The ever-evolving case management software solution market appears to be consolidating in the Health and Human Social Service software industry. Recently, larger firms acquired Social Solutions and Bowman Systems, both long-time market place members, likely indicating the start of the consolidation of small to medium size vendors. These acquisitions appear to be focused on recurring revenue and market share.
What always causes alarm with me is the approach Equity firms take when the focus is usually on the top line and perhaps profitability. It is perhaps a good short-term strategy, but clearly not a long term one. With an acquisition, the culture of the organization will often times change and in some cases, the heart and soul of the original company are gutted in the pursuit of the almighty dollar. The purchase prices seem to be inflated, requiring the new management teams to follow a rigid course of revenue growth, which in turn, results in the creation of an entirely different culture. The new vision is sold to the employees with new approaches, streamlined business processes, and new funding which puts a lot of pressure on growing the business with the existing legacy solution. In some cases, the new teams remove marginally profitable business units or raise fees to long-term customers. However, it becomes very difficult to compete in new markets with legacy technology/solutions. Some companies resort to increased maintenance and professional services fees. We learned of one vendor that raised their professional services rates from $125/hour to $250/hour. In my opinion, the companies with legacy technology platforms leave little room for any other approach.
CaseWorthy, Inc., does not have any equity interest from third party funders. Employing a very disciplined business model and approach, we have and continue to operate and grow as a result of our own revenue stream and have been fiscally responsible through the entire growth process without having to incur any outside debt. Being privately owned means we make decisions each and every day that will continue to provide value to our customers. Like Southwest airlines, which molds a successful culture of being the “Low Cost Airline”, the CaseWorthy, Inc., culture is to continue our commitment to be a technology leader in the industry by offering fresh and innovative technology without changing our fee structures to our customers.
CaseWorthy, Inc., is committed to develop new product solutions and enhanced functionality within the highly configurable application framework for its existing solutions without the need to charge more monies for new features or entries into new markets.
In the past 18 months, CaseWorthy, Inc., has grown its customizable framework by adopting new, community-wide industry initiatives and developing a new Graphical User Interface (GUI), CaseWorthy Analytics Reporting and most recently, the extremely well received CaseWorthy 24/7, self-service, bi-directional Web-Portals. The Web-Portal solution is very broad and will provide solutions for Donors, Volunteers, Mentors, Employment, Grants Management, Support, Providers, Internal Staff, Resource Center, and Utility Assistance. The possibilities are endless.
Another very important factor in positioning CaseWorthy, Inc., for short-term and long-term success is the addition of key staff members at all levels of the organization in the past year. Our Executive team has been able to seek out and recruit some of the best, brightest and proven talent in the Nonprofit and Human Social Services industry.
Here at CaseWorthy, Inc., our customers play a substantial role in making what we do possible. They are the real heroes as they continue to work tirelessly to provide services to those in need and for that, all of us at CaseWorthy, Inc., salute the work they do. We will continue to deliver state-of-the-art technology, services and expertise while maintaining our commitment to stable cost structures so our customers can continue providing essential programs and services.
-Brian Bingel, Chief Executive Officer