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8.0. EDSR 02-14-2005 ITEM # 8. • City of Elk River MEMORANDUM TO: Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development DATE: February 14, 2005 SUBJECT: Consider Business Incubator Tenant Lease Extension: K-Netica Background K-Netica became an Incubator tenant in May of 2002, subleasing 2,267 SF of space. The company has developed a universal human language translator utilized through computer software. The software has a number of key applications for commercial, government, military, and personal use. The EDA has granted K-Netica three sublease extensions (one for 9 months and two for 6 months). In addition to the stock offering, the company has made timely cash rent payments. Issue Joe Roushar, Chief Technology Officer, has requested that the EDA consider a fourth sublease extension for the term of six-months through August 2005. Mr. Roushar will be in attendance to provide the EDA with a brief company update followed by a question and answer session. Staff Recommendation Staff recommends that the EDA consider granting the 6-month sublease extension to K-Netica effective February 21, 2005 though August 20, 2005 at the following cash/stock rent rate: $ 4 per SF cash rent ($755.66 per month) $ 7 per SF stock value (divided among building owner, Incubator consultant, &EDA) $ 11 per SF total rent value • Volume 4.1 ♦NEtIC2 February 2005 0 4;t4 ,/ _ _14, c An Update of KnowledgeNetica Corporation . (DBA K-Netica) New ISYLTM Features Spark Customer Interest The Profile Manager The ISYLTM Profile Manager adds to the rest of the K-Netica's ISYLTM Care product suite has been ISYLTM product suite a rapid implementation feature expanded to meet the business needs of customers that both saves money for customers and brings up who need to choreograph customer interactions, to new capabilities faster. The Profile Manager includes comply with regulatory constraints and to enhance tools that automatically scan content and generate business value through cross-sell/up-sell and other profiles of the content for indexing. These individual types of campaigns. The expansion includes an profiles and the aggregate index speed access to advanced Rules Engine that augments the Workflow answers to questions posed by customers. Engine, and a Profile Manager. Here's what they do: ,' ®4� Adaptor Profiles User t Interest ISYLTM WorkFlow — As explained in a prior �, Profile* " Prof Profile Wizard newsletter, the workflow engine enables call center =� �-, Transaction g ei Profile Manager administrators to script an interaction that tells the Manager ' system what to do at each step (display a form, jKnowledge s security ` Profile Extractor Source Manager create a transaction, lookup data...) based on a Profiles response from a customer. The ISYLTM Interpreter \ir 4 `Vt\ helps determine which response is intended by the ` customer, thus making ISYLTM Workflows available 'Adaptors for self-service or"Virtual Agent"implementations. A-- _ aaa . nt II . ,. , . While the workflow engine follows defined flows, t„.m •IL Adobe wen ? �,b there may be cases in which an exception occurs that requires special action outside the normal flow. Such Intellectual Property Update exceptions could include a change of address. As the Our patent applications for the ISYLTM interpreter and fact of a change of address may come up at any time related technology and products are in review. We during the conversation (ergo the scripted workflow) are in the process of expanding our portfolio of patent the Rules Engine can take care of the special work applications to include our innovations in the with a "flow exception". Customer care people can integration of workflow, rules and the Interpreter. tell the system what to do based on any data that comes up during the interaction. This gives ISYLTM Sales Pipeline Update Care a tremendous amount of flexibility to meet As mentioned in our updated web site, we have business needs and adapt to unique situations. focused our marketing efforts on the vertical Health Care market. In that effort we have made significant / \ progress in working with local Health Management /understands\\ companies. Stay tuned for more information. i intent of English questions and answers.', f, \ Welcome to New Personnel We are excited to announce expansion in our ,q =. 0,,_6,,,,.,'' a, , �� Marketing and Quality Assurance teams: Juan / 4 s%\ Ramirez is helping K-Netica build a high-impact ` ; ,4,9 y marketing effort and the results so far have been � � 1 „r� \ stellar. Timo Impio: Timo (not to be confused with / \., ` "'gs, Randy Timo) is an exchange student from Finland. /' ,p \ Timo has joined K-Netica as a full-time intern from r' Workflow tisesstored and real-time used Rules \\ January through May 2005. Please join us as Engine ate totngger estgnat_'actions Engine N we welcome Juan and Timo to the team. %' \ Implements business processes implements business processes \ as scripted workflows a services as complex conditions&services `\ KnowledgeNetica DBA K-Netica f. ., 16820 Hwy 10,Suite 120,Elk River,MN 55330 Voice:(763)274-1000 Fax:(763)274-1118 Volume 4.1 K-Netica Newsletter February 2005