Crm State Of The Market 2008 & Beyond
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Transcript of Crm State Of The Market 2008 & Beyond
2008 & BeyondBy Paul GreenbergPresident, The 56 Group, LLCChief Customer Officer, BPT Partners, LLCAuthor: CRM at the Speed of Light
CRM STATE OF THE UNION:
• 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 the Social Customer”
• Personal value chain• The Prosumer rises
The Business World Changed
• Sea change in use of technology– Gen Y first generation to
spend more time on the ‘Net than watching TV
– Implications for marketing staggering
• 40% of Gen Xers do research online
• 2006 – 17.6 million U.S. seniors 62+ online
– Proj. 2010 – 25.4 million (twice the normal growth rate)
Characteristics of the Ecosystem
• Managed customer relationships
• Sales, marketing, support
• Operational, analytic, collaborative
• Data management
• Business process management
• Partner Relationship Management
• Application Service Providers
• Marketing’s 4Ps – Price, product, place, promotion
• Customer satisfaction
• 360° view of the customer
• On premise
• Client/server
• Customer focused corporate ecosystem
• Intranet
• Product and/or services company
• Thin client
• E-CRM a.k.a ecommerce
• ROI
• TCO
• Product sales as economic outputs
Old Terminology
• 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
“CRM is a philosophy & a business strategy, supported by a system & a technology, designed to improve human interactions in a business environment”
“CRM 2.0 is a philosophy & a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It's the company's response to the customer's ownership of the conversation."
CRM Definitions
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
The CRM Market Continues to Change…..1. Consolidation by the major enterprise vendors
a) Oracle purchase of PeopleSoft, Siebel, Hyperionb) SAP purchase of Business Objectsc) IBM purchases Cognos
2. Increasing substitution of on demand for on premise models 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 into
CRM c) Oracle & SAP use mashups for the enterprise
The CRM Market Continues to Change…..
1. Increasing move to verticalization – both on premise/on demand esp. health services, financial services, public sector, non-profitsa) Microsoft LiveCRM announcement for vertical hostingb) Google competition with Microsoft re: health services
2. Increasing move to specialization & complexitya) 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 features
3. CRM leading app for enterprise mobilitya) SAP/RIM create CRM mobile applicationb) Sage uses Blackberry enabled Saleslogix based on GPS
and location
The CRM Market Continues to Change…..1. Integration of Web 2.0 features, functions into CRM strategic
and operational “toolkits”a) FaceForceb) Neighborhood America as enterprise social networking
platformc) Lotus Connectiond) IBM innovation strategye) Proctor & Gamble use Vocalpointf) InsideView from SalesView (socialprise)
1. Transformation of CRM applications providers into platform providersa) 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-Industries
c) SAP puts NetWeaver out as subscription based platform
Changes to the CRM Model
CRM Model – 2008 & Beyond
• Managing customer relationships so that the customers can provide value to the company based on the company’s value to the customer (quid pro quo)
• Engaging customers in collaborative activity for mutually created value
From To
CRM Model – 2008 & Beyond
• Providing products and services to give the customer quality and price
• Company remains provider of goods & services
• Providing products, services, and tools for the customers to personalize their own experience
• Company becomes aggregator of required parts for personalized experience
From To
CRM Model – 2008 & Beyond
• Operationally focused CRM technologies to support sales, marketing, customer service processes
• Both operational and collaborative technologies to improve the experience of the customers – internally & externally
From To
CRM Model – 2008 & Beyond
• Separate enterprise-level value chains impacted by the front office (e.g. supply chain impacted by sales) that also affect the customers
• Integrated extended value that includes customer-centered supply chain and incorporates the customer (& their personal value chain)
From To
CRM Model – 2007-08 & Beyond
• Strong process-driven, operational applications like SFA, enterprise marketing management, contact center management, field service
• Customer-inclusive applications like social networking and other social media applications (blogs,wikis, podcasts); use of user generated content that can be shared
From To
Dramatic Evolution between CRM 1.0 & CRM 2.0 is in progress
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 encompasses information-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 and knowledge for the customer
Intellectual Property protected with all legal might availableIntellectual property provided when appropriate to customer, partner, supplier, problem solver
Business focus on products and services that satisfy customers Business 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
THANK YOU
For further information:Paul GreenbergPresident, The 56 Group, LLCChief Customer Officer, BPT [email protected]: www.the56group.typepad.comPodcast Feed: www.the56group.typepad.com/route_56_podcast/rss.xmlBPT Partners website: http://www.bptpartners.com