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No. of Recommendations: 44
CRM to eCRM to e-Business

Summary

CRM Software, Software to automate between companies and their customers is an innovation driven by the scale of success of the computing industry, which required automation of customer support, but now diverging into sales, marketing and the Internet. Siebel has a 1/5 of a $4 billion market which is estimated to grow at 45% overall to $17 billion by 2003. New companies like BroadVision, Kana and E.piphany have latched onto new CRM markets, known as eCRM, and are growing revenues in excess of 500% (y/y) with the aim of taking a large slice of the expanding CRM pie.

Business becomes e-Business

e-Business combines networks and automation, it is about making companies, partners and customers more efficient and more productive. e-business is possible because the Internet allows automation across a universal communication medium. Phones were universal but you can't automate, while EDI, a first attempt at automating business, required expensive infrastructure which was too costly to become universal. The Internet is universal and can be used to automate cuts costs, jobs, and increases output. So e-Business does not change the actions within business but they will be more productive.

e-Business = Business + More Efficiency + More Automation = Business + More Productivity

Within e-business I will be looking at the Front office, the company face. The front office covers any interface between the company and the customers or partners, for example sales and help desks. Software covering the front office includes Customer Relationship Management software, CRM,. This report looks at how CRM has repositioned itself into e-business.

CRM becomes eCRM

CRM software organizes customer information and delivers it in a form helpful to a customer or company representative. Time and man power are too limited to spend answering customer related questions by searching the company databases and grooming the output, instead you buy a CRM product. CRM is being disrupted by the emergence of new marketing products and the Internet which allows more emphasis on personalization of response and personalization of the customer views of your company, the very heart of CRM. The new Internet CRM is classified as eCRM.

(e)CRM allows:
1) Acquire more customers - target likely buyers, offer superior service, turn a customer to a repeat one.
2) Hold more customers - a new customer costs 4-6 times the cost of retaining one.
3) Cost you less to hold your customers - more automation
4) Make more $ per customer - by cross-selling and cross-marketing
5) Personalize relationships - cheap automation and cheap data collection allows the company to give you better service
6) Personalize your response - you know that customers value so you now ration your response - between 30- 60% of your customers are unprofitable, a company should not expend limited resources on unprofitable customers.

The advantages are compelling and have driven strong uptake of CRM.

What is CRM? Give me 10 definitions
http://www.crmguru.com/content/answers/whatiscrm.html

A fictional scenario to help illustrate what's possible with CRM.
http://www.cio.com/archive/031500_crm.html


History of CRM in 6 Paragraphs

Automation within companies began with processes which reduced costs and time to market e.g. Accounting , Inventory. Each process produced its own specific data, causing information islands which could only be bridged through complicated database tools. An informed decision requires a complete data set which only 5% of the company, and never the people who needed it, could do. CRM is about allowing the majority to get access to an integrated view of all the data to aid business decision .

The first CRM products, Customer Service Applications, were an antidote to the success of the computer industry which meant an inundation of software vendors help desks. Increasing staff numbers could not match this requirement as customers were left hanging on the phone. Customer Service Applications allowed, centered support calls, bug tracking, and automated resolutions. CRM is about enhancing staff working practice and introducing automation to the customer facing, front office. Leaders in this area have all been bought out including: Clarify by Nortel, Vantive by PeopleSoft and Scopus by Siebel.

Sales forces were the next to benefit from a CRM product, Sales Force Automation (SFA), which at its most basic was a contact database. SFA enforces a best practice approach for sales staff. Although some claim this is inhibit, the software has shown economic return. SFA originally developed to allow sales staff to share all the company information but the newest handle pipeline analysis, staff rating, and regional performance. Siebel has remained the leader in SFA.

The ability to capture information fell behind the ability to do anything with it. Another CRM branch, Marketing Automation offered: suites which enforce a marketing best practice framework, marketing campaigns for business to consumers and from the historical or real time information of you're customers. Leaders in the area are E.piphany, Broadbase and Exchange Response.

The introduction of the Internet adds an extra communication channel but gave many new opportunities because of the automation and interactivity possibilities. Led by companies providing an infrastructure for business, BroadVision, and Vignette but followed up by part, point, customer solutions from companies like Kana and SilkNet.


Architectural History

The first generation of CRM products were based around windows for workgroups. Bucking the trend Siebel started fresh and based its products around a client/server architecture, an innovation that allowed all computers to network where previously mainframes and PCs were separate. This was a great success which put them ahead of everyone and left them out in front.

Client/Server architecture is not appropriate to the Internet, connections between the client and server uses resources which are limiting when thousands are using your servers. Additionally, the client part of the architecture has to be written, installed and upgraded.

The next-generation of CRM available from companies like SilkNet, bought by Kana, and Octane, bought by E.piphany, uses an architecture appropriate for the Internet. The move from client/server to the Internet will require innovation by the older companies and give opportunities to new companies without any legacy software.

eCRM in e-Business

eCRM includes CRM functionality but now we are also catering for customer interactions over the web. We want to manage content, analyze customers behavior and allow e-Commerce. Leaders in this area are SilkNet ( bought by Kana ) , BroadVision, Vignette.

1)Content Management - presentation and management of content, will support personalization. Currently dynamic data supplied using XML, a enhanced HTML, which allows integration with a database. Reducing site maintenance. Vignette is the market leader.

2)E-Commerce - framework for conducting commerce. At a minimum it is capable of handling transactions but at the high end must supply scalability and fraud protection and order fulfillment. Leaders BroadVision and Open Market.

3)E- Marketing functionality -Marketing aims to generate sales leads through the targeting of subsets of customers aiding customer acquisition, customer retention or cross-selling (G) of goods or services.

Marketing suites consist of:
1) Data Extraction Transformation & loading (ETL) to aggregate data into a single view
2) Data Mart a repository for the collected data
3) Marketing analytics (G) to target a subset of your customers
4) Campaign management to repeatedly market an identified customer segment and to feed results back to the next round of the campaign.
5) Personalization - 1 to 1 marketing, decisions based on information from web sites , call centers, billing systems and syndicated data.

4)Customer Support - this is the basic help desk or customer center support found in the original CRM products from Clarify or Vantive with additional functionality such as support chat rooms, Self-service support and e-mail that follows simple business rules for queuing, auto-reply and templated responses.

Projections of the CRM Market

In trying to find an estimate for the eCRM market we should be aware of Prediction Creep. If one source says the market will be $X dollars the temptation for another company prediction will be to say $X + y dollars, the second company will be more likely to be quoted giving them a higher profile.

CRM market grew 62% to $3.8 billion from 1998's $2.3 billion according to AMR Research and CIBC World Markets Corp. They have forecasted a CAGR of 46% for the next 5 years, a $17 billion market by 2003.

Similarly, IDC's interpretation is CRM market grew from $1.9 billion in 1998 to $13 billion in 2003, giving 46% annual growth rate. Breaking down the growth IDC found over the next 5 years: Customer Service Applications CAGR of 41% , Sales Force Automation - CAGR of 40%, Marketing Automation CAGR of 50% and eCRM - 137%

Looking at the size of the problem, Jupiter Communications, Inc. predict that e-mail spending will grow 40-fold increase in e-mail volume, with consumers receiving more than 1,600 messages in 2005, compared to the 40 they received in 1999. These levels of customer interactions require automation and efficient practices if a company is to stay competitive.

Market Size Link - http://www.crmguru.com/content/crmtalk/2000a/crmt059.htm

We can see why companies need the software and can see a strong growth in the market for the foreseeable future. So who are the companies involved?

Companies

Companies I will be Looking at.

First, we need to define the companies we are looking at this is a confusingly large area. CRM as defined by AMR Research is marketing (lead and campaign management, data mining and data warehousing), technology-assisted selling (sales force productivity, pricing, support and management) and customer support (inbound call center tracking, technical service/support, problem management and field service).

To try and get a feel for what's happening I'm looking at a range of CRM companies, some of which you may agree or disagree are CRM.

So, in technology-assisted selling - Siebel, the leader of CRM and Oracle which has made big claims about revenue growth in CRM licenses. In marketing, E.piphany, Broadbase, and Exchange Applications.

Finally, I will look at web customer support, Kana and Internet Infrastructure company BroadVision who is building a one stop platform for the Internet and see how this can change the dynamics between the companies.


Companies I will not be looking at.

Of the original CRM companies only one, Siebel, hasn't been bought out. So I will not be looking at Clarify (bought by Nortel) or Vantive( bought by PeopleSoft), these might become a threat but not yet. I will not be looking at the middle market, they seem to have there own selling dynamics and do not threaten the more interesting higher growth and margin CRM companies. so SalesLogix, ONYX and Pivotal will be forgotten. Nor will I be looking at Dendrite which is a company selling into a vertical CRM market.
                       1999 Revenues( Millions)              1999 Market Share
Siebel(SEBL) 790 21.1%
Clarify(bought by NT) 30 6.1%
Oracle(ORCL) 205 5.5%
Vantive(bought by PSFT) 205 5.5%
BroadVision(BVSN) 116 3.1%
SAP-CRM(SAP) 60 1.6%

SilkNet (SILK) 22 0.6%
Kana(KANA) 14 0.4%

Source AMR Research, I/B/E/S, CIBC World Markets

Note:
M = Marketing
I = Internet Infrastructure
A = Analytics
CC = Call Center
SFA = Sales Force Automation
WS = Web Servies

Broadbase M

Broadbase has a suite to analyze web based customer interactions. The suite can be used in conjunction with Clarify, Vantive, BroadVision and Vignette. Broadbase has added E-Procurement analysis which will be used with Ariba. The addition of Rubric a company which already is Broadbase compatible, in Dec 99 for $330 million, adds market campaigning to their suite functionality.


BroadVision I , M/2

BroadVision has two revenue streams, the Infrastructure and Applications to sit on the infrastructure.

Infrastructure
BroadVision realized the need for a robust Internet platform and one stop functionality for all business.
In Jan 2000 they purchased Interleaf for $877 million, this strengthens content management capabilities.

Applications
Concentrating initially on the sell side market which includes: supporting e-Commerce transactions, content management, personalization and profiling. For CRM service software, i.e. call center and sales force software, they chose to partner Siebel for Service but for marketing and analytics they are partnering Broadbase, E.piphany, Andromedia and Net Perceptions. Will they be happy partnering or will they want to buy?


Exchange Applications M/2

The flag ship product is campaign management. They are building a marketing suite, partnering MicroStrategy for analytics.

Resellers
Acxiom ( 10+% of revenues in Q4/99), Compaq, Experian, HP, Hitachi, IBM and MicroStrategy.

Clients

Clients have mainly been in finance and Telecom. With the latest product release they are aiming at other verticals. Other Vertical clients include, Microsoft.com, DaimlerChrysler and FedEx.


E.piphany(EPNY) M,A

A leading marketing and analytics supplier, while Octane strengthens services.

History

One of the first firms to develop a data analytics suite for non-technical business users, E.piphany E.4. On January 5,2000 E.piphany added real time analysis capabilities with the purchase of RightPoint. On March 15th, E.piphany added Octane a completely Internet based Custom Relationship management solutions provider. Octane is built on an Internet architecture and is claimed to be customizable by business staff, a job previously done by consultants. Though it still needs system integrators.


Product
Overview http://www.epiphany.com/e_e4system/SolOverV03.pdf

The companies application suite, E.4 system, covers sales, marketing, finance and Internet commerce. The 3 product families are.

1) Reporting and Analysis
2) Distributed Database Marketing
3) E-Commerce

Reporting and Analysis modules:
Modules deal with Bookings, Billings and Backlog/Sales Reporting and Analysis, CRM Reporting and Analysis, Channel Sell-Through Management, Call Center Reporting and Analysis, Customer Profitability and Branch Information.

Distributed Database Marketing
Standard Marketing stuff - Cross-sell/ up-sell / Campaign management / Customer Acquisition / Loyalty

E-Commerce - Modules include:
Campaigns , e-mailer , Product Customization ( analyze customer preferences to see what customization you could do for your product ) , real-time Campaigner

Clients
E.piphany have sold to key accounts in different verticals with the hope of leveraging the remaining industry players. Key Companies includes: Microsoft , Amazon , HP , Lucent , Charles Schwab, Captial BlueCross,


Alliances
Co-Marketing ArtTechnology Group, BroadVision, FirePond, Vignette , i2
Resellers Acxiom( 200 sales staff - Oct99) , Harte Hanks ( 70 sales staff- Oct 99)
Agreements with Hewlett-Packard and Pivotal Software

Partnership In detail
i2 - allows the supply chain Gorilla - real-time customer analytics, order promising and fulfillment.
CardSystems - electronic payment application company with partnerships with 40 banks. Adding analysis to payment processing and transaction database


Management
Roger Siboni, President and CEO - Prior to joining E.piphany, Roger was Deputy Chairman and Chief Operating Officer of KPMG Peat Marwick LLP, a member firm of KPMG International. Getting KPMG on board opens a lot of doors.

Rest of Management
http://www.epiphany.com/e_company/management.html



Kana WS

Products

Email management, some marketing and web personalization

History

Originally an email management company addressing the increase of e-mails which were swamping company inboxes. Kana as since bought, Connectify in August 1999, a 31-person firm with an e-direct marketing (EDM) product, allowing you to send outbound email based on customer preferences. December 99 bought, Business Evolution for $140 million, and NetDialog for $90 million. The acquisitions gave: Kana Real-time, a Web chat tool to aid close a sale or upsell a customer, and Kana Assist, a customer driven Web FAQ technology. Feb 00, SilkNet was bought $4.2 billion in stock, this gave customer-facing applications that let consumers or partners personalize their interactions with Web-based businesses. The job is now to make all these products seamless.


Kana must read
http://www.upside.com/Ebiz/390a2b1d0_yahoo.html

Note: here is the revenues for the combined company Kana + SilkNet.
Calculations in the bake off use Kana alone.

March June Sept. Dec. FY March
Q1:99 Q2:99 Q3:99 Q4:99 1999 Q1:00
Product License 3,994 5,398 6,997 9,877 26,266 13,830
Services 1,154 1,763 2,965 4,445 10,327 6,949
Total 5,148 7,161 9,962 14,322 36,593 20,779

% Increase
Product Licenses 35 30 41 40

Brick and Morter customers represent 58% of revenue ( 38% last Q)
Repeat customers were 25%.
It is expected Kana will turn profitable on an operating basis by 4Q01.

Note: deferred revenue more than doubled from 4Q99; However, this is only the start as it has been estimated that Kana and SilkNet signed at least $50 million in revenues during the quarter but only recorded only $20 million .


Management
http://www.kana.com/about/team.html

Alliances
BEI - query prioritization - real-time response
Connectify - outbound email personalization
NetDialog - customer service instant messaging

Partnerships
Co-marketing and development - Broadbase
Resellers - MCI WorldCom and Convergys

Clients - Microsoft, and The Motley Fool

Bank Balance
Note - $82 million in cash.

Oracle in CRM ?

Much is heard about the competitive threat from ORACLE (ORCL) however the sequential growth of ORCL CRM sales is a flat succession. Compare with Siebel's, and any other CRM business, continued growth you can see that ORCL has a lot of catching up to do. They want to be a one stop e-Business solution, gambling on the customer will be willing to play off reduced functionality for the simplicity on an fully integrated system from one vendor.

Comparison of Oracle V Siebel for the last 4 CRM License revenue

6/99 9/99 12/99 2/00
Oracle 44 31 49 49

6/99 9/99 12/99 3/00
Siebel 110 126 170 190

Note: Oracles revenues have been questioned because they could be contaminated with database deals. We simply don't know.

Judging the capabilities of Oracle's suite is not possible, they are shy of being in a bake off with the competition. They have assigned a lot of programmers to e-business but producing a suite is a lot of work ( no one has a complete CRM suite ). Once done you have to take time to remove the bugs. Oracle has a lot of resources but don't yet have a competitive CRM suite.



Siebel SFA , CC, M/2,W/2

Siebel is the leading vendor in the CRM area, starting in SFA they bought Scopus to give Call Center Services. The addition Paragren Technologies gave database marketing, campaign management and outward-bound e-mail capabilities but misses analytics. The emphasis has changed from CRM to e-business, exemplified by the purchase of Opensite the leading dynamic pricing software vendor.

During Siebel's conference call, it was stated that the company's eCRM revenue was almost twice the combined revenue of all other eCRM players. As with Oracle drawing the boundaries is difficult. What counts for CRM and what eCRM? In addition Siebel is distancing themselves from CRM ( who us? Surely some mistake) and are calling themselves
e-Business.

With the aquisitions of Clarify and Vantive the top end of the CRM market has become less competitive. Siebel is seeing less of Clarify and Vantive in tenders, while Oracle has yet to emerge. So, Siebel have spent more on marketing in order to get market share. This has lead to a decline in the net margin (Net Margins March 31 2000, 14.9% and March 31 1999, 15.5 %.).

Management

See the management.
http://www.siebel.com/about-siebel/bo_di.html

Interview
http://www.upside.com/texis/mvm/story?id=38c85c210
Good article
http://www.svmagazine.com/2000/week06/features/Story01.html


Partnerships

Increased partnerships + 352 to 500. Most partnerships are consultency firms implementing Siebel's products. This means there are more than 5000 consultants trained to deliver Siebel's e-business solutions. But there are 100+ software and hardware firms involved. Including Ariba and IBM.
Here is a list of the great and good.

Ariba : A partnership with a leading Business to Business (B2B) commerce service has a massive potential for accessing each other's customers and setting a standard in the industry.
A Takes on the partnership.
http://boards.fool.com/Message.asp?id=1240091000092008&sort=postdate
In case Yahoo deletes the message.
http://boards.fool.com/Message.asp?id=1240091000097000&sort=postdate

American Management Systems Inc. - Partnership
The public Sector is a vast untapped sector. AMS is the guide. AMS also has a cross-selling deal with Ariba.

BroadVision : Announced strategic alliance with Siebel that will integrate BroadVision's personalized e-business applications with Siebel Front Office applications.

Great Plains : Great Plains has accounting, financial and manufacturing applications which they sell to 20,000 mid-market customers. The mid-market are a untapped large market for Siebel.

IBM : 1.There are 10,000 IBM people who are going to be trained and certified with Siebel.
2. Siebel products have been integrated with IBM DB2 database. DB2 has NT and Unix flavors. It is believed that Siebel is working with IBM to get a mainframe version.
3. IBM own customer service software division, called Corepoint Technologies has been dissolved.
4. IBM has speech recognition software which may be of some use in the Siebel's SFA.
5. IBM are investing $40 million in advertising.
6. IBM are funding 15 Siebel CRM demonstration around the world.
Foolish Link on IBM
http://news.excite.com/news/cbsmw/991028/18/software-ibm-inks

Microsoft : Siebel have an agreement with Microsoft to supply SQL Sever database as a component of its front-office applications ( offering an upgrade to Oracle users ). Siebel and Microsoft also have created a joint technology solution center in Redmond.


News link of partnership
http://www.news.com/News/Item/0,4,84-38604,00.html?tt.yfin

Unisys : http://news.excite.com/news/bw/991027/pa-unisys-siebel




SilkNet WS

SilkNet provides online customer sales and service solutions SilkNet has been bought by Kana. See Kana for more details
Revenues

1998 Q1:99 Q2:99 Q3:99 Q4:99 Q1:00*
License 2,976 1,648 2,040 2,785 4,200 5,200
Services 671 621 1,234 833 1,800 2,700
Total 3,647 2,269 3,274 3,618 6,000 7,900

* I only have access to data which is rounded to the nearest 100,000 dollars.

Company Bake Off


License Revenues

March June Sept Dec FY99 March June Sept Dec FY99 March
Q1:98 Q2:98 Q3:98 Q4:98 Q1:99 Q2:99 Q3:99 Q4:99 Q1:00
Exchange Apps 2,711 3,105 3,958 4,583 14,357 5,008 6,051 6,793 8,492 26,344 10,262
Broadbase -- -- 888 2,996 1,126 1,567 2,114 2,881 7,689 4,520
BroadVision 7,279 8,018 9,158 11,612 36,067 12,783 15,484 18,954 28,161 75,383 40,713
E.piphany -- -- 737 -- 2,216 1,136 1,793 2,704 4,528 10,161 8,268
Kana 161 464 600 788 2,014 1,209 1,821 2,781 4,725 10,536 7,329
Siebel 56,002 67,340 77,225 90,323 290,890 93,432 110,005 125,951 170,010 499,398 190,912


Sequential(%)

Siebel -- 20 14 17 3 17 14 35 12
Exchange Apps -- 15 27 16 -- 16 21 12 25 -- 21
Broadbase -- -- -- -- -- -- 38 35 50 -- 52
E.piphany -- -- -- -- -- -- 58 51 67 -- 83
Kana -- 188 29 31 -- 53 51 53 70 -- 55
BroadVision -- 10 14 27 -- 10 21 22 49 -- 38

Revenue growth is strong in the sector. Of the marketing companies: E.piphany is ahead and accelerating from Broadbase while Exchange Apps is tailing the companies.
Costing and Customers 
Actual Selling Price New Q1 Total
Ticker Q1:00 Q4:99 Customers Customers
Broadbase BBSW 300,000 200,000 30* 200
BroadVision BVSN 405,000 393,000 110 648
Exchange Applications EXAP 430,000 363,000 15 120
E.piphany EPNY 550,000 510,000 37 (+32**) 75(+95)
Kana KANA 200,000 133,000 150 (+20#) +500 (+70#)
Siebel SEBL 470,000 428,000
Siebel Deals over 50,000 700,000 700,000

* described as more than 30 - cynical me means I presume 31.
** From Octane purchase


The Actual Selling Prices (ASP) are all upward due mainly from broadening software functionality for example, Kana has added newer products: Kana Assist, Kana Connect etc. Kana and BroadVision are leading in new customer intake.

Siebel is the only company which has not increased its ASP this may be due to its increased emphasis on the untapped mid-market. They certainly have not had problems selling the product.


Services as a percentage of total revenues

E.piphany has comparable revenue to its competitors even though it had, until its acquisition of Octane, the least customers. It is strange for a company that sells it self on being easy enough to be configured by business users and which adapts a standard data mart compared with Exchange Apps which customizes each one. So revenues are pumped up by concentrating on giving more of their customers a highly charged service.

E.piphany 43%, Siebel 38%, Exchange Applications 32%, BroadVision 33%, Kana 31%, Broadbase 28%.

Employees Total Salesmen R&D Services Finance / Admin
Q1:00 Q4:99 Q4:00E Q1:00 Q4:99
Broadbase 214 130 45 34 22
BroadVision 652 155 130(~) 84
Exchange Applications 321 271 33 29
E.piphany 279(500*) 100 30(+30*) 76 72 32
Kana 700(#) 55 (+15#) 35 250 230 60
Siebel 3,931 3,200 1,500 500 1,600 331

* from Octane
# Addition of SilkNet - note that cross-selling with Kana meant only 20 new customers from SilkNet although they made 40 new customers overall
~ Including Interleaf
Note on BroadVision - 75% of sales were partner influenced - HP has 24 reps with BroadVision quotas and produced 25 deals in the Quarter - time to define what partner influenced means or time to sack some salesmen


Application Service Providers (ASP)

Software outsource and renting is still to catch on none of the front office companies have made more than 5% of their revenues from ASP.


Trends and the future

Fitting B2B together

The Internet has the same requirements as any complicated system. First we need a backbone to put everything on, the reasons are the same as the PC there's no point reinventing the wheel we will always need web content management and personalization as well as support of e-mail and this will be bought as a package. In this case from iCRM companies such as BroadVision, Vignette or Kana. However, like the PC we still need to support e-business functionality, which means applications, so to these platforms we will have customized or at least plugable applications for CRM, Marketing , Procurement, analytics and supply chain management. So the question is how will this develop? Microsoft added functionality into the operating system, an example being the addition of the browser while SAP, in a similar position, made the backbone of the back office ERP systems failed to subsume functionality. It seems that iCRM companies have the chance to add functionality whereas the application companies can only loose functionality on the platforms to a bought or built iCRM module.

Given this knowledge we can expect: Convergence - As companies merge to a complete system think Kana / SilkNet and E.piphany/Octane, Land Grab -expansion of sales and marketing to get presence in the market place, profits are rare.

Reasonable Scenario's

e-Rollup - the competing company point solutions will get rolled up, companies doing the rolling: BroadVision, E.piphany ( buying Octane puts it in direct competition with Siebel) and Kana the winner will fight Siebel.

e-Gorilla - Siebel will use its cash and influence to move from CRM to other aspects of e-business. Siebel benefits from BroadVision's partnership but will add business functionality an example being Siebel's purchase of OpenSite.


Further Reading

The area is widening and deepening. Here are a few things that took my fancy many from www.crmguru.com archives.

e-Marketing robots - a robot that keeps you loyal http://www.zdnet.com/intweek/stories/news/0,4164,2389627,00.html

10 Predictions for 2000 http://www.crmguru.com/content/frontline/2000a/0106.htm

e-Business Everything you thought is wrong - an unlikely but interesting reading
http://www.cio.com/forums/ec/edit/032700_newrules.html

Personalize and privacy http://www.personalization.com/soapbox/columns/clocke-column-4.asp#dw-comments
Online CRM business trends http://www.informationweek.com/782/crm.htm

Compare Kana, eGain, Brightware, and Octane Software
http://www.crmguru.com/content/crmtalk/2000a/crmt059.htm

E.piphany V Broadbase
http://www.forbes.com/tool/html/99/Dec/1210/mu2.htm

Versions of marketing
http://www.kmmag.com/km199905/special1.htm

Too cool
http://www.kmmag.com/km199905/home.htm

e-Marketing
http://www.crmguru.com/content/frontline/2000b/0518.htm#1

CRM V SCM V ERP
Search for , CRM, ERP and SCM , in http://www.crmguru.com/content/crmtalk/2000a/crmt050.htm




Glossary

Cross-Selling - if customers who buys X also buys Y then offer X buyers Y

e-Service - providers of service to customers via self-service or e-mail and includes the older CRM products such as help desk software, Sales Force Automation (SFA).

eCRM - essentially CRM using the Internet as an extra channel.

ERP - automation of the back office, accounts, inventory would be typical back office automation targets.

iCRM - companies providing the Internet infrastructure which Internet applications will sit on.

Marketing Analytics - used to target different subsets of your customer base. You may want to offer all Fools who bought a Foolish product a 5% discount on the Internet report but you may only want to offer a free jester's hat to Fools who have finishing subscription of the Internet report, bought $50 of goods in the last 6 months, bought a ford car in the last year and wrote a good CRM report ( well I can ask).

Sales Force Automation - a frame work which supports and enforces best sales practice, Siebel is the leader in SFA

Exchange Applications
          March   June     Sept       Dec   FY98     March    June      Sept     Dec    FY99   March
Q1:98 Q2:98 Q3:98 Q4:98 Q1:99 Q2:99 Q3:99 Q4:99 Q1:00
License 2,711 3,105 3,958 4,583 14,357 5,008 6,051 6,793 8,492 26,344 10,262
Service 2,080 2,522 3,223 2,594 10,419 3,457 4,207 4,402 4,891 16,957 4,900
Total 4,791 5,627 7,181 7,177 24,776 8,320 10,258 11,195 13,383 43,301 15,162

License
Y/Y(%) -- --- -- -- -- 73 82 56 86 75 104
Sequential(%) 15 27 16 -- 16 21 12 25 -- 21

Broadbase

March June Sept Dec FY99 March June Sept Dec FY99 March
Q1:99 Q2:99 Q3:99 Q4:99 Q1:99 Q2:99 Q3:99 Q4:99 Q1:00
License 888 2,996 1,126 1,567 2,114 2,881 7,689 4,520
Service 104 443 360 486 650 1,257 2,753 1,781
Total 992 3,439 1,486 2,053 2,764 4,138 10,442 6,301

Y/Y(%) -- -- -- -- -- -- -- -- -- -- --
Sequential(%) -- -- -- -- -- -- 38 35 50 -- 52

BroadVision I , M

March June Sept Dec FY99 March June Sept Dec FY99 March
Q1:98 Q2:98 Q3:98 Q4:98 Q1:99 Q2:99 Q3:99 Q4:99 Q1:00
License 7,279 8,018 9,158 11,612 36,067 12,783 15,484 18,954 28,161 75,383 40,713
Service 2,800 3,367 4,273 4,404 14,844 5,681 7,992 10,877 15,582 40,131 20,788
Total 10,079 11,385 13,431 16,016 50,911 18,464 23,476 29,831 43,743 115,514 61,501

Y/Y(%) -- -- -- -- -- 76 93 106 143 -- 218
Sequential(%) -- 10 14 27 -- 10 21 22 49 -- 38

E.piphany

March June Sept Dec FY99 March June Sept Dec FY99 March
Q1:98 Q2:98 Q3:98 Q4:98 Q1:99 Q2:99 Q3:99 Q4:99 Q1:00
License -- -- 737 -- 2,216 1,136 1,793 2,704 4,528 10,161 8,268
Service -- -- 375 -- 1,161 758 1,437 2,640 4,186 9,021 6,147
Total -- -- 1,112 -- 3,377 1,894 3,230 5,344 8,714 19,182 14,415

Y/Y(%) -- -- -- -- -- -- -- -- -- -- 627
Sequential(%) -- -- -- -- -- -- 58 51 67 -- 83

Kana

March June Sept Dec FY99 March June Sept Dec FY99 March
Q1:98 Q2:98 Q3:98 Q4:98 Q1:99 Q2:99 Q3:99 Q4:99 Q1:00
License 161 464 600 788 2,014 1,209 1,821 2,781 4,725 10,536 7,329
Service 25 89 139 80 333 280 517 998 1,733 3,528 3,359
Total 186 553 739 868 2,347 1,489 2,338 3,779 6,458 14,064 10,688

Y/Y(%) -- -- -- -- -- 650 292 363 499 -- 506
Sequential(%) -- 188 29 31 -- 53 51 53 70 -- 55

Note: Kana from next Q onwards will have Silknets revenues to add

Siebel

March June Sept Dec FY99 March June Sept Dec FY99 March
Q1:98 Q2:98 Q3:98 Q4:98 Q1:99 Q2:99 Q3:99 Q4:99 Q1:00
License 56,002 67,340 77,225 90,323 290,890 93,432 110,005 125,951 170,010 499,398 190,912
Service 18,170 22,676 26,969 51,181 118,996 48,039 54,411 69,366 119,706 291,522 118,527
Total 74,172 90,016 104,194 141,504 409,886 141,471 164,416 195,317 289,716 790,920 309,439

Y/Y(%) -- -- -- -- -- 67 63 63 88 104
Sequential(%) -- 20 14 17 3 17 14 35 12

The Author

GorillaGorilla, Richard to his simian friends. Is in no particular order of demerit English, an X - Biologist , and a programmer.

Appendix

Incomplete tables - all the data not there but it will give you an idea.

Consulting Total Q1 Q4

BroadVision 5,000 1,500 PWC = 600
E.piphany PWC = 80 - total will be 200
Kana 150
Siebel IBM = 10,000


Broadbase
BroadVision
Exchange Applications - EY, KPMG, PWC, AC , DT also IBM, Renaissance, SAP, Sequent and Sun
E.piphany - EY, KPMG, - - - also CT , Marketing 1:1
Kana - - - - - - also ACOM, CG , Claritas, Emerging.com, AndersonScient, SageIT
Siebel - PWC, , DT, also IBM, CG, Sun and Lucent.

The Big 5 Consultancies
Delottie Touche - DT
Ernst & Young - EY
KPMG - KPMG
Anderson Consulting- AC
Price Waterhouse - PWC

Up and coming

Cambridge Technology Partners CT
Cap Gemini - CG
Agency.com ACOM CAP Gemini, Claritas, Emerging.com ,

International Revenues
Q1:00 Q4:99
Broadbase 24
Exchange Apps 30% ( for year)
Kana 10% 5% Q4.
Siebel 33 ( repeat customers 47%)



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