Author: Predrag Jakovljevic
The announcement in September 2006 that Illinois Tool Works Inc. had made an offer to acquire all of Click Commerce's common stock made many market insiders scratch their heads. However, the real benefits—and the challenges—may lie ahead.
Companies can easily spend hundreds of thousands of dollars implementing an enterprise resource planning (ERP) package. After completing this rollercoaster ride, however, companies are typically faced with the question of whether to implement the latest, greatest version of the package.
With sales being the lifeblood of virtually any company, selling should be an accurately accountable process forming the basis of overall strategic objectives. Still, the question remains: how much enterprise incentive management (EIM) do enterprises need, and in what form?
Managing incentive compensation presents challenges to almost every large and midsized company, due to the complex nature of the calculations. But along with the ability to perform these calculations, an effective compensation management solution must also provide visibility and transparency.
Companies with large sales forces, huge product portfolios, and complex incentive plans with many variables need to offer variable pay. This has created opportunities for a new enterprise software category called enterprise incentive management (EIM), or incentive compensation management (ICM).
Pure-play enterprise incentive management (EIM) vendors who have focused on providing the capability to manage highly complex compensation systems will be well positioned to take advantage of the major growth projected in the EIM market.
The market for enterprise incentive management (EIM) products is in its early stages and is rapidly evolving. Callidus Software is the EIM vendor of choice for some of the largest companies in the world.
The idea behind the Callidus TrueComp's initial design was for it to be sophisticated enough to tackle and manage the most complex and variable compensation plans, and yet simple enough to administer without heavy reliance on information technology (IT) resources.
Enterprise incentive management is an emerging field, and a number of players have entered the market. Callidus recently expanded its service offerings by introducing two new strategic service programs both to woo customers and to survive in this emerging field.
The potential of enterprise incentive management systems, as being closely related to human capital management, should not be ignored. This software category promises a fairly rapid and tangible return on investment in addition to its wide range of benefits.