EXTRANET NEWS * Week of 6 January 2003

EXTRANET NEWS * Week of 6 January 2003

Editors: Joel Orr and N'omi Orr

http://www.extranetnews.com

1. FRAMEWORK TECHNOLOGIES: GROWING!

2. THE LIST

3. TIDBITS

4. QUOTE OF THE WEEK

All of us at EXTRANET NEWS wish you a happy and prosperous new year!

1. FRAMEWORK TECHNOLOGIES: GROWING!

EXTRANET NEWS spoke with CTO Dave Halpert, one of the company's founders.

"We are completing our fourth straight quarter of growth," said Halpert, "and we are close to being profitable." Those are impressive statements in these times.

Why is this 50-person company, one of the first venture-funded extranet firms, prospering? "Focus and leanness are the two main reasons," Dave responded. "We have gained a better understanding of what we do well, and have refined our capabilities through additional product features. Meanwhile, we have also concentrated on product design in manufacturing, not just production."

The company attributes two-thirds of its revenues to manufacturing and one-third to AEC, principally facility management.

"We provide collaboration and information management on three levels: product, project, and portfolio. Each level has specific needs, in terms of features, that differ from those of the other levels. While we focused initially on projects, with our ActiveProject product, we now address all three levels, with the ActiveProduct Suite," said Halpert.

This set of products has appealed more to manufacturing clients. "AEC clients seem to have less interest in ActivePortfolio."

"In the product-design area, we discovered that most of our users wanted to adhere to a formal process, but had difficulty doing so. We created a workflow that signals and documents deliverables and metrics. It's been very successful." To this point, the FrameTech Web site describes the ActiveProcess software: "ActiveProcess helps team leaders formalize, automate, and compress product introduction processes, reducing development costs, decreasing capital expenditures, and increasing revenue."

Executives wanted a window through which they could manage multiple projects; FrameTech responded with the ActivePortfolio product. It also provides an "executive dashboard" to help top-level managers keep projects aligned with corporate goals and policies, as well. "Many companies have found that it takes them too long to decide whether to stop a project or continue it," said Halpert. "ActivePortfolio addresses that need."

Halpert went on to say that, while ROI on collaboration is difficult to demonstrate—"like trying to document the value of email"—identification of bottlenecks, and time-to-market reduction, are demonstrable and quantifiable.

The company focuses on software sales, with prices starting at roughly $60,000 for 50 seats. A hosted service is available, but is typically used only for pilot projects.

What does the future hold for the product line? Better integration with Web services, with external project tools (such as Microsoft Project and Primavera), and with analysis tools, along the lines of their integration of CrystalReports for reports and printing.

Our take: The only extranet companies that survive will be those that cultivate "focus and leanness" themselves, and that solve real problems for customers and demonstrate tangible benefits. FrameTech continues to pass that test.

2. THE LIST

Total companies: 255 (see who's on The List at http://www.extranetnews.com/)

NEW: Intuit QuickBase, workgroup collaboration

3. TIDBITS

· Joel's upcoming book, "The Dandelion Principle: Structuring for Greatness," can be previewed at http://www.dandelionprinciple.com.

Groove Networks contracted with IDC to write a white paper: "There's More to Collaboration than Email." It's a worthwhile read: http://www.groove.net/extras/beyondemail/idc/?tip=1202h

Sitescape announces program management—with more new stuff to follow next week. Details at http://www.sitescape.com.

Sneak a peek at the new Delphi Group research on portals: http://www.delphigroup.com/a=1/b=1046/c=8jqk74605wvpc

· International Building Show; January 21-24, 2003; Las Vegas, Nevada.

· International Air-Conditioning Heating Refrigerating Exposition; January 27-29, 2003; Chicago, Illinois

· COFES2003, May 15-18, 2003, Scottsdale Plaza Hotel, Scottsdale, AZ. Our new user-focused agenda is particularly timely. Be there. http://www.cofes.com

4. QUOTE OF THE WEEK

"If ye love wealth better than liberty, the tranquility of servitude better

than the animating contest of freedom, go home from us in peace. We ask not

your counsel or arms. Crouch down and lick the hands which feed you. May

your chains set lightly upon you, and may posterity forget that ye were our

countrymen."

- Samuel Adams, speech at the Philadelphia State House, August

1, 1776.