crm 2010 trends
TRANSCRIPT
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CRM 2.0:
Trends in CRM for 2010
Darius VaskelisSakonent2009.10.23
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This presentation draws on original ideas, research with Professor Michael E. Porter, and from Professor Porters books and articles, in
particular, Competitive Strategy(The Free Press, 1980), Competitive Advantage (The Free Press, 1985), On Competition (Harvard Business
School Press, 1998), and Strategy and the Internet (Harvard Business Review, March 2001) where Darius Vaskelis was a contributor.
mailto:[email protected]:[email protected]:[email protected] -
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First, the Value ChainRepresentation ofactivitieswithin a firm to show how value
is produced*
2
Inbound
Logistics
Operations Outbound
Logistics
Marketing
& Sales
After-Sales
Service
M
arg
i
n
Primary Activities
Firm Infrastructure
Procurement
Technology Development
Human Resource Management
Value =
What
buyers
are
willingto pay
Support
Activities
*Michael E. Porter, Competitive Advantage (The Free Press, 1985)
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Suppliers! Channels! Customers!
Value System
Inbound
Logistics
Operations Outbound
Logistics
Marketing
& Sales
After-Sales
Service
M
arg
i
n
Firm Infrastructure
Procurement
Technology Development
Human Resource Management
Next, Value Chains within
a Value System
Representation ofactivitiesacross firms to show how value
is produced*
3*Michael E. Porter, Competitive Advantage (The Free Press, 1985)
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Customer Relationship
Management (CRM) and
the Value S stem
CRM activities are those thatinteract, optimize andcollaborate with channels andcustomers
! Channels! Customers!
Marketing
& Sales
After-Sales
Service
M
arg
i
n
nt
lopment
CRM activities
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CRM Functionality
Examples
Breadth of CRM covers sales,marketing and customerservice activities
Depth of CRM covers data,
transactions, reports, analyticsand dashboards
Users can be internal orexternal partners, channels,prospects or customers
Delivery can be anywhere:client-based, web or mobileand can encompass socialnetworking
Sales Marketing Service
Sales ForceAutomation (SFA)
Multichannel
Campaign
Management
Call CenterManagement
Partner/Channel
Relationship
Management
Customer Data
Mining
Field Service
Management
Quote/Order
ManagementEmail Marketing
Return and Depot
Repair
Management
Incentive
Compensation
Management
Segment/List
Management
Service Contract
Management
Prospect/Lead
Management
Marketing
Resource
Management
Spare Part/
Inventory Logistics
Management
Proposal/Contract
and Billing
Management
Trade Promotion
Management
Warranty/Claims
Management
Incentive
Compensation
Management
Collateral and
Digital Asset
Management
Bug Tracking/
Defect
Management
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CRM Benefit Examples
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MeasuredOutcome
Sales Productivity 17%
16%
Marketing Productivity 12%
Customer Satisfaction 14%
Customer Retention 10%
Increased Revenue 10%
-10.4%Operating Costs
Top Ten CRM Customer Benefits
1. Moved toward a more complete view of ourcustomers
2. Automated previously manual processes
3. Made business processes consistent acrossthe company
4. An improvement in the quality of data
5. The replacement of various systems/databases by one system
6. Improved sales force efficiency/completeview of customer information
7. Deploying CRM has enabled us to becomemore customer-centric in our business
processes8. Better user access to data and analytical
tools
9. Improved communication among groupswithin sales and marketing organizations
10.Best practices are leveraged throughout theorganization
Average ObservedCustomer Benefit
source: Aberdeen Group
Service/Contact CenterProductivity
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Past Evolution of
CRM Information
Technology (IT)
Larger competitors used to beable to out-market, out-sell, andout-service you with large CRM
investments of money and time
Data computation, tabulation, andrecording to assist with clerical tasks
IT - Client/Server era- CRM
Enterprise viewof departmental businessprocesses and decisions across functions
client/server, ERP, EAI,DSS, objects (DCOM, CORBA)
PCs, relational databases, PBX, ACD, faxData Processing era - PIM, ContactDatabases, Database Marketing
Automation and enhancementto assist specific departmental
activitieslocal area networks, laptops, CTI, IVR
MIS era - SFA, Call Center,Campaign Management
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Recent Evolution of
CRM Information
Technology (IT)
But now any firm can deploy aquick, tactical CRMimplementation to solve a
specific problem or try it out
Web 2.0 era- CRM 2.0
Optimization of activities inside and outsidethe enterprise in collaboration withcustomers, channels, and suppliers
SaaS, PaaS, smartphones,
social networking, blogs,wikis, Web 2.0, open source,
cloud, SOA
eBusiness era -
eCRM
Using the Internetto deploy business processes
and decisions to entire enterprise(self-service)
and customers, channels, andsuppliers
web, mobile, XML, DW &BI, MDM,
chat, analytics, web services
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D t t ti t b l ti d
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Evolution of CRM
Information
Technology (IT)
Business impact and IT enablers
Data computation, tabulation, andrecording to assist with clerical tasks
IT - Client/Server era- CRM
Enterprise viewof departmental businessprocesses and decisions across functions
client/server, ERP, EAI,DSS, objects (DCOM, CORBA)
Automation and enhancement
to assist specific departmentalactivities
local area networks, laptops, CTI, IVRMIS era - SFA, Call Center,Campaign Management
PCs, relational databases, PBX, ACD, faxData Processing era - PIM, Contact
Databases, Database Marketing
Web 2.0 era
- CRM 2.0Optimization of activities inside and outsidethe enterprise in collaboration with
customers, channels, and suppliers
SaaS, PaaS, smartphones,
social networking, blogs,wikis, Web 2.0, open source,
cloud, SOA
eBusiness era -
eCRM
Using the Internetto deploy business processes
and decisions to entire enterprise (self-service)
and customers, channels, and suppliers
web, mobile, XML, DW & BI, MDM,chat, analytics, web services
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CRM has evolved into CRM 2.0
Traditional CRM CRM 2.0
Philosophy
Implementation
TechnologyIntegration
Sponsorship
Users
Data
Financial
Maintenance
inside-out big bang
(months/years)
outside-in fast & iterative
(days/weeks)
re-engineer & slow, massive
onsite implementation
turn it on, roll it out fast, learn,
tweak, continuously improve
massive platform commitmenttry it out, open, modular,
often cloud-based
integrate tightly inside the enterpriseloosely couple inside and outside
with internet data sources
IT selects technology for the business business-driven and IT-assisted
forced to comply with
anti-social system
system complies with empowered
collaborating users and customers
structured data (tables/screens)structured and unstructured
(documents/blogs/wikis)
build vs. buy buy/rent/build/open source
dedicated IT CRM application teamoutsourced CRM application team
to scale up/down as needed
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CRM 2.0 Technology Deployment Spectrum
While one size does not fit all, most new implementations of CRM are cloud deployments,with most customers gladly giving up control of the system to a technology vendor
If the CRM technology vendor has multiple deployment options, its much easier to movefrom the right (on-demand) to the left (enterprise software) than the other way around
On-premise CRM deployment the most flexible, at the price of maintenance "...I believe inpower; but I believe that responsibility should go with power..."(Theodore Roosevelt, 1908)
Sometimes, a hybrid CRM deployment may make the most sense, such as an enterprisesoftware hub with offices or departments running on-demand spokes
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on-premise
traditional
enterprise
software
on-demand
multitenancy
SaaS/cloud
computing
on-demand
private/
single-tenancy
SaaS
off-premise
hosted
enterprise
software
ability to control the CRM application &
need to maintain the CRM system hardware/software more
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Forrester on CRM
Suite Vendors
They separate Waves forenterprise firms (>$1B revenue and>1,000 employees) and midmarket
Oracles Siebel and SAP CRM still
offer the most complete solutionswith better usability.
Microsoft, salesforce, RightNow,and Oracle CRM On Demand proveenterprise credibility.
Key strengths of the SugarCRMsystem include low applicationcosts, internationalization support,usability, and SFA functionality.
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Enterprise CRM Suites
Midmarket CRM Suites
source: Forrester Research
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Gartner on CRM
Technology Vendors
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Sales Force Automation
Customer Service
Contact Centers
Enterprise Marketing
Management
Field Service
Management
They separate nearly a dozenMagic Quadrants for specificCRM functions
Oracle-Siebel Systems tops
many, but not all, of them
Microsoft Dynamics CRM,salesforce.com and SAP oftenrank highly as well
SugarCRM is the leading nicheplayer in the SFA report, notedfor its good cost/value ratio
source: Gartner
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Tailoring Out of Box
CRM for the Highest
Strategic Impact
At some point, vanilla wontwork for your business... CRMthats tailored to your firm is
more strategically valuable14
Configured/
Externally Integrated
Tailored CRM
Out of Box or Vanilla
Integrated CRM
Stand-AloneDepartmental Point
Solutions
Standard/Best Practice Unique to Firm
Strategy-
specific Fit
Tactical/
Generic Fit
none
CRM Activity Tailoring
CRMC
ross-Act
ivity
Integration
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Complimentary CRM Tailoring Approaches15
Operational Effectiveness for
Best Practice Adoption
Lowertechnology implementation costs(although not necessarily simple projects!)
Closer to out-of-box or vanillaconfigurations
Integration often limited to commonsupporting ERP systems (order history,
customer account master, accounts
receivable, general ledger, etc.)
Potentiallyhigherorganizational change
management costsif current processes
need re-engineering
Business case primarily driven by
quantitative short- and mid-term universal
measures (NPV, EVA, SVA, pro forma, etc.)
Run the same race faster
Unique Strategic Positioning for
Sustainable Competitive Advantage
Highertechnology implementation costs(with sustainable returns!) Tailoredconfigurations to support unique
activities
Integration may include proprietaryproduction or front-office systems (project
management, product development, etc.)
or social networks (Twitter, facebook, etc.)
Potentiallylowerorganizational changemanagement costsif supporting current
processes with less re-engineering
Business case primarily driven by
qualitative long-term support of unique
cross-functional activities
Choose to run a different race
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CRM 2.0 Lifecycle
Target a specific problem or
functionality to pilot/test
Minimally tweak vanilla androll it out quickly
Monitor the pilot/test, gatherrequirements for improvement
Configure/integrate to supportyour needs and capture value
Configure/Integrate
Monitor/Gather
TweakTarget
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2-6 weeks 4-16 weeksgo live
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CRM 2.0 Lifecycle:
Target
Target a specific problem or
functionality to pilot/test
Examples: forecasting, Twittermonitoring, integration withorders, opportunity teaming
Identify desired results andsuccess criteria
Identify expectations of andfrom system users andmanagement
Configure/Integrate
Monitor/Gather
TweakTarget
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1-2 weeks
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CRM 2.0 Lifecycle:
Tweak
Minimally tweak vanilla and
roll it out quickly
Populate the system withconverted data
Tailor the labels to your terms
Severely limit the tabs/functions
shown (Less is more!)
Ensure at least one realproblem of each target usergroup is solved
Configure/Integrate
Monitor/Gather
TweakTarget
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1-4 weeks
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CRM 2.0 Lifecycle:
Monitor/Gather
Monitor the pilot/test, gather
requirements for improvement
Who is/isnt using it? How arethey using it?
What related businessproblems can be solved?
What are the wishes?
What could be done better?Whats too complicated?
Configure/Integrate
Monitor/Gather
TweakTarget
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2-8 weeks
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CRM 2.0 Lifecycle:
Configure/Integrate
Configure/integrate to support
your needs and capture value
Business value/ROI shoulddrive configuration andintegration decisions
Loosely coupling data viaimports often deliver thehighest ROI
External sources from theInternet can often complimentcustomer information
Configure/Integrate
Monitor/Gather
TweakTarget
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2-8 weeks
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Choosing a CRM
Services Provider
Total solutions can involvemultiple partners
Look for case studies andfixed-fee pricing/timeframes(signs of good track record)
Look for strong softwareindustry partnerships
The firms ranked best bycustomers are typically smaller,more nimble companies
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Who We Are
Sakonent is a CRM consultancyfor a 2.0 world
Focused on the new generation of CRM: Rapid, deployed-anywherecollaborative CRM that delivers business value quickly and iteratively
Onsite and offshore CRM consulting, implementation and outsourcing
Ten years of technology experience with the leaders in CRM(Salesforce.com, Siebel, Oracle, SAP Microsoft Dynamics, SugarCRM, andothers)
Business process and user adoption first, technology second
Expertise and experience across sales, marketing and call centers
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Our CRM Services
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Concept: SunTrust Robinson Humphrey
STRATEGICPLANNING
DEVELOPMENT& INTEGRATION
MAINTENANCE& SUPPORT
ONSITE & OFFSHORE CONSULTINGSALES, MARKETING, CUSTOMER SERVICE PROCESSES
ONSITE & OFFSHORE IMPLEMENTATIONSYSTEM DESIGN/INTEGRATION PROJECTS
ONSITE & OFFSHORE OUTSOURCINGIT STAFFING/OUTSOURCING
m
oreonsiteleverage
moreoffshoreleverage
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Life Time Fitness CRM Process Definition
Loyalty campaigns
Identified new areas with cross-sell benefits
Developed 3 year phased CRM Roadmap
600 users
Increased membership renewals by 25%
Ariba Global Sales and Service Implementation
Global Process Standardization
Multi-Language Support, incl Kanji
500 users
Increased cross-sell revenue in support center
Our CRM Clients
(Selected)
http://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.lifetimefitness.com/index.cfmhttp://www.clearcube.com/index.htmhttp://www.clearcube.com/index.htmhttp://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.bmc.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/http://www.slb.com/ -
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Our CRM
Relationships
Formal partnerships andexperience with the leaders ofCRM
Our heritage starts with theearliest client/server CRMsystems to todays leading-edge cloud-based CRM
Custom development expertiseacross traditional platforms (MS& Java) and new architecturessuch as force.com
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Where to go
from here?
Use the CRM 2.0 Lifecycleframework to facilitate strategicthinking
Not sure how to start?Contact Sakonent to discussan assessment
www.sakonent.com
312.683.4000
Configure/Integrate
Monitor/Gather
TweakTarget
2-6 weeks 4-16 weeksgo live
CRM 2.0 Lifecycle
http://www.hambraconsulting.com/mailto:[email protected]:[email protected]://www.hambraconsulting.com/http://www.hambraconsulting.com/