Understanding the Understanding the Market SegmentMarket Segment

Industry AnalysisIndustry Analysis

3 Year Trend3 Year Trend

$460,000,000

$480,000,000

$500,000,000

$520,000,000

$540,000,000

$560,000,000

$580,000,000

1999 2000 2001

Market Value

Workforce LogisticsWorkforce Logistics

YearYear Sub Contract Sub Contract EmployeesEmployees

Remote Remote EmployeesEmployees

19991999 9%9% 10%10%

20022002 25% 25% (VAR Magazine)(VAR Magazine)

25% 25% (Kronos Research)(Kronos Research)

Market Segments Market Segments

Hourly

Professional Hourly

Salary

51%

26%

23%

Market SaturationMarket Saturation

Manual

Fully Automated

Partially Automated

40%

30%

30%

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

10-19Emp

20-49Emp

50-99Emp

100-249Emp

250-499Emp

500-999Emp

1000 orMore

# of Establishments

Segment Value (retail)

Market Segment PotentialMarket Segment Potential

In 1,000’sIn 1,000’s

10 to 19 Employees10 to 19 Employees

Number of Number of EstablishmentsEstablishments

1,800,0001,800,000

Total Market ValueTotal Market Value $250 Million$250 Million

Average SaleAverage Sale $600$600

Over 90% of establishments

Difficult to reach 1.8 million establishments

Impossible to make a profit with $600

20 to 49 Employees20 to 49 Employees

Number of EstablishmentsNumber of Establishments 549,785549,785

Total Market ValueTotal Market Value $192 Million$192 Million

Average SaleAverage Sale $1,750$1,750

Has only 30% of the establishments as 10-19

Nearly the same value opportunity

Still need to mitigate cost of sale

50 to 99 Employees50 to 99 Employees

Number of Number of EstablishmentsEstablishments

188,676188,676

Total Market ValueTotal Market Value $166 Million$166 Million

Average SaleAverage Sale $4,500$4,500

Relative Success

100 to 249 Employees100 to 249 Employees

Number of Number of EstablishmentsEstablishments

109,860109,860

Total Market ValueTotal Market Value $260 Million$260 Million

Average SaleAverage Sale $10,937$10,937

250 to 499 Employees250 to 499 Employees

Number of Number of EstablishmentsEstablishments

27,92227,922

Total Market ValueTotal Market Value $150 Million$150 Million

Average SaleAverage Sale $20,312$20,312

500 to 999 Employees500 to 999 Employees

Number of Number of EstablishmentsEstablishments

10,62010,620

Total Market ValueTotal Market Value $124 Million$124 Million

Average SaleAverage Sale $48,300$48,300

Over 1,000 EmployeesOver 1,000 Employees

Number of Number of EstablishmentsEstablishments

6,0086,008

Total Market ValueTotal Market Value $215 Million$215 Million

Average SaleAverage Sale $112,500$112,500

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

10-19Emp

20-49Emp

50-99Emp

100-249Emp

250-499Emp

500-999Emp

1000 orMore

# of Establishments

Segment Value (retail)

Market Segment PotentialMarket Segment Potential

In 1,000’sIn 1,000’s

AdvertisingAdvertising

MarketsMarkets Solutions for Small BusinessesSolutions for Small Businesses

Enterprise SolutionsEnterprise Solutions

Solutions for Small Solutions for Small BusinessBusiness

Goal Minimize prospecting cost

Affordable strategies Maximize selling effort

Professional literature Collateral materials accomplish most of

the selling

Solutions for Small Solutions for Small BusinessBusiness

Strategy Cards Payroll service relationships Web links (updated web site) Follow up with first class literature

Enterprise SolutionsEnterprise Solutions

Goals Advertise a national and professional

image Build confidence and trust in the market

place Communicate our technology edge

Enterprise SolutionsEnterprise Solutions

Strategy Case studies White papers More trade shows Executive Briefings Professional collateral material Competitive implementation services

What Industry Are You In?What Industry Are You In?

Time and Attendance Time and Attendance Time & LaborTime & Labor Labor ManagementLabor Management Front line labor managementFront line labor management Employee Relationship Employee Relationship

Management (ERM)Management (ERM)

Implementation WebImplementation Web

Sales

Training

Maintenance

Installation

Integration

BA/AE

Project Manager

User Community

Purchasing

Why Implement Services?Why Implement Services?

89%

55%

62%

60%

65%

99%

90%

85%

80%

70%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Improve Services toEmployees and Managers

Increase Information Access

Reduce Administrative Costs

Enable HR to Serve MoreStrategically

Eliminate ProcessSteps/Approval/Forms

2001

2000

Employee Self ServiceEmployee Self Service

Application Planned In Use

Employee Communications 95% 75%

401k service 85% 72%

Open Enrollment 88% 55%

Benefit inquiries 88% 47%

Training registration 73% 40%

Personal inquiry 85% 38%

Personal data maintenance 88% 38%

Time card entry 64% 37%

Withholding changes 77% 32%

Electronic paystubs 72% 29%

Vacation, leave requests 53% 22%

Family status/life event changes 88% 22%

Services for retirees 32% 10%

Manager Self ServiceManager Self Service

Application Planned In Use

Travel and expense management 65% 42%

Time card approval and reporting 65% 33%

Labor & Budget analysis 42% 25%

Management reports 73% 18%

Employee changes and transfers 69% 11%

Approvals 65% 11%

Leave management 50% 5%

Workforce planning* 29% 2%

*Workforce planning is a strategic application

Value of Self ServicesValue of Self Services

Employee Size 2001 Budget 2001 In Use $ per Employee

Over 50,000 $1,800,000.00 $2,300,000.00 $ 32.86

10,000 to 49,999 $1,300,000.00 $1,600,000.00 $ 80.00

5,000 to 9,999 $1,200,000.00 $1,350,000.00 $195.65

1,000 to 4,999 $1,100,000.00 $1,300,000.00 $ 590.91

1 to 999 $ 900,000.00 $1,100,000.00 $1,466.67