“In the US 7% of all exempt employees
participate in incentive plans-the trend is to
extend the reach of such incentive plans to
lower level employees,…”
Comp & Benefits Review, Sept/Oct ‘96
“All told, Amdahl was spending more than
$900,000 annually to maintain and program
compensation systems that couldn’t keep up
with the business.”
• For the Three Months Ending 9/97 Cadence
Spent Spent 6% of Revenues on F&A,
Accounted For by SAP.
• For the Three Months Ending 9/97 Cadence
Spent 10% of Revenues on Sales
•
TallyUp Software is:
• Clear Value Proposition• $2 Billion Market
• Best of Breed Supplier
• State-Of-The-Art Applications Design. • IPO 3 Years ($5,000) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 1997 1998 1999 2000 2001 Revenue Profit
•Reed Taussig, President and CEO
– Founder and President, inquiry.com inc.
– SVP Sales and Marketing, Gupta Corporation – SVP Worldwide Operations, Unify Corporation
•Andy Swett, Founder and VP Technical Services – Private Consultant, Database Architect.
•Scott Kitayama, Vice President Marketing – Sybase, Verity, Ingres
•Rob Gillette, Vice President Engineering
– SVP Engineering and CTO, Shoppers Express – Dir. Methods and Tools, Sybase
Sales Compensation Solution
Any/All Data
Financial Accounting Order Entry
Variable Compensation Automation
Executive Management Finance & Sales VPs Finance & Sales Ops Sales and Sales Ops Finance & Sales Ops Set Strategy & Objectives Determine Metrics Define Sales Comp Plan Implement, Communicate, Execute Plan Report & analyze results
Strategic Planning Functional Execution
Intranet System Interfaces Server Applications UI Client Payroll Java Win95 UNIX WIN NT Financials HRIS TallyModel
Oracle, Sybase, MS SQL Server
TallyMart TallyCentral SFA TallyServer Intranet UNIX WIN NT TallyBoard
– Cutting Edge Technology
• Rules Based- ND Elements Engine
• Fully Object Oriented
• Written in Java
• Unix and NT Implementation
– Supports:
• Oracle
• Sybase
• SQL/Server
– Full ERP Integration with: • SAP, Oracle Financials, Baan
•
TallyUp Target Customer:
– CFO and Director of Compensation • Operational Benefits
– Accruals – Audit Trail
– Financial Modeling and Reporting – Cost Savings
– Vice President Sales and Sales Management • Performance Reporting
• Resource Management
• $2B annual administrative costs today • No standard approach • No Audit Trail • No Modeling • Error Prone
Sources: Robertson Stephens, Dartnell,
Sales Compensation Administration: Estimated 1997 Spending
$1,540 $462
Spreadsheets Custom Systems
11M+ US Sales People; 77% on Commission
$2 Billion Dollars
•
Phase I
– Target Companies >$250M Revenue, 200+ Reps.
– Value Pricing
• $100,000 Server + $400 per Rep.
– Direct Sales Model
– Professional Services by TallyUp or in Partnership.
5,000 3,850 3,273 0 1000 2000 3000 4000 5000 6000 US Companies Revenues > $300M US Companies Using Incentive Compensation US Companies Using Spreadsheet Solutions
Enterprise Market Opportunity
$-$25,000,000 $50,000,000 $75,000,000 $100,000,000 $125,000,000 $150,000,000 $175,000,000 $200,000,000 $225,000,000 0% 5% 10% 15% 20% 25% 30%
Revenue Per Year Market Penetration
1% Market Share = $8 Million Average Contract Value = $250K
Market Value
–
Target Companies $10M to $300M
–
NT/SQL Server Solution
–
Channel Sales
– Microsoft Solutions Providers
– IBM Business Partners
Market Size $10M to $250M -20,000 40,000 60,000 80,000 100,000 120,000 US Companies Revenues > $10M < $250M US Companies Using Incentive Compensation US Companies Using Spreadsheet Solutions Source BLS/Dartnell
$-$25,000,000 $50,000,000 $75,000,000 $100,000,000 $125,000,000 $150,000,000 $175,000,000 $200,000,000 $225,000,000 $250,000,000 $275,000,000 $300,000,000 $325,000,000 $350,000,000 $375,000,000 $400,000,000 0% 5% 10% 15% 20% 25% 30% R P Y M k t P t ti 1% Market Share = $14 Million
Market Value
Companies Revenues of $10M- $250M
$0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 0% 5% 10% 15% 20% 25% 30%
Revenue per Year Market Penetration
Combined Market Value
1% Market Share = $22 Million Total Market Value = $2.2 Billion
•
1998 - $1,300,000
– Product Development
• Alpha Release - March 98
• Beta Release - June 98
• FCS - September 98
– Company Launch QIII
– 5 Development Partners Signed at FCS
– 2 National Marketing Partners Signed at FCS
– 10 Paying Customers Year End
•
1999 - $9,000,000
• TallyUp Addresses Fortune 2000 Market
• Direct Sales Model Supported by Telesales and National Marketing Partners.
– Examples Include
• Andersen
• Towers Perrin
• Package Product for Channel
•
Year 2000 -$20 Mil.
• TallyUp Capitalizes on Middle Market.
– IBM Business Partners
– Microsoft Solution Partners
• Begins Development on Next Application.
– Temporary Labor Resource Planning.
• IPO
•
Year 2001 -$40 Mil.
• TallyUp Launches New Products
• Solidify Middle Market
• Recognized Leader in Rules Based Application Products.
• Product Development
– Design Goal is to Reach an 80% Solution to Minimize the Installation Overhead.
– Complexity of the Problem is Such That This May Not be Possible.
• Installation and Customization.
Sales Force Automation $2 Billion ERP $20 Billion Human Resource IS $1.2 Billion Financial/Acctg $5+ Billion
Variable Comp. Systems $2 Billion Potential Market
1 2
3
4
Yr. 2000; Sources: Computer Industry Forecasts Q3 971, 2, 3
• TallyUp Can Not be Built Using a
Procedural/Relational Model.
• The Availability of Good Object Oriented
Tools and Rules Engines Only Makes it
Possible Today.
• Pay for Performance is Becoming
Important.
Architecture Market Price Stand Alone TallyUp Object/Rules F2000 $250K + Yes Oracle Procedural Relational F2000 $250K+ No Trilogy Object/Rules F500 $250K + No ViComp Procedural/ ISAM F2000 $200K Yes Again Tech
Architecture Market Price Stand Alone TallyUp Object/Rules F2000 $250K + Yes Trilogy Object/Rules F500 $250K + No Siebel Object/ Relational F2000 $250K + No Oracle Procedural Relational F2000 $250K + No ERP Vendors Procedural Relational F2000 $250K + No
CADENCE SYBASE
Buyer: Field Ops/Finance Field Ops/Sales Driver: Field Ops/Sales Field Ops/Sales
Influencer: MIS/HR MIS
Pain Point: Managing Reps Plan Admin Plan Admin Current
Solution: 400+Spreadsheets Vicomp
Pricing: $100,000 $150,000
