Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Business Intelligence Sales & Marketing More Topics...
Applications
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Varicent Deal To Expand IBM
Varicent Deal To Expand IBM's Business Analytics Mix

By Mark Long
April 13, 2012 11:47AM

Bookmark and Share
Varicent's software, acquired by IBM, is focused on the automation of sales activities in the areas of compensation, incentives, quota development, territory optimization and more, said Ventana Research CEO Mark Smith. With the acquisition of Varicent by IBM, Varicent's analytics can be rented in the cloud or hosted for easier management.
 



IBM has agreed to acquire privately held Varicent Software under undisclosed financial terms. The Toronto-based company, which provides analytics software for compensation and sales performance management, has 180 clients in the banking, insurance, retailing, IT and telecommunications sectors.

IBM recently announced the introduction of new Smarter Analytics offerings for addressing the emerging Big Data opportunities with respect to managing financial operations as well as decreasing fraud and nurturing next-generation customer relationships. Once IBM's Varicent deal closes, Big Blue expects to further advance its business analytics market leadership through the introduction of even more capabilities.

"The goal and aim of the addition of Varicent's sales performance management software will be to integrate it into our BA portfolio and existing offerings," an IBM spokesperson said Friday. "It is a nice complement to our existing performance management portfolio."

The Varicent acquisition -- combined with IBM's prior acquisitions in business analytics including Algorithmics, Clarity Systems, OpenPages and Cognos, and recent investments in predictive analytics such as SPSS -- is expected to provide IBM's clients with an even broader range of business analytics offerings.

However, it remains unclear exactly how IBM will be integrating the mix of technologies it has already acquired with Varicent's single management system, which is driven by a sophisticated calculation engine that models and analyzes the effectiveness of incentive spending.

"Since we just announced the definitive agreement to acquire Varicent, full details of the integration will not be disclosed at this time as they are still being worked out," IBM's spokesperson said.

Driving Enterprise Interest

Earlier this year, Gartner noted that the need for more advanced incentive compensation management functionality has been driving enterprise interest in packaged ICM solutions. In a report released last month, the research firm awarded Varicent's ICM platform a positive rating.

"Through 2012, enterprises will miss the equivalent of 5 percent to 10 percent of annual sales as lost opportunities," said Gartner analyst Michael Dunne. This could have been captured through improved management of sales territories, quotas and compensation plans, Dunne said.

For example, the increasing complexity of the commission, bonus and other payment schemes for insurance agents has rendered the basic ICM functionality in policy administration systems and even spreadsheets inadequate for insurers, driving interest in packaged ICM solutions, said Gartner analyst Steven Leigh.

"These legacy platforms are inefficient, inflexible and expensive and can pose liabilities to ensuring good governance over variable-pay expenses," Leigh said.

Reducing Errors and Processing Times

Varicent's software is focused on the automation of sales activities in the areas of compensation, incentives, quota development, territory optimization, channel management, analytics and planning, said Ventana Research CEO Mark Smith. And they can be rented in the cloud, hosted for easier management or purchased for use inside the organization.

More than 180 customers are already using Varicent's software, including Farmers, Hertz, Manpower and Office Depot. "Sales management is looking for intuitive metrics that can be centrally managed and work interactively," Smith wrote in a blog.

Gartner estimates that organizations adopting compensation management solutions can expect to reduce errors by more than 90 percent. Moreover, the research firm believes that these solutions can reduce processing times by over 40 percent.

"For the thousands of sales organizations still relying on silos of data, spreadsheets and e-mail to manage sales, there is an enormous opportunity to apply analytics to this vital area of business and uncover new, untapped growth opportunities," said Les Rechan, IBM's general manager of business analytics.
 

Tell Us What You Think
Comment:

Name:

Maria Elena:

Posted: 2012-04-17 @ 12:51am PT
IBM has long been trusted in the computer software industry but they were able to manage to survive in the business despite the surge in small and cheaper business software solutions.

On the other hand, please allow me to share about KarmaCRM.com. With Karma, it's easy to stay on top of all your sales contacts, tasks and proposals. It's so easy to use and offers a free 30-day trial for all users.



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Applications
1.   Cisco Woos More Devs with DevNet
2.   How Chrome Eats Your Battery Life
3.   Investor Wants EMC To Spin Off VMware
4.   Amazon Launches E-Book Subscriptions
5.   Naver: Line Messenger App Mulls IPO


advertisement
Cisco Woos More Devs with DevNet
To create new network-aware apps.
Average Rating:
Mobile Apps Offer Last-Minute Deals
Along with spontaneity and surprise.
Average Rating:
Amazon Launches E-Book Subscriptions
Kindle Unlimited will run $9.99 a month.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 

Enterprise Hardware Spotlight
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Business Intelligence | Sales & Marketing | Contact Centers | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.