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Technology Stocks : Identix (IDNX)

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To: David who wrote (15870)11/25/1999 12:42:00 PM
From: David   of 26039
 
Some more unsolicited advice . . .

Identix needs to create more demand for its biometric solutions, and relying on CPQ to persuade corporate purchasing departments to spend up to $100 more per computer is probably not the best way to go about it. For one thing, big corporations are big bureaucracies; each department gets a budget and doesn't care about the budgets of the overall company or the budget of another department. So, even though biometrics represent an overall savings to the potential buyer, it isn't an overall saving for the purchasing department -- since operation and maintenance costs (like help desk expenses) aren't the responsibility of the purchasing department.

Further, there is some anecdotal evidence that the real beneficiaries of the technology -- the system administrators -- are completely unaware that biometrics has solved a number of problems (such as people having a finite number of compromisable fingers). They need to be educated, and made allies, so they can fight with the purchasing departments to get it.

CPQ isn't going to do that. It has to be IDX. Identix should develop a mailing list of IT administrators, and write a brochure aimed at that audience. We can all imagine what it would say: "Biometric myths v. realities" "FAQs" "How Biometrics Will Save You Money" "How Biometrics Will Help You Manage Your Network" "How Biometrics Will Add to Your Security" "Testimonials from Satisfied Users" -- and give an IDX email 'information desk' address. This whole effort can be done for only tens of thousands of dollars, and would be well worth it.

Maybe IDX is already doing it -- but it's more likely that they haven't really figured out that the advantages that they are so familiar with aren't self-explanatory. They need to be explained, and explained to their real target audience -- which isn't the purchasing departments CPQ, Keytronic and Cherry will be talking to.
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