Frost & Sullivan North American Mobile Crm Analyst Briefing
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Transcript of Frost & Sullivan North American Mobile Crm Analyst Briefing
North American Mobile CRM Market:Investment Themes Driving the Mobile CRM Space
Swarna Pasupathi, Research Analyst
Business and Financial Services
Information and Communication Technology
September 30, 2008
2
Focus Points
� Introduction
� Market Overview
� Investment Analysis
� Scorecards
� Question and Answers
3
• Frost & Sullivan’s Financial Research team has recently completed an extensive review of
investment opportunities in the North American Mobile CRM market.
• The study highlights the growth segments in the North American Mobile CRM market, and
identifies specific investment themes and opportunities within the market.
• It includes a comprehensive overview and in-depth financial analysis of the North American
Mobile CRM universe covered by Frost & Sullivan.
Introduction
4
Focus Points
� Introduction
� Market Overview
� Market Segmentation
� Industry Economics
� Investment Analysis
� Investment Themes
� Growth Monitor
� Scorecards
� Sector Scorecard
� Mergers & Acquisitions Analysis
� Venture Capital Score Card
� Venture Opportunity Score Card
� Question and Answers
5
Market Overview - Segmentation
Segments Focussed
• Mobile Sales Force Automation (SFA)
• Mobile Field Service Management (FSM)
Major Industry Participants
• COGNOS
• Oracle (PeopleSoft and Siebel)
• Salesforce.com
• SAP AG
• Maximizer Software
• Vettro
• Dexterra
• SAGE
• Sybase – iAnywhere Solutions
6
Market Overview
• Enterprise inclination towards mobility platform is on the rise.
• Growth: CRM spending is growing at 11.8% CAGR
• Opportunity: Mid-market is still under-penetrated; only 20% of SMBs use mobile CRM
and the rest of firms are in decision-making cycle to adopt mobile platform during the
period 2008-2012.
Despite an economic slowdown SMB’s will continue to invest in mobile solutions :
• Competitive Advantage
• Increases Productivity with less staff
• Increases Customer Satisfaction
Market Overview Market Segmentation Industry Economics
7
ENHANCERS
INHIBITORS
�Increases Productivity and ROI
�The concept of mobile-commuting
in the workforce offers flexibility thereby
increasing the overall productivity of the
team.
�The is an increase in the number of
vendors offering of Mobile-CRM
integration applications.
�Steady tariff plans from Mobile
Network Service Provider
�Subsidized mobile device
prices have reduced the deployment
cost for organizations.
�Availability of varieties of high
powered mobile devices has created
a robust platform for mobile application.
�Lack of justifying the total
cost of ownership (TCO)
�Non-Acceptance of Technology
�Security and Integration issues on
mobile devices stunt growth in the
SMB segment
�Increase in Number of Vendors
�Information Lag
�Slow rollout and adoption of next
generation networks
Industry Economics
8
Investment FrameworkInvestment Analysis
1. Standardization of Mobile Network Operator’s Tariff Plans
2. Decrease in the Mobile Device Price
3. Immense Increase in Smartphone Shipment Worldwide
Investment Themes Growth Monitor
9
Investment FrameworkInvestment Analysis
Source: Frost & Sullivan
1. Standardization of Mobile Network Operators Tariff Plans
Investment Themes Growth Monitor
0
20
40
60
80
100
120
300 600 900 1500
Anytime Minutes
Netw
ork
Serv
ice C
ost
($)
Verizon T mobile AT & T Sprint
10
Investment FrameworkInvestment Analysis
Source: Frost & Sullivan
2. Decrease in the Mobile Device Price
Investment Themes Growth Monitor
0
100
200
300
400
500
600
700
2003 2004 2005 2006 2007 2008
Years
Mo
bil
e D
evic
e P
ric
e (
$)
Windows Mobile Palm Treo Blackberry Apple
11
Investment FrameworkInvestment Analysis
3. Increase in Smart Phone Shipment Worldwide
Source: Frost & Sullivan
Investment Themes Growth Monitor
0
20
40
60
80
100
120
2004 2005 2006 2007
Year
Un
its
Sh
ipp
ed
(M
illio
n)
Shipment in Smartphone Devices Worldwide
12
Investment FrameworkInvestment Analysis
Source: Frost & Sullivan
40.060.015.0-20.024.44,064.0SAP AG
20.080.015.0-20.043.0557.9Salesforce.com
35.065.015.0-20.047.09,460.0ORACLE
100020.0-25.01.320.4ASTEA
15.020.6Segment CAGR (2007-2012)
FSM
(%)
MSFA
(%)
Growth Rank
(%)
NA Mobile CRM Revenues in 2007
($ Million)
Company’s Total NA Revenues in 2007
($ Million)
Company
Investment Themes Growth Monitor
13
Focus Points
� Introduction
� Market Overview
� Market Segmentation
� Industry Economics
� Investment Analysis
� Investment Themes
� Growth Monitor
� Scorecards
� Sector Scorecard
� Mergers & Acquisitions Analysis
� Venture Capital Scorecard
� Venture Opportunity Scorecard
� Question and Answers
14
Segment Opportunity Scorecard
Venture OpportunityMergers & Acquisitions Venture CapitalSector Score Card
Sector Average Company
Size
Number of Companies
Revenues ($ Million)
CAGR %
(2007 – 2012)
Sector Consolidation
Attractiveness to Venture
Capital Partners
Small < 15 25.3 Low-Medium High
Medium < 10 46.8 Medium–High Medium MSFA
Large < 5 132.9
15.0
High Low
Small < 30 19.8 Low–Medium High
Medium <10 56.9 Medium Medium MFSM
Large < 5 210.9
20.6
High Low
Small < 10 19.0 Low High
Medium <10 42.6 Medium–High Medium MSFA and MFSM
Large < 5 160.2
15.0 – 17.5
High Low
Source: Frost & Sullivan
15
Segment Growth – SFA & FSM
Source: Frost & Sullivan
Venture OpportunityMergers & Acquisitions Venture CapitalSector Score Card
0.0
200.0
400.0
600.0
800.0
1000.0
2007 2008 2009 2010 2011 2012
Years
Gro
wth
$ M
illio
n
SFA FSM
16
Venture OpportunityMergers & Acquisitions Venture CapitalSector Scorecard
Source: Frost & Sullivan
Mergers and Acquisition Analysis
1005.3949.05,000.0Business
IntelligenceCOGNOSIBM12-Nov-07
1005.078.8394.0Business Analytics
Visual Sciences
Omniture Inc
25-Oct-07
1005.41,250.06,780.0Enterprise
Software
Business
Objects
SA
SAP AG7-Oct-07
%OwnedAfter
Transaction
Revenue Multiple
Target Revenue ($ Million)
Deal Size
($ Million)
Business Acquired
Target Company
Acquiring Company
Date Announced
17
Venture OpportunityMergers & Acquisitions Venture CapitalSegment Opportunity
Source: Frost & Sullivan
Venture Capital ScorecardFinancial Analysis
C and D14.0 + 5.5Experienced
IT, Biotech,
and Clean
Energy
1985New
Enterprise Associates
17-Oct-
05, 07-
Feb-08
A and B2.0 + 5.75ExperiencedIT and
Healthcare 1978
Draper
Fisher Jurvetson
01-Aug-
04 and
01-Feb-
05
CRMSugar CRM
ExperiencedDiversified1998Thoma
Cressey
N/A0
ExperiencedIT1983Battery
VenturesSince
2003CRMOnyx
Funding Round
Funded Amount ($
Million)
Relevant Experience
of Management
Team
Field of Investment
Year of Establishment
Venture Partners
Date of Funding
SegmentCompany
18
Venture Opportunity Scorecard
Source: Frost & Sullivan
Venture OpportunityMergers & Acquisitions Venture CapitalSegment Opportunity
Financial Analysis
Medium-HighMediumMediumHigh86.5MSFA
&
MFSM
Dexterra
Medium-HighHighMediumHigh45.5
MSFA
&
MFSM
Antenna
Software
MediumMediumMediumMedium50MSFA
&
MFSM
Metrix
Overall Attractiveness
Clients and Reputation
Technology Innovation
Application Catering to Mobile Devices
Company’s Funding Till
Date($ Million)
SegmentCompany
19
Future Roadmap
• Increased adoption to mobility platform by SMB segment
• The roll out of Apple iPhone and Goggle Android phone
• Emerging Platforms and possible alliances in the future
• Mobile Applications vs. Mobile Network Service Providers vs. Mobile Device
Manufacturers vs. Internet Community vs. Customers
• Innovative, patentable and interoperable mobile application will attract future
investments.
20
Your Feedback is Important to Us
Growth Forecasts?
Competitive Structure?
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by taking our survey.
What would you like to see from Frost & Sullivan?
21
For Additional Information
• To leave a comment, ask the analyst a question, or receive the
free audio segment that accompanies this presentation, please contact Stephanie Ochoa, Social Media Manager at (210) 247-
2421, via email, [email protected], or on Twitter at
http://twitter.com/stephanieochoa.