Analysis Firm the451 Finds Business Intelligence Software Vendors Failing to Address Growing Demand for Marketing Analytics.Business Editors/High-Tech Writers NEW YORK--(BUSINESS WIRE)--July 17, 2003 451 Special Report spotlights emerging market for CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. analytics software; Application suite vendors better positioned than the BI community to address demand; Sarbanes-Oxley and other government regulations to necessitate analytics for enterprises The451 believes a strong market opportunity is emerging for customer relationship management (CRM) analytics software - an emerging market that will see rapid technology development, acquisition and consolidation over the next 18-24 months. These findings are outlined in a 451 Special Report - CRM Analytics: Have the BI vendors missed the boat? - which is being released today by the451, an analysis firm covering the business of emerging information technologies. There is significant, unmet enterprise demand for marketing analytics software. Enterprises need software that is robust but user-friendly, that doesn't require a PhD in statistics to operate and that can derive both ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). and higher-level business value from existing investments in CRM software suites. Four vendor segments - business intelligence (BI) vendors, application suite vendors, marketing automation vendors and pure-play analytics companies - are competing to own this emerging market; however, none of the more than 30 companies reviewed by the451 for this report are quite there yet. This report provides clear recommendations for vendors on what steps they must take to seize this market opportunity. "Despite previous user disappointments, there is still great interest in CRM," write the451's analysts in the report. "Analytics allow the CRM investment to be maximized. As user spending slowly moves away from a near-100% focus on cost control and back toward revenue generation, then suddenly analytics can look like a very attractive investment." The451 has found that vendors of BI software, which were potentially in the best position to deliver these CRM analytics capabilities to their customers, have largely failed to meet this emerging market demand. "They seem to have thrown away the opportunity in CRM analytics," the report continues. "The BI vendors have tended to pay only lip service lip service n. Verbal expression of agreement or allegiance, unsupported by real conviction or action; hypocritical respect: to analytics for so long. Most only support CRM analytics at a high level - typically customers must create finer-grain models and metrics using standardized templates for marketing analytics. Key lessons to be learned by the BI vendors are that they must focus on developing CRM analytics capabilities, must develop applications and not tools, must provide much greater ease of use and must look at acquiring leading sector pure plays." Vendors of application suites, meanwhile, have a strong opportunity to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this marketplace gap through focused product-suite enhancement and technology acquisition. Further driving demand, the passage of recent privacy and accountability legislation in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. means that CRM analytics may not be optional for larger enterprises in the future. The Sarbanes-Oxley Act See SOX. mandates higher-order scrutiny of enterprise spending, particularly marketing and sales activities that might be considered "off-books" transactions. Do-not-call lists and HIPAA (Health Insurance Portability & Accountability Act of 1996, Public Law 104-191) Also known as the "Kennedy-Kassebaum Act," this U.S. law protects employees' health insurance coverage when they change or lose their jobs (Title I) and provides standards for patient health, will have a similar impact. CRM analytics are tools that enterprises can use to effectively manage compliance with government rules, while also driving both revenue and profitability growth. CRM Analytics: Have the BI vendors missed the boat? - a 451 Special Report - is 158 pages and contains significant analysis of the competitive opportunities and threats surrounding this emerging IT market segment. Authors of the report include William Fellows, principal analyst; Ian Jacobs, analyst for enterprise application software; Nick Patience, managing analyst and sector head for the451's Enterprise Software sector; and Steve Wallage, director of research services. Companies Profiled The report provides analysis of more than 30 companies. These are divided into: -- Application suite vendors (e.g., E.piphany, Oracle, PeopleSoft, Pivotal, SAP and Siebel) -- Business intelligence vendors (e.g., Brio (Brio Technology, Palo Alto, CA, www.brio.com) A software company founded in 1989 and acquired by Hyperion Solutions Corporation in 2003 that specialized in enterprise analysis and reporting programs that run on several platforms. , Business Objects, Cognos, Hyperion, Informatica, MicroStrategy, SAS Institute SAS Institute Inc., headquartered in Cary, North Carolina, USA, has been a major producer of software since it was founded in 1976 by Anthony Barr, James Goodnight, John Sall and Jane Helwig. and SPSS A statistical package from SPSS, Inc., Chicago (www.spss.com) that runs on PCs, most mainframes and minis and is used extensively in marketing research. It provides over 50 statistical processes, including regression analysis, correlation and analysis of variance. ) -- Marketing automation vendors (e.g., Aprimo, Blue Martini, DoubleClick, Eloqua, Kana, Teradata and Unica) -- Growth pure-play vendors (e.g., Alterian, Coremetrics, DataDistilleries, KXEN, MarketSoft, MarketMiner, Norkom, Quadstone, Seurat, Sightward and thinkAnalytics) Report Orders To learn more about this report, or to discuss developing a client relationship with the451, contact Simon Carruthers via phone at 212-505-3030 x-103. About the451 The451 is an analysis firm covering the business of emerging information technologies for a senior executive audience. The firm delivers timely, research-based insight that delves Delves is a village in County Durham, in England. It is situated a short distance to the south of Consett. deeply into the dynamics and impact of newly commercialized technologies in all major segments of the enterprise computing Refers to information technology in the larger company. See enterprise data and enterprise networking. marketplace. The firm is headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , with staff in key regional locations, including San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and Silicon Valley, the Boston/Route 128 area and London. For additional information on the451 or to apply for a client trial online, go to the firm's website: www.the451.com |
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