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Gold/Mining/Energy : Net Shepherd Inc. (WEB) on ASE -- Ignore unavailable to you. Want to Upgrade?

To: WhatsUpWithThat who wrote (414)	10/1/1999 10:59:00 AM
From: Crazy Canuck	Read Replies (1) \| Respond to of 1252

NSI's Potential Market(s) I would like to re-cap what NSI has just accomplished. It is interesting to note that these plans were outlined in their "RoadMap" document. What I am excited about is the exploding potential of the service that they are able to offer other companies. I know that there are several steps that this company has taken to strengthen themselves. However, I want to highlight three key milestones that they have reached. Based on these three achievements, I have come across an article that I believe illustrates the potential for just one of the potential growth areas before them - Customer Relationship Management - CRM. Based on their business model, there are several areas that they could branch out into, and CRM is just one of them. Here are the three significant milestones I am referring to: 1) They built an Internet Community Management System (ICMS) that enables Corporations, Governments, and Data Collection Agencies to exponentially increase the speed of collection while dramatically reducing the associated costs. 2) Next they secured a relationship with Orbital that allows them to fine tune their research capability. This relationship allows NSI to identify "subject experts" among the members of their Distributed Task Force. This Task Force are the thousands of individuals who are being managed by their Internet Community Management System. 3) Then they signed a licensing deal with Pivotal for the rights to use this firm's Customer Relationship Management software. Because of its effectiveness, this software is in demand by some of the largest firms in the world. So in summary, I believe that these three milestones are responsible for positioning NSI as one of the most strategically well placed companies in this exploding field. So just how big will the Customer Relationship Market be? Well, here is an article that attempts to address that question. ____________________________________________________________ AMR Research Predicts the CRM Market Will Reach $16.8 Billion by 2003 E-business and Contact Centers will dramatically change the CRM landscape BOSTON, SEPTEMBER 29, 1999 AMR Research, Inc., the leading industry and market analysis firm specializing in e-business strategy, enterprise applications, and technology architecture, predicts the Customer Relationship Management (CRM) market will reach $16.8 billion by the year 2003, with a compound annual growth rate (CAGR) of 49 percent over the next five years. According to the firm's Customer Relationship Management Software Report, 1998-2003, the highly fragmented CRM market will garner tremendous buyer attention over the next several years. AMR Research expects leading Enterprise Resource Planning (ERP) vendors to penetrate the market and acquire smaller CRM vendors as more companies move towards e-business models and establish contact centers to achieve a total view of the customer. "Companies are now developing business plans with CRM strategies earmarked as the key to revenue enhancement opportunities and customer retention. CRM applications, along with e-commerce systems, address these critical issues and are becoming the hub of many companies' marketing strategies," said Dave Caruso, vice president and service director, Enterprise Application Strategies. Total 1998 CRM company revenue hit $2.3 billion and AMR Research predicts that the CRM market will grow 60 percent in 1999 to $3.7 billion. After 1999, the CRM market will resume a 49 percent CAGR, exceeding $16.8 billion by 2003. The firm also predicts that the European CRM market will grow to $4.3 billion in 2003 from $500 million in 1998, with a compound annual growth rate of 53 percent, exceeding the 44 percent CAGR expected in North America over the same time period. Total Customer Relationship Management Revenue, 1998 - 2003 Forecast 1998 - $2.3 B 1999 - $3.7 B 2000 - $5.4 B 2001 - $7.9 B 2002 - $11.5 B 2003 - $16.8 B 5 Year - CAGR49% Source: AMR Research, 1999 The CRM market is experiencing many new changes and developments heading into the new millennium. Leading CRM vendors are expanding their suites beyond integrating sales and service, with functionality to support Web interactions and marketing. The contact center is rapidly emerging as the focal point of customer interactions, consolidating and managing all customer transactions, whether by telephone, the Web, e-mail, or kiosk. Vendors are addressing the needs of the marketing department as part of an overall CRM strategy by introducing marketing automation functionality. The CRM landscape continues to evolve as ERP vendors penetrate the CRM market with front-office applications integrated with back-office systems. The top vendors, based on 1998 total company revenue, were Siebel, Vantive, and Clarify. ERP vendors are beginning to have a tremendous impact on the CRM market, with Oracle and Baan capturing two of the top five positions in overall CRM revenue. These top five vendors contributed 40 percent of overall CRM revenue, with the market leaders growing a hardy 90 percent combined in 1998. Conclusion AMR Research expects the CRM market to change dramatically, reaching $16.8 billion by the year 2003. Companies are developing business plans with CRM strategies as the driving element, as customer service is a top priority. ERP providers pose a significant threat as they integrate full CRM suites and gain market share exceeding stand-alone CRM applications. These trends will drive market growth for the next several years, as companies launch e-business models and the contact center becomes the main vehicle for achieving a holistic view of the customer. Crazy Canuk