoon SSA Global Technologies, Inc., a vendor of extended enterprise solutions and services announced they’re buying CRM vendor Epiphany in a deal worth $329 million, or $4.20 per share for the shareholders of Epiphany.

Epiphany’s product suite includes sales, service, marketing, and customer analytics applications, based on a similar services-oriented architecture and built using the same Java 2 Enterprise Edition technology, as the recently released SSA Technology Architecture.

Mike Greenough, chairman, president and CEO of SSA Global said “with Epiphany, we expect to enhance SSA CRM.”

Epiphany, which styled itself E.piphany until about 2001 when everything “dot-com” became verboten, overextended themselves a few years ago and never really recovered through their strategy of concentrating on verticals. Still they had a nice client roster, including Nestle, the Gap, Citibank, and Microsoft.

Josh Greenbaum, chief industry analyst for Enterprise Applications Consulting tells industry observer Ephraim Schwartz that with moves like this, picking up distressed companies, SSA is, in Schwartz’s words, “setting itself up to be one of the three or four major contenders” in the mid-market space.

“It will quickly become SSA versus Microsoft, Oracle, and SAP,” Greenbaum said, noting that SSA wants to be the one with the biggest customer base and the most competitive applications: “They already have a worldwide distribution channel,” Greenbaum tells Schwartz.

Focusing mainly on manufacturing, distribution, and retail, SSA offers ERP, BPM, product lifecycle management and supplier-relationship management, Schwartz says.

A new report by independent market analyst Datamonitor finds that analytical customer relationship management technology, considered the logical evolution of the CRM lifecycle, is being adopted by enterprises on a broader global scale.

The report, cleverly titled “Analytical CRM,” forecasts global enterprise investment in aCRM will grow from an estimated $2.3 billion today to over $3 billion in 2009, “spelling good news for those technology vendors that operate in this space.”

That doesn’t sound exactly like an industry blowing wide open to First CoffeeSM, but hey, were you to promise this columnist a 30 percent raise between now and 2009 he wouldn’t sneeze at it. Probably wouldn’t do a back flip, either.

Analytical CRM is generally used by businesses to gain a fuller – “more full?” “Fuller?” Hmm – understanding of the customer in order to serve them better, thus increasing customer longevity and generating more profit. SAS is one of the better-known companies selling in this space.

Tom Pringle, technology analyst at Datamonitor and author of the study said to really sell analytical CRM, “vendors will need to make every effort to educate enterprises. Many are still confused by the concept and technologies that constitute business intelligence.”

Analytics users break down to power users – you know who you are – who need the fanciest and latest tools and toys, and actually know what to do with them. You have your senior execs, who like easy-to-understand dashboards detailing performance against key performance indicators.

Marketing organizations are probably the largest group of analytics users, sales organizations could be, but a lot of the analytics useful to sales comes “in the output of other area’s analysis,” according to Datamonitor – for example, “the use of leads generated through marketing campaigns, timely information delivery, especially during closing periods when targets are either hit, or missed.”

Naturally customer-facing organizations, such as the call center, but also retail environments depend on timely and accurate delivery of information relating to the customers they are dealing with, which is analytics’ purview, and, strangely enough, customers are users. Offer your customers intelligence about the way they use your products and see if they don’t appreciate it.

Financial services – as expected, retail, manufacturing and communications firms tend to be the heaviest users of analytics.

Here’s a little company starting to show up on radar: CoreTrac, Inc., provider of ResourceOne, a simple, affordable CRM and sales force automation product for community financial institutions, is announcing that Rabobank, N.A., of El Centro, California, will use R1 as part of its strategy to expand its retail and commercial business. Rabobank, N.A. is the U.S. retail banking arm of the Rabobank Group.

In April, Rabobank, N.A. converted to a national charter to expand its retail banking capabilities outside California. They’ll use R1 to help manage its sales process by tracking referrals, reporting results and providing employees with referral information across all its markets. The application is designed to integrate with the bank’s existing vital banking systems.

Some 40 community financial institutions are using or are licensed to use CoreTrac’s R1. In addition to the steady increase in its customer base, CoreTrac got some traction when one of the country’s largest community banking trade associations, the California Bankers Association, named CoreTrac its Endorsed CRM Partner last year.

Message Technologies, Inc., a speech IVR vendor, is announcing this morning “significantly reduced hosting rates” based on MTI’s addition of Microsoft Speech Server and its Speech Application Language Tags specification.

MTI provides a per-minute hosting rate of 5 cents for low-volume requirements as well as volume discounts as capacity requirements increase. When it comes to moving CRM apps to speech, says MTI President Darrell Knight, “we are finding that our… prices are driving more customers towards MSS as their platform of choice.”

Damn. We lost one of the good ones. First CoffeeSM is saddened to learn that brave reporter Stephen Vincent was murdered by terrorists in Iraq yesterday.

Unlike most “reporters” “covering” Iraq, who rip, read and rewrite the news the military provides from the field, tossing in the required “leave the whole place to the terrorists” slant, Vincent spent months seeing the reality for himself all across the country. It’s called “reporting,” something few other “reporters” in Iraq do. He came to love Iraq and Iraqis deeply, and to learn the things that would get him killed.

Michael Rubin, editor of The Middle East Quarterly told NRO yesterday “hands-down, [Vincent’s] book In the Red Zone was the most accurate portrayal of the issues facing ordinary Iraqis. While reporters from major newspapers had fixers do their work and more often than not, just telephoned Iraqi politicians and anonymous American diplomats, Vincent got out and about to holistically explore the entire Iraq endeavor, from the bottom up. His vignettes offer the best English-language understanding of Iraq available. His work was far and away the best out there.

His was also a highly positive view, the result of seeing beyond Baghdad hotel windows, beyond which most of the “journalists” in Iraq don’t dare venture. Vincent learned first-hand the tremendous good coalition forces are doing in Iraq, how the country is being not only rebuilt, but built far beyond what it was under Saddam, and how respected and appreciated the American and British forces are among the vast majority of Iraqis.

Find In the Red Zone and read it. There’s a good sampling of his work on NRO. Irritate the terrorists who murdered him by knowing the truth they killed him for writing.

Ah, damn it all. Damn, damn, damn.

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