Edocs - Self-Service Savings
Of course, it won’t be long before more enterprising MBAs invade the company’s lucrative space. Currently, Edocs has no direct competition, though CheckFree, Metavante and even Pitney Bowes offer their own flavor of electronic bill presentment and payment.
To stay ahead, Edocs needs to continue to acquire more customers in health care, enter the European market and cross-sell its products into different divisions of organizations that are already customers, Litan says. She also advises the company to devote resources to developing and enhancing its existing payer-based applications for B2B billing and payments.
While Edocs has experienced 16 consecutive quarters of revenue growth at 85 percent each year, according to CEO Laracey, it’s still not profitable. And if the company doesn’t become profitable, Litan and Ragsdale agree, it will be ripe for acquisition.
"They’re not going to go out of business," says Ragsdale. "But as a small, private company, they could be very attractive to a larger ERP or CRM vendor."
