In October, Vic Nagy, hotline operations manager at Ford Motor Co. in Dearborn, Mich., hired a new virtual service representative he dubbed "Ernie." Powered by software from San Francisco-based NativeMinds Inc., Ernie answers questions over the Web about Ford's car problem analyzer, the Worldwide Diagnostic System (WDS), from repair technicians at 5,600 Ford dealerships nationwide.
"It has a uniqueness that we really like, a natural language interface," says Nagy. That means Ernie can answer questions posed in conversational format, such as, "How do I run the WDS on a field test?" Ernie has been programmed to understand what a technician means by "WDS" and "field test." Plus, it tracks the topic of a back-and-forth interaction with a technician, so if Ernie gets a follow-up question like "How do I hook it up?" it knows to what "it" refers.
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NativeMinds Inc.
Location: 480 Second St., Suite 300, San Francisco, Calif. 94107
Telephone: (415) 777-3111
Web:www.nativeminds.com
Niche: Natural language Web-based customer service system
Why it's worth watching: The company's system can respond to natural language queries.
Company officers: Walter Tackett, co-founder and CEO Scott Benson, co-founder and chief technology officer
Milestones: January 1999: NeuroMedia is incorporated; November 1999: First product is introduced; June 2000: Changed name to NativeMinds
Employees/growth: 90; 225% growth per year
Burn money: $33 million from TA Associates, Oracle Venture Fund, CIBC Capital Partners, Horizon Ventures LLP, Camelot Ventures and Band of Angels Fund LP
Products/pricing: NeuroServer; $300,000 on average for software and services
Customers: Ford Motor Co., GlaxoSmithKline PLC, Deutsche Telekom AG, Western Provident Association
Partners: eAssist Global Solutions Inc. and Convergys Corp.
Red flags for IT: NeuroServer works best on a focused set of how-to information. Users need to learn NativeMinds' scripting language to build and maintain its database. NeuroServer has limited conversation capabilities.
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Nagy says that context-sensitive capability and around-the-clock availability has made the system a valuable supplement to Ford's human-staffed help line, which is open only 12 hours a day, six days a week.
How Ernie Works
NativeMinds' NeuroServer is the brains behind Ernie, says Scott Benson, co-founder and chief technology officer at NativeMinds. Customers interact with NeuroServer via the Web, he says. A Web server processes the questions, passing them to the NeuroServer. When the NeuroServer finds an answer, it returns a Web page to the questioner.
NeuroServer runs only on Windows NT; a Solaris version is scheduled to ship in the second quarter, with Linux following before year's end, says Benson.
Chris Martins, an analyst at high-tech consulting firm Aberdeen Group Inc. in Boston, says NeuroServer's most important feature is its ability to step through a sequence of questions, where the follow-up question is based on the previous question.
That conttext sensitivity makes it able to drill down to just the right answer, he says, and is significantly different from the more common search engines that Web sites often use. NeuroServer doesn't take a question and search for multiple answers. Rather, Martins says, it finds the answer based on multiple questions.
Martins says effective applications of NeuroServer focus on a bounded set of questions. It's not meant to respond to any possible question, but to act as a guided interactive tool. Users teach NeuroServer its initial set of knowledge through a wizard-driven authoring environment. A Web-based interface allows companies to update NeuroServer's information set while the intelligent agent is up and running. But NeuroServer isn't limited to tapping the data stored in its internal database.
Easier, Quicker
At Ford, Ernie will search the WDS manual for information not found in its internal knowledge base, Nagy says. Linking directly to that database instead of loading duplicate information into Ernie means lower maintenance costs and no problems synchronizing two sets of data. Plus, when Ernie is truly stumped, the application automatically routes the customer's question and contact information to customer service for a callback, saving a Ford technician the effort of starting over with the customer's question, says Nagy.
Martins says the external data links make NeuroServer useful in areas where the questions are general but the answers are customer-specific. For example, he points to financial services, where many people have the same questions, but the answers need to bring in data from individual investment files.
Walter A. Tackett, co-founder and CEO of NativeMinds, says NeuroServer is best suited to answering "how-to" type questions. These questions can often cost $25 per incident when handled by a human operator over the phone, he estimates; using just e-mail or live chat only brings the price down to $10. With NeuroServer, he claims, companies can answer these how-to questions for only 50 cents each, when all costs are amortized.
NativeMinds is working on internationalizing NeuroServer, says Benson, allowing it to enter the Spanish, Dutch and French markets in the immediate future. Another focus of improvement is adding voice recognition so that customers can ask questions as well as type them.
The Buzz: State of the Market
Searching for Support
Chris Martins, an analyst at Aberdeen Group, says he sees NativeMinds' Web-based interactive customer support technology as part of the overall customer service software market. Martins says he expects sales in this category to reach approximately $7 billion this year.
And there are two areas of competition within NativeMinds' particular niche, says Paul Hagen, an analyst at Forrester Research Inc. in Cambridge, Mass. One consists of vendors that offer similar intelligent natural language agents. Hagen says he sees only marginal technology differences among these companies' products. He says the toughest competition comes from another category: knowledge base and search engine vendors.
Artificial Life Inc.
Boston
www.artificial-life.com
The capabilities of Artificial Life's virtual agents closely mirror those of NativeMinds, says Hagen. The agents have natural language processing capabilities, can carry on interactive conversations and will escalate incidents to a human upon reaching the limits of its knowledge.
Ask Jeeves Inc.
Emeryville, Calif.
www.askjeeves.com
The Ask Jeeves search service isn't close to NativeMinds in terms of implementation, but it has more mind share, Hagen says.
eGain Communications Corp.
Sunnyvale, Calif.
www.egain.com
The eGain Assistant intelligent agent conducts interactive conversations, gathers customer intelligence, provides an online brand and personality and allows companies to analyze customer interactions. EGain offers Assistant with its other call center and customer service applications.
Soliloquy Inc.
New York
www.soliloquy.com
Soliloquy focuses on gaining personal information from site visitors to create targeted product offerings. The company also provides a turnkey implementation service and a hosting arm.