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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
3
@vaskelis #CRMevolution
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
@vaskelis #CRMevolution
4
What do you mean by “customer IT”?
(CRM by any other name)
5
@vaskelis #CRMevolution
REMINDER: THE VALUE CHAIN
Representation of
activities within a firm
to show how value is
produced*
*Michael E. Porter, Competitive Advantage (The Free Press, 1985)
6
@vaskelis #CRMevolution
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)
7
@vaskelis #CRMevolution
CUSTOMER IT AND THE VALUE SYSTEM
Customer IT activities are those that interact, optimize
and collaborate with channels and customers
Customer IT activities
8
@vaskelis #CRMevolution
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
@vaskelis #CRMevolution
9
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.
11
@vaskelis #CRMevolution
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 activities
local 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.
@vaskelis #CRMevolution
12
CRM Today and the Next-gen
(aka “Why do Millenials seem to like CRM?”)
13
@vaskelis #CRMevolution
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 OsborneMedia, 2000) referencing Peter Drucker’s eras
14
@vaskelis #CRMevolution
“Traditional” CRM “Next-gen CRM”
Scope sales, marketing, customer service entire firm, customers, channel partners
Leadership
command and control
by departmental executive management
connect and collaborate
at all levels with shared standards
Incentives/Culture
“carrots and sticks” to manage
process performance and adoption
purpose and reputation support
self-governing cooperative behaviors
Timelines
inside-out “big bang”
(months/years)
outside-in fast & iterative
(days/weeks)
Implementation
re-engineer & slow, massive
onsite 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 outside
with Internet data sources
Sponsorship
IT selects technology
for the business
business-driven
and 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
build
vs. buy
buy/rent/build/open source
Maintenance dedicated IT CRM application team
outsourced CRM application team
to scale up/downas 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.
15
@vaskelis #CRMevolution
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”
@vaskelis #CRMevolution
16
How is “Next-gen CRM” different?
(Post-PC App implementation context)
17
@vaskelis #CRMevolution
NEW APPROACH TO ORGANIZATIONAL CHANGE MANAGEMENT
Y
Change 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
Adoption
Process Training
Process &
Reputation
Training &
Communications
Purpose &
Reputation
Training &
Communications
Values-Based
Culture as a
Strategy
transparency of leadership commitment
sustainability of change / emphasis on behaviors
Focus on behaviors to encourage
Identify the incentives
Engage users from the very start and invest them in the requirements
process along the way
Scheduled application reviews to get people controlling the change
18
@vaskelis #CRMevolution
WHAT’S A POST-PC “APP”? – TASKS, PART OF A PROCESS
V
Specific
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
19
@vaskelis #CRMevolution
POST-PC APP CANDIDATES – TASKS IN A PROCESS (CLIENT EXAMPLE)
V
Strategic 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
20
@vaskelis #CRMevolution
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)
21
@vaskelis #CRMevolution
Evolution of Apps - unbundling of processes example: Salesforce1
Single-purpose “there’s an app for that”
Concept: KCBP’s Internet Trends 2014
Post File New
Task
Log a
Call
New
Opp’ty
New
Lead
Multi-purpose web app Multi-purpose mobile app
22
@vaskelis #CRMevolution
POST-PC APP EXTENSION FRAMEWORK – EVALUATING OPTIONS
OMOBILE CRM
Applying enterprisemobile best
practices along with CRM process
best practices gives a starting
point in evaluating effort/benefit
for mobile CRM usage.
High
Benefit
Low
Benefit
Simpler
Implementation
Complex
Implementation
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/dashboards
Benefits
•Key process wins, direct benefit link
•UI now optimized for mobile driving better
adoption by bringing mobile on-par with
web UI
23
@vaskelis #CRMevolution
SALESFORCE1– ASSESSMENT SUMMARY (CLIENT EXAMPLE)
OSALESFORCE1 MOBILE
Applying enterprisemobile best
practices along with CRM process
best practices gives a starting
point in evaluating effort/benefit
for Salesforce1 usage.
High
Benefit
Low
Benefit
Simpler
Implementation
Complex
Implementation
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
24
@vaskelis #CRMevolution
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 CHALLENGE
More predictable insights required in order to
maximize marketing reinvestment strategies
Improve 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 PROCESSES
INTO 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: HOSPITALITY
Implemented Operational and Analytical CRM to drive revenue and customer Insights . . .
l
25
@vaskelis #CRMevolution
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 CHALLENGE
More predictable insights required in order to
maximize marketing reinvestment strategies
Improve 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 PROCESSES
INTO 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: HOSPITALITY
Implemented Operational and Analytical CRM to drive revenue and customer Insights . . .
l
2015.05.06
26
@vaskelis #CRMevolution
CRM IT ARCHITECTURE EXAMPLE: ENABLE CUSTOMER-CENTRICITY
MAPPED ENTIRELY ALONG CUSTOMER JOURNEY
BI/DW
analytical tools
CRM
configured applications (leverage best practices)
CRM
custom 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
grant
management
vendor dispatch
management
survey
management
27
@vaskelis #CRMevolution
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
Member
save
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.
@vaskelis #CRMevolution
28
POST-POST-PC CUSTOMER IT
(it’s already begun: the “Internet of Things”)
29
@vaskelis #CRMevolution
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”
30
@vaskelis #CRMevolution
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.
@vaskelis #CRMevolution
31
THE FUTURE OF CUSTOMER IT
(plus a peek at a use case today)
32
@vaskelis #CRMevolution
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.
33
@vaskelis #CRMevolution
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
obviouslypredetermined responses.”*
Can We Build ‘Her’?: What Samantha Tells Us About the Future of AI (wired.com) Vlad Sejnoha
34
@vaskelis #CRMevolution
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?”
35
@vaskelis #CRMevolution
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.
@vaskelis #CRMevolution
36
Evolution of Customer IT
(aka “When did CRM stop sucking?”)
37
@vaskelis #CRMevolution
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 activities
local 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

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Darius Vaskelis - Future Trends in Customer IT Beyond CRM

  • 1. Future Trends in Customer IT Beyond CRM (aka “When did—or when will—CRM stop sucking?”) 2015.08.17 Darius Vaskelis @vaskelis
  • 2. 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
  • 3. 3 @vaskelis #CRMevolution 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
  • 4. @vaskelis #CRMevolution 4 What do you mean by “customer IT”? (CRM by any other name)
  • 5. 5 @vaskelis #CRMevolution REMINDER: THE VALUE CHAIN Representation of activities within a firm to show how value is produced* *Michael E. Porter, Competitive Advantage (The Free Press, 1985)
  • 6. 6 @vaskelis #CRMevolution 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)
  • 7. 7 @vaskelis #CRMevolution CUSTOMER IT AND THE VALUE SYSTEM Customer IT activities are those that interact, optimize and collaborate with channels and customers Customer IT activities
  • 8. 8 @vaskelis #CRMevolution 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
  • 9. @vaskelis #CRMevolution 9 Where did CRM come from? (depends on who you ask!)
  • 10. 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.
  • 11. 11 @vaskelis #CRMevolution 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 activities local 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.
  • 12. @vaskelis #CRMevolution 12 CRM Today and the Next-gen (aka “Why do Millenials seem to like CRM?”)
  • 13. 13 @vaskelis #CRMevolution 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 OsborneMedia, 2000) referencing Peter Drucker’s eras
  • 14. 14 @vaskelis #CRMevolution “Traditional” CRM “Next-gen CRM” Scope sales, marketing, customer service entire firm, customers, channel partners Leadership command and control by departmental executive management connect and collaborate at all levels with shared standards Incentives/Culture “carrots and sticks” to manage process performance and adoption purpose and reputation support self-governing cooperative behaviors Timelines inside-out “big bang” (months/years) outside-in fast & iterative (days/weeks) Implementation re-engineer & slow, massive onsite 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 outside with Internet data sources Sponsorship IT selects technology for the business business-driven and 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 build vs. buy buy/rent/build/open source Maintenance dedicated IT CRM application team outsourced CRM application team to scale up/downas 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.
  • 15. 15 @vaskelis #CRMevolution 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”
  • 16. @vaskelis #CRMevolution 16 How is “Next-gen CRM” different? (Post-PC App implementation context)
  • 17. 17 @vaskelis #CRMevolution NEW APPROACH TO ORGANIZATIONAL CHANGE MANAGEMENT Y Change 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 Adoption Process Training Process & Reputation Training & Communications Purpose & Reputation Training & Communications Values-Based Culture as a Strategy transparency of leadership commitment sustainability of change / emphasis on behaviors Focus on behaviors to encourage Identify the incentives Engage users from the very start and invest them in the requirements process along the way Scheduled application reviews to get people controlling the change
  • 18. 18 @vaskelis #CRMevolution WHAT’S A POST-PC “APP”? – TASKS, PART OF A PROCESS V Specific 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
  • 19. 19 @vaskelis #CRMevolution POST-PC APP CANDIDATES – TASKS IN A PROCESS (CLIENT EXAMPLE) V Strategic 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
  • 20. 20 @vaskelis #CRMevolution 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)
  • 21. 21 @vaskelis #CRMevolution Evolution of Apps - unbundling of processes example: Salesforce1 Single-purpose “there’s an app for that” Concept: KCBP’s Internet Trends 2014 Post File New Task Log a Call New Opp’ty New Lead Multi-purpose web app Multi-purpose mobile app
  • 22. 22 @vaskelis #CRMevolution POST-PC APP EXTENSION FRAMEWORK – EVALUATING OPTIONS OMOBILE CRM Applying enterprisemobile best practices along with CRM process best practices gives a starting point in evaluating effort/benefit for mobile CRM usage. High Benefit Low Benefit Simpler Implementation Complex Implementation 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/dashboards Benefits •Key process wins, direct benefit link •UI now optimized for mobile driving better adoption by bringing mobile on-par with web UI
  • 23. 23 @vaskelis #CRMevolution SALESFORCE1– ASSESSMENT SUMMARY (CLIENT EXAMPLE) OSALESFORCE1 MOBILE Applying enterprisemobile best practices along with CRM process best practices gives a starting point in evaluating effort/benefit for Salesforce1 usage. High Benefit Low Benefit Simpler Implementation Complex Implementation 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
  • 24. 24 @vaskelis #CRMevolution 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 CHALLENGE More predictable insights required in order to maximize marketing reinvestment strategies Improve 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 PROCESSES INTO 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: HOSPITALITY Implemented Operational and Analytical CRM to drive revenue and customer Insights . . . l
  • 25. 25 @vaskelis #CRMevolution 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 CHALLENGE More predictable insights required in order to maximize marketing reinvestment strategies Improve 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 PROCESSES INTO 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: HOSPITALITY Implemented Operational and Analytical CRM to drive revenue and customer Insights . . . l 2015.05.06
  • 26. 26 @vaskelis #CRMevolution CRM IT ARCHITECTURE EXAMPLE: ENABLE CUSTOMER-CENTRICITY MAPPED ENTIRELY ALONG CUSTOMER JOURNEY BI/DW analytical tools CRM configured applications (leverage best practices) CRM custom 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 grant management vendor dispatch management survey management
  • 27. 27 @vaskelis #CRMevolution 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 Member save 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.
  • 28. @vaskelis #CRMevolution 28 POST-POST-PC CUSTOMER IT (it’s already begun: the “Internet of Things”)
  • 29. 29 @vaskelis #CRMevolution 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”
  • 30. 30 @vaskelis #CRMevolution 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.
  • 31. @vaskelis #CRMevolution 31 THE FUTURE OF CUSTOMER IT (plus a peek at a use case today)
  • 32. 32 @vaskelis #CRMevolution 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.
  • 33. 33 @vaskelis #CRMevolution 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 obviouslypredetermined responses.”* Can We Build ‘Her’?: What Samantha Tells Us About the Future of AI (wired.com) Vlad Sejnoha
  • 34. 34 @vaskelis #CRMevolution 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?”
  • 35. 35 @vaskelis #CRMevolution 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.
  • 36. @vaskelis #CRMevolution 36 Evolution of Customer IT (aka “When did CRM stop sucking?”)
  • 37. 37 @vaskelis #CRMevolution 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 activities local 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
  • 38. Future Trends in Customer IT Beyond CRM (aka “When did—or when will—CRM stop sucking?”) 2015.08.17 Darius Vaskelis @vaskelis