Andersen, Blue Martini Software Uncover Secrets to Suppliers' Realizing Return On Investment With Digital Marketplaces and eProcurement

Survey Identifies Three Keys to Financial Success for Selling Into Digital

Marketplace and eProcurement Solutions



Apr 30, 2001, 01:00 ET from Andersen

    LAS VEGAS, April 30 /PRNewswire/ -- Experience, sophistication level and
 degree of integration are the three key variables driving return on investment
 (ROI) for companies selling into digital marketplaces and eProcurement
 solutions, according to a new study by Andersen and Blue Martini Software,
 Inc. (Nasdaq: BLUE).  Conducted by KS&R, the study involved interviews with
 executives at 152 companies currently selling through these new
 business-to-business (B2B) channels.
     The survey found that more than one third (36 percent) of suppliers
 indicated already receiving a positive ROI (46 percent ROI on average) from
 their ability to sell into digital marketplaces and eProcurement solutions.
 The remaining two thirds of suppliers expect to achieve a positive ROI within
 20 months of their initial participation in these channels.
     "The good news from this survey is that suppliers really are achieving the
 benefits -- revenue growth, new customers, lower cost of sales -- that have
 been promised to them," said Kevin Costello, Andersen's global managing
 partner of digital markets solutions.  "Andersen believes one of the keys for
 executives is to be patient with the strategies that have been put into place.
 We all need to realize that digital marketplaces and eProcurement solutions
 are new channels, and it takes time for both buyers and sellers to become
 accustomed to utilizing new channels."
     Of companies with more than a year of experience selling via digital
 marketplaces, nearly half (42 percent) realized ROI, compared to just
 19 percent for companies with less than one year of experience.  The survey
 also found that suppliers who have implemented leading-edge capabilities such
 as "punch out" or "round trip" functionality were almost twice as likely to
 realize ROI as companies with basic capabilities (e.g., flat file catalog).
 Punch out or round trip functionality enables sellers to differentiate their
 products on digital marketplaces by linking prospective buyers back to the
 sellers site, where they can get rich product information, advice and context,
 and then with a click of a button, make the purchase in the digital
 marketplace.
     "Marketplaces offer an opportunity for sellers to reach-out to new
 customers and streamline operations," said Monte Zweben, president and CEO of
 Blue Martini Software. "However, to truly succeed, sellers must find ways to
 differentiate their products or face commodization.  Blue Martini Software and
 Andersen are providing solutions to help companies differentiate their
 products, while at the same time cutting costs, increasing revenues and
 driving profitable interactions with customers, whether they are reaching
 their customers through a procurement application, online marketplace, partner
 portal or wireless device."
     Finally, companies with a higher degree of integration between a
 marketplace and their internal business systems and processes, such as order
 entry and distribution, increased their ROI realization.
 
     Specific findings include:
 
     Digital marketplaces and eProcurement solutions create new customers and
     drive revenue growth
     Nearly two thirds of suppliers (62 percent) indicated generating new
 customers as a result of their participation in digital marketplaces and
 eProcurement solutions.  Over half the respondents (52 percent) found
 incremental revenue growth (greater than 10 percent on average) from their
 participation.
 
     Suppliers expect significant future growth
     Respondents indicated they expect 30 percent annual average growth in the
 percent of overall revenues obtained via digital marketplaces and eProcurement
 channels over the next two years.
 
     Multiple digital marketplace and eProcurement solutions top the list of
     barriers for participation
     More than half of suppliers (53 percent) ranked working with multiple
 standards as the greatest barrier to achieving success with digital
 marketplace/eProcurement projects.
 
     "Suppliers find it difficult to support multiple marketplaces and
 eProcurement opportunities because each opportunity can be based on a
 different technology platform," said Costello.  "Andersen works with companies
 to develop solutions that will help them navigate the technology challenges
 and achieve ROI and revenue growth in reduced timeframes."
 
     About Andersen
     Andersen is a global leader in professional services.  It provides
 integrated solutions that draw on diverse and deep competencies in consulting,
 assurance, tax, corporate finance, and in some countries, legal services.
 Andersen employs 85,000 people in 84 countries.  Andersen is frequently rated
 among the best places to work by leading publications around the world.  It is
 also consistently ranked first in client satisfaction in independent surveys.
 Andersen has enjoyed uninterrupted growth since its founding in 1913.  Its
 2000 revenues totaled US$8.4 billion.  Learn more at http://www.andersen.com .
 
     About Blue Martini Software
     Blue Martini Software provides eCRM applications that help companies
 understand, target and interact with their customers and business partners
 across multiple touch points.  The Blue Martini 4 application suite includes
 four applications: Blue Martini Marketing, Blue Martini Commerce, Blue Martini
 Channels and Blue Martini Service.  Each application can be used individually
 or integrated as a complete business suite for managing catalogs, content,
 transactions, campaigns, analysis and personalization.  Blue Martini Software
 applications drive revenues and build lifetime value of customers by providing
 compelling personalized interactions, maximizing the effectiveness of
 marketing programs, enabling businesses to sell more effectively directly and
 through channel partners or marketplaces, and providing multi-channel customer
 service.  Blue Martini Software's customers include Canadian Tire Corporation,
 Harley-Davidson, Iomega Corporation, Levi Strauss & Co., Oce Technologies,
 Oncology Therapeutics Network (OTN), Polaroid Corporation, PublixDirect and
 Saks Fifth Avenue.  Blue Martini Software can be reached at 650-356-4000 or
 http://www.bluemartini.com.
 
     "Blue Martini" and "Blue Martini Software" are trademarks of Blue Martini
 Software, Inc., 2600 Campus Drive, San Mateo, CA  94403.  Other product and
 company names may be the trademarks of their respective owners.
 
     This news release includes forward-looking statements that are subject to
 risks, uncertainties and other factors that could cause actual results to
 differ materially from those referred to in the forward-looking statements.
 Such factors include, but are not limited to: delays in the development or
 release of new products or product enhancements by Blue Martini Software, risk
 as related to market acceptance of Blue Martini Software's applications;
 customization, deployment and/or operational delays or errors associated with
 Blue Martini's product or those of third parties; Blue Martini's need to
 maintain and enhance business relationships with systems integrators and other
 parties; activities by Blue Martini Software and others regarding protection
 of intellectual property; and release of competitive products and other
 actions by competitors. Further details on these risks are set forth in Blue
 Martini Software's filings with the Securities and Exchange Commission
 ("SEC"), including its filing on Form 10-K for the year ending December 31,
 2000. These filings are available on a Web site maintained by the SEC at
 http://www.sec.gov . These forward-looking statements are generally identified
 by words such as "expect," "will," "anticipate," "intend," "believe,"
 "should," "estimate," and other similar words and expressions. Blue Martini
 Software does not undertake an obligation to update forward-looking
 statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57266184
 
 

SOURCE Andersen
    LAS VEGAS, April 30 /PRNewswire/ -- Experience, sophistication level and
 degree of integration are the three key variables driving return on investment
 (ROI) for companies selling into digital marketplaces and eProcurement
 solutions, according to a new study by Andersen and Blue Martini Software,
 Inc. (Nasdaq: BLUE).  Conducted by KS&R, the study involved interviews with
 executives at 152 companies currently selling through these new
 business-to-business (B2B) channels.
     The survey found that more than one third (36 percent) of suppliers
 indicated already receiving a positive ROI (46 percent ROI on average) from
 their ability to sell into digital marketplaces and eProcurement solutions.
 The remaining two thirds of suppliers expect to achieve a positive ROI within
 20 months of their initial participation in these channels.
     "The good news from this survey is that suppliers really are achieving the
 benefits -- revenue growth, new customers, lower cost of sales -- that have
 been promised to them," said Kevin Costello, Andersen's global managing
 partner of digital markets solutions.  "Andersen believes one of the keys for
 executives is to be patient with the strategies that have been put into place.
 We all need to realize that digital marketplaces and eProcurement solutions
 are new channels, and it takes time for both buyers and sellers to become
 accustomed to utilizing new channels."
     Of companies with more than a year of experience selling via digital
 marketplaces, nearly half (42 percent) realized ROI, compared to just
 19 percent for companies with less than one year of experience.  The survey
 also found that suppliers who have implemented leading-edge capabilities such
 as "punch out" or "round trip" functionality were almost twice as likely to
 realize ROI as companies with basic capabilities (e.g., flat file catalog).
 Punch out or round trip functionality enables sellers to differentiate their
 products on digital marketplaces by linking prospective buyers back to the
 sellers site, where they can get rich product information, advice and context,
 and then with a click of a button, make the purchase in the digital
 marketplace.
     "Marketplaces offer an opportunity for sellers to reach-out to new
 customers and streamline operations," said Monte Zweben, president and CEO of
 Blue Martini Software. "However, to truly succeed, sellers must find ways to
 differentiate their products or face commodization.  Blue Martini Software and
 Andersen are providing solutions to help companies differentiate their
 products, while at the same time cutting costs, increasing revenues and
 driving profitable interactions with customers, whether they are reaching
 their customers through a procurement application, online marketplace, partner
 portal or wireless device."
     Finally, companies with a higher degree of integration between a
 marketplace and their internal business systems and processes, such as order
 entry and distribution, increased their ROI realization.
 
     Specific findings include:
 
     Digital marketplaces and eProcurement solutions create new customers and
     drive revenue growth
     Nearly two thirds of suppliers (62 percent) indicated generating new
 customers as a result of their participation in digital marketplaces and
 eProcurement solutions.  Over half the respondents (52 percent) found
 incremental revenue growth (greater than 10 percent on average) from their
 participation.
 
     Suppliers expect significant future growth
     Respondents indicated they expect 30 percent annual average growth in the
 percent of overall revenues obtained via digital marketplaces and eProcurement
 channels over the next two years.
 
     Multiple digital marketplace and eProcurement solutions top the list of
     barriers for participation
     More than half of suppliers (53 percent) ranked working with multiple
 standards as the greatest barrier to achieving success with digital
 marketplace/eProcurement projects.
 
     "Suppliers find it difficult to support multiple marketplaces and
 eProcurement opportunities because each opportunity can be based on a
 different technology platform," said Costello.  "Andersen works with companies
 to develop solutions that will help them navigate the technology challenges
 and achieve ROI and revenue growth in reduced timeframes."
 
     About Andersen
     Andersen is a global leader in professional services.  It provides
 integrated solutions that draw on diverse and deep competencies in consulting,
 assurance, tax, corporate finance, and in some countries, legal services.
 Andersen employs 85,000 people in 84 countries.  Andersen is frequently rated
 among the best places to work by leading publications around the world.  It is
 also consistently ranked first in client satisfaction in independent surveys.
 Andersen has enjoyed uninterrupted growth since its founding in 1913.  Its
 2000 revenues totaled US$8.4 billion.  Learn more at http://www.andersen.com .
 
     About Blue Martini Software
     Blue Martini Software provides eCRM applications that help companies
 understand, target and interact with their customers and business partners
 across multiple touch points.  The Blue Martini 4 application suite includes
 four applications: Blue Martini Marketing, Blue Martini Commerce, Blue Martini
 Channels and Blue Martini Service.  Each application can be used individually
 or integrated as a complete business suite for managing catalogs, content,
 transactions, campaigns, analysis and personalization.  Blue Martini Software
 applications drive revenues and build lifetime value of customers by providing
 compelling personalized interactions, maximizing the effectiveness of
 marketing programs, enabling businesses to sell more effectively directly and
 through channel partners or marketplaces, and providing multi-channel customer
 service.  Blue Martini Software's customers include Canadian Tire Corporation,
 Harley-Davidson, Iomega Corporation, Levi Strauss & Co., Oce Technologies,
 Oncology Therapeutics Network (OTN), Polaroid Corporation, PublixDirect and
 Saks Fifth Avenue.  Blue Martini Software can be reached at 650-356-4000 or
 http://www.bluemartini.com.
 
     "Blue Martini" and "Blue Martini Software" are trademarks of Blue Martini
 Software, Inc., 2600 Campus Drive, San Mateo, CA  94403.  Other product and
 company names may be the trademarks of their respective owners.
 
     This news release includes forward-looking statements that are subject to
 risks, uncertainties and other factors that could cause actual results to
 differ materially from those referred to in the forward-looking statements.
 Such factors include, but are not limited to: delays in the development or
 release of new products or product enhancements by Blue Martini Software, risk
 as related to market acceptance of Blue Martini Software's applications;
 customization, deployment and/or operational delays or errors associated with
 Blue Martini's product or those of third parties; Blue Martini's need to
 maintain and enhance business relationships with systems integrators and other
 parties; activities by Blue Martini Software and others regarding protection
 of intellectual property; and release of competitive products and other
 actions by competitors. Further details on these risks are set forth in Blue
 Martini Software's filings with the Securities and Exchange Commission
 ("SEC"), including its filing on Form 10-K for the year ending December 31,
 2000. These filings are available on a Web site maintained by the SEC at
 http://www.sec.gov . These forward-looking statements are generally identified
 by words such as "expect," "will," "anticipate," "intend," "believe,"
 "should," "estimate," and other similar words and expressions. Blue Martini
 Software does not undertake an obligation to update forward-looking
 statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57266184
 
 SOURCE  Andersen