|
In
many cases the sky is simply falling on poor business plans, developed during a
time of easy fund raising and poor understanding of what the market was willing
to pay for. Depending on your
definition of what a Dot.com company is, InteliTouch.com may or may not be
considered a true Dot.com company. Regardless
of your definition, InteliTouch.com is operating in a technology space that is
being heavily impacted by Wall Street's new valuation criteria. We have seen
several, technology based Real Estate services providers close their doors in
recent months and others that show obvious signs of failure.
What makes us different? Sophisticated investors realize that a new
industry, eCustomer Relationship Management ("eCRM") developed
alongside the growth in the dot.com phenomenon. Hybrids between
telecommunications and software, eCRM companies go beyond traditional CRM
solutions to enable multi channel customer interaction (i.e. phone, email, PC,
PDA, etc.). In addition, some eCRM companies, like InteliTouch.com, offer
platforms upon which customers build e-businesses that span their business
practice. In 2000 astute investors realized that the potential of this market goes far beyond the pure Internet play. In an equity research paper "The Changing Face of Customer Interaction," prepared by Ladenburg and Thalmann the authors state " the eCRM industry, contrary to what current investors may think, is alive. More importantly, however, the industry is growing as more companies need e-business solutions. In fact, many of the companies in this space continue to experience 100%+ revenue growth." Growth in Internet usage and e-commerce
provides the necessity for eCRM products. To that end, the market for Internet
usage is expected to continue its rise. In estimates from IDC, the number of
Internet users worldwide is expected to grow to over 500 million in 2003 from
just 142 million in 1998. According to industry reports by Gartner
Group, the market for eCRM is expected to grow rapidly, from $2.9 billion in
1998 to $20 billion in 2003. This estimate aggregates spending on all types of
eCRM, from single applications such email management to complete platforms. Recently four distinguished CRM experts discussed the future of CRM in an online panel discussion hosted by Front Line Solutions. Speaking about trends and challenges ahead, they agreed that CRM is here to stay but not in its present form. Erin Kinikin, vice president of CRM for Giga Information Group, set the tone echoed by other participants by saying, "CRM is one of the most dramatic, fundamental changes in the history of business. We're approaching the end of the one size fits all CRM market, and into an age of verticalization and specialization," Kinikin says. Jim Dickie, partner in Boulder-based Insight Technology Group, said "What you had in the past was companies developing a tool set, saying go and customize it for your industry, but now you have companies coming into the market saying hey, we're going to give you a 110 percent solution for a specific vertical." Liz Shahnam, vice president of the CRM Infusion Program for Meta Group went so far as to predict "in a few years' time there will be no horizontal or generic CRM." According to Fortune magazine, (March 19th issue "10 Tech Trends to Bet On", Eric Nee), "applications that provide a fast and measurable return on investment have moved to the top of the buy list. The biggest beneficiaries are software companies that automate the relationships a business has with customers and suppliers. CRM creates the kind of efficiencies that become even more important in bad times." With the evolution of the information age
and the increase in competition of the sales and service sector, CRM has become
a priority for companies doing e-business. Since the arrival of the Internet,
the flow of information across several channels has increased significantly;
paralleling this acceleration has been the increase in the standard of sales and
service support required by consumers. As the end user requires a more
sophisticated interface for business contact, many e-business initiatives will
rely heavily upon eCRM software solutions to facilitate their marketing
campaigns, sales assistance, and customer service solutions. The Aberdeen Group, a computer and communications research and consulting organization closely monitoring enterprise-user needs, technological changes and market developments reports the Internet is quickly becoming the dominant platform for new application deployments. However, organizations that believe by simply attaching a Web-browser front-end to existing client-server (and earlier) applications provides a competitive advantage are sorely mistaken. This approach does not inherently allow for access to data and/or services outside the original application.
Solutions based on an Internet Application Architecture (IAA) have facilitated dialogue between the end user and the sales or customer service representative. It is the method of contact between the customer and the company that has put the "e" in eCRM, since interaction is taking place at the rapid pace of e-business. Aberdeen believes that IAA-based CRM solutions will be the preeminent business application in the next decade and the result of this technology shift will be a realignment of industry leaders. A recent article in titled - "Dot.coms
That Deliver," and sub titled - "Dot.coms Are Dead ... Long Live
Dot.coms" (Cris O'Malley, Popular Science - March issue), summed it up very
well. "The real trick is
selling a product or service that is so compellingly delivered by the web that
they will change the way they do things. Unfortunately while the web is filled
with a cornucopia of information, it is not choked full of compelling products
and services... which is the real reason for the current doldrums. But this Dot.com depression stuff can be
over done. There are exceptional Internet companies that actually do make life
easier or more pleasant or more productive then it used to be." What are the components of a product or service that can be
so compelling as to change the way people want to do things? I would suggest to
you the most compelling business plan begins with an Internet based Customer
Relationship Management (eCRM) service, designed around a specific professional
business practice... i.e. Real Estate. I would deliver the service as a turnkey
solution with a full complement of training, customer care, professional and
marketing support services that insure success. I would call it InteliTouch, due
to the Intelligent manner in which it allows an agent to remain in Touch with
their clients. My customers would call me Intelligent for
making their lives a little easier, more pleasant and much more productive. So,
should we be scared? Chicken Little
was only partially right when he said "the sky is falling."
For those dot.com and Internet companies who have relied upon funding
based on the past few years frenzied investment / valuation bubble, the sky is
falling. Those who can show a clear
path to profitability, and good traction for getting there, are still very much
in favor with the sophisticated investment community. The PikeNet Dispatch review of commercial
real estate Internet survivors, stated it this way,
"What has been the consistent thread between the
"survivors?" Targeted
market focus, lower than average burn rates, and intensive focus on securing
strong "bricks-and-mortar" alliance partners." The InteliTouch.com business plan directs us
at a very specific target market -top producing real estate agents and brokers.
Our partners are bricks and mortar companies and we are demonstrating the
traction needed to get us to profitability in acceptable time frames.
It is all of our jobs to be diligent in controlling our burn rate. The answer to the question is an emphatic "NO, we do not need to be scared... but we do need to be diligent. Stay focused on our core business, control our spending, partner wisely and our star will continue to rise." Let the sky fall on those who choose not to heed the signs of the times. |
