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Aberdeen Group Exposes Risks & Opportunities of Corporate Social Networking

White paper predicts market consolidation as technology is absorbed into CRM suites

OAK BROOK (IL) 27 January, 2004: Interface Software announced today that Boston-based Aberdeen Group, a leading computer and communications research and consulting organization, has published an executive white paper on corporate social networking entitled, "Relationship Capital Management — Going Beyond Social Networking To Sell In Relationship-Based Organizations." The white paper looks beneath the recent hype of the social networking market and examines how corporations can leverage relationship capital to win new business.

White paper author, Denis Pombriant, an Aberdeen Group analyst, says achieving ROI from corporate social networking technology requires a business model most vendors don't yet understand. "In general it takes more planning and strategy for social networking to be used successfully in business than for consumer purposes," said Pombriant. "And when considering the methods for its use, it is clear that successful selling using social networking requires a good deal of forethought and development of a methodology well beyond simply contacting a lead."

The Aberdeen Group white paper singles out Interface Software's Relationship Intelligence package, InterAction®, as a model for how corporate social networking technology can deliver ROI if incorporated into a strategic solution that supports an organization's sales processes. "Interface Software was one of the first software companies to identify a way to help companies to monetize their relationship data through social networking," said Pombriant.

The white paper concludes that in order to survive, other corporate social networking providers will likely follow Interface Software's lead. "In the coming 24 months emerging social networking companies will struggle to find and occupy profitable niches for their solutions and we expect that many of these companies will be acquired by larger companies as social networking becomes part of the overall CRM suite," explained Pombriant.

"While corporate social networking has been around for years, most of the newcomers into the marketplace do not fully understand the complexity of relationship capital management in a business setting," said Nathan Fineberg, Interface Software's president and CEO. "This Aberdeen Group white paper provides in-depth insight into the issues surrounding this exciting technology and is a must-read for any organization looking to implement corporate social networking."

A complimentary copy of the Aberdeen Group white paper can be downloaded at: www.interaction.com/aberdeen.

About Interface Software
Interface Software is the leading provider of CRM solutions enabling professional services firms and similar relationship-based organizations to create the Relationship Intelligence they need to generate new business and enhance client service. Its flagship product, InterAction, is a flexible and uniquely designed platform that delivers this Relationship Intelligence throughout the organization, quickly, efficiently and cost-effectively. Relationship Intelligence is a firm-wide asset that reveals the unique and complex connections between people, companies, relationships, experience and expertise, empowering professionals to leverage who and what they know to uncover new revenue opportunities, differentiate themselves from the competition and enhance client service. InterAction is internet-enabled, allowing professionals to view information however they choose—through knowledge management platforms, corporate portals, intranets, extranets and wireless devices. Interface Software has received numerous accolades, including the Inc 500, the Deloitte & Touche Technology Fast 50 for Greater Chicagoland, the Deloitte & Touche Technology Fast 500 and the Upside Hot 100. For more information please visit Interface Software's website at www.interaction.com.

 
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InterAction, Watch List, Who Knows Whom and Relationship Map are trademarks of Interface Software, Inc. and may be registered in certain jurisdictions. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.