7.0. EDSR 08-09-2004 ITEM II 7.
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
5
DATE: August 9, 2004
SUBJECT: Consider Business Incubator Tenant Lease Extension: K-Netica
Attachment
• K-Netica Newsletter,July 2004
Background
K-Netica,became an Incubator tenant in May of 2002, subleasing 2,267 SF of space. The
EDA granted the company six-month sublease extensions in April 2003 and January 2004.
In addition to the stock offering, the company has made timely cash rent payments in the
amount of$566.75 per month.
K-Netica 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 attached K-Netica newsletter describes recent K-Netica
activities.
Issue
Joe Roushar, Chief Technology Officer, has requested that the EDA consider a six-month
sublease extension through February 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 August 21,2004 through February 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
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An Update of KnowledgeNetica Corporation
4 (DBA K-Netioa)
New IC2 Call Center Product Sales Pipeline Update
ISYLTM IC2 (Intelligent Customer Care) includes a Though our first quarter of product revenues was
new product group: CRM. CRM stands for Customer meager, we expect significant growth as the products
Relationship Management, and is used by agents and mature and expand. Second Quarter 2004 revenues
administrators in call centers to: were about $50 K. If current deals come through (as
1. track interactions with customers; expected), our annual revenues will be over $200 K.
2. help administrators manage interactions That is less than revenues from consulting in the first
through agent scripting and workflow rules; few years of the company, but it is a strong start for
3. help agents interact with customers through product sales. In addition to current deals we have
a convenient user interface that includes the another$150 K of business in the pipeline.
scripts that guide them through calls.
Minneapolis Data Center Buildout
ISYLTM CRM includes basic and advanced workflow We have established a data center in Minneapolis
engines. Using the basic engine, call center where we have deployed a demonstration version of
administrators can tell the system what to do next the ISYLTM CRM and IVR software. We will soon be
(display a form, create a transaction, lookup data...) using www.isyl.com to connect potential customers
based on a response from the customer. Using the to the demo so they can see and test it online. The
advanced workflow engine, administrators and Data center is at the INFLOW Internet Service
technicians can tell the system what to do next, Provider at the former Control Data Corp. building
based on any data in the system, such as the adjacent to the Hubert H. Humphrey Metrodome:
duration of the call, the geographic location of the home of the Minnesota Vikings and Twins.
•
caller, the number or color of widgets they have
ordered, or other usable information. Partnerships
Through our relationship with Alticom CTI we expect
The value proposition is simple: Small to mid-sized to be able to approach AltiGen PBX owners. Because
call centers cannot afford full-featured CRM systems. we have preformed the integration work with the
We offer fewer features at much more affordable AltiGen PBX telephony system, current owners can
prices, but we also have things they don't have: significantly benefit from ISYLTM IVR and CRM
• Direct integration with speech-enabled IVR software. We are also in discussions with Ambient
• Integration with AltiGen telephony systems Consulting to provide integration, configuration and
• Powerful rule-based workflow engine customization support as we sell ISYLTM systems.
The illustration below shows how ISYLTM CRM This type of partnership is a key component of our
interacts with the ISYLTM IVR and Web system to strategy for success.
provide agent-based service as well as self-service:
ISM CRie i o
Agent d,l T� ,d -- Welcome to New Personnel
We are excited to announce expansion in our Quality
( Assurance team: Bruce Carlson: Bruce is a
ISVL Middleware seasoned QA leader and has agreed to manage our
Wt.CRM quality team and establish the processes and
Manager Trar+3co"f standards that will enable us to deliver high quality
BualnessRI&F e' software and market throughout the world. As the
I European Community requires ISO 900x compliance,
ISYLCRM _ c quality assurance is a key component of our strategy.
diencuandaptor Please welcome Bruce to the team.
The ISYLTM CRM software is was the source of our Published by:
first product sales revenue, and is up and running in KnowledgeNetica DBA K-Netica
IIIour first customer site. We are now integrating 16820 Hwy 10,Suite 120,Elk River,MN 55330
Microsoft Speech Server 2004 Platform. Voice:(763)274-1000 Fax (763)274-1118
Volume 3.3 K-Netica Newsletter July 2004