Callidus Software and Sales Performance Management

VentanaMonitor™

Summary

At the core of the growing demand for improved sales processes and performance lays businesses' realization that they need to manage sales performance targets, which include quotas and incentives, referrals and related information. Responding to this recognition of the importance of broader sales management requirements, Callidus Software has been rebuilding existing applications and developing new ones. In 2004 it offered only enterprise incentive management, which is merely one part of the puzzle. Ventana Research believes that in drawing a new strategic roadmap, hiring industry professionals and executing better, Callidus has placed itself on a promising path that will allow it to offer a broader focus on sales performance management and improved results for the company.

Assessment

To improve sales performance, a company first must admit that its existing sales processes need improvement. Far more businesses have that need than admit it. Too many organizations have not automated the creation, modification and monitoring of sales quotas and incentives, referrals and other related activities. Rhetorically, the reason given is that the fast pace of business gets in the way, but in fact senior managers often aren't convinced that a new structure and process can actually improve results. They should believe it. As organizations continue to change and adapt their portfolios of products and services in response to pressure for better results, improved management of the diverse set of quotas, incentives and referrals - as well as better documentation and auditing of existing sales processes - can help. Callidus Software has brought to market a suite of sales performance applications within its suite of applications, now called TrueComp Enterprise. This portfolio addresses building, communicating, analyzing and resolving sales compensation. Under these modules, Callidus has built a common foundation for its sales performance desktop.

The company's product modules target specific aspects of sales performance management. Core to Callidus and the suite is incentive management, which is what TrueComp does. Complementing incentive management is TrueResolution for addressing issues in compensation plans and commission for sales. Newly added modules TrueInformation (for gaining visibility into sales information) and TrueAnalytics (for analyzing sales compensation and incentives) also now are part of the evolving suite. And in addition to the new functionality delivered, Callidus now simplifies procuring and deploying the applications cost-effectively by offering them for lease in the form of software as a service, a model that eliminates the need for support from the customer's internal IT group.

Ventana Research has observed major improvements in the last year in Callidus' understanding of its market and its focusing on areas where it can offer targeted help.

Market Impact

Callidus Software has made a significant turnaround in 2005 with new customers, applications and depth in its management and staff. With customer wins at organizations as large as Home Depot, Sprint Nextel, Vodafone and Hewlett-Packard, where it beat out Oracle and SAP, Callidus is raising its profile in the market. It now has an expanding portfolio larger than those of providers like Centive and Varicent and is competing with Synygy. Callidus thus is elevating its visibility in sales performance management. The race is on, and Oracle and SAP should take note.

Recommendation

To improve your sales processes will require more sophisticated applications than spreadsheets and presentation documents. Building, communicating, analyzing and resolving disputes within the sales organization effectively requires an enterprise-level suite. Callidus' approach to on-demand sales performance management can challenge existing sales management applications. Ventana Research recommends that organizations looking for management-focused products that will help improve efficiency and effectiveness of sales consider Callidus Software.

Related Research Notes:

Adopting Sales Performance Management
Increasing sales effectiveness requires new approach.

Centive: On Demand Sales Performance Management
New solution for linking goals/objectives to incentives.

Callidus Software: The EIM Road to Recovery, or Maybe Not
Corporate performance shows challenges in execution.

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2006 Ventana Research