SPSS INC

SPSS INC

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Company Overview
SPSS Inc. is a leading worldwide provider of predictive analytics software and solutions. It provides predictive analytics technology and services for research analysts and business users. The company was founded by Norman H. Nie, C. Hadlai (Tex) Hull and Dale H. Bent when they developed a software system based on the idea of using statistics to turn raw data into information essential to decision-making in 1968. The company’s corporate headquarters is located in Chicago, Illinois in the United States.
SPSS offers software tools that enable customers to access and prepare data for analysis, develop and deploy predictive models, and generate reports and graphs to present the results. Its customers are involved in every industry worldwide, including telecommunications (VTR GlobalCom, ECtel), banking and finance (Lloyds TSB, Credit Suisse), insurance (Corona Direct, Natexis Assurances), healthcare (Children’s Memorial Hospital, Highmark Blue Cross Blue Shield), manufacturing (PUMA North America, Yamaha Motor Europe), retail and consumer packaged goods (Sofmap Company, Debenhams), higher education (Cabrillo College, New York University), government (Atlanta Police, Richmond Police), and market research (The Gallup Organization, Directions Research). In addition, the company provides consulting services to assist the client, before, during, and after the purchase, in making the most effective use of the SPSS software.
The company’s mission is to drive the widespread use of data in decision-making.
The company establishes partnerships and alliances to ensure customer success and add significant value to the predictive analytics solutions. These consulting and systems integration, complementary software, channel, and technology partners and alliances include: CGI Inc., IBM, Aprimo, CallMiner, Aspen Technology, Hewlett Packard, Microsoft, Oracle and Teradata, among others.
SPSS sells its products through a number of telesales organizations and field sales force in the United States, Europe, and the Pacific Rim.
Business Summary
SPSS Inc. (SPSS) is a global provider of predictive analytics software and solutions. It provides two types of software and service offerings to two distinct audiences. For analysts proficient in the use of data analytic methods, it offers statistical and data mining software products to examine and predict from a range of enterprise data. For business people acquainted with, but not proficient in, data analysis techniques, SPSS delivers predictive analytic solutions that embed the power of predictive analytics directly into particular business processes. It has two product lines that serves the predictive analytic products market: statistical products and data mining products. Its predictive analytic solutions is a combination of statistical products, data mining products, data collection technology, other technologies (such as scoring engines, rules and optimization techniques), implementation methodology and consulting services. In October 2009, IBM Corporation acquired the Company.
Description and history
SPSS Inc. (SPSS), incorporated in 1975, is a global provider of predictive analytics software and solutions. The Company provides two types of software and service offerings to two distinct audiences. For analysts proficient in the use of data analytic methods, it offers statistical and data mining software products to examine and predict from a range of enterprise data. For business people acquainted with, but not proficient in, data analysis techniques, SPSS delivers predictive analytic solutions that embed the power of predictive analytics directly into particular business processes. The Company has two product lines that serve the market for predictive analytic products: statistical products and data mining products. Its predictive analytic solutions is a combination of statistical products, data mining products, data collection technology, other technologies (such as scoring engines, rules and optimization techniques), implementation methodology and consulting services. In October 2009, IBM Corporation completed its acquisition of SPSS Inc.

During the year ended December 31, 2008, approximately 62% of the Company’s revenues came from sales to customers in corporate settings, with another 22% in academic institutions, 15% in government agencies and 1% from nonprofit and healthcare organizations. Among its government customers, SPSS’ offerings are primarily used to improve interactions between public sector agencies and their constituents or detect forms of non-compliance. At colleges and universities, the Company’s statistical and data mining tools are standards for teaching data analysis techniques and academic research.

Predictive Analytic Products

SPSS software products enable customers to access and prepare data for analysis, develop and deploy predictive models and generate reports and graphs to present the results. During the year ended December 31, 2008, the Company continued the process of streamlining its offerings into an integrated suite of products. As of December 31, 2008, there were three families of products that fit under the predictive analytic products umbrella. Together, the predictive analytic products represented 78% of total revenue during 2008. The Company’s predictive analytic products span the entire process of data analysis. They are modular, allowing customers to purchase only the functionality they need; integrated, enabling the use of various parts of the SPSS technology in combination to tackle complex problems; tailored to desktop operating environments for use, including browser-based environments for the delivery of results; available on most computing platforms, and for some products, translated and localized for use in France, Germany, Italy, Poland, Japan, Taiwan, Korea, China and Spanish-speaking countries.

The Company’s Statistics Family primarily consists of its SPSS product line. These statistical products are modular in nature and designed for use by research analysts working in a variety of commercial, governmental, and academic organizations. A typical purchase from the SPSS product line includes an SPSS Base product and related optional add-on modules. These optional offerings provide additional statistical functionality specific to particular types of analysis.

The Data Mining Family primarily consists of the Clementine data mining workbench with optional add-on modules for text mining and predictive Web analytics. These products feature process-oriented visual user interfaces. The Business Intelligence Family consists of the ShowCase product line. ShowCase products support query, reporting and online analytical processing (OLAP) functions for the IBM eServer iSeries (AS/400) computer market.

Predictive Analytic Solutions

SPSS’ predictive analytic solutions combine SPSS products with people-data collection technology and deployment technologies (Predictive Enterprise Services) along with a defined business discovery and implementation methodology to apply predictive analytics in business operational systems. The Company’s solutions offerings represented 12% of total revenue in 2008. These predictive analytic solutions are designed to integrate with operational software from other vendors to provide predictive capability to business users in their management of that operational system.

People-data collection technology, represented by the Dimensions product family for surveys, is at the core of many of the solutions the Company delivers. Dimensions provides companies with a direct link to their customers allowing companies to capture feedback from their customers. The Dimensions product family also serves the market research industry for survey software.

Services

SPSS offers a training program with courses covering product operations, general data analytical concepts and processes, as well as the manner in which statistical and data mining techniques can be applied to address particular business problems. Many courses are offered in an on-demand format over the Internet. Courseware is also made available to SPSS partners and integrators. SPSS offers consulting and customization services to assist in new implementations or configure existing applications to customer requirements. SPSS consultants also help organizations develop plans that align analytical efforts with organizational goals doing business discovery, assist with the collection and structuring of data, and facilitate the building of predictive analytic models. Services represented approximately 10% of total revenue in 2008.

The Company competes with SAS Institute, StatSoft, Inc., Minitab, Inc., StataCorp LP, Teradata Corporation, Fair Isaac Corporation, KXEN, Inc., Angoss Software Corporation, Oracle Corporation, Unica Corporation, Infor, Confirmit AS, MarketTools, Vovici Corporation, Voxco and Global Market Insite, Inc.

Founded by Norman H. Nie, C. Hadlai (Tex) Hull and Dale H. Bent when they developed a software system based on the idea of using statistics to turn raw data into information essential to decision-making

Business Line
Provides predictive analytics technology and services
Subsidiary
DATA DISTILLERIES UNITED KINGDOM LIMITED
Advisor
GRANT THORNTON LLP
IPO date
8/1993
US SIC Code
7372
Company Address
233, S. Wacker Drive

City province or state postal code
60606, CHICAGO, IL
Phone: +1 312 651 3000
Fax: +1 312 329 3690
Country address: UNITED STATES OF AMERICA
Website url: www.spss.com