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Merced Incentive Management (MIM) Review - Part 4

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Report Creation
Merced Incentive Management has many features to easily create reports and pivot tables.  What I found interesting about their reports is its “Access Rights” area which allows us to assign the report to a certain group of payee, but also to only a specific set of users.


Payee Home Page
The payee’s home page includes a section where they can view their statement, analyze it, read bulletins and communications and submit a query (which is how Merced Incentive Management calls dispute resolution.


Bulletins can include any static information, pictures, and information based on performance, contests, etc.

Creating a “Query” is very simple and consists of filling an onine form.  Instead of including various fields and functionality which could confuse the payees, this tool uses only 1 text area.  Payees can easily track which queries are opened, closed and in progress.

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Payee’s reports
The payee’s reports are also interesting; they contain all the expected information, are fully customizable, the information can be drilled-down, and the sales performance can be displayed in various graph formats.  What is particularly interesting is that the administrator can configure various models for any report.  These models alter some variables so that the payee can quickly see the impact to their compensation, under various scenarios.  For example, they can look at their forecasted annual performance based on their current performance.


ETL
Merced Incentive Management also includes its own ETL (Extract, Transform, Load) suite to transfer data in and out of the application, and transform it as required.  Many clients choose to use the convenience of this ETL application, but a third party ETL application such as Informatica or DataStage can also be used.

Plan Communication

Plan communication can also be performed as part of an additional Merced module called the Merced Performance Suite.  However this functionality will soon be integrated to the Merced Incentive Management application.

Processing
Merced Incentive Management can support real-time processing if required.  Because many source-systems are not updated in real time, daily ‘batches’ can be scheduled.  However, this usually does not take too much time, and does not impact access to the system, or the ability to work in it.

This concludes my quick overview of the Merced Incentive Management solution.  stay tuned for more application reviews and a few other interesting posts next week.

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Merced Incentive Management (MIM) Review - Part 3

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Calculators
Calculators seem to be the feature where Merced Incentive Management is the most different compared to other solutions.  Instead of using “rules” like in Callidus TrueComp and Varicent SPM, or using “components” like ZS Associates Javelin, Merced uses calculators which consist of a multi-dimensional table, very similar to an Excel spreadsheet.  Each cell can contain any type of information including formulas referencing other cells.  Let’s look at some calculators.

Transaction Calculator
This calculator runs for every transaction that has been identified by the plan. All the transaction fields are available as inputs, and outputs are written back to the transaction itself allowing for per transaction commission and bonus to be generated.  An example of this would be an individual sale that is given a percentage commission based on the product sold.


Summary Calculator
This calculator runs once per period per payee and uses aggregated data as inputs such as Total Net Sales, Total Revenue, Total YTD Margin etc. The business rule is calculated after any transaction calculators have run and allows complete control over outputs including overwriting performance and measurement data. An example of this calculator would be a plan that measured the past 6 months average performance and paid based on that average with a cap on the maximum commission that could be earned in a year.

Table Calculator
This calculator is used to store tabular data and information.  Table calculators are reference by any of the other calculator types by their reference name.  For example the function =PRATES(C1,C2) might pass in a product name and a date to a product table and return a commission rate.


Function Calculator
This calculator is used to encapsulate complex business rules and allows administrators and users to break down large calculations into a series of functions that can be reused.

This should provide a good idea of how Merced Incentive Management handles calculations.  Here is a final example of a calculator where some logic is defined:

The next and final post will describe some of the additional features from Merced Incentive Management, including reporting, processing, the payee’s interface and ETL.

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ZS Associates

Merced Incentive Management

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Merced Systems is another company which is probably lesser known in the North American market for the moment compared to other product vendors.  I first wrote about Merced when they acquired an incentive compensation management software company called Practique Software.  Just like ZS Associates’ Javelin Suite, this “new” SPM vendor (with a solution called INCA) caught me by surprise because I hadn’t heard about it before.  If you also wonder why the name may not sound familiar, it’s because Practique Software’s INCA solution was mostly used everywhere, except in North America.   This is what Merced Systems is changing.

Practique has been deploying INCA in many enterprise environments in Europe for the past 12 years.  So while they are a new player in North America they are certainly not new to the ICM market.  Practique Associates is going to keep its brand name for the moment in Europe, but in North America its applications were already rebranded as Merced Incentive Management.

Merced Incentive Management is another web-based SPM solution with a very different approach than what I have seen with many other vendors.  We will see how some of its features are quite innovative.  The application is targeted towards enterprises with a large number of payees.  Merced Incentive Management is an enterprise class incentive management application with multiple deployments of more than 10,000 and up to 100,000 payees with an excess of 1 million transactions per day.  It is available both on-demand and on-premise, and it is also easy to switch between on-demand and on-premise if required.

In the next 2-3 posts I will focus on Merced Incentive Management, which is a great addition to other Merced offerings including applications facilitating organizational goals alignment, goal setting, performance reporting and coaching.

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Merced Incentive Management (MIM) Review - Part 4

MarketScope for Sales Incentive Compensation Management Software 2008

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Michael Dunne, the VP of research and sales incentive compensation analyst for Gartner, released the new marketscope research on July 30, 2008.

One of his key finding; the sales ICM market grew by 20% in 2007, up from 15% in 2006.  Another interesting fact: collectively, the vendor community only captured 300 million in revenue worldwide. Finally, less than 10% of sales organizations with more than 100 persons receiving variable compensation have deployed prepackaged sales applications, with North America representing more than 80% of the world market.

My interpretation of this is that the ICM market is still very small, still has a lot of room to grow, and has an accelerating growth.  That’s great news for me!

The biggest changes in the overall marketscope rating since 2007 is Varicent which moved up a position, from “promising” to “positive”, and Practique Associates (recently acquired by Merced Systems) which moved up from “Caution” to “Promising”.  This year, ACTEK and Westport Software (now Enterprise Incentive Software) did not meet the inclusion criterion for signing new customers.  There is also a new name on the list - ZS Associates.

I asked Gartner if I could share their ICM Vendor Matrix on this blog, but they refused.  However, I collected the related press releases:

I did not find publicly available information regarding Xactly, ZS Associates and SAP’s ranking.

The rating is based on overall viability, customer experience, products and services, market responsiveness, track record and geographic strategy.  Gartner’s definition for a positive rating is “Demonstrate strength in specific areas, but execution in one or more areas may still be developing or inconsistent with other areas of performance”.  A promising rating is defined as “Shows potential in specific areas; however, execution is inconsistent”.

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New web forum for the EIM Community - Get your Answers Now!

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Today I came across a web forum called “Ask Jon!” by OpenSymmetry. It’s a great knowledge exchange platform where anyone can submit questions and answers.

Most posts are currently related to Callidus TrueComp, but there are new categories to discuss solutions by many other SPM vendors such as nGenera, Oracle, Practique & Merced, Sungard, Varicent, Xactly, etc.
Such forums are only as good as the content being posted, so I encourage everyone to visit and contribute in making this forum a one-stop shop for Sales Performance related information.
Of course my blog is still THE number one source of SPM information, but I may not [always] be able to answer all your questions, about every product on the market.

Don’t wait, go have a look and sign-up.

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Incentive Compensation News

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Julien Dionne (Me), Receives the “Hot” Nomination on Popular HR Blog
Thanks HR Wench :-)

Merced Systems, Inc. Acquires Practique Associates Europe’s Leading Sales Performance Management Vendor
Merced Systems, the leader in Sales and Service Performance Management software, today announced that it has acquired Practique Associates, a privately held, UK-based company, and European market leader in Incentive Compensation Management (ICM) solutions. Practique Associates will operate in Europe as a wholly owned subsidiary of Merced Systems, allowing the company to continue its impressive track record of growth and profitability.

Callidus Software Ranks 4th on CIOZone’s “Surging 60″ List of Fastest-Growing Software Companies
Sales Performance Management Leader Ranks Among Top Five on Prestigious List of “20 Fastest-Growing Small Software Companies”

Xactly Appoints William J. Sudlow as Senior Vice President of Engineering
Formerly withIntuit Inc., Sudlow will be responsible for all product development,engineering and quality-assurance activities as Xactly scales its product-development efforts to deliver the market’s broadest portfolio of salesperformance management applications.

SuccessFactors Announces Support for Global Organizations With Simultaneous Product Updates Across 22 Languages
SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, today announced that it has made available a number of international enhancements to support simultaneous product updates of its monthly releases in 22 languages.

Success Factors to sell 7.5M shares
SuccessFactors Inc. said Tuesday it plans an offering of about 7.5 million shares of its common stock.

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In the News this Week…
Visa’s approach to Incentive Compensation