page_title: Michael McCafferty
section_title: Eastern Data Processing
hierarchical_section_title: Michael McCafferty / Career and education / Eastern Data Processing
caption_attribution_description: An w:IBM 1130 system which was the least expensive IBM system when it was introduced in 1965.
context_page_description: Michael McCafferty is an American entrepreneur, inventor known as the "Father of CRM", and programmer most well known for his work in presiding over Technitrol, Inc.'s subsidiary called Eastern Data Processing and for creating the software product TeleMagic. After graduating from college, he went on to work at IBM, which led to him getting employment at Technitrol, Inc. After an unsuccessful service called Product & Area Locator, he filed for bankruptcy on March 17, 1983, and went on to create TeleMagic under his company Remote Control International, which was met with positive reception both in terms of sales figures as well as customer reception. This success led the company and the software it created to eventually be purchased by The Sage Group. During his college years, he worked on entrepreneurial endeavors, including a birthday cake delivery service, a restaurant, and advertising. He currently works as a mentor to other businesspeople.
context_section_description: McCafferty got a job as a solo programmer at Technitrol, Inc. in Philadelphia programming on an IBM 1130 computer. The company's president hired him due to his own lack of experience with programming, McCafferty's background with IBM and his understanding of the programming language FORTRAN. After a year employed as programmer and manager of the Data Processing department, he and the President of Technitrol decided to form a company in 1968 called Eastern Data Processing (EDP) as a subsidiary of Technitrol when McCafferty was only 26. The goal of this company was to provide computerized payroll services to businesses. It was intended to compete with a similar business called "Automatic Data Processing". McCafferty was the company's President, and he had a 20% share in the company. In the first six months of the company's operation, the company saw $400,000 in losses, which was due in part to the fact that much of its business was not related to its intended business structure. As such, the company did not have a product to sell. Nevertheless, the Technitrol President allowed him to continue working with the company, though with a new vision for it. McCafferty then spent the next six years building a profitable business. In spite of these problems that the business faced early on, the combined success of it and other subsidiaries of Technitrol contributed to the parent company's success. The company experienced a 125% increase in sales between 1972 and 1973, an increase from $4.7 million to $10.6 million. Profits increased from $107,000 to $466,000. When his employer, E. Stuart Eichert, died, McCafferty learned that his promised shares in the company were not set in writing, and thus he lost his ownership in the company. He quit immediately.
  The first prototype for EDP ran on an IBM 360 Model 30 with IBM 2311 disk storage drives and two Tape Drives, and was programmed in COBOL. During  seven years, it grew to support three-shift work-days and was used for thousands of companies’ payrolls.
caption: An IBM 1130 console.
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