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TripleTree CRM

  1. 1. SaleS, Marketing and Service convergence: HOW SAAS ECOSYSTEMS AND COLLABORATION TOOLS ARE REDEFINING CRM a tripletree industry analysis SPotligHt rePort WWW.triPle-tree.coM 7601 France ave S, Ste 150, MinneaPoliS, Mn 55435 12526 HigH BlUFF dr, Ste 300, San diego, ca 92130 952.253.5300
  3. 3. INTRODUCTION Organizations are no longer making independent departmental decisions about how to best serve their clients. Driven by a range of compliance benchmarks, organizations have become aware of customer information silos. The result is that they are now internally focused on their varied customer touch points and where sales, marketing and service workflows and processes intersect. Externally, the impact of consumerism and the success of Internet communities are redefining how customer and business experiences can be managed. TripleTree is fanatical about understanding unique delivery models and how they can create value for emerging companies. Few domains are being impacted by innovative delivery models more than Customer Relationship Management (CRM). Thanks to this innovation, critical customer and business information can be shared, and performance can be measured by simple, powerful, common systems that are engineered to automate customer facing workflows. We’re convinced that the Software as a Service (SaaS) delivery model is a catalyst for the next generation of CRM. As the micro-disciplines of CRM link with Web 2.0 tools (specifically collaboration solutions), we believe Business Relationship Management could become a more meaningful description of the technologies and processes that mesh to frame the customer experience. For emerging vendors in the midst of this transformation, SaaS will create value for its investors because of the well known benefits of recurring revenue streams and lower costs of innovation. However, these firms will need to align with platform partners who can provide the infrastructure and logic around other core business components to truly emerge as leaders. This report reviews: - how the silos around sales, marketing and service are being torn down because of SaaS; - where leading vendor ecosystems are rationalizing new technology platforms that can impact CRM; - where Web 2.0 and collaboration tools are becoming competitive differentiators for CRM vendors; and - how the role of professional services is changing as SaaS proliferates. For more on how TripleTree is helping growth businesses with TripleTree continues to work with terrific firms seeking their next plateau of investment banking, strategic growth while also advising global acquirers on ways they can remain opportunistic capital and long term advisory as new competitors enter the landscape. If your organization could benefit from services, please visit our website our thinking and support regarding investment banking or strategic advisory at services, please contact us. PAGE 2 Q3 2007 CRM CONVERGENCE WWW.TRIPLE-TREE.COM MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406
  4. 4. EXECUTIVE SUMMARY Application functionality is demand-driven, not supply-driven. Workflows for IT, executive and knowledge workers are converging and the enterprise applications that were engineered for yesterday’s processes aren’t keeping up. Ten years ago legacy ERP, HCM, CRM and other enterprise functionalities were designed and built around silos and departments – and for the most part these solutions haven’t changed. Workflows today are broadly defined relative to their domain or industry vertical. For CRM, they refer to a set of related end-to- end business processes that produce a specific product or service that enhances customer value. Because more of today’s workflows and processes are both cross- departmental and may extend outside of an organization, the ways in which co- workers can collaborate to support these processes can be erratic – leading to unstructured, (or worse) undocumented activities. CRM software suites have automated many of the business processes which tie together sales, marketing and customer service functions and their accompanying workflows and activities. While much was accomplished by legacy CRM vendors, new and meaningful evidence of a convergence between key micro-disciplines within sales, marketing and service is emerging. This is buoyed in large part by the need for users to share information and the explosive growth of the SaaS (or “on-demand”) delivery model. SaaS is proving to be an effective mechanism for building and aligning the tools necessary to facilitate inter-departmental collaboration and to alleviate some of the pain associated with change management and re-implementation of legacy software solutions. TripleTree’s perspective on the disruptive nature of SaaS is based on several emerging trends: The capital markets have recognized the growth (both in terms of user adoption and • Ecosystems have formed around a handful of technology and business services revenue) and business benefits of SaaS, firms. These are most often technical at their foundation, but the need for eight and are associating a premium valuation (see page 9) “core” financial and operational components are becoming evident. with vendors who can demonstrate the • Collaboration technologies are tying together disparate workers to share ability to clearly track and optimize information and better serve customers. In addition, they’re redefining vertical customer acquisition and loyalty. For solutions and business platforms upon which new applications can be developed, shared and marketed. these businesses, the options for gaining scale are numerous, however fast growth • CIO’s are finally coming around to the reality that SaaS-based applications can alone doesn’t denote value creation. benefit most departments within their organizations. Many Web 2.0 tools are moving too quickly for IT to support in a traditional manner, yet the CIO and the team have a role to play as customer data is shared and analyzed. Positioning, messaging, pricing, a keen focus on adoption and relevant partnering • Vertical applications are increasingly relevant, especially in sectors like all have a role in the strategic thinking of healthcare or domains like compliance. The information needs and converging workflows around data quality and content sharing are critical elements of CRM vendors offering a SaaS delivery compliance and user satisfaction and are becoming increasingly intertwined. model. This, coupled with the rapid pace of innovation around SaaS, should spur • Marketing automation is emerging as the hub around which many customer – emerging vendors to identify and become facing applications will orbit. In addition, traditional linkages that marketing has with sales and service are growing stronger and new linkages with finance quickly visible within an ecosystem and and HR are forming. to simultaneously leverage a collaboration tool set to remain disruptive and become part of a platform solution. MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406 WWW.TRIPLE-TREE.COM Q3 2007 CRM CONVERGENCE PAGE 3
  5. 5. WHY CONVERGENCE IS HAPPENING Convergence within CRM is becoming top-of-mind because the differences between sales, marketing and service are narrowing, the related business processes are becoming more integrated, and the value of customer retention is hyper- appreciated. The history of on-demand CRM grew from point-based solutions addressing specific customer needs into burgeoning functionality and broader product suites. At its worst, licensed CRM software deployments littered the IT landscape with abysmal shelf-ware stories and an underserved small and mid-sized business (SMB) market. However, as on-demand CRM took flight in 2001, good-enough functionality and affordable pricing drove high user adoption and were early signs of a broad trend in how application functionality could evolve and perpetually innovate. SaaS pioneers like and Salesnet anchored broad on-demand sales functionality and RightNow emerged as a leader in services. However, marketing has been left behind. Vendors like Unica and Aprimo represent on-premise software solutions that do not necessarily offer best-in-class functionality across the wide range of needs confronting most marketing roles. It’s because of the continued growth of sales and service, and the promise of marketing that CRM remains a “top five” growth category among the two dozen SaaS domains and verticals tracked by TripleTree (for a complete list of these domains and verticals, see TripleTree’s SaaS Update Spotlight Report, September 2006). Currently over 300 firms offer CRM solutions delivered via SaaS, but as collaboration tools mature and vertical specialization takes hold, TripleTree believes this number could double by late 2009. One reason for this growth is that the influence of collaboration tools on business relationship management solutions is influencing how vendor ecosystems are forming. Encouraged by hot capital markets and the lack of competitive fervor from legacy software firms, ISVs are attempting to broaden their functionality by joining ecosystems in the hopes About TripleTree’s Sector-Q of building market awareness and client uptake. Also spurred by the enthusiasm of Diagram on Page 5: ISVs to “join their family,” ecosystem leaders are scurrying to amass core business functions. Borrowing from the old adage “membership has its privileges” is a reasonable portrayal of how member ISVs will view these coordinated functions In 2005, TripleTree established a as ecosystems mature into more stable sales and delivery platforms. graphical representation for mapping markets and sectors as its Sector-Q As shown in Figure 1 on page 5, licensed or packaged CRM is no longer a “high diagram (trademark of TripleTree) and growth” component of the enterprise applications sector as we project it to grow schema. Originally designed to support at 3.1% CAGR through 2011. In contrast, TripleTree is projecting strong growth client advisory assignments, the Sector- for SaaS-based CRM solutions and professional services at 54.7% CAGR through Q diagrams now encompasses 15 2011. A number of factors influence these estimates: an expected strong rate of versions covering a range of domains venture capital investment continuing in CRM; growth and proliferation of open source CRM; growth of enterprise-class SaaS CRM deployments; broad and deep and verticals and have become integral penetration of the SMB market; and an evolution of collaboration-inspired CRM to our research agenda. solutions. Thus, by 2011 we estimate that spending on SaaS applications and MINNEAPOLIS 952.253.5300 WWW.TRIPLE-TREEE.COM SAN DIEGO 858.792.3406 PAGE 4 Q3 2007 CRM CONVERGENCE WWW.TRIPLE-TREE.COM MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406
  6. 6. professional services will comprise over 50% of the overall CRM market (or approximately $8.4B). Figure 1: CRM Sector Revenue Forecast: SaaS vs. Packaged/Licensed (in $ millions) $18,000 51% $16,000 SaaS Delivered Growth 50% $14,000 Estimated CAGR = 54.7% 39% 40% $12,000 $10,000 30% $8,000 28% 20% $6,000 20% $4,000 Packaged Software Growth 12% Estimated CAGR = 3.1% 10% $2,000 $0 0% 2006-2007 2008 2009 2010 2011 SaaS-delivered CRM (includes subscription revenues for sales, marketing and service disciplines and SaaS-specialized professional - services). Packaged CRM Software (also includes maintenance and professional services revenues related to packaged software implementations). n n SaaS-delivered CRM revenue growth as a percentage of the overall CRM sector. Source: TripleTree, LLC & Industry Sources Driving the growth in Figure 1, TripleTree’s proprietary database contains qualitative and quantitative rankings of over 300 firms offering CRM solutions via SaaS (TripleTree’s overall SaaS database now exceeds 1,100 firms). Using our proprietary Sector-Q market map, TripleTree has identified approximately 80 micro-disciplines within sales, marketing and service (See Figure 2) that are impacted by SaaS vendors and professional services firms focused on SaaS. The Sector-Q is a framework used by TripleTree when advising business builders on how value can be quantified and strategic alternatives assessed. Figure 2: TripleTree’s Sector-Q for Customer Relationship Management Live Customer Chat & Voice & Web Self- Self- Product & Service Service Delivery Support Service Interaction Presence Service Training Standards Community Platforms CSR Unified Mgmt VOIP Account Management Desktop Remote Contact Center Agents Outsourced Contact Center Sales Analytics & Reporting Customer Service Portals / Microsites e-Commerce & Order Management Sales Customer Asst’d. Product Dev. Incentive Compensation Inbound Communication Order Processing Team Performance Dashboards Contact Center Human Capital & Performance Management Life-Cycle Management Sales Coaching & Training Technical Support Sales Operations Negotiations & Contract Management Performance Management Case Management Configuration Management Proposal & Quote Management Internal Communication Mobility Solutions / Dispatch Field Service Management Mobile Sales Case Resolution / Reporting Presentation Generators Applications Forecasting Account Preparation Customer Service Analytics Channel Management Enterprise Feedback Management RFP Response and Pursuit Customer Experience Management Opportunity Management Territory Management Data Assessment Customer Data Hub Web Site Analytics Lead Conversion Analytics Partner Feedback Management Marketing Analytics & Econometrics Multi-Channel Sales Development Product Management Prospecting/Contact Management Product Engineering and Launch Promotional Competitive Market Analytics Management Lead Management Unstructured Data Analytics Lead Qualifications & Scoring Lead Development Outsourcing Planning and Strategy Privacy Management Marketing Planning and Calendars Customer Information File Web to Lead Pricing Strategy Trade Promotion Marketing Resource and Asset Management Event Management Alliance & Partner Relationship Management Web Marketing External Communication Advertising Planning and Strategy Email Marketing Media Intelligence and Monitoring Campaign Planning & Optimization Product Content Management Ad Placement & SEO Marketing Spend Management Marketing Loyalty Marketing Affiliate Management 1:1 Decision Data Marketing Product Messaging & Positioning Support Quality Compliance Marketing Analytics Detection Source: TripleTree, LLC MINNEAPOLIS 952.253.5300 WWW.TRIPLE-TREEE.COM SAN DIEGO 858.792.3406 MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406 WWW.TRIPLE-TREE.COM Q3 2007 CRM CONVERGENCE PAGE 5
  7. 7. ECOSYSTEMS – A CORNERSTONE FOR SaaS PLATFORMS Businesses and end-users have complex technology and information needs that no “SaaS ecosystems are quickly enabling single CRM vendor can possibly satisfy. For nearly two decades, sales, marketing SaaS vendors and users to integrate and service systems have been built in silos to address these needs, yet they have unknowingly created limitations for sharing product, customer, and sales data. multiple on-demand applications. These These limitations stemmed from technologies that built a proprietary wall around ecosystems typically permit integration customer and market data and didn’t establish a means for information sharing or and interoperability at a software code fluid collaboration. And, because these cross-departmental views were clouded level via mutual APIs and web services; and disjointed, executives have been limited in their ability to tap valuable data at a user interface level via common resources across departments. The result is that there are now thousands of design elements; and at a sales and business leaders in charge of ecosystems and most don’t realize it. marketing level with joint procurement and With workflows between departments flattening organizations, the task of provisioning capabilities.” re-engineering legacy applications to address these information sharing and collaboration needs would be a significant, multi-year undertaking and be – Jeff Kaplan, extremely cost prohibitive. As application vendors realize that customers want Senior Advisor to TripleTree/ more than just applications to tackle these needs, ecosystems are forming to Managing Director, THINKstrategies facilitate the integration of best-in-class solutions. Ecosystems while not new, are being redefined as best-in-class SaaS and collaboration tools permeate business units and IT departments. The productivity leverage from linking these point solutions are beginning to illustrate that “workflow integrations” are as much (if not more) important than “systems integrations.” To ensure rapid deployment and strong user adoption, integration of discrete SaaS solutions still require the guidance of a professional services firm – both at a systems SALES PERFORMANCE and workflow level. However, as Web 2.0 technologies mature, the move toward Diamond Performance Group platforms will likely see SaaS vendors embedding more plug-and- play integration capabilities and added considerations for automating workflows. The goal for WHY THEY’RE INNOVATIVE: these vendors will be to drive down customer costs associated with implementing platforms (which may be one-time fees) while building up a recurring revenue Diamond Performance Group has evolved stream. Illustrated throughout this report are a few considerations on how SaaS its highly unique approach to performance ecosystems are beginning to link departments across an extended enterprise and benchmarking around key metrics and where SaaS platforms may likely evolve. behavior traits which can feed directly into incentive compensation programs and Performance Management: HR hiring profiles. This data allows sales Human Resources and Finance are two departments becoming more actively managers to become better coaches linked to sales, marketing and service disciplines, making performance for their reps and promote a culture of management a potential growth area in CRM. As these departments grapple continuous improvement between sales, with manual processes and spreadsheet-driven information flows, SaaS vendors finance and HR. – with performance management solutions – will see strong market interest from customers focused on getting the most out of their employees. KEY METRIC: Focus on attributes of top performers to drive financial results. PAGE 6 Q3 2007 CRM CONVERGENCE WWW.TRIPLE-TREE.COM MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406
  8. 8. • Employee Optimization: Most sales executives will agree that integrating a technology-based selling solution with a proven sales methodology can be beneficial. The benefits range from equipping reps to handle thorny account management issues and optimizing how peak performers are managed to where incentive compensation can be best positioned. As shown in Figure 3, this data can be captured and fed to an HR department as useful information when hiring or facilitating performance evaluations, and to the finance department as quantitative INCENTIVE COMPENSATION business and product results are measured. Centive Figure 3: Microdiscipline Cluster – Performance Management Solutions Voice Self- Live & Web Customer Chat & Self- Product & Service Service Delivery Support Service WHY THEY’RE INNOVATIVE: Interaction Presence Service Training Standards Community Platforms CSR Unified Mgmt VOIP Account Management Desktop Targeting mid-market clients has allowed Remote Contact Center Agents Outsourced Contact Center Sales Analytics & Reporting Customer Service Portals / Microsites e-Commerce & Order Management Centive to enjoy strong growth and build Customer Asst’d. Product Dev. Incentive Compensation Inbound Communication Order Processing Team Performance Dashboards Human Capital & Performance Management creativity into their solutions. While Contact Center Life-Cycle Management Sales Coaching & Training Sales Operations addressing SarBox needs around reporting, Technical Support Negotiations & Contract Management Performance Management Service Case Management Configuration Management Source: TripleTree, LLC Proposal & Quote Management Internal Communication realized Management Centive has Mobility Solutions / Dispatch Field Service that gaining input Inbound Communication Mobile Sales Sales from sales professionals can be invaluable Case Resolution / Reporting Presentation Generators Applications Account Preparation Performance Management Customer Service Analytics Forecasting Channel Management as solutions are Feedback Management Enterprise tailored and incentive Internal Communication RFP Response and Pursuit Opportunity Management Account Preparation programs are designed. Customer Experience Management Territory Management Data Assessment Data Assessment Customer Data Hub Web Site Analytics Lead Conversion Analytics Partner Feedback Management Multi-Channel Sales Development Lead Management KEY METRIC: & Econometrics Marketing Analytics Product Management Prospecting/Contact Management Planning and Strategy Product Engineering and Launch Promotional Competitive Market Analytics Management Lead Management Marketing Unstructured Data Analytics Lead Qualifications & Scoring External Communication Planning and Strategy Maintain solution creativity and listen to Privacy Management Lead Development Outsourcing Marketing Planning and Calendars Web to Lead Customer Information File Pricing Strategy your sales professionals. • Incentive Compensation Management: ICM is a discipline being Trade Promotion Event Management Marketing Resource and Asset Management Alliance & Partner Relationship Management Web Marketing External Communication improved by the proliferation of discrete SaaS tools.Advertising an obvious It’s Planning and Strategy Email Marketing Media Intelligence and Monitoring Campaign Planning & Optimization Ad area & of Placement SEO convergence as Finance and Marketing Spend Management HR departments begin to Product Content Management Marketing Loyalty Marketing Data Marketing Product Messaging & Positioning collaborate on Marketing and Detection Decision team Analytics Affiliate Management 1:1 Support individual performance, and the CFO becomes Quality Compliance INCENTIVE COMPENSATION increasingly focused on sales team ROI. Currently two SaaS vendors Xactly – Centive and Xactly – are addressing this domain area with unique client approaches. WHY THEY’RE INNOVATIVE: Workflow Improvement: Xactly is building a suite of services on Complex processes can define a workflow when linked by a dynamic set top of its base sales compensation and of related tasks. Sales pursuits, product development and compliance performance management solution for management are examples of resource-intensive activities that drive mid to large-sized organizations. Some of important results. For sales pursuits, customer information, product data, these include approaches to help align the competitive intelligence, configuration resources and pricing data all sales department with the CIO, with better converge into a proposal or quote. When developing a product, notes territory management, and compliance from contact center employees, customer forums, enterprise feedback reporting. management and cost data converge to craft a product roadmap. As compliance is monitored, documents, financial data and business rules KEY METRIC: converge to evaluate risk and identify issues. Because many SaaS solutions have simplistic workflow engines, complex environments like these can Link sales and finance on a broader suite be addressed by point solutions and integrated within an ecosystem. of functionality. MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406 WWW.TRIPLE-TREE.COM Q3 2007 CRM CONVERGENCE PAGE 7
  9. 9. Addressing Vertical Markets: Vertical markets are becoming a key point of competitive focus and differentiation for many SaaS vendors. Annually, TripleTree spends hundreds of hours in briefings with global firms regarding their SaaS strategies and other disruptive forces in the market. Invariably these discussions center on key industry verticals as evidenced by’s recent introduction of its Wealth Management Edition. The marketplace is now seeing a major SaaS vendor put a marketing focus behind a CRM vertical solution. For this edition, will likely tweak little of its core technology, but instead leverage its AppExchange platform and partner support to deploy at Merrill Lynch (its first announced Wealth Management Edition client). The Impact of Consumerism: A number of household name consumer web-based firms (WebMD, eBay, Amazon) have awakened to the reality that their consumer-based pricing models (advertising, content, transaction) and user design constructs could be successful if focused on a business solution. Not only are these consumer models sustainable, but in verticals like Healthcare – where employers are taking control of costs – they could be extremely effective, e.g. Yahoo! Health and Google Health. Consumer business models are about trust, and considering the credibility that Paypal and Verisign bring to a Web property, SaaS platforms will follow suit. A good example of this is AmericanExpress, whose recent investment in Rearden OUTSOURCED CUSTOMER SERVICE Commerce proves that they “get it” and could potentially become a disruptive competitor with customer-facing business applications like CRM. Another Connextions solution provider taking what they learned from selling to customers and applying it to businesses is Connextions. WHY THEY’RE INNOVATIVE: Maturing Ecosystems: Connextions has revolutionized how To take advantage of these opportunities, many other consumer brands will likely customer data is harvested and applied at evolve their platforms to enable Web-based business functionality and attract every stage of the transaction lifecycle; partners. Consider with its Amazon Web Services platform. Via its using every touchpoint as an opportunity aStore and Omakase functions, Amazon is building eCommerce capacity for SMBs to drive revenue and brand loyalty. that want a simplified and proven way to link products, make recommendations Connextions has applied its proprietary and track sales. As TripleTree maps how SaaS ecosystems are influencing markets, expertise within the healthcare sector, we are aware that many emerging SaaS vendors are not sufficiently capable of enabling plans and providers to make delivering a comprehensive solution without professional integration and support the transition from commercial (B2B) to services. For these firms, a hybrid business model balancing custom pricing, project- retail (B2C) distribution, addressing the oriented deployments, and a common definition of client relationships is the rapid growth of consumer-driven decision norm. As shown in Figure 4 on page 9, there are eight foundational components making and sales. TripleTree views as critical for an ecosystem to mature into a platform. These components will offer ecosystem members a comprehensive ability to connect KEY METRIC: suppliers, clients and communities – elements which can improve workflow as an “extended organizational team” and foster collaboration. Not all of the market Make customer data manageable and leaders listed in Figure 4 offer a CRM solution. However, key SaaS platform actionable to increase sales and customer elements are maturing for these firms which could make them viable business retention. relationship management providers. PAGE 8 Q3 2007 CRM CONVERGENCE WWW.TRIPLE-TREE.COM MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406
  10. 10. Figure 4: Potential Business Relationship Management Platforms Eight Core SaaS Components Document Compliance Security Billing Management Integration & Workflow Administration Community Partnering Consumer Oriented Vertical / Business Enterprise Tools/Portals Services Providers Application Vendors • Adobe • Amazon • ADP • Cisco • AmEx •AON • IBM • Apple • •BankofAmerica • Intuit • eBay • •Fiserv • Microsoft • Google • •JP Morgan Chase • NetSuite • WebMD • •Wachovia • Oracle • Yahoo! • •UnitedHealth Group • • SAP Platform-Ready Market Leaders (SaaS Capable) Source: TripleTree, LLC MINNEAPOLIS 952.253.5300 WWW.TRIPLE-TREEE.COM SAN DIEGO 858.792.3406 MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406 WWW.TRIPLE-TREE.COM Q3 2007 CRM CONVERGENCE PAGE 9
  11. 11. COLLABORATION TOOLS ARE STREAMLINING WORKFLOWS LOYALTY MARKETING The growth of collaboration and Web 2.0 is making an impact on the CRM Vertical Response sector. As knowledge workers seek others who share their energy and vision for a given topic, collaboration tools are blurring the lines between how organizations, departments, functions and roles are interacting. As these interactions occur, WHY THEY’RE INNOVATIVE: harnessing ideas and best practices on a platform will be a logical link for CRM Vertical Response has evolved as a workflows and collaboration technologies. resource for its clients beyond plain vanilla email marketing services. Using The Web 2.0 technologies that support collaboration (social networking, blogs, simple Web 2.0 tools, their executive wikis, tagging and RSS) are mostly offered by point solution providers. But team has built a fan-like following of users similar to the evolution of the micro-disciplines evolving in CRM, the move who are regularly blogged with valuable toward a platform of linked functions is happening quickly. Cisco’s recent insights on marketing best practices and acquisitions of FiveAcross (social networking) and more notably WebEx signify links to useful sales enhancement tools. that a market premium can be placed on content and collaboration tools, but also Encouraging a two-way dialogue balances that large global players are beginning to enter the playing field. Not surprisingly, this collaboration and creates a simple Adobe, IBM, Google, Microsoft, Oracle, and are also among the but powerful community where innovation, major software vendors building collaborative tools. TripleTree believes that value and loyalty are exchanged. collaboration tools will mature into a key platform component as the metadata resulting from client and partner interactions is captured, analyzed and put to KEY METRIC: use. Depicted in Figure 5 and Table 1 on page 11, TripleTree has identified approximately 50 micro-disciplines linking communications and business Evolve to avoid becoming applications in the collaboration sector. commodotized. Figure 5: TripleTree’s Sector-Q for Collaboration eMarket RSS Place Feeds Mash-ups Service 2.0 Folksonomies Support E-Commerce Services Web Meeting Complimentary Application Systems Business Desktop Sharing Web 2.0 Groupware Data Sharing Conferencing Social Software Video Conferencing Social Podcasts VOIP Telephony Conferencing Wikis Online Chat Blogs Internet Forums Online Office Web Publishing Suites Unified Messaging Web Analytics / Instant Messaging Reporting Dashboards Email Communication Business Applications eForm Management Voicemail Portals Faxing Group Calendaring Presence Document Management Virus Protection Management Contact Lists Virtual Team Backup Management Mobility Space Application Patch Desktop Streaming Contact Remote Management Streaming Center Support Source: TripleTree, LLC PAGE 10 Q3 2007 CRM CONVERGENCE WWW.TRIPLE-TREE.COM MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406
  12. 12. Table 1: Where Collaboration Links the Extended Enterprise Departments Linked to Sales, Marketing and Service CRM Disciplines Finance Human Resources IT Sales Incentive • Visibility into quota attainment, • Evolve to performance based • Up-sell and cross-sell forecasting and Compensation performance metrics and incentive and advancement. reporting. Management commission payments. • Development of an deal sales rep Sales Knowledge and profile. • Access to corporate knowledge databases, Team Performance • Sales rep ROI • Complex solution selling and competitive content and best practices. Management activity reporting. • Mobile worker connectivity primarily Mobile Technologies • Remotely monitor marketing impacts contact information, email and • Foster collaboration and Portals programs. chat; but service alerts and order status are emerging applications. Marketing • Addressing organization alignment • Ensure users understand and work with Customer Experience • Links financial performance to of how a customer experience customer facing systems. Management customer satisfaction strategies. mindset would be adopted across • Design these systems with common UI and and organization. interconnectivity across channels. • Allows managers to make trade-off Marketing Spend decisions related to how campaigns Management and • Optimized IT Spend Management perform relative to planning and Campaign ROI budgeting. Benchmarked • Clean prospect and customer data is a key Marketing • Analyze and predict churn, driver to overall CRM success. Performance, likelihood of next purchase, • Tied closely to Service technologies via Predictive Analytics, effective targeting. contact center data collection and Data Quality validation. Service • Knowledge management aids • Define and lead standards around client/agent/employee/ partner interaction. Collaborative Service Extended Enterprise • Can lead to integrated document sharing communications. and proactive service. • Performance metrics help manager Outsourced Contact • Optimized ROI for service • Lower cost, accelerated time to market, and agent with reporting and Center initiatives. simplified IT demands. workflow improvements • Unified quality monitoring, Workforce workforce management, e-learning Optimization and performance management. • Survey driven feedback designed for a Enterprise Feedback centralized view of feedback across sales, Management marketing and service. Source: TripleTree, LLC More Evidence from Not surprisingly, is educating the market and current customers who will never invest on the disruptive influence collaboration tools can have in EMC’s Documentum and who find Microsoft’s Sharepoint within sales, marketing and service disciplines. The too complicated. Both of these initiatives were in some Company’s Spring ’07 edition includes a platform called ways trumped by the announcement that the Company’s AppSpace which is designed to allow users to share content Apex platform can now be subscribed to separately from its and best practices on a collaborative portal. In addition, SFA service to build custom applications. This represents a recently acquired Koral, a document major step forward in the ecosystem capacity and platform management firm that began as an AppExchange partner. aspirations of The Koral functionality will likely be aimed at prospects MINNEAPOLIS 952.253.5300 SAN DIEGO 858.792.3406 WWW.TRIPLE-TREE.COM Q3 2007 CRM CONVERGENCE PAGE 11