CRM 2010 Trends

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CRM 2.0:

Trends in CRM for 2010

Darius VaskelisSakonent2009.10.23

[email protected]

1

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

4

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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

5

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CRM Benefit Examples

6

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

8

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

[email protected]

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/

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CRM 2010 Trends