Net Perceptions, Inc. (NETP) Message Board

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Technology Stocks : Net Perceptions, Inc. (NETP)

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To: Leeza Rodriguez who wrote (2721)	8/16/2000 11:34:34 AM
From: rupert1	Read Replies (1) of 2908

Leeza: Thanks for your interesting reply. Briefly, the core NETP products, the e-commerce and real time recommendation engine and the knowledge management set - are very substantial installations. They have to be plugged into whatever other CRM software and data basis the customer has or is planning to have. The Knowledge Management set needs a pilot study of 30 days or more. There has be staff education and then maintenance. The installation process can be lengthened substantially if NETP is required to build a data base, too, or supply analytics for the customers own data base. NETP claims are that its technology is extremely fast - its recommendations show up in fractions of a second in a call-centre application, for example - that they are much more sophisticated than the norm and they grow in accuracy and precison with each use. It is also scalable and can be applied to organisations of any size and can produce any amount of outputs. The full installation with all its power and sophistication cannot be installed on an ASP or with some condensed cheap package. But a debugged, one-size fits all, scaled down version - and especially a version of the spin-off applications in ad targetting and e-mail targetting - can be packaged for use on ASPs. I would think that the BFRE guy was engaged in a bit of hyperbole. It might be true to say that they offer an alternative to NETP enterprise wide solutions for those that don't need the scale and power or cannot afford it - but he would have to show that BFRE also offered the same kind of product. NETP offers systems based on collaborative filtering and competitors usually offer a rules based system which is restricted and far less "intelligent". In a sense, NETP ASP's prducts are the main competition for NETPs enterprise wide solutions. That is not to to say that BFRE and any other company might not offer products which the market would prefer over NETP's. One strand of the debate is whether customers need all the sophistication that NETP offers. The extra return they get may not be worth the extra cost. NETP response to that would be that its installations are not more expensive than the norm that the customer recovers the full cost in 6-9 months from immediate improvements to the top line and that of course customers will want the most powerful and sophisticateg technology and it is through best-of-breed R&D that NETP will protect its market position and fend off competition from those who try to commoditize the software. The debate goes on.

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