Survey Shows Link Between Manual Data Processing and Problems with Managing Channel...

Survey Shows Link Between Manual Data Processing and Problems with Managing Channel Operations

Lack of Automation Causing Poor Data Quality, Inability to
Forecast and Plan
DENVER--(Business Wire)--
Survey results published today from Pembroke Consulting show a
surprising number of companies, many of which are technology
providers, are still using manual processes to collect, analyze and
report on sales data. The survey explored the data management
practices of more than 100 technology, manufacturing and
pharmaceutical companies. Though these companies sell 80 percent
(median) of their products through indirect channels, more than half
haven't fully automated their channel data management capabilities. As
a result, these companies are experiencing significant problems with
poor data quality and struggling to effectively forecast and plan.

The channel data automation study, commissioned by InfoNow, asked
managerial and executive-level individuals about their most common
data management problems. "Receiving incomplete data from (their)
indirect channel" and "basing future sales plans on 'best guess'
estimates" were among the top complaints. On average, these companies
have more than 165 distributor and reseller channel partners. One
respondent explained that their company received more than 20,000
lines of information on channel partners' point-of-sale data each
month and had to review it - line by line - to determine sales credit.

The study also found that, among companies who manually process
data:

-- 72 percent frequently or very frequently discover
discrepancies between internal sales data and the data
collected from indirect channel partners

-- 72 percent said sales data is frequently or very frequently
not ready quickly enough to be used for sales planning

-- 78 percent frequently or very frequently makes sales plans
based on "best guess estimates" rather than actual sales data

"Executives in many industries report significant challenges in
their company's ability to gather and use channel data effectively,"
said Adam J. Fein, Ph.D., president of Pembroke Consulting and the
study's author. "However, companies with higher levels of automation
experience fewer problems getting accurate data and using these data
for real-time sales planning."

"Companies regularly grapple with business problems that impede
innovation, decrease productivity or prohibit full revenue potential.
We commissioned this study because exploring and understanding those
business problems is the first step in tackling the cause of the
issues and finding a resolution," said Mark Geene, chief executive
officer at InfoNow. "We were surprised at the level of frustration
expressed by companies that are manually processing data. It's not
only time-consuming and error-prone, but it also impedes effective
management of channel operations.

"Just as customer relationship management changed the landscape
for companies that sell direct, channel data management will
revolutionize how companies manage sales through partners," Geene
concluded.

Of the 124 companies Pembroke Consulting queried, 44 percent are
in the technology industry; 40 percent are in industrial and building
products manufacturing; and 17 percent are in pharmaceutical and
healthcare products. Nearly a quarter of these companies have annual
revenues more than $5 billion; 24 percent have annual revenues between
$1 and $4.9 billion; 38 percent have yearly revenues between $100 and
$999 million; and the remaining 16 percent have revenues below $100
million. The majority of the companies, 67 percent, are publicly
traded.

To view the complete survey, visit: www.infonow.com/cdmstudy.

Channel Data Management: Gaining Insight into the Channel

Channel data management (CDM) is the process of collecting and
transforming point-of-sale transaction and inventory information from
the distribution network of companies that sell products or services
through distribution or reseller channels. The process starts with
collecting the individual sales and inventory transactions from the
channel, followed by cleansing and standardization, then identifying
the business entities included in those transactions.

Beyond capturing and cleansing data, CDM enables manufacturers to
analyze data and make more strategic business decisions. CDM helps
companies understand, for example, how much is being sold through the
channel and to whom, while also tracking channel inventory levels.
Functional areas that require sales channel information include
channel sales and marketing, finance, and business operations.

About InfoNow Corporation

InfoNow is pioneer in software-as-a-service channel data
management solutions, and a technology leader for companies that sell
through direct and indirect channels, such as resellers and
distributors. Based in Denver, Colorado, InfoNow offers a
comprehensive suite of applications that enable companies to leverage
existing point-of-sale and inventory data to more effectively and
efficiently manage their sales channel. For more information, visit
www.infonow.com.

InfoNow Corporation
Dana Dye, 415-928-1310
dana@dialoguepr.com

Copyright Business Wire 2008