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California State Automobile Association Chooses Callidus and IBM to Transform Incentive Compensation Into Strategic Asset

Posted on: Thursday, 7 July 2005, 09:00 CDT

SOMERS, N.Y., July 7 /PRNewswire-FirstCall/ -- IBM and Callidus Software today announced that the California State Automobile Association (CSAA) has implemented their joint open standards-based Enterprise Incentive Management (EIM) solution to automate the design, administration, reporting and analysis of sales incentive and variable compensation for the organization's sales force. As a result, CSAA can bring new insurance products to market faster and its field agents are able to access critical sales information on demand. CSAA can also better analyze and track transactional information, which is vital towards improving customer retention, boosting sales productivity and aligning incentive compensation to corporate growth objectives.

CSAA is using incentive compensation as a foundation to address some of its business challenges, including shifting customer demographics that require the need for more segmented and customized products. The implementation is part of CSAA's STAR (Strategic Transformation for Accelerating Results) project -- a multi-phased business and technology initiative led by IBM to help CSAA transform its systems, operations and business processes to better serve members and support other AAA partnerships.

"Implementing the joint Callidus Software and IBM solution allows us to design, manage and administer sales compensation more efficiently," said Michael Kahns, manager, sales and incentive compensation for CSAA. "The new system is an asset that will help the company reach its next level of growth."

The integrated Callidus and IBM solution -- which includes Callidus Software's TrueComp(R) and TrueInformation(R) products running on IBM's WebSphere* Internet infrastructure software, IBM DB2* Universal Database, and eServer* pSeries* system -- replaced a mix of legacy IT systems, spreadsheets and paper reports that CSAA previously mailed or couriered to over 600 field agents scattered throughout 60-plus locations. CSAA field agents can now access important sales information online, and the organization can more effectively use incentive compensation data for dynamic decision-making to better meet customer needs.

Easier Plan Changes, Faster Rollout of New Products

Administering sales force compensation is key for optimizing sales on existing products or rolling out new products. As a result of the implementation, CSAA has reduced by over 50% the amount of time required to make strategic changes to compensation plans. Even more important, the organization can introduce new and highly relevant insurance offerings to customers within three to six months.

"Effective management of a company's incentive compensation process is critical to compete in today's marketplace," said Bill Busby, Partner, BCS Insurance Operations Group, IBM. "Our consulting services and deep expertise, combined with Callidus' EIM applications, provide a comprehensive solution for customers like CSAA who want to turn incentive compensation into a core business asset."

"IBM was instrumental in helping CSAA realize the benefits of our TrueComp solution," said Bert Rankin, senior vice president of worldwide marketing for Callidus Software. "The strength of our partnership enables us to bring tremendous benefit to our joint customers. We value IBM's commitment and continued trust in our solution."

Callidus Software is an IBM strategic alliance partner. Utilizing technical expertise and testing labs at IBM's Innovation Center in San Mateo, CA, Callidus performed sizing, scalability and performance benchmarking on the latest eServer pSeries system and IBM middleware to ensure its solution would meet customer expectations at CSAA.

About IBM

With 80 years of leadership in helping businesses innovate, IBM is the world's largest information technology company. IBM is a leading provider of e-business solutions and is dedicated to helping companies, business partners and developers leverage the potential of the Internet and network computing across a wide range of businesses and industries. The company offers a host of cross-industry and industry-specific solutions designed to meet the needs of companies of all sizes. For more information on partnering with IBM, please visit: http://www.ibm.com/partnerworld .

About Callidus Software

Founded in 1996, Callidus Software (http://www.callidussoftware.com/) is an industry leading enterprise incentive management (EIM) provider to global companies across multiple industries. Callidus' EIM systems allow enterprises to develop and manage incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp(R) Grid architecture, Callidus delivers the industry's only EIM solution that combines the power and scalability of grid computing with the flexibility of rules-based interface. Customers/Partners include AOL Time Warner Corporation, AT&T Wireless, BMC Software, CUNA Mutual, Dun & Bradstreet, IBM, Pennzoil-Quaker State Company, SBC Communications and Sun Microsystems. Callidus is publicly traded on the NASDAQ under the symbol CALD.

About California State Automobile Association

The California State Automobile Association, the AAA National club member in Northern California, Nevada and Utah, offers a wide array of automotive, travel, insurance and financial services to more than 4 million members. AAA has been a leader and advocate for the safety and security of all travelers since it was founded more than 100 years ago.

*Denotes a trademark or registered trademark of the International Business Machines Corporation.

NOTE: Callidus Software, the Callidus Software logo, Everyone Profits, TrueChannel, TrueComp, TrueComp Grid, TrueInformation, TruePerformance, TrueReferral, and TrueResolution are trademarks of Callidus Software Inc. All other trademarks are the property of their respective owners.

Callidus Software Inc.

CONTACT: Jane Le Fevre of Callidus Software Inc., +1-408-808-6511, orpr@callidsussoftware.com; or Angela Sullivan of IBM, +1-646-598-6173, ora1lee@us.ibm.com

Web site: http://www.callidussoftware.com/

Web site: http://www.ibm.com/partnerworld

Source: PRNewswire-FirstCall

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