Difference between revisions of "Acxiom Corporation"

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Returning to Conway, Morgan encouraged employees to work nonstop on a solution to Direct Media's problems. Within two weeks the company had sketched out what has since been recognized as the nation's first fully-automated, online system for generating mailing lists. The entire programming job took nine months to accomplish. The solution became known as the List Order Fulfillment System (LOFS), with Direct Media as the sole customer.  
 
Returning to Conway, Morgan encouraged employees to work nonstop on a solution to Direct Media's problems. Within two weeks the company had sketched out what has since been recognized as the nation's first fully-automated, online system for generating mailing lists. The entire programming job took nine months to accomplish. The solution became known as the List Order Fulfillment System (LOFS), with Direct Media as the sole customer.  
  
<pre>'''The production order cycle for fulfillment orders followed these basic steps:'''
+
*How LOFS worked on the CCX Network
 
 
I. Order Entry
 
A. order is entered
 
B. print order edit copies
 
C. release the order
 
 
 
II. Production Cycle
 
A. Order pickoff
 
B. Name and address selection
 
C. Cross section sort
 
D. Count evaluation
 
E. Output Generator
 
F. Label printing
 
 
 
III. Quality Control/Shipping/Invoicing
 
A. Quality Control
 
B. Box and Ship Order
 
C. Invoicing
 
D. Order purging
 
 
 
The production order cycle for electronic purchase orders follows these basic steps:
 
 
 
I. Order Entry
 
A. Order is entered
 
B. Print order edit copies
 
C. Release the order
 
D. Order routed within CCX Network as Needed
 
II. Production Cycle
 
A. Receive LOFS acknowledgment
 
B. Order is released
 
C. Order pickoff
 
D. Name and address selection
 
E. Cross selection sort
 
F. Count evaluation
 
G. Output generator
 
H. Label printing
 
III. Quality Control/Shipping/Invoicing
 
A. Quality Control
 
B. Box and Ship Order
 
C. Invoicing
 
D. Order purging
 
IV. If order is not fulfilled at CCX
 
A. Receive order acceptance
 
B. Route to CCX Network member who will post
 
C. Invoicing
 
D. Order purging
 
 
 
Order Entry: After you place your order, several things might happen. It could be placed n the UNEDITED status if you enter the order into the system (that is, press the SHIFT+ENTER keys) rather than using the F5 key. When you press the shift + F5 key, the computer checks each field for errors and places the order in a HOLD status. We call this “PF5ing” an order. The order could be placed in ERROR status if any incorrect information was put in the order or if any required fields were left blank. When all errors have been corrected and you PF5 the order, the order goes into HOLD status.
 
 
 
Fulfullment Orders: After you review the order, you can either release it for counts only (RELEASED AND APPROVED status) or you can approve it for label/tape production (COUNT APPROVED status).
 
 
 
Electronic Purchase orders: After you review the order, request the order be released, press the SHIFT + F5 keys again (PF5 the order again) and the final order form will be printed. If the manager/owner is in the CCX Network, the order is routed to that location.
 
 
 
PRODUCTION CYCLE
 
 
 
Selection: A generalized pickoff is run once a day for all fulfillment files, analyzing and picking for selection all list orders in RELEASED or APPROVED status. Up to 800 orders may be selected in any one cycle for a particular file. The computer tells the computer operator which magnetic tape reels to mount and will continue only if the correct reel is mounted. During this process, your order is in SELECTING status, and cannot be changed. As the necessary reels are mounted and “read” by the computer, the records for all orders being selected in the cycle are picked off. If your order requires a cross section, the entire universe will be selected. The status of the order is changed to SELECTED. The first step in producing your order is to sort all the selected names. When the sort takes place, the cross sections are calculated for all orders requesting that process. Only the maximum number of names ordered is kept.
 
 
 
Next, the computer compares the selected quantities with the quantities specified in each order. If the quantity is not within acceptable limits, the order is flagged HELD FOR COUNT REVIEW and goes into COUNTS? Status. You can determine the status of all your orders every morning by reviewing your status report which is printed on your printer. This is the most important step in the order cycle because it is up to you to review the status of your orders and take the necessary action to allow your order to proceed to the next step in the cycle. You can revise, approve, or cancel orders at your terminal.
 
 
 
Output Generator: The sorted file is then processed by a routine called the Output Generator. The Output Generator creates magnetic tapes with tape layouts and dumps. Information for lable and card output is formatted into the actual printed image and this is saved on a “spool tape” for printing later. All required count reports plus state and SCF counts are produced. Also, a copy of the order and the shipping labels are printed.
 
 
 
As the Output Generator produces each order, it updates the status of that order to PRODUCED of the order is not held for counts review. Orders that require special handling are placed onto a separate magnetic tape and will not be placed in PRODUCED status until the special handling is accomplished – usually in three to five days.
 
 
 
PRINTING THE ORDER: As soon as the Output Generator run is finished, all orders on the print image “spool tape” that are not in COUNT REVIEW status (because of special handling or counts discrepancies) are printed on the appropriate medium – cards, labels, etc.
 
</pre>
 
  
 
LOFS and the Direct Media account represented a turning point for the company. Old employees were hired back and salaries were restored to their old levels, and the company began to grow again. Three years later the company began building its first comprehensive "marketing database" atop LOFS technology for the American Management Association, an organization providing business executive training. The completion of the database made it possible for the company to begin advertising what it called the personalized "computer letter" and its niche as a one-stop shop for direct mail services.
 
LOFS and the Direct Media account represented a turning point for the company. Old employees were hired back and salaries were restored to their old levels, and the company began to grow again. Three years later the company began building its first comprehensive "marketing database" atop LOFS technology for the American Management Association, an organization providing business executive training. The completion of the database made it possible for the company to begin advertising what it called the personalized "computer letter" and its niche as a one-stop shop for direct mail services.

Revision as of 21:30, 22 July 2009

The Acxiom River Market Tower is a twelve-story corporate office building just south of the River Market in downtown Little Rock. Photo by Phil Frana.

The Acxiom Corporation is a public corporation headquartered in Little Rock and Conway, Arkansas. Acxiom specializes in data mining, business databases, grid computing, direct marketing technology, and customer relationship management software. It collects information on more than ninety million households. The company competes in the marketplace with Experian Information Solutions, Dunn & Bradstreet, and Harte-Hanks.

The company had sales of $1.3 billion in 2007-2008. Acxiom employs about 6,600 people across the United States and in eleven foreign countries. The chief executive officer at Acxiom is John Meyer.

Company Origins

The company owes its origins to Ward Industries owner Charles Ward. Ward was the son of David H. "Dave" Ward, a blacksmith turned school bus manufacturer at Ward Body Works in Conway. In 1959 he walked away from his undergraduate studies at the University of Arkansas at Fayetteville, and instead began learning the manufacturing business at a satellite Ward plant his father had built in Austin, Texas. The company passed into the son's hands in 1968.

In the 1960s the company began an innovative program of computer-aided manufacturing and inventory control with IBM 360 mainframes. Ward exploited this experience gathered in the data processing department of the family bus company to found spinoff Demographics Inc. with brother Stephen Ward in November 1969. The immediate objective of Demographics was to meet the urgent mail list processing needs of the Young Leadership Council for the Democratic Party. The Democratic Party, long the dominant political force in Arkansas, had found a fierce competitor in billionaire New York transplant and Arkansas governor Winthrop Rockefeller, who rejuvenated the struggling state Republican Party with a formidable campaign organization and new data processing machinery for political mailings.

Ward, at the time immersed in party politics as Arkansas' Democratic National Committeeman, rapidly grew the system for use in the successful gubernatorial election campaign of Dale Bumpers over Governor Rockefeller. He also provided list processing, analysis, and consulting services in the failed draft movement of U.S. Representative Wilbur D. Mills as a potential candidate in the 1972 Presidential campaign against Richard Nixon. Demographics supported Democratic candidates in other races, including the 1975 Presidential campaign of Lloyd Bentsen.

The company attempted to diversify its client base by accepting data processing jobs from local Conway businesses "no matter how small." One of the earliest customers was the bus company itself, which in the 1950s and early 1960s processed its own inventory, payroll, financial records on an IBM 402 Accounting Machine. The company also secured a contract with local utility provider Conway Corp to process customer billing statements. Another early client was Conway's Nabholz Construction. More than fifty businesses contracted a variety of data processing services by 1974.

Entry into Direct Mail Business

The company was still largely a printing business, as data processing jobs exited the company's spartan metal building not over telecommunications lines but from a loading dock. The company occupied a 6,000 square-foot building housing an IBM System/370 Model 135 mainframe computer and press near the present Smitty's Bar-B-Que on Harkrider Avenue across from the main bus plant. Revenue had trebled from $388,000 in 1971 to $1.2 million only four years later. The company had over thirty-five full time employees, many hired away from the bus plant and still card-carrying members United Auto Workers. Demographics and Ward Bus drew from the same leadership pool. Both companies were organized under the umbrella corporation Ward Industries and had identical members serving on their boards of directors.

But then a perfect storm of technical, political, and other business challenges blew into Conway. Taking on the diverse data processing needs of local businesses stretched the expertise and data processing capacity of Demographics to its breaking point by 1975. The situation was complicated by changes in Federal Election Commission rules after the Watergate scandal, which "put a damper on" the company's political business. Then one of Demographics' most lucrative and only year-round sources of business, the Hot Springs land developer Diamondhead, folded. Employee salaries were slashed dramatically and ten employees lost their jobs.

In a seismic shift in leadership Charles Ward divested himself of Demographics in the midst of his own personal financial hardship. Mostly unrelated to the ongoing work of the small data processor, Ward had gambled his company's future on a new bus plant in Beaver Falls, Pennsylvania. The plant failed to thrive. Ward Bus Manufacturing eventually went into Chapter 11 bankruptcy. In the divestiture Charles D. Morgan, an IBM-trained systems engineer and Demographics vice president since 1972, became the new president and CEO of Demographics.

"Like a lot of people in this business, I didn't exactly set out to do the job I do now," recounts Morgan. "My undergraduate degree from the University of Arkansas was in mechanical engineering. In the mid-60s, when I went to the university, there was no such thing as software engineering, otherwise I would have done that. My wife calls me a geek because I'm very much of an engineering frame of mind. But I did acquire business acumen along the way."

Morgan's grandfather has been a successful Fort Smith, Arkansas, construction materials supplier, hardware wholesaler, and motel owner. This business passed to Morgan's father who "worried about things like sales, profits and borrowings," said Morgan. "[I]t helped a lot that I grew up in that environment."

Morgan perceived in the wreckage of the old Ward Industries an opportunity to mainstream the mailing list technology developed for Demographics' original political customer user base. He encouraged company employees to reevaluate its dependence on ordinary data processing services, which provided small margins, and big political jobs that encouraged a culture of feast or famine. "If the candidate won, we might get paid. If they lost, don't even think about it," remembered Jim Womble, a systems analyst and sales manager at the time.

Hunting for inspiration and a new business plan, Morgan traveled to Greenwich, Connecticut, to meet with David Florence, an old friend and CEO of Direct Media Inc. Direct Media was the maker of Yellow Pages directories across the nation, and in touring the back rooms of the company Morgan quickly recognized that something was amiss. Everywhere he looked employees were manually compiling new Yellow Pages directories. "It was just a zoo," Morgan later remembered. "People were running around with stacks of these orders and these mailing lists. People were trying to find ones that were lost. It would give you a nervous stomach in about five minutes." Morgan explained to his friend that there was a better way to compile the lists. "I said [to myself], [h]ere is an opportunity," Morgan recalled. "Computers could do this a lot better."

Returning to Conway, Morgan encouraged employees to work nonstop on a solution to Direct Media's problems. Within two weeks the company had sketched out what has since been recognized as the nation's first fully-automated, online system for generating mailing lists. The entire programming job took nine months to accomplish. The solution became known as the List Order Fulfillment System (LOFS), with Direct Media as the sole customer.

  • How LOFS worked on the CCX Network

LOFS and the Direct Media account represented a turning point for the company. Old employees were hired back and salaries were restored to their old levels, and the company began to grow again. Three years later the company began building its first comprehensive "marketing database" atop LOFS technology for the American Management Association, an organization providing business executive training. The completion of the database made it possible for the company to begin advertising what it called the personalized "computer letter" and its niche as a one-stop shop for direct mail services.

The Company Goes Public

In 1979-80 the company began branching out into the credit card list processing business, picking up a major client in Citibank.

To keep up with the demand for list processing, technical support specialist David Moix engaged in a one-man arms race. He first installed two midrange IBM 4341 Processors compatible with System/370 (and with an instruction execution speed 3.2 times faster), two of IBM's fastest tape drives, and six Control Data Corporation disk drives in May 1980. By September 1980 he was installing an additional IBM 3370 DASD control unit with 571.3 megabytes of auxiliary storage and Control Data Dual Access Facility for disk drives. In October he purchased two megabytes of memory for one of the 4341s, and in November two IBM high speed printers. Moix also set up a new CCX Network Control Center for remote teleprocessing. Job control language (JCL) scripting and insertion of prewritten JCL procedures ("PROCS") was handled by Dale Gill, an operations analyst then working on his computer science undergraduate degree at the University of Central Arkansas.

To reflect the transformation of the company into a full-fledged information technology company, in 1980 Demographics executives changed its name to CCX [Conway Communications Exchange], Inc. Noted Client Services Department executive Jennifer Phillips in the pages of company newsletter The CCXchange, "We tripled our staff in List Development, doubled it in Production Control, and doubled it in Order Control and Shipping. These figures are even more significant when you realize our production levels increased over 100%!"

Employees began reporting information production performance in the company in terms of "cumulative names shipped." Research & development head George Balogh was running approximately 350 million name and address records every week through the LOFS system with his "Selector" program in 1980. Of course, not all of those names were selected in any given job and then "shipped" to the customer. In the single month of November 1982 the company actually shipped 79,479,812 cumulative names. One year later it was 90,149,263 names.

In 1983 CCX became a publicly traded company under the revised name CCX Network, Inc. It also collected its first major award from the Direct Marketing Association, the Gold Echo Award for innovative technology, and recognition as a DMA Echo Direct Marketing Leader.

Electronic Mail

Acxiom's directors spent about $1 million looking at electronic mail as a future marketing technology, but eventually wrote off the effort as a failure.

The Crunch of '87

In 1986 Phil Carter joined the company as president and chief operating officer. Carter and Morgan together began making a few aggressive acquisitions each year. CCX Network first acquired BSA Inc. of New Jersey, a maker of merchandise fulfillment software systems for the catalog industry. Morgan and Carter then began looking to Europe for opportunities, purchasing direct marketing computer service bureau Southwark Computer Services Ltd of the United Kingdom in December 1986 and turning it into Acxiom U.K., Ltd. In 1986 it also received licensure as a provider for the National Change of Address (NCOA) system. The next year it added computerized direct mail business Modern Mailers of Philadelphia, Pa., to the company portfolio. Modern Mailers, with its personalized printing and lettershop operations, became Acxiom Mailing Services (AMS).

Recalled Morgan, "Expansion doesn't look so daunting if you build this way - adding three companies this year, and four the next and before you know it you have a billion dollar company." Systems engineers and programmers in the Productions and Advanced Systems divisions of the company were not quite ready to agree. In 1987 CCX Network experienced a second bottleneck rivaling the 1975 perfect storm. Associates of the company even had a name for it: the "Crunch of '87." The Crunch was caused by newly inaugurated marketing services plans and a serious and growing backlog of data processing requests, and exacerbated by difficulties encountered in the installation of new hardware and software to alleviate the problem.

In 1987, in a joint venture with Young and Rubicam, Inc., the company began assembling a massive marketing database containing records on 200 million American consumers and 10 million businesses. Attached to individual's names were their "age, estimated income, home ownership, cars owned, occupation, children, education, buying habits, types of credit cards used, height, and weight." Acxiom used InfoBase to verify records in client databases and also to help match new customers to its clients products and services. Acxiom maintained Infobase on IBM mainframes running the Multiple Virtual Storage (MVS) multiprocessing operating system.

At the same time David Moix, with the assistance of John Berry, Michael Linz, and many others, struggled to clear the clogged stream of bits in the company's list order fulfillment operation. The team inaugurated mass storage in December 1988, installing a StorageTek 4400 Automated Cartridge System with host software, a library management and control units, storage modules, and cartridge subsystems. The components provided for fully roboting mounting and dismounting of 6,000 individual cartridge tapes into a cartridge drive. Moix reported that "account service personnel will be able to increase the size of jobs running through ALDS [?] while reducing their turnaround time on these jobs. The ACS, together with ALDS, eliminates the need for work requests and operator intervention, allowing the operators to focus on those jobs that cannot be automated."

Remarked Charles Morgan in the aftermath, "During the recent production crunch we held meetings among all directors to allocate each day's use of overall resources. The experience reinforced the need for a greater subordination of processing services. If we have to negotiate for each resource in each step of the total process, nothing will get done. That is bureaucracy at its worst. The three operating divisions established at CCX Network is one step in meeting this challenge."

CCX Becomes Acxiom Corporation

On July 20, 1988, the CCX Network became the Acxiom Corporation, a name combining the Greek word "axiom" (axioma [ἀξίωμα], a proposition widely accepted on its own merits) with an homage to the unusual consonant combination in the former name. The client base of Arkansas companies receiving services dwindled rapidly to zero, replaced by national names like [?]. Acxiom proffered a wide spectrum of services for its list industry clients (catalog mailers, direct marketers), including address hygiene, list rental fulfillment, merge purge, postal presort, public database creation, and segmentation.

The most common service requested from the List Industry Services Division on the second floor of the Account Services Building on the new Conway company campus was list rental fulfillment, assisting clients wanting to rent their own databases and optionally "enhance" them with data pulled from Acxiom's marketing database. Major competitors in the late 1980s included IBM and General Motor's Electronic Data Systems division. Other list processing services involved gathering names, printing and mailing solicitations, weeding out potentially undeliverable mail, processing address lists through the National Change of Address registry, correcting address lists, and removing duplicate records. Segmentation services split customer lists into smaller groups based on lifestyle characteristics, buying behavior, income and wealth, and other attributes. Shipping of lists to customers was still accomplished from the loading dock, conveyed by air freight, or delivered by U.S. Mail express service.

In 1988 Marketlead Services Ltd, a promotional materials handling and merchandise fulfillment operation in Sunderland, England, joined the ranks of Acxiom subsidiaries.

In 1989 it shut down BSA and AMS picked up Guideposts, a New York State magazine publisher seeking information management expertise related to its subscriber database of 20 million individuals.


In 1991 the company endured a real low point, caused in part by steep postal cost increases and a recession.


Contracts with Allstate Insurance and Trans Union benefited the company enormously in the 1990s, and revenue grew from $89.7 million in 1989-1990 to $964.5 million in 1999-2000.

Acxiom began managing the Trans Union data center in Chicago in 1992.

In 1995 it forged a strategic alliance with The Polk Company.

In July 1995 it acquired all issued and outstanding shares of Generator Datamarketing Ltd of the U.K., paying $6.46 million.

One month later it purchased DataQuick Information Systems and DQ Investment Corporation of La Jolla, Calif., a provider of information about real estate holdings and purchases, in a $24 million stock swap.

In 1996 it engaged in a strategic partnership with Oracle, sharing its own data warehousing technology and decision-support systems in exchange for Oracle database suppot and online analytical processing (OLAP).

When David Florence moved to sell his stake in Direct Media in 1996, Morgan stepped in to acquire the company for $25 million.

Also in 1996 the company made major purchases of capital stock in ProCD, Inc., a maker of reference data CD-ROMS, eventually acquiring the company outright. ProCD technology allowed Acxiom to move into smaller market niches, like list management for small businesses, and Internet provision of services. It sold the retail part of Pro CD to American Business Information in exchange for more proprietary technology.

Around 1997 Acxiom acquired healthcare direct marketers Buckley Dement, KM Lists, Normadress, National List Protection, and MultiNational Concepts. The Buckley Dement acquisition was especially historic. Homer Buckley of Chicago's Buckley Dement had coined the term "direct mail" in 1900, co-founded the Direct Mail Advertising Association in 1917, and published the classic text on the subject in 1924. Along with Buckley Dement the company acquired its affiliate KM Lists, Inc.

Acxiom Data Network launched in 1997.

In 1998 Acxiom acquired Downers Grove, Ill.-based direct marketing and information management outsourcing firm May & Speh, Inc., a leading competitor, in a $625 million stock swap. May & Speh's largest client was Sears, Roebuck & Co., for which it conducted demographic analyses on a Univac File Computer beginning in the mid-1950s. The two companies had studied the proposed merger for four years. The acquisition made Acxiom the largest database marketer in the world. The combination of technology forged from the merger of these companies - joining the May & Speh Quiddity system and the Acxiom Data Network - resulted in a system that allowed customers to use and manipulate company data online over the Internet in realtime.

At the turn of the millennium the company continued to make strategic acquisitions, including Phoenix-based Computer Graphics, Inc., Horizon Systems Inc., and Marketing Technology, S.A. of Spain in 1999. The company also acquired customer database integration technology from AbiliTec and the real-time Solvitur enterprise codebase from Active Software in 1999(?).

"With Consodata, for instance, we were acquiring a company that was in direct competition with a company we'd already acquired - Claritas - and so we weren't allowed to do as much due diligence before the announcement as I'd normally expect," recounts Morgan. (2004?)

It formed an alliance with Dun & Bradstreet, sharing its InfoBase in return for business marketing data. Similar alliances were struck with Broomfield, Colorado's Abacus Direct Corporation and Palo Alto, California's E.piphany.

In 2007 the company acquired consulting and data analysis firm Equitec.

The company's demographic marketing product is called Personicx. Other company brands, trademarks, or operating units are Opticx, Acxiom Information Security Services, and Postal Optimization Products and Services.

Company Organization and Culture Change

Over the past two decades Acxiom also became well-known for its collaborative team-oriented management and work structure, leading to its being named Best Place to Work five times by Fortune magazine.

Acxiom was initially arranged into in-house groups according to services provided. In the 1980s Direct Marketing Services under Hank Ponder Jr. handled new business such as catalogers, insurance companies, nonprofit fundraisers, club and membership organizations, horticulture companies, subscription agencies as well as retailers who wish to utilize direct marketing programs to stimulate store traffic. List Industry Services under Jim T. Womble and Jerry Adams provided customers who are list owners, list managers, and list brokers, with a "marketing edge, either through expense control or through the timely delivery of ... service." National Marketing Services under Don W. Barrett Jr. provided direct marketing information services to publishers, financial institution and Fortune 500 companies. Advanced Systems under Alex Dietz developed and managed key applications systems like LOFS, Quick Systems, Convert Systems, Demodup Systems, and ALDS. Business Development, run by Jennifer T. Barrett, developed prospects, customers, and our own employees on a corporatewide basis. Corporate Staff under R.P. Carter handled interdivisional revenue opportunities. The Financial Services Division housed the accounting staff and corporate accounting and the integrity of all financial information. General Services Division housed facilities management, purchasing, construction, etc. The Information Services Division handled data processing, and superintended over the PC Development Group, Software Support Group, Hardware Support Group, and Management Information Systems Group.

In 1990 the company realigned its divisions by specific industry categories: Business Services, Consumer/Financial, Media/Services, and Retail/Catalog. Said COO Phil Carter at the time, "Aligning by industries, rather than services provided will enable Acxiom's customers to get all their marketing services from one group and one customer service team. This will allow customers to do business with one set of people – people who are specialists in their industry and who understand their particular objectives." Said Phil Bartos, group executive for Retail/Catalog Services, at the time, "We want to marry our customers not just date them." The company retained its older International Services Group to control its growing overseas business.

At the same time the company, like so many others, adopted Japanese management techniques that enlist employees in solving job-related problems. In 1988 a Quality Circle Program called CCXCEL was initiated at the Conway headquarters. Two years later the company launch a total quality management program called "Race for Excellence."

In April 1993 the company inaugurated telecommuting for many of its employees. The first participant in the At-Home Worker Project was Tina Bailey.

In 1997 Charles Morgan became "Company Leader" when Acxiom eliminated job titles.

By the first decade of the twenty-first century work at the company was organized into four fairly independent "silos." Three of these silos were managed from Arkansas: Data Products, Services, and Financial Services. The fourth division, Outsourcing, was managed from Downers Grove, Illinois. The company had main overseas operations headquartered in London, Paris, Phoenix, Sunderland, and Sydney.

Acxiom's $25 million twelve-story headquarters, the Acxiom River Market Tower, at 1 Information Way in downtown Little Rock is only three blocks from President Clinton Avenue. The new headquarters, completed in 2002, meant a shift in administration away from the old headquarters in Conway. During the Clinton Library dedication in November 2004 Acxiom employees were warned to refrain from bringing deer hunting rifles to work with them because the Acxiom River Market Tower overlooked the presidential library site. November is prime deer hunting season in Arkansas.

Privacy and Security Concerns

In 1980 security problems amounted to petty theft. As announced in the CCXchange: "We are currently experiencing some difficulties with unauthorized use of our back door (near the shipping department) after normal working hours. The recent theft of the microwave and our coffee supplies only serves to remind all of us of the importance of keeping our building locked when most of us are not here."

Acxiom established a Corporate Privacy Council in 1991 to guide the company it its attempts to assure compliance with state and national data privacy rules and regulations. According to testimony before the Federal Trade Commission, the company established the council to "protect the information it processes on consumers and to promote policies within the industry to protect individual privacy." The establishment of a privacy council opened a window to begin engaging in consumer privacy consulting. The company has increasingly turned its attention to providing services related to customer loyalty, brand protection, and what it calls "consumer advocacy."

Also in 1991 the company created a new position of "chief privacy officer," a first for the industry. The position was given to Jennifer Barrett, hired by Morgan in 1974 straight out of the math and computer science program at the University of Texas at Austin. By the late 1980s Barrett had risen in the company to the position of Business Development Division Leader, charged with identifying prospective clients and developing the skill base of its own employees. Barrett has encouraged her company and other companies that manage personal data to take care when when turning that information into behavioral targeting campaigns. She encourages companies to take stock of how "shocked the average consumer would be to learn what information is being collected about his/her behavior and how you plan to use it in a campaign," especially sensitive medical data or information about children. She also suggests that companies to avoid making direct references to information gleaned from individual buyer decisions the "leave him with the feeling he is being watched."

A consumer privacy backlash has in some ways defined the operations of the company since the mid-1990s. Acxiom suffered from some public and legislative fallout over its for-profit data aggregation services in these years. To counteract this impression Acxiom entered into agreements with the Direct Marketing Association to develop "opt out" methods for customers who did not want their information entered into Acxiom's burgeoning databases.

Since 2000 two major security breaches attracted national attention. One of these computer break-ins resulted in what has been called "the biggest data heist ever."

The company currently houses more than 850 terabytes of data and twenty billion customer records.

End of the Morgan Era

In July 2005 Acxiom's largest shareholder, the hedge fund ValueAct Capital Partners, launched a hostile corporate takeover of the company. ValueAct offered to buy outstanding shares of the company for $23 and then $25 dollars, but the company board of directors rebuffed the offer. In May 2007 Charles Morgan announced a $3 billion plan to take the company private. When this bid failed, Morgan retired from the business and the company agreed to acquisition by ValueAct and Silver Lake Partners in a $2.25 billion deal.

In February 2008 John Meyer became the chief executive officer of Acxiom. Meyer reorganized what he called the "nebulous" organizational structure of the company, dividing it into "business lines" (Customer Data Integration & Marketing Services, Information Products, Digital Marketing Services, Consulting Services, IT Services, and Background Screening Products) and "markets" for those lines (Financial Services & Brokerage, Retail & Consumer Packaged Goods, Travel & Entertainment Media Telecom, Insurance Health Technology, Manufacturing & Distribution Auto, Europe, and APAC). This organization assured that in each transaction at least two separate people would be engaged in making sure that technology services were provided and relationship nurtured.

Meyer also repositioned Acxiom as a "global interactive marketing services company."

Clients

Acxiom helps twenty-four of the top twenty-five credit card issuers identify appropriate customers for its products.

Current clients include Advance Publications, Allstate Insurance, AT & T, Bank of America, Citibank, Conseco, Federated Department Stores, First USA Bank, General Electric Capital Corporation, IBM, The Polk Company, Proctor & Gamble, Sears, Trans Union, and Wal-Mart.

Odds and Ends

  • title: some riff on Acxiom, algorithms, applied research, and Arkansas
  • idea: "unlikely" (City of Colleges) emergence deep inside Arkansas, at midpoint between Pickles Gap and Toad Suck.
  • question: benefits from Arksys, Systematics, Alltel? employees "poached" from there?
  • How to keep data fresh and accurate?
  • IBM 370 assembler important skill
  • on Acxiom data breaches see: http://pseudo-flaw.net/content/acxiom/
  • interviewing Jennifer Barrett, Jim Cloninger, Jim Briggler, Peter Hoelscher, Susan Kennedy, Sherry Collier, Robert Burks, George Balogh, Linda Kirtley, Mark Bausom
  • ask for questions from Phil Bartos, Michael Herring, Philip Philpott, Holly Easley
  • watch The Persuaders on Frontline
  • look through security and privacy bibliography for potential questions
  • how was quality control managed?

Acxiom Employee Growth

  • all figures are approximate
  • 1972 - 25 "associates"
  • 1974 - 35
  • 1975 - 25
  • 1990 - 1,600
  • 1991 - 1,585
  • 1994 -
  • 1995 - 1,850
  • 1996 - 2,500
  • 1997 - 3,300
  • 1998 - 3,600
  • 1999 - 5,000
  • 2000 - 4,750
  • 2001 - 5,885
  • 2002 - 5,400
  • 2003 - 5,020
  • 2004 - 5,500
  • 2005 - 6,000
  • 2006 - 6,765
  • 2007 - 7,100
  • 2008 - 6,610
  • 2009 - 6,400

References

  • Ian Ayres, Super Crunchers: Why Thinking-By-Numbers is the New Way to Be Smart (New York: Bantam Books, 2007), 134-135.
  • Barry Beck, "Ward Industries, Inc.: A Historical Study," Faulkner Facts and Fiddlings 16.4 (Winter 1974): 67-83.
  • James Gordon, "Acxiom Transforms, Performs," Arkansas Business, December 25, 2006.
  • John Hama, "Acxiom to Pay $625 Million for Chief Rival," Arkansas Business, June 1, 1998.
  • Harold B. Johnson, "A History of Dave Ward and His Company," M.S.E. thesis, Arkansas State Teachers College, 1960.
  • Toby Manthey, "Maker of School Buses Lays Off 170 in Conway," Arkansas Democrat-Gazette, March 27, 2009.
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