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Article

Title: Can He Hang On Long Enough to Succeed?

Author: Salkever, Alex Article Type: Product Analysis
Source: Inc, p70(4) Publication Date: Mar 2008
  ISSN: 0162-8968
URL of Publication: http://www.inc.com

In 2001, Bill Randle had enough confidence in the banking software package his team had developed that he left his bank job, bought the software, and launched a startup firm he named e-Bank. By late 2002 the firm had 120 employees and promising talks with major banks. Today, after changing its name and business strategy, the company, now Synoran, is barely hanging on--down to ten employees, its revenue stream tapering off, and attempting to position itself in an entirely new market. The software Randle was in charge of developing was designed to integrate banks' existing, incompatible back-end technology operations. The package would allow them to interrelate and interconnect all types of accounts, providing better service to customers while, among other things, allowing banks to track their cash flow continuously through the day instead of waiting till the close of business to reconcile accounts. However, it was not a good time for a bank-technology startup. The banking industry, however, had spent heavily on technology to avoid Y2K complications, while the dot-com bust and 9/11 had slowed down the overall economy. Contract negotiations with Wells Fargo and other banks fell through. Randle, who had hired a CEO to run the business while he explored other startups, stepped back in, slashed the workforce, and shifted strategy from pursuing banks directly to pursuing large bank consulting firms. Nothing restored the firm's fortunes, however. Today, Randle is seeking to sell his product to the health care industry, which faces similar problems of integrating its back end systems. With funds dwindling as existing contracts run out, the question is whether Synoran can succeed in one last try at remaking itself.

Companies:
SYNORAN LLC Wells Fargo & Co

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