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Information Resources (IRIC) Message Board

  • dataduds_r_us dataduds_r_us Jun 24, 2000 1:13 AM Flag

    Squandering $$$, sick of lawsuit talk

    OK, I've read a lot of these posts about how the
    lawsuit will make IRI so rich, what a strong case they
    have, etc etc...I respect the hardcore financial types
    on here who try to determine how this will all
    impact IRI long-term. But please let me point out some
    key non-lawsuit issues that would negate any $300,
    $200, $500MM or whatever the current lawsuit value
    rumor is...

    IRI is fiscally irresponsible,
    especially domestically. Some cases in point:

    1. IRI
    offers so many "data solution" softwares, many of which
    have cost upward of $10-50MM to develop, market, sell
    etc...now, many of these "big ticket" offerings are part of
    the Project Delta cuts. Let's see, where shall we
    start - PromoProphet: GONE!, Random Weight Bulk
    database service - GONE! (This one was especially stupid
    given the service was at least a unique offering within
    the industry and they actually had customers to
    support it even if the data tapes weren't always clean
    from every retailer every week. Interestingly, the
    gentlemen who ran that project have left IRI and founded a
    company that will continue this promising service for
    bulk/random weight CPG clients). They probably test all these
    new offerings/concpts with their one "biggie", P&G,
    and if they bless it they just roll it out! Of
    course, we all know a $5MM data solution is pennies to
    P&G, but costly for someone whose total contract value
    is under $100,000/yr. But hey-with all that pending
    lawsuit money, who cares?
    2. New service models that
    are more work, less improved - there's some new group
    in Client Service, I think it's the F.C.G.(focus
    client group). The group is meant to service the
    $0-$400K clients and even includes a "call center" for
    those really small clients that IRI has a lot of, but
    no one to service. This group is meant to be
    invisible to clients I hear-a smart move given the fact
    that clients are already pissed at the lack of service
    levels and resources. Last thing they'd want to know is
    that the person they're calling is reading from a
    script ala Microsoft Customer Service(which is
    outsourced). As I hear it, IRI flies the whole new FCG team to
    Chicago at the end of Q1 for a 2 day kickoff meeting!
    This, at a time when '99 revenues were not what was
    expected...sending so many people at the end of a Qtr for meetings??
    Amazing - oh, but all that lawsuit money will offset any
    revenues they miss out on.
    3. IRI began a flex-time
    program a while back, a 90/100 concept that allows all
    full-time employees to have every other Friday off in
    exchange for 1 hr more on the other days. I hear Papa Joe
    doesn't like it, yet it continues at a time when IRI
    needs to have what few people are left IN the office
    working, not off! This should be one of the 1st
    changes!
    4. IRI has outsourced many services such as their
    Nat'l Product Library in Chicago, their InfoForce
    store-auditing group and many others. Could spell
    trouble.

    Look people, yes the lawsuit might bring some
    bucks...but when and how much? Who knows and who cares? As I
    see it, IRI will take whatever they get(if anything)
    and promptly squander it - maybe they'll develop
    PromoProphet 2.0 at a cost of $75MM! Or maybe they'll send
    some newly developed team to some city for a 2-4 day
    meeting at the end of a Qtr(trust me people, I'm in the
    CPG world 25+ yrs and no one takes off at the end of
    Qtrs with business to get!).

    Let's all lay off
    the silly lawsuit, which is down the road, and focus
    on the issues that got them in trouble to start with
    and continue today...banking on a lawsuit is silly,
    fiscally/corporately irresponsible and counting your eggs before they
    hatch!

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