Challenges Nevertheless Linger
Because San Jose, California (US)-based Callidus Software has historically licensed its products to customers primarily on a perpetual basis, its quarterly product license revenue remains substantially dependent on product sales to new customers. In 2005, BellSouth and Cingular each accounted for more than 10 percent of the company's total revenue, whereas in 2004, IBM alone accounted for the same percentage, including instances where IBM acted as a reseller of Callidus products. US revenue still represents over 90 percent of total revenue, with the remaining amount generated in Europe and the Asia-Pacific region.
Part Three of the series Enterprise Incentive Management Leader Responds to Market Demands
The above figures bring us to the realization that although upper range enterprise incentive management (EIM) solutions are designed to roll out new plans to large sales forces in a matter of weeks, the downside of a full grown EIM solution is its hefty costs. Designing a homegrown solution for a sales team of more than a few hundred is unrealistic, and a tool offered by a customer relationship management (CRM) or an enterprise resource planning (ERP) provider will not likely have the functionality to handle the complex sales plans and transaction volume. The alternative of using large EIM solutions, however, can amount to several hundred thousands of dollars in license fees. One also has to factor in the cost of the supporting technology, since most large EIM deployments require the customer to purchase a scalable back-end database server and a reporting tool to support it. Then there is the customary software maintenance and support agreement, which typically adds an additional 15 to 25 percent to the software and hardware expenses, depending on the vendor.
Finally, companies must consider solution upgrades, and when one is upgrading a technology that involves an organization's payroll and direct deposits, there is a great deal of parallel testing that needs to be done. For more information, see Is There a Panacea for Enterprise Software Pricing Yet?. These complicated environments also lead to major implementation costs, since the rollout of a complex EIM solution can cost another few hundred thousand dollars and take up to a year to complete. This has some pundits suggesting that companies should consider upper end EIM solutions only when they have the financial assets and requirements for a solution capable of handling the multitude of sales complexities needed to go to market.
The full range of services that Callidus offers its customers includes professional and educational services, maintenance, and technical support. In terms of professional services, the vendor provides integration and configuration services for its customers and partners, which include the installation of the software; identification and sourcing of legacy data; configuration of TrueComp application rules necessary to create compensation plans; creation of custom reports; integration with other products such as Callidus TrueAnalytics, TrueResolution, and TrueInformation; and other general testing and tuning services for the software. The customers can select Callidus or one of its implementation partners to perform the installation and other professional services they desire. The vendor also provides services to its implementation partners to aid them with specific projects and training programs. Additionally, it provides Callidus Strategic Services to help customers optimize incentive compensation business processes and management capability.
For previous notes on Callidus, see Enterprise Incentive Management Leader Responds to the Market Demands, and The Enterprise Incentive Management Flagship Offering.
Callidus Service Offerings
In late 2005, Callidus announced TrueSuccess, a suite of service offerings that the company and its partners plan to deliver to ensure that customers can benefit more quickly from Callidus products through accelerated implementation or a hosted offering. The company expanded its service offerings by introducing two new strategic service programs. The first one, Compensation Strategy Services, is designed to help clients keep their current compensation systems operating at peak efficiency, manage compensation plan changes that result from organizational growth or changes in business more effectively, and optimize plans through more effective design and modeling. New and current clients may benefit from the following three packaged service offerings:
1. operations analysis and assessment,
2. change management, and
3. incentive optimization.
Another service program, Analytics Services, should have clients quickly realizing the value of Callidus TrueAnalytics because of its ability to place critical data and knowledge in the hands of sales and finance executives, managers, and analysts. To that end, Callidus Software offers rapid deployment and subscription delivery models. With these new products, clients will be able to access quantifiable incentive metrics to accelerate critical sales and business decision-making processes, thereby improving sales performance, productivity, and margins.
Halfway into 2006, Callidus announced a new strategic services program offering, Workflow Solutions, which together with Compensation Strategy Services and Analytics Services, aims at enabling Fortune 1000 companies to drive revenue and improve sales performance more rapidly, as well as enhance communication among payees, incentive compensation analysts, and business operations. Built on top of the Callidus TrueResolution framework and integrated with Callidus TrueComp and TrueInformation software modules, Workflow Solutions incorporates three packaged offerings. Each package enables customers to track and audit issues; disputes; data changes; communication and notification of compensation plans; policies; and goal sheets for US Sarbanes-Oxley (SOX) compliance:
SOURCE:
http://www.technologyevaluation.com/research/articles/enterprise-incentive-management-leader-s-challenges-and-response-18848/
Because San Jose, California (US)-based Callidus Software has historically licensed its products to customers primarily on a perpetual basis, its quarterly product license revenue remains substantially dependent on product sales to new customers. In 2005, BellSouth and Cingular each accounted for more than 10 percent of the company's total revenue, whereas in 2004, IBM alone accounted for the same percentage, including instances where IBM acted as a reseller of Callidus products. US revenue still represents over 90 percent of total revenue, with the remaining amount generated in Europe and the Asia-Pacific region.
Part Three of the series Enterprise Incentive Management Leader Responds to Market Demands
The above figures bring us to the realization that although upper range enterprise incentive management (EIM) solutions are designed to roll out new plans to large sales forces in a matter of weeks, the downside of a full grown EIM solution is its hefty costs. Designing a homegrown solution for a sales team of more than a few hundred is unrealistic, and a tool offered by a customer relationship management (CRM) or an enterprise resource planning (ERP) provider will not likely have the functionality to handle the complex sales plans and transaction volume. The alternative of using large EIM solutions, however, can amount to several hundred thousands of dollars in license fees. One also has to factor in the cost of the supporting technology, since most large EIM deployments require the customer to purchase a scalable back-end database server and a reporting tool to support it. Then there is the customary software maintenance and support agreement, which typically adds an additional 15 to 25 percent to the software and hardware expenses, depending on the vendor.
Finally, companies must consider solution upgrades, and when one is upgrading a technology that involves an organization's payroll and direct deposits, there is a great deal of parallel testing that needs to be done. For more information, see Is There a Panacea for Enterprise Software Pricing Yet?. These complicated environments also lead to major implementation costs, since the rollout of a complex EIM solution can cost another few hundred thousand dollars and take up to a year to complete. This has some pundits suggesting that companies should consider upper end EIM solutions only when they have the financial assets and requirements for a solution capable of handling the multitude of sales complexities needed to go to market.
The full range of services that Callidus offers its customers includes professional and educational services, maintenance, and technical support. In terms of professional services, the vendor provides integration and configuration services for its customers and partners, which include the installation of the software; identification and sourcing of legacy data; configuration of TrueComp application rules necessary to create compensation plans; creation of custom reports; integration with other products such as Callidus TrueAnalytics, TrueResolution, and TrueInformation; and other general testing and tuning services for the software. The customers can select Callidus or one of its implementation partners to perform the installation and other professional services they desire. The vendor also provides services to its implementation partners to aid them with specific projects and training programs. Additionally, it provides Callidus Strategic Services to help customers optimize incentive compensation business processes and management capability.
For previous notes on Callidus, see Enterprise Incentive Management Leader Responds to the Market Demands, and The Enterprise Incentive Management Flagship Offering.
Callidus Service Offerings
In late 2005, Callidus announced TrueSuccess, a suite of service offerings that the company and its partners plan to deliver to ensure that customers can benefit more quickly from Callidus products through accelerated implementation or a hosted offering. The company expanded its service offerings by introducing two new strategic service programs. The first one, Compensation Strategy Services, is designed to help clients keep their current compensation systems operating at peak efficiency, manage compensation plan changes that result from organizational growth or changes in business more effectively, and optimize plans through more effective design and modeling. New and current clients may benefit from the following three packaged service offerings:
1. operations analysis and assessment,
2. change management, and
3. incentive optimization.
Another service program, Analytics Services, should have clients quickly realizing the value of Callidus TrueAnalytics because of its ability to place critical data and knowledge in the hands of sales and finance executives, managers, and analysts. To that end, Callidus Software offers rapid deployment and subscription delivery models. With these new products, clients will be able to access quantifiable incentive metrics to accelerate critical sales and business decision-making processes, thereby improving sales performance, productivity, and margins.
Halfway into 2006, Callidus announced a new strategic services program offering, Workflow Solutions, which together with Compensation Strategy Services and Analytics Services, aims at enabling Fortune 1000 companies to drive revenue and improve sales performance more rapidly, as well as enhance communication among payees, incentive compensation analysts, and business operations. Built on top of the Callidus TrueResolution framework and integrated with Callidus TrueComp and TrueInformation software modules, Workflow Solutions incorporates three packaged offerings. Each package enables customers to track and audit issues; disputes; data changes; communication and notification of compensation plans; policies; and goal sheets for US Sarbanes-Oxley (SOX) compliance:
SOURCE:
http://www.technologyevaluation.com/research/articles/enterprise-incentive-management-leader-s-challenges-and-response-18848/
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