04 - RS-IBA-201001 - CRM State of the Market - 2008 and Beyond - Session 5

8/7/2019 04 - RS-IBA-201001 - CRM State of the Market - 2008 and Beyond - Session 5

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2008 & Beyond

CRM STATE OF THE UNION:


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Pre 90s Product/Demand driven

corporate ecosystem Separate demand and

supply chains

Late 90s to nearly present Customer driven corporate

ecosystem The enterprise value chain

Present Customer ecosystem

2006 - the Era of theSocial Customer

Personal value chain

The Prosumer rises

The Business World Changed


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Sea change in use of

technology Gen Y first generation to

spend more time on theNet than watching TV

Implications formarketing staggering

40% of Gen Xers doresearch online

2006 17.6 million U.S.

seniors 62+ online Proj. 2010 25.4

million (twice the

normal growth rate)

Characteristics of the Ecosystem


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Web. 2.0 (or Business Web, or Live Web)

User created content

Co-creation of value

Experience economy

Customer managed experiences

Authenticity

Transparency

Social networking

Social media

Customer advocacy

Open source

User communities

Experience mapping and design

Experiences as economic outputs

Trusted sources

CEM

Voice of the customer

Return on customer

Customer value

Customer ecosystem

Personal value chain

Service Oriented Architecture

On Demand

Prosumer

Conversations, not marketing spin

Social customer

Personalization

Platform as a service

New Terminology


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CRM is a philosophy & a business strategy, supported by a system

& a technology, designed to improve human interactions in abusiness environment

CRM 2.0 is a philosophy & a business strategy, supported by a technologyplatform, business rules, processes and social characteristics, designed toengage the customer in a collaborative conversation in order to providemutually beneficial value in a trusted & transparent business environment. It'sthe company's response to the customer's ownership of the conversation."

CRM Definitions


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The CRM Market Continues to Grow..

2006 - $3.6 billion, CRM software licenses

2012 - $6.6 billion, CRM software licensesSource Datamonitor Economic Outlook:CRM

2007 - $6.8 billion, CRM software

2012 - $13.3 billion, CRM softwareSource: Gartner Group, CRM Outlook, April 2008


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The CRM Market Continues to Change..

1. Consolidation by the major enterprise vendorsa) Oracle purchase of PeopleSoft, Siebel, Hyperion

b) SAP purchase of Business Objectsc) IBM purchases Cognos

2. Increasing substitution of on demand for on premisemodels due to allaying of concerns over scalability and

securitya) Salesforce.com Japan Post 45,000; Merrill Lynch, 25,000b) Workday ERP on demand Flextronics 200,000 seats

3. Integration of Web 2.0 technologies with CRMa) First time ever nGenera buys Talisma a.k.a. Web 2.0

buys CRMb) SAP integrates Google-like skinnable user interface intoCRM

c) Oracle & SAP use mashups for the enterprise


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The CRM Market Continues to Change..

1. Increasing move to verticalization both on premise/on

demand esp. health services, financial services, publicsector, non-profitsa) Microsoft LiveCRM announcement for vertical hostingb) Google competition with Microsoft re: health services

2. Increasing move to specialization & complexity

a) CRM for complex systems like manufacturingb) CRM as integrated part of enterprise value chain includes back & front office, but also multiple systems

(e.g. content management w/customer friendly features)

c) Social CRM and the new desktop integration of

collaborative features3. CRM leading app for enterprise mobilitya) SAP/RIM create CRM mobile application

b) Sage uses Blackberry enabled Saleslogix based on GPSand location


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The CRM Market Continues to Change..1. Integration of Web 2.0 features, functions into CRM strategic

and operational toolkitsa) FaceForce

b) Neighborhood America as enterprise social networkingplatform

c) Lotus Connection

d) IBM innovation strategye) Proctor & Gamble use Vocalpointf) InsideView from SalesView (socialprise)

1. Transformation of CRM applications providers into platformprovidersa) Salesforce.com Force.comb) SugarCRM as platform for health services personal

applications, sales collaboration tools, and integration of

social networking into CRM tools through Q-Industriesc) SAP puts NetWeaver out as subscription based platform


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Changes to the CRM Model


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CRM Model 2008 & BeyondFrom To

Engaging customersin collaborativeactivity for mutuallycreatedvalue

Managing customerrelationships so thatthe customers canprovide value to the

company based onthe companys valueto the customer

(quid pro quo)


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CRM Model 2008 & Beyond

Providing products

and services to givethe customer qualityand price

Company remainsprovider of goods &services

Providing products,

services, and toolsfor the customers topersonalize their

own experience Company becomes

aggregator of

required parts forpersonalized

experience

From To


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Operationally

focused CRMtechnologies tosupport sales,

marketing, customerservice processes

Both operational

and collaborativetechnologies toimprove the

experience of thecustomers internally &

externally

From To


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Separate enterprise-

level value chainsimpacted by thefront office (e.g.

supply chainimpacted by sales)that also affect the

customers

Integrated extended

value that includescustomer-centeredsupply chain and

incorporates thecustomer (& theirpersonal value

chain)

From To


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CRM Model 2007-08 & Beyond

Strong process-

driven, operationalapplications likeSFA, enterprise

marketingmanagement,contact center

management, fieldservice

Customer-inclusive

applications likesocial networkingand other social

media applications(blogs,wikis,podcasts); use of

user generatedcontent that can beshared

From To


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Dramatic Evolution between CRM 1.0 &CRM 2.0 is in progress


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CRM 1.0 Features/Functions CRM 2.0 Features/Functions

Customer facing features - sales, marketing & support. Still

isolated from back office, supply chain

Fully integrated into an enterprise value chain that includes the

customer as part of it

Tools are associated with automating functionsIntegrates social media tools into apps/services: blogs, wikis,podcasts, social networking tools, user communities

Automate interaction history for lead nurturing and relationship

building

Utilize knowledge in context to create meaningful conversations

Models customer processes from the company point of view Models company processes from the customer point of view

Recognizes that the customer relationship encompassesinformation-seeking and information-contributing behavior

Resided in a customer-focused corporate business ecosystem Resides in a customer ecosystem

Utilitarian, functional, operational All those plus style and design matter

Marketing focused on processes that sent improved, targeted,highly specific corporate messages to customer

Marketing is front line for creating conversation with customer -engaging customer in activity and discussion

Business produces products & creates services for customerBusiness is an aggregator of products, services, tools andknowledge for the customer

Intellectual Property protected with all legal might available

Intellectual property provided when appropriate to customer,

partner, supplier, problem solver

Business focus on products and services that satisfy customersBusiness focus on environments & experiences that engage

customer

Tactical and operational Strategic

Customer strategy is part of corporate strategy Customer strategy IS corporate strategy

Innovation from the designated Innovation from both internal and external sources

Separation between work and personal life Work at home/personal things at work work personal integration

Source: CRM 2.0 Wiki (http://crm20.pbwiki.com)

CRM 1.0 v. CRM 2.0: The Customer Rules


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04 - RS-IBA-201001 - CRM State of the Market - 2008 and Beyond - Session 5

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Transcript of 04 - RS-IBA-201001 - CRM State of the Market - 2008 and Beyond - Session 5