Darius Vaskelis - Future Trends in Customer IT Beyond CRM

Future Trends in Customer IT Beyond CRM(aka “When did—or when will—CRM stop sucking?”)

2015.08.17

Darius Vaskelis

@vaskelis

2

@vaskelis #CRMevolution

AGENDA – RAPID-FIRE TOUR OF THE PAST, PRESENT AND FUTURE

• Darius Vaskelis: Who is this guy? And what does he mean by “customer IT”? (5 minutes)

• The Past: How did we get here? (10 minutes)

• The Present: Where are we? (15 minutes)

• The Future: Where are we going? (15 minutes)

image source: turning points

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HI, I’M DARIUS

• Son of Lithuanian immigrants, lucky to have had amazing global business clients, almost all CRM

• Product of the East Coast and Chicago

• Started career at IBM, later in corporate IT, part of Inforte leadership team for IPO, then Cognizant, and former CEO of Safepole, patient care device startup

• Learned CRM over a 20 year stretch from many custom systems in corporate IT, later was present for the rise and fall of Siebel, and have been there for the rise of Salesforce, along with Blackbaud, Microsoft and Oracle, having partnered with them all and implemented many others too

• Was CEO and co-founder of Sakonent since 2009, a leading Gartner-recognized CRM tech consultancy, which was acquired by Tectonic in 2014; now Tectonic’s SVP of CRM

• Focused on the sales, marketing and customer service tech scene


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What do you mean by “customer IT”?(CRM by any other name)

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REMINDER: THE VALUE CHAIN

Representation of activities within a firmto show how value is

produced*

*Michael E. Porter, Competitive Advantage (The Free Press, 1985)

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VALUE CHAIN IN A VALUE SYSTEM

Representation of activities across firms to show how value is produced*

*Michael E. Porter, Competitive Advantage (The Free Press, 1985)

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CUSTOMER IT AND THE VALUE SYSTEM

Customer IT activities are those that interact, optimize and collaborate with channels and customers

Customer IT activities

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CUSTOMER IT FUNCTIONALITY EXAMPLES

• Breadth of customer IT covers sales, marketing and customer service activities

• Depth of customer IT covers data, transactions, reports, analytics and dashboards

• Users can be internal or external partners, channels, prospects or customers

• Delivery can be anywhere: internal, external, and is largely mobile and integrated with social networks

• Paul Greenberg: “Customer Relationship Management is a technology and system that sustains sales, marketing and customer service activities. It is designed to capture and interpret customer data, both structured and unstructured, and to sustain the management of the business side of customer related operations. CRM technology automates processes and workflows and helps organize and interpret data to support a company in engaging its customers more effectively.”

Sales Marketing Service

Sales Force Automation (SFA)

Omnichannel Campaign Management

Contact Center Management

Partner/Channel Relationship Management Customer Data Mining Field Service Management

Quote/Order Management Email 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

Forecast Management Collateral and Digital Asset Management

Bug Tracking/Defect Management


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Where did CRM come from?(depends on who you ask!)

SNA

Terminal

Mainframe

Connect With Your Customers in a Whole New Way

LAN / WAN

Client

Server

LAN / WAN

Client

Server

Systems of Record

Cloud

Mobile

Social

Data Science

Systems of Engagement

Systems of Intelligence

This is how Salesforce.com explains the eras of customer IT.

It’s not wrong, but did CRM really begin with mainframes? My argument is that the roots of CRM really began with the introduction of the PC.

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THE EVOLUTION OF CUSTOMER IT INTO CRM

Transactional-based data computation, tabulation, and recording to assist with individual clerical tasks

PCs, relational databases, PBX, ACD, fax“Data Processing era” -PIM, Contact Databases, Database Marketing

Enforcement-based automation and enhancement to assist

specific departmental activitieslocal area networks, laptops, CTI, IVR“MIS era” -

SFA, Call Center, Campaign Management

Rules-based enterprise view of departmental business processes

and decisions across functions

client/server, ERP, EAI, DSS, objects (DCOM, CORBA)

“IT - Client/Server era” -CRM

Using the Internet to deploy contractually-based business processes and decisions to entire enterprise

(self-service) and customers, channels, and suppliers

web, early mobile, XML, DW & BI, MDM, chat, analytics, web services

“eBusiness era” -“eCRM”

These concepts draw on original ideas, research with Professor Michael E. Porter, and from Professor Porter’s books and articles, in particular, “Strategy and the Internet” (Harvard Business Review, March 2001) where Darius Vaskelis was a contributor.


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CRM Today and the Next-gen(aka “Why do Millenials seem to like CRM?”)

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SOCIO-ECONOMIC ERAS: MILLENIALS/ERA OF TRUST

• Transparency/trust hurts relationships propelled by situational values

• Involve calculations about what is available in the here and now

• Ex: Great Firewall of China, “Why I Am Leaving Goldman Sachs”, etc.

• Transparency/trust helps relationships propelled by sustainable values

• Connect us deeply as humans, such as integrity, humility, excellence, loyalty and passion

• Ex: Facebook, Amazon reviews, Ralph’s doughnuts, etc.

graphic source: Michael Moon, Firebrands (McGraw-Hill Osborne Media, 2000) referencing Peter Drucker’s eras

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“Traditional” CRM “Next-gen CRM”Scope sales, marketing, customer service entire firm, customers, channel partners

Leadership command and controlby departmental executive management

connect and collaborateat all levels with shared standards

Incentives/Culture “carrots and sticks” to manageprocess performance and adoption

purpose and reputation supportself-governing cooperative behaviors

Timelines inside-out “big bang”(months/years)

outside-in fast & iterative(days/weeks)

Implementation re-engineer & slow, massiveonsite implementation

“turn it on”, roll it out fast, learn,tweak, continuously improve

Technology massive platform commitment “try it out”, open, modular,almost always cloud-based

Integration integrate tightly inside the enterprise loosely couple inside and outsidewith Internet data sources

Sponsorship IT selects technologyfor the business

business-drivenand IT-assisted

Devices personal computer (PC), laptop web browser, tablet, smartphone,BYOD (bring your own device)

Users forced to comply with“anti-social” system

system complies with empowered collaborating users and customers

Data structured data (tables/screens) structured and unstructured data optimized and predicted

Financial buildvs. buy buy/rent/build/open source

Maintenance dedicated IT CRM application team outsourced CRM application teamto scale up/down as needed

CRM HAS EVOLVED IN THE ERA OF TRUST

• CRM has shifted to a new generation of CRM.

• “Carrots and sticks” are giving way to purpose and reputation, particularly with millennials.

• If you implement new technology in an old paradigm, you fail.

• Underlying technology is just a start, how you implement has also changed.

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WHERE IS CRM TODAY: THE POST-PC ERA. “MOBILE FIRST.”

Transformational trust-based transparent optimization of activities inside and outside the socially-connected enterprise in mutual market-driven collaboration with

customers, channels, and suppliers

SaaS, PaaS, smartphones, social networking, blogs, wikis, Web 2.0+, HTML5, open source, cloud, SOA, tablet, mashups, “big data”, OData, consumerization/BYOD

“Post-PC era” –“Next-gen CRM”


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How is “Next-gen CRM” different?(Post-PC App implementation context)

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NEW APPROACH TO ORGANIZATIONAL CHANGE MANAGEMENT

YChange Management

One of the critical success factors in deploying CRM is

your ability to handle the change

LESS MORE

Carrot/Stick User Adoption

System Training

Carrot/Stick & “WIIFM” User

AdoptionProcess Training

Process & Reputation Training &

Communications

Purpose & Reputation Training &

Communications

Values-Based Culture as a

Strategy

transparency of leadership commitmentsustainability of change / emphasis on behaviors

Focus on behaviors to encourage Identify the incentivesEngage users from the very start and invest them in the requirements process along the wayScheduled application reviews to get people controlling the change

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WHAT’S A POST-PC “APP”? – TASKS, PART OF A PROCESS

VSpecific

CRM Process

Approval Workflow Routing

Task

Modify Data Task

Process Conclusion

Task

Enrich Data with Internal/

External/ Sensor Source

Task

Create Data Task

Dashboard Validation

Task

Decision or Next Step

Action Task

Process Initiation Task

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POST-PC APP CANDIDATES – TASKS IN A PROCESS (CLIENT EXAMPLE)

VStrategic Project

Opportunity

Develop Quote with

Custom Pricing

Update Forecast

Flag as “Won” Link to Order(s)

Enrich Data with

Documents/ Pictures/GPS

Schedule Follow Up

Develop Sample Book

Evaluate/ Qualify

Opportunity Score

Accept Lead, Initiate

Opportunity Process

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Evolution of Apps - unbundling of processes example: Facebook

Single-purpose “there’s an app for that”

Multi-purpose web app Multi-purpose mobile app

Source: Internet Trends 2014 – Code Conference (Mary Meeker, Kleiner Perkins Caufield Byers)

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Evolution of Apps - unbundling of processes example: Salesforce1

Single-purpose “there’s an app for that”

Concept: KCBP’s Internet Trends 2014

Post File NewTask

Log aCall

NewOpp’ty

NewLead

Multi-purpose web app Multi-purpose mobile app

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POST-PC APP EXTENSION FRAMEWORK – EVALUATING OPTIONS

OMOBILE CRM

Applying enterprise mobile best practices along with CRM process

best practices gives a starting point in evaluating effort/benefit

for mobile CRM usage.

HighBenefit

LowBenefit

SimplerImplementation

ComplexImplementation

Basic CRM Mobility•Re-think processes so that crossing

organizational groups are standard•Collaboration directly with customers, as part of communities or just transactions

•Benefits•Cross-organizational collaboration

•Stronger tie-in with customers making it more difficult for them to buy elsewhere

Optimized CRM Mobility

• Re-render customer UI and dashboards for optimal mobile use

• Run processes entirely from mobile, no longer need access to web application

Benefits• Online/offline/office/remote distinctions

and productivity increased• “Mobile first” so mobile is the primary UI

for everything

“Vanilla” Out-of-Box•Standard objects, potentially unoptimized

•Review permissions•Customize navigation

Benefits•Start using immediately

•Provide users mobile CRM access with integrated email, calling, and GPS/maps

Optimized and Tailored•Rethink UI beginning to end around tasks

•Configured layouts•Simple actions/”apps”

•Repurposed existing custom UI/dashboardsBenefits

•Key process wins, direct benefit link•UI now optimized for mobile driving better

adoption by bringing mobile on-par with web UI

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SALESFORCE1– ASSESSMENT SUMMARY (CLIENT EXAMPLE)

OSALESFORCE1 MOBILE

Applying enterprise mobile best practices along with CRM process

best practices gives a starting point in evaluating effort/benefit

for Salesforce1 usage.

HighBenefit

LowBenefit

SimplerImplementation

ComplexImplementation

Basic CRM Mobility

•Have Quote Activity approvals through SF1• Have the ability for sales reps assist in the

claim investigation process and send evidence to CS through mobile

• Update SOW entry for ease of use and activity tracking

Optimized CRM Mobility

•Re-optimize Marketing Asset distribution page to add multiple items at one time

•Add QR or “quick order” of sample chips update marketing items/merchandising

replenishment•Access marketing material and new product

presentations. Have the ability to quickly send brochures to the client

•Ability to quickly spec and quote a project“Vanilla” Out-of-Box

•Ensure SSO for everyone works•Keep “as is”

•Convert custom buttons into custom links

Optimized and Tailored

•Update pages to mobile layouts•Create Publisher Actions for

creating/updating Opportunities•Update Planning Dashboard to be viewable

in SF1

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HOW WE HELPED• Defined, Designed and Delivered an analytical

inspired CRM Capability to integrate seamlessly with a custom built analytics application and three Petabytes of data within a Teradata Warehouse.

CMO’S CHALLENGEMore predictable insights required in order to maximize marketing reinvestment strategiesImprove overall enterprise customer experience via deploying a more 1:1 & personalized approach towards marketing Grow Revenue

Phase 1

4 Weeks

Phase 2

8 - 10 Weeks

AUTOMATED A SET OF BUSINESS PROCESSESINTO AN INTERGRATED TECHNOLOGY SOLUTION

STANDARIZED CUSTOMER INTERACTIONS AND ENABLED MARKETING AUTOMATION

INCREASED REVENUE 9-12% PER CUSTOMER

RESULTS

IT STARTED HERE: ANALYTICS & BIG DATA CASE: HOSPITALITYImplemented Operational and Analytical CRM to drive revenue and customer Insights . . .

l

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HOW WE HELPED• Defined, Designed and Delivered an analytical

inspired CRM Capability to integrate seamlessly witha custom built analytics application and threePetabytes of data within a Teradata Warehouse.

CMO’S CHALLENGEMore predictable insights required in order to maximize marketing reinvestment strategiesImprove overall enterprise customer experience via deploying a more 1:1 & personalized approach towards marketing Grow Revenue

Phase 1

4 Weeks

Phase 2

8 - 10 Weeks

AUTOMATED A SET OF BUSINESS PROCESSESINTO AN INTERGRATED TECHNOLOGY SOLUTION

STANDARIZED CUSTOMER INTERACTIONS AND ENABLED MARKETING AUTOMATION

INCREASED REVENUE 9-12% PER CUSTOMER

RESULTS

IT STARTED HERE: ANALYTICS & BIG DATA CASE: HOSPITALITYImplemented Operational and Analytical CRM to drive revenue and customer Insights . . .

l

2015.05.06

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CRM IT ARCHITECTURE EXAMPLE: ENABLE CUSTOMER-CENTRICITYMAPPED ENTIRELY ALONG CUSTOMER JOURNEY

BI/DWanalytical tools

CRMconfigured applications (leverage best practices)

CRMcustom applications

brand/community

target/marketing

prospect/sales

nurture-renew/service

greet/operations

market & community

analytics

marketing, lead & list analytics

sales prospecting & performance

analytics

sales account & performance

analytics

operations analytics

community relations

management

list management

opportunity management

campaign management

event management

account/ membership management

incident management

case management

forecast management

organizational account & process

collaboration

organization calendar

(community, events, external,

etc.)

community for partners and

channels (invoices, case interaction, special requests,

feedback, discussion, etc.)

onboarding/ provisioning

management

product inventory management

renewals management

donation management

grantmanagement

vendor dispatch management

survey management

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EXAMPLE “PLAYBOOKS” OF ACTIONS RUN FROM CRM:INSIGHT DRIVEN FROM CUSTOMER DATA (SPORTS TEAM)

brand/community

target/marketing

prospect/sales

nurture-renew/service

greet/operations

identified prospect

3 Pack Member

6 Pack Member

9 Pack Member

Partial Season Ticket

Member

Full Season Ticket

Membersave

qualified prospect

understanding needs

value discussions

proposal/ quote/invoice win

onboarding

awareness targeting

content targeting

product/ experience targeting

lead conversion targeting

capture nurture convert partner

in-game recognition

post-event follow-up

pre-event touch point

member nurturing

campaigns

• This illustrative list is the types of sets of “plays” of pre-defining actions by those who interact with a customer in any way.• Insight gained from the business intelligence foundation should feed/adjust/drive the actions recommended in CRM.• Actions should be front-and-center on the desktop or on any mobile device, and include inter-group “jumps” as goals.


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POST-POST-PC CUSTOMER IT(it’s already begun: the “Internet of Things”)

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HOW WILL CUSTOMER IT EVOLVE? BEYOND “MOBILE” ALTOGETHER.

Highly intimate, yet externally integrated, context-based intelligent notifications take information from IT applications and sensors to reduce friction and inform

other all other enterprise and customer processes.

smartcards, geolocation, ambient sensors, cameras, wearable devices, personal sensors, voice control, gesture control, haptics, augmented reality, virtual reality

“IoT era” –“Intelligent Apps”

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TWO IOT ERA EXAMPLES: ONE TODAY, ONE TOMORROW

Today: The Tampa Bay Rays were the first MLB team to use a smart card with proximity sensors to handle non-transferrable electronic ticketing, parking, and in-park purchases where the location and actions are tailored based on level of membership.

They know when you’re there, give you specialized treatment, and make transactions frictionless.

Tomorrow: Imagine your smart watch monitoring your heart rate, realizing it’s elevated because it ties together current geolocation data with your CRM to see you are right now presenting to a top prospect, Paul, who can make or break your quarter.

It taps you gently on the wrist, and displays “Relax. Deep breath. Tell Paul a joke and dive in.” because it also knows from your CRM that there’s advice to be casual with Paul before getting down to business.


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THE FUTURE OF CUSTOMER IT(plus a peek at a use case today)

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WHAT’S NEXT? “THERE IS NO SPOON.”

In the movie The Matrix, the lead character is told there is no spoon” when he sees a floating spoon being warped and bent without physical force.

In the movie, it’s because the lead character no longer has need for things in the reality of the Matrix, transcending the need for physical utensils and tools.

The same thing is happening with CRM and customer IT. The device is going away.

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HER, IN 2013, WON AN OSCAR FOR BEST ORIGINAL SCREENPLAY

The film follows a man who develops a relationship with Samantha, an intelligent computer operating system personified through a Siri-like female voice.

“Her speech recognition, natural language understanding, speech generation, dialog, reasoning, planning, and learning all far exceed the current state of the art. She is able to take on complex tasks — she filters Theodore’s inbox with a sophisticated understanding of the goal — and is able to engage in flexible reasoning without any obviously predetermined responses.”*

Can We Build ‘Her’?: What Samantha Tells Us About the Future of AI (wired.com) Vlad Sejnoha

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THERE IS NO DEVICE. THERE IS NO APP. JUST YOUR DIGITAL ASSISTANT.

Invisible auto-collaboration-based activities spanning personal and professional spheres

managing everything, everywhere.

intelligent personal digital assistants, spontaneous knowledge, on-demand integrations, mesh network applications, “cyborg” implants, “replicators”, autonomous drones

“Virtual era?” –“Assistants?”

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TWO ASSISTANT ERA EXAMPLES: ONE TODAY, ONE TOMORROW

Today: Technology like Crystal gives advice for better communications, including real-time prompts while writing emails to match the recipient’s detected personality based on Internet information so that the sender’s message is optimally understood.

Tomorrow: Imagine a digital assistant in your ear whispering advice for everything: where to go, what to buy, what to say, what to do next. It’ll all be based on customer, financial and personal data from all your systems and your detected optimal patterns to be healthy, happy, and successful as defined by how you measure those concepts personally.


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Evolution of Customer IT(aka “When did CRM stop sucking?”)

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THE EVOLUTION OF CUSTOMER IT

• Each era reflected the changing role of IT, starting originally as a finance support function.

• Business impacts started as transactional support, but have grown transformational with the IT enablers of social, mobile and “big data.”

• Many customer IT platforms have technology underpinnings rooted in an earlier era, making it more difficult to fully leverage the benefits of more modern IT.

Transactional-based data computation, tabulation, and recording to assist with individual clerical tasks

PCs, relational databases, PBX, ACD, fax“Data Processing era” -PIM, Contact Databases, Database Marketing

Enforcement-based automation and enhancement to assist

specific departmental activitieslocal area networks, laptops, CTI, IVR“MIS era” -

SFA, Call Center, Campaign Management

Rules-based enterprise view of departmental business processes

and decisions across functions

client/server, ERP, EAI, DSS, objects (DCOM, CORBA)

“IT - Client/Server era” -CRM

Using the Internet to deploy contractually-based business processes and decisions to entire enterprise (self-service)

and customers, channels, and suppliers

web, early mobile, XML, DW & BI, MDM, chat, analytics, web services

“eBusiness era” -“eCRM”

Transformational trust-based transparent optimization of activities inside and outside the socially-connected enterprise in mutual

market-driven collaboration with customers, channels, and suppliers

SaaS, PaaS, smartphones, social networking, blogs, wikis, Web 2.0+, HTML5, open source, cloud, SOA, tablet, mashups, “big data”, OData, consumerization/BYOD

“Post-PC era” –Next-gen CRM

Highly intimate, yet externally integrated, context-based intelligent notifications take information from IT

applications and sensors to reduce friction and inform other all other enterprise and customer processes.

smartcards, geolocation, ambient sensors, cameras, wearable devices, personal sensors, voice control, gesture control, haptics, augmented reality, virtual reality

“IoT era” –“Intelligent Apps”

Invisible auto-collaboration-based activities spanning personal and professional spheres

managing everything, everywhere.

intelligent personal digital assistants, spontaneous knowledge, on-demand integrations, mesh network applications, “cyborg” implants, “replicators”, autonomous drones

“Virtual era?” –“Assistants?”

✓

#CRMevolution@vaskelis

Future Trends in Customer IT Beyond CRM(aka “When did—or when will—CRM stop sucking?”)

2015.08.17

Darius Vaskelis

@vaskelis

Darius Vaskelis - Future Trends in Customer IT Beyond CRM

Business

Transcript of Darius Vaskelis - Future Trends in Customer IT Beyond CRM