Broadbase Analytic Application Deployed by Sharper Image; Sharper Image Boosts Internet Sales Effort and Marketing and Merchandising Operations with Broadbase

Business Wire, March 19, 1999

MENLO PARK, Calif.--(BUSINESS WIRE)--March 19, 1999--Broadbase Information Systems, Inc., the leading provider of Enterprise Performance Management (EPM) solutions, today announced that The Sharper Image(R) Corporation (NASDAQ/NMS: SHRP) will deploy analytic applications from Broadbase as part of a broad Enterprise Performance Management initiative to optimize business performance in its marketing, e-commerce and merchandising operations. Sharper Image will use the new Broadbase solution for a wide range of applications, from profiling customers and performing "what if" analysis, to evaluating market demand, managing inventory levels, targeting buying patterns of Web shoppers, and improving profit margins.

"Broadbase enabled us to rapidly deploy analytic applications that our end-users can easily use to improve operations across different key departments," said Greg Alexander, vice president of MIS for The Sharper Image. "Broadbase offers the timely, comprehensive, and flexible platform we required to meet our strategic analysis needs, as well as handle our complex system mix and technical requirements. It's especially critical with the fast speed of conducting commerce on the Internet. As with our own product philosophy and innovative approach to retailing, we see the use of leading-edge technology such as Broadbase as central to our market strategy, brand momentum, and competitive advantage."

Analysis for Improved Performance

Sharper Image will use highly iterative "what if" analysis to boost sales in its electronic commerce division. Sharper Image saw its Web site sales increase over 400% during the 1998 holiday season. In order to generate repeat visits to its e-commerce Web site, sharperimage.com, Sharper Image will use Broadbase to track buying trends and other statistics of its Web shoppers. This information will provide the timely data to create targeted marketing programs.

Sharper Image will use Broadbase's analytic application for critical direct marketing analysis, ensuring higher response rates and increased order size for catalog mailings. The marketing department will analyze catalog mailing lists, customer profiles, and purchasing patterns to identify the most profitable customers, determine which consumers are likely to buy which products, and increase mail order revenue.

Broadbase will enable Sharper Image's merchandising department to conduct historical and trend analysis to maintain the optimal amount of inventory and product availability across multiple Sharper Image channels, including the catalog, the 85 Sharper Image retail stores, and the Sharper Image Web site. By recognizing sales demands, optimizing pricing and maximizing product availability, Broadbase will enable Sharper Image to increase top line revenue and bottom line profits.

"Sharper Image is a perfect example of the growing number of world class retail companies that are launching Enterprise Performance Management initiatives with analytic applications to create a consolidated view of operations and optimize business performance," said Bruce Armstrong, senior vice president of sales and marketing. "This is especially critical in the intensely competitive retail market, where companies need more powerful analysis capabilities to zero in on market opportunities and boost margins. Broadbase's analytic applications are setting a new standard by addressing enterprise-level requirements that traditionally have been under-served by piece part solutions and ignored by point applications for marketing automation."

About The Sharper Image

The Sharper Image is a leading specialty retailer of new, innovative, high quality products that make life easier and more enjoyable through its stores, catalogs, e-commerce Web site and other marketing channels. In addition to its award-winning catalogs, there are more than 85 stores throughout the United States and internationally. The Sharper Image catalog is also available on the Internet at http://www.sharperimage.com

About Broadbase

Broadbase is the leading provider of software for Enterprise Performance Management (EPM). Seen as the next wave of enterprise applications, EPM systems integrate and analyze data from front and back-office applications, e-commerce systems, and external data sources to help companies achieve maximum value from their customer relationships and operations.

Today, world class companies such as Chevron, Hewlett Packard, United Airlines, Baxter Healthcare, and BankBoston are using Broadbase's award-winning software to increase profitability, productivity, and customer value. For more information visit Broadbase at www.broadbase.com.

Broadbase is a trademark of Broadbase Information Systems, Inc. All other product and company names may be trademarks of their respective companies.

KEYWORDS: EPM, Enterprise Performance Management, Analytic Applications, CRM, Customer Relationship Management, ERP, Enterprise Resource Planning, ERM, Enterprise Relationship Management, DSS, Decision Support, data mart, data warehouse, Web, enterprise software, OLAP, data mining, E-Commerce, Sales, Marketing, Customer Service, Support, Enterprise Information Portals