Sales Performance Management in an On-Demand Secure Environment. White Paper

Transcription

1 Sales Performance Management in an On-Demand Secure Environment White Paper

2 Executive Summary Every organization should be able to leverage industry-leading Sales Performance Management (SPM) technology to directly link company sales strategy to day-to-day and quarter-to-quarter incentive compensation execution. SPM improves agility and responsiveness to change, helps organizations attract and retain top talent, and ultimately promotes increased shareholder value. In many situations, an on-demand (hosted) SPM solution is a good alternative to an enterprise-deployed SPM solution. On-demand SPM serves organizations needs in a number of ways: Reduction of the initial SPM investment because there is no software or hardware to buy Rapid return on investment (ROI) due to short implementation times and swift user adoption Transformation of a capital expense into a periodic business expense Redeployment of existing resources to address company core competencies Access to resources with deep specialty SPM knowledge and skills Increased efficiencies, lower operating costs and improved cost-control Responding to the needs of mid- to large-sized companies and enterprise business units, the Callidus Software SPM experts have developed Callidus On-Demand Solutions to extend world-class SPM to organizations at a lower cost-of-entry point. Callidus On-Demand Solutions offer the power of the entire Callidus Software TrueComp SPM Suite within a subscription-based, on-demand framework. Callidus On-Demand Solutions provide flexibility, efficiency, cost savings, security and reliability. Customers receive scalable, high-availability, top-performance Grid computing technology within the acclaimed TrueComp architecture. Upgrades and maintenance, entirely transparent to end users, occur via automatic distributions. Organizations can enhance their on-demand SPM systems with additional products from the TrueComp Suite. 2

3 Contents Executive Summary...2 Overview...4 A Good Alternative to Enterprise Deployment...4 SPM s Suitability for On-Demand Environments...4 Benefits of Using On-Demand SPM Services...4 Callidus On-Demand Solutions...6 Service Levels and Options...6 Use of Additional Products in the TrueComp Suite...8 TrueComp Suite for AppExchange...8 Optional Training...8 Ownership of Data...8 Advantages of Choosing Callidus On-Demand Solutions for SPM...8 Grid Computing: Power, Agility and Accuracy...9 Proven TrueComp Architecture...9 Efficiency and Flexibility for Long-Term Success...10 Upgrades and Maintenance from the SPM Experts...10 Maximum Security and Reliability...10 On-Demand: Capturing the Value of SPM...11 About Callidus Software

4 Overview Sales Performance Management (SPM) technology enables organizations to effectively align sales, channel and other constituents to carry out corporate strategy, thus improving business performance. Whether an SPM solution is hosted or deployed within the enterprise, SPM delivers the same tremendous value by combining sales performance data and best-of-breed technology to increase productivity and drive business results. For the purposes of this Callidus Software white paper, on-demand refers to software that is hosted in an off-premise environment. This white paper covers three main topics: On-demand SPM as an alternative to enterprise deployment On-demand solutions that Callidus Software provides Advantages of choosing Callidus On-Demand Solutions for SPM A Good Alternative to Enterprise Deployment Both on-demand and enterprise-deployed SPM solutions have numerous advantages, and the decision to choose one or the other depends on an organization s business and technology requirements and resources. In general, the business value of on-demand environments lies in serving specific needs by moving some or all SPM functions traditionally done on-premise into a setting managed by the provider. SPM is a good candidate for on-demand arrangements, and as such it offers considerable benefits. SPM s Suitability for On-Demand Environments While the use of application service providers (ASPs), software hosting and business process outsourcing (BPO) is becoming increasingly popular, organizations are finding that some business processes are more suitable for an on-demand environment than others. SPM is a business process that lends itself quite well to on-demand services, whether these cover all SPM functions or apply to a specific portion of a process such as technical operations. SPM s technology structure and the function it serves within the enterprise make it an excellent candidate for an on-demand, off-premise implementation. Management of an entire SPM system is usually not core to an organization s strategy. Although compensation information is critical corporate intellectual property, the infrastructure, procedures and resources required to accurately process data within the compensation system is not often an area of chosen, internal expertise nor is it necessary for profitable SPM. Therefore, partnering with an organization dedicated and trained to operate SPM systems is an attractive alternative. Benefits of Using On-Demand SPM Services Although the SPM solution itself is the same in both cases, an on-demand SPM environment introduces certain advantages not inherent in an SPM environment established on-premise. The impact depends on an individual organization s business needs and its information technology (IT) infrastructure and resources. In general, premise-based solutions provide maximum flexibility and control. However, the following benefits of using an on-demand environment can be quite significant for some organizations. 4

5 Reduction of the initial investment in SPM: For a company first beginning to use SPM, on-demand, offpremise solutions require a much smaller capital investment, fewer resources and a significant decrease in the number of individuals needed to operate the system. There is no need to purchase a hardware infrastructure, software and supporting software, or secure the headcount to manage and operate it. There is very little to do up front when a company is leasing not buying SPM. Fast deployment, swift user adoption and rapid return on investment (ROI): Implementation times for on-demand solutions are faster than for on-premise solutions, often resulting in lower costs as well. Equipment procurement cycles and implementation training sessions, both of which are priorities with enterprise deployments but unnecessary for on-demand solutions, lengthen lead times. In addition, ondemand deployments only require that an implementation team be on site for the initial assessment and design, then later for deployment and any training thus limiting travel time and the related costs. Faster deployment means faster adoption by users and more rapid ROI. When time is measured from the decision to move forward with SPM to the point when an organization begins to realize ROI, the timeframe is shorter for on-demand solutions than for enterprise-deployed solutions. Transformation of a capital expense into a periodic business expense: On-demand arrangements enable an organization to take a capital cost for a fixed asset and convert that cost into a more flexible, periodic business expense. Because no lump sum of capital is required, there is no internal approval process involved in securing it. Periodic charges can come out of a company s operating expense budget instead. The prospect of leasing instead of buying an infrastructure and resources can be important for companies that prefer not to make investments in these areas. Redeployment of internal resources for focusing on company core competencies: It is common knowledge that IT is a cost center, not a revenue center, and that today s IT departments are frequently plagued by increasing demands and decreasing budgets. On-demand SPM eliminates the burden on internal IT staff when equipment maintenance and system operations are outsourced to the company providing the service. Increased availability of resources also extends beyond IT to compensation administration business operations if a company chooses to engage on-demand services at that level. Access to additional resources with specialty knowledge and abilities: Organizations choosing an on-demand solution automatically receive access to talented, experienced SPM resources. This new capacity in the form of SPM expertise introduces proficiencies on the IT side and if needed on the compensation administration side as well. The availability of supplementary expertise adds significant value, and on-demand SPM vendors generally have a repository of experienced resources. Increased efficiencies, reduced operating costs and greater cost-control: When companies place a process under the control of an outside vendor, there is potential for executive management to have increased leverage for requiring efficiency improvements on the part of contributors to that process. The result is a tightening of processes that lowers overall costs. Elimination of resource time and expenses for maintenance and upgrades: Responsibility for system maintenance, operations and software upgrades resides with the SPM vendor. Therefore, all direct costs ordinarily associated with these processes become savings going directly to the customer s bottom line. All IT resources normally assigned to these activities are free to pursue other tasks. Clearly, on-demand SPM arrangements have much to offer. As described in the next section, the industryleading Callidus On-Demand Solutions add to the benefits because they are tailored with convenience and flexibility in mind. 5

6 Callidus On-Demand Solutions The best on-demand offerings enable organizations to choose the services and additional products that best suit their business needs and resource availability. Within Callidus On-Demand Solutions, Callidus Software offers two different SPM service levels along with options that boost profitability. Organizations can also integrate additional SPM products from the TrueComp Suite if they wish. Service Levels and Options Callidus On-Demand Solutions customers can select either a Technical Operations or a Business Operations service level. The Workflow Solutions option augments standard services. Table 1 provides an at-a-glance overview of these offerings. Current version of TrueComp Manager, TrueInformation and Callidus TrueAnalytics software Physical environment (data center, power, back up generators, air conditioning, physical security) Hardware (database, application and HTTP servers) Software (operating system, relational database management system [RDMS] and application server software) Telecommunications and firewall Monitoring and management for network operations, server operations, storage operations and backup operations Firewall management Intrusion detection and prevention Job execution Database administration Application performance monitoring and management and application security Software and implementation defect resolution Business continuity and disaster recovery services Executive operational analysis and reporting End-to-end compensation plan operations (transaction processing, assigning credits, reporting and all other operations) Reference data management Balancing and reconciliation Compensation plan maintenance Integration process maintenance Reporting process maintenance Research and adjustments System testing Change management Workflow Solutions Options (Requires Technical Operations or Business Operations) Current version of TrueResolution software Payee support, communications and training Dispute resolution and reporting Sales operations support Data management Table 1: Callidus On-Demand Solutions Service Levels and Options 6

7 Technical Operations: This service level includes the infrastructure, infrastructure operations and Callidus Software application operations layers required for SPM. Technical Operations covers everything an organization normally expects an IT department to handle, such as buying and managing the machines and software, the technical aspect of integrating with existing databases and servers to access and aggregate data, and managing the SPM technology as a whole. Technical Operations Service Level Callidus Data Center Customer Environment Field Payees INTERNET IT Operations Web Server Compensation Database Administration TrueComp Manager and TrueInformation Software Organizations selecting the Technical Operations service level receive the following: The most recent version of TrueComp Manager, TrueInformation and Callidus TrueAnalytics software All hardware and software required to build the infrastructure that supports TrueComp technology All resources needed to operate the infrastructure VPN TrueComp GridComputing Architecture Data Sources Customer Legacy Systems All resources required to administer and manage TrueComp applications (Callidus Software specialists) Business Operations: This service level provides all the benefits of Technical Operations and adds business operations to it. With the Business Operations service level, Callidus Software performs all the tasks involved in establishing, running and managing the organization s TrueComp SPM system. The Business Operations service level includes operational services such as creating a compensation plan, validating and importing data, running the pipeline to process compensation, and reporting. In addition, Business Operations covers plan and process maintenance, testing, plan modifications and much more. Companies selecting this service level do not need to hire and train a compensation analyst or compensation administration team to design and run the system. Callidus Software s compensation professionals bring their own expertise to bear on the customer s system. Business Operations Service Level Callidus Data Center IT Operations Compensation Administration Callidus Software Trained Analysts Web Server Database TrueComp Manager and TrueInformation Software TrueComp GridComputing Architecture INTERNET VPN Customer Environment Field Payees Data Sources Customer Legacy Systems 7

8 Workflow Solutions option: Customers can add payee administration through the Workflow Solutions option. Using expertly crafted standard workflows, TrueResolution software automates the resolution of compensation credit disputes and can automatically resolve and close more than 80 percent of disputes with 100 percent accuracy. So users can leverage TrueResolution software s capabilities with confidence, the Workflow Solutions option includes a choice of sales operations, data management, bonus pooling or objective management solutions. Use of Additional Products in the TrueComp Suite An on-demand SPM solution from Callidus Software begins with TrueComp Manager and TrueInformation software as its foundation, and the TrueResolution and Callidus TrueAnalytics applications are available as options. However, organizations using Callidus On-Demand Solutions are in no way limited to this SPM framework. The on-demand offering extends to every current and future product in the TrueComp Suite so companies can benefit from Callidus Software s full range of SPM solutions today and as new solutions are developed tomorrow. Customers have the option to include quota (Callidus Quota Management), territory (Callidus Territory Optimization), channel management (TrueProducer ) and additional offerings as they emerge. TrueComp Suite for AppExchange Callidus TrueComp for AppExchange extends Salesforce applications with the leading Sales Performance Management solution that drives the performance of over 1.7 million sales professionals globally. Optional Training Callidus Software provides training for system operations. Clients are encouraged to take additional Callidus Software-certified courseware based on the level of service selected. Ownership of Data In an on-demand arrangement, the customer owns the transaction, reference and report data. This includes all transactional data captured by the TrueComp SPM system. Callidus Software owns all the intellectual property it uses to configure the solution according to the customer s integration, compensation plan and reporting requirements. The structure of Callidus Software s on-demand services gives customers autonomy and convenience. As seen in the next section, these services also provide distinct advantages compared to other SPM vendors offering hosted solutions. Advantages of Choosing Callidus On-Demand Solutions for SPM Callidus Software stands head and shoulders above the competition when it comes to on-demand SPM: Low risk who better to run Callidus solutions than Callidus Software Reliable documented up-time of percent exceeds industry standard SLAs Flexible migrate to onsite if/when needed Scalable proven multi-tenant grid processing for scalable performance Secure follows all ISO and international security standards 8

9 Grid Computing: Power, Agility and Accuracy Rules-based Grid computing is the optimal technology choice for SPM because it addresses the performance, scalability and flexibility demands that distinguish SPM from other enterprise systems. Having refined Grid computing technology for SPM, Callidus Software is the only company offering Grid computing within an on-demand SPM environment. Organizations choosing Callidus Software SPM whether on-demand or enterprise-deployed immediately benefit from Grid computing s number-crunching power to calculate complex compensation rewards with speed and accuracy. Proven TrueComp Architecture Callidus Software s widely acclaimed TrueComp architecture is comprised of a set of modules working together to deliver an end-to-end SPM solution. Callidus On-Demand Solutions include all the elements of industry-leading SPM, using the same basic components included with a Callidus Software enterprisedeployed solution. On-demand customers receive a full featured version, not a condensed or scaled-down version, of TrueComp SPM. Analyze (CallidusTrueAnalytics TM ) Actionable Insight Target audience: executives, business analysts Build (TrueComp Manager) Plans, Rules, People Target audience: compensation analysts, compensation managers Dispute (TrueResolution ) Flexible Workflow Target audience: field sales, field management SPM DATA Communicate (TrueInformation ) Self-Service Target audience: field sales, field management TrueComp Technology: User-Friendly SPM Engineered for Optimal Performance 9

10 Efficiency and Flexibility for Long-Term Success Other vendors offering hosted SPM solutions might promise extremely short implementation times. However, an unusually rapid implementation can mean the application does not possess the robust functionality required. Callidus Software s On-Demand implementations are comprehensive, and they establish a framework for an organization to leverage every feature and customization it needs. This ensures system efficiency, flexibility and consistent, ongoing results from SPM. Upgrades and Maintenance from the SPM Experts Callidus Software upgrades its on-demand customers as new releases come available. Upgrades, service and maintenance are all performed by Callidus Software specialists, assuring access to new functionality in a timely fashion. On-demand solutions make it even easier than enterprise-deployed solutions to begin using the upgraded features and functions of all the product lines. In addition, the years of expertise accumulated by the Callidus Professional Services team give on-demand customers the confidence that their implementations will function with maximum efficiency and any concerns will be resolved quickly. Customers choosing the Business Operations service level also benefit from the expertise of Callidus Software s compensation professionals. Maximum Security and Reliability Callidus On-Demand Solutions maximize the convenience, security and reliability of the on-demand environment and ensure high availability. The result of a partnership between Callidus Software and Sun Microsystems, the on-demand physical environment is established at a dedicated Sun Grid Compute Utility location that provides state-of-the-art Grid computing. Callidus On-Demand Solutions run on the newest and most reliable Sun equipment, third party software and data center services: The facility is fully compliant with the Statement on Auditing Standards No. 70, Service Organizations (SAS 70). The facility provides 24x7 data security measures that guard software and data with continuous monitoring, firewall maintenance, nonstop virus scanning and more. The on-demand infrastructure ensures full system redundancy while providing safety features such as temperature control, smoke detection, fire suppression and continuous power measures. The infrastructure supports a high level of security and availability by providing a single tenanted instance for each customer. Physical security includes card access, video monitors and round-the-clock security personnel. Callidus Software provides secure virtual private network (VPN) access and/or private communication circuit access to the facility. Sign-on security is managed by the customer s existing network security, such as Lightweight Directory Access Protocol (LDAP) and Active Directory directory service. Callidus Software and the customer manage access rights to the TrueComp application suite. 10

11 On-Demand: Capturing the Value of SPM Because SPM lends itself to an on-demand model, Callidus Software is bringing its superior SPM technology to the market as a comprehensive on-demand solution. With Callidus On-Demand Solutions, every company has the opportunity to leverage the productivity-enhancing features of SPM. Whether they choose an on-demand or premise-based solution from Callidus Software, customers gain access to identical applications, features and business benefits. Callidus On-Demand Solutions deliver industry-leading on-demand SPM according to the specific service levels, options and customizations an organization might require. Selecting Callidus On-Demand Solutions is an excellent way to capitalize on SPM, an indispensable strategic tool for increasing shareholder value. 11

12 About Callidus Software Callidus Software ( NASDAQ: CALD) is the leading provider of on-premise and on-demand Sales Performance Management (SPM) solutions to global companies across a broad range of industries. Our software allows innovative enterprises of all sizes to strategically manage incentive compensation, set quota targets, administer producers, and align territories, resulting in improved sales and distribution performance. Over 1.8 million salespeople, brokers, and channel representatives have their sales performance managed by Callidus Software s products. Corporate Headquarters Callidus Software Inc. 160 West Santa Clara Street 15th Floor San Jose, CA USA Tel: (408) Fax: (408) info@callidussoftware.com UK and European Headquarters Callidus Software Ltd 1 Quality Court Chancery Lane London WC2A 1HR United Kingdom Tel: Fax: USA Offices Atlanta, Austin, Chicago, New York San Jose, Scottsdale International Offices London, Sydney, Toronto Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueComp, TrueComp Grid, TrueComp Manager, TrueConnection, TrueFoundation, TrueInformation, TruePerformance, TruePerformance Index, TruePerformance Indicator, TrueMBO, TrueAllocation, TrueProducer, TrueQuota, TrueReferral, TrueResolution, and TrueService+ are trademarks, servicemarks, or registered trademarks of Callidus Software Inc. in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners. 03/08 PDF 12