CRM - February 2008 - (Page 49)

SCOUTING REPORT base of market participants, new and enhanced offerings, and organic growth. Sales to small and midsize businesses (SMBs) are expected to be a significant trend for the QM/LR vendors in 2008. SMBs clearly represent an underpenetrated sector: Many vendors, large and small, have shown interest in pursuing midmarket opportunities; all of the large vendors have reintroduced or enhanced their solutions and have created marketing collateral tailored to the midmarket; and newer contenders—including CallCopy, KnoahSoft, OnviSource, Telrex, and Wygant/TDI—are actively pursuing SMBs and contact centers. Leaders NICE Verint Autonomy etalk Aspect Envision VPI Magnetic North ASC TDI/Wygant Tantacomm HigherGround Telrex OnviSource Cacti TISL Niche Players Calabrio Oaisys Interactive Intelligence Others Nortel CallCopy KnoahSoft VitualLogger As of November 2007 Source: DMG Consulting COMPETITIVE LANDSCAPE The competitive landscape for the Figure 2: QM/LR Contact Center Market, Product/Execution Positioning QM/LR market continues to evolve, despite its overall maturity. The sector is unusual among combined 61.3 percent of revenue during the first half of technology segments: It is mature and consolidating, yet 2007 on a reported basis, and 73.2 percent on a pro every year new vendors emerge, along with new ways to forma basis, incorporating Witness into Verint. We expect to see a number of vendors make acquisitions approach the market. There are at least 45 vendors with a wide variety of during the next 12 months, particularly to extend and offerings that are attracting a growing number of cus- broaden their analytics portfolios. These acquisitions may tomers. The vast majority of these vendors claim to be again alter market leadership. However, while acquisitions profitable—though, as almost all are privately held, there’s add new customers, products, and revenue sources to the no way to verify this. The newer contact center–oriented acquiring company, they require a great deal of manageentrants—CallCopy, KnoahSoft, and Telrex—initially tar- ment attention and R&D dollars to make them successful. geted SMB contact centers, but have started to win larger Most of these deals will have a positive long-term impact opportunities in centers with more than 150 agents. This on the acquiring QM/LR vendors, but the acquisitions indicates that some users are clearly displeased with the may also temporarily disrupt their focus and divert mancomplexity and price of leading solutions and are looking agement attention from delivering innovation. In each of the past four years, we have invested over for alternatives. As long as this need persists, new market 2,500 hours in analyzing all aspects of the QM/LR marentrants and offerings will continue to appear. The QM/LR space had long been dominated by three ket and vendors. Each year, we are pleasantly surprised to vendors—NICE Systems, Witness Systems, and Verint. see more innovation and even better functionality capable In 2006, these three collectively owned 77.3 percent of of delivering quantifiable benefits. Leaders and contendthe contact center WFO market, including workforce ers alike offer suites that end users find compelling— management. Verint and NICE made many acquisitions and there is a great deal of new functionality already over the past 22 months for their respective enterprise planned for the next series of releases. If your company and contact center businesses, altering their relative has not purchased or upgraded to a new QM/LR system positioning, but having little impact on the rest of the in the past three years, it’s extremely likely that making market. In May 2007, though, Verint acquired Witness, an investment now will deliver quantifiable benefits. leaving only two leaders atop the market. (See Figure 2.) However, as there are so many choices, it’s essential to carefully analyze and identify the right offering for your company. There are huge differences in functionality, MARKET LEADERSHIP AND OUTLOOK Market leadership is more than merely market share; it is ease of use, implementation, ongoing support, and the reflection of a company’s size, scale, products, service, price. For more information about this market, see and investments in research and development (R&D), as DMG Consulting’s 2007–2008 Quality Management/ well as its ability to execute. The top of the leadership Liability Recording Product and Market Report. chart in Figure 2 has changed in each of the past four Donna Fluss is the founder and president of DMG Consulting LLC years. As of November 2007, leadership was shared by (www.dmgconsult.com), the leading provider of contact center and analytics Verint and NICE, dominating the WFO market with a research, market analysis and consulting. www.destinationCRM.com CUSTOMER RELATIONSHIP MANAGEMENT | FEBRUARY 2008 49 http://www.dmgconsult.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - February 2008

CRM - February 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point The Loyalty Riddle CRM Drives Down-Market Out of the Gate: Marketers Rate ’08 Traits The Pulse Consultants Adapt to CRM’s Changing Landscape Required Reading Cover Story: CRM Gets Serious Contact Center Solutions Always On Rumble in the Office The Smallest Slice Tying Up Cable’s Loose Ends Burning Up the Paper Trail Sunny Skies for Knology No More Bumps for BlueRoads Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - February 2008

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