Leveraging Open Source for Managing Complex Business Processes

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The growing buzz around open source software is no longer limited to software developers alone, but is increasingly driven by end user adopters who are using the unique benefits of open source implementations to improve and streamline their business processes. In this session by Jacob Taylor, the co-founder and Chief Technology Officer for what is widely considered the most successful example of open source as a packaged application: SugarCRM. Jacob will explain the main differences between proprietary and
commercial open source business models. Taking a case study approach, Taylor will illustrate through a series of specific customer examples how the process of developing open source applications and a commitment to open standards ultimately benefit customers. He will give concrete examples of how commercial open source
implementations that includes:
• Helping the State of Oregon’s Office of Medical Assistance Programs (OMAP) standardize its methods of tracking cases for its client base of over one million citizens while also complying with federal regulations for electronic healthcare transactions
• Allowing Sterling PCU to avoid hidden costs for data management while going beyond the capabilities of its previous proprietary CRM system to provide enhanced CRM functionalities
• Increasing athenahealth’s control over internal systems so that it could continue to grow its business effectively while reducing time to achieve ROI goals and implementation costs

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  • Leveraging Open Source for Managing Complex Business Processes

    1. 1. <ul><li>Jacob Taylor </li></ul><ul><li>CTO and Co-Founder </li></ul><ul><li>SugarCRM Inc. </li></ul><ul><li>SessionTitle: </li></ul><ul><li>Leveraging Open Source for Managing Complex Business Processes </li></ul>Welcome Welcome to Transformation and Innovation 2007 The Business Transformation Conference
    2. 2. Agenda <ul><li>Who is SugarCRM? </li></ul><ul><li>Why Open Source? </li></ul><ul><li>Customer Case Studies </li></ul><ul><li>Q&A </li></ul>Copyright © 2007 SugarCRM, Inc. All rights reserved.
    3. 3. <ul><li>Leading Provider of Commercial Open Source CRM </li></ul><ul><ul><li>Founded April 2004 </li></ul></ul><ul><ul><li>100+ Employees </li></ul></ul><ul><ul><li>1,200+ Customers spanning 30 countries </li></ul></ul><ul><ul><li>100,000+ users </li></ul></ul><ul><ul><li>16,000+ community members </li></ul></ul><ul><ul><li>7,000+ registered developers </li></ul></ul><ul><ul><li>320+ module extensions </li></ul></ul><ul><ul><li>50+ language translation </li></ul></ul><ul><ul><li>Raised $26M </li></ul></ul>SugarCRM, Inc. Copyright © 2007 SugarCRM, Inc. All rights reserved.
    4. 4. Commercial Open Source What open source means for business: Faster Development More Control Lower Cost Higher Quality Greater Flexibility Less Risk Open Source Proprietary Operating System Database Middleware CRM Content Mgt. Messaging - - - - - - Copyright © 2007 SugarCRM, Inc. All rights reserved. Open source software represents the most significant all-encompassing and long-term trend that the software industry has seen since the early 1980s. ” “
    5. 5. Our Products <ul><li>Sugar Enterprise </li></ul><ul><li>Sugar Professional </li></ul><ul><li>Sugar Open Source </li></ul>Copyright © 2007 SugarCRM, Inc. All rights reserved.
    6. 6. Our Products Copyright © 2007 SugarCRM, Inc. All rights reserved.
    7. 7. Delivery Options Copyright © 2007 SugarCRM, Inc. All rights reserved. Software as a Service accounted for approximately 8% of CRM total software revenue in 2005; Gartner estimates that this will reach 12% in 2006. ” “
    8. 8. The Most Advanced UI in CRM Copyright © 2007 SugarCRM, Inc. All rights reserved.
    9. 9. Leading Companies Adopting SugarCRM Copyright © 2007 SugarCRM, Inc. All rights reserved.
    10. 10. Case Study: Sterling PCU Company Background Business Challenges <ul><li>Customer information stored in spreadsheets, word documents and access databases </li></ul><ul><li>Inability to manage complex quotations, a key customer tracking mechanism </li></ul><ul><li>High ongoing costs and lack of deployment flexibility with Salesforce.com </li></ul><ul><li>Specialized Equipment for Automotive and Appliance Industry </li></ul><ul><li>Customer include Mercedes-Benz, Toyota, Caterpillar, GE and Carrier </li></ul><ul><li>Founded in 1946 </li></ul><ul><li>Headquartered in Dayton, OH with facilities in Germany and China </li></ul>Company Copyright © 2007 SugarCRM, Inc. All rights reserved.
    11. 11. Open Source Deployment <ul><li>Sterling was able to implement Sugar within one week after receiving its data from Salesforce.com. </li></ul><ul><li>Working with SugarCRM, Sterling was able to create a flexible quoting engine that is central to its business operations. This kind of customization is impossible in a multi-tenant, hosted application offering. </li></ul><ul><li>The flexibility of SugarCRM helped Sterling to see user adoption levels of 90% during its rollout of SugarCRM. </li></ul>How Open Source Helped Copyright © 2007 SugarCRM, Inc. All rights reserved.
    12. 12. Results Business Results <ul><li>Better understanding of business performance and more coordinated interactions with customers from initial engagement to order </li></ul><ul><li>Complete flexibility to change CRM deployment from hosted to On-Premise application depending on business requirements </li></ul><ul><li>“ You do not want to know how much </li></ul><ul><li>money we spent on Salesforce.com </li></ul><ul><li>customizations. SugarCRM gives us </li></ul><ul><li>the flexibility we need to grow </li></ul><ul><li>as a business.” </li></ul><ul><li>Christopher Edwards </li></ul><ul><li>General Manager </li></ul><ul><li>Sterling PCU </li></ul>Copyright © 2007 SugarCRM, Inc. All rights reserved.
    13. 13. Results Implementation Results <ul><li>Lower Total Cost of Ownership </li></ul><ul><ul><li>Estimated savings of $18,000 per year with move from Salesforce.com to SugarCRM </li></ul></ul><ul><li>Reduced Risk </li></ul><ul><ul><li>Completed full implementation in less than 1 month </li></ul></ul><ul><li>“ SugarCRM gives us the flexibility </li></ul><ul><li>we need to grow as a business. </li></ul><ul><li>We are using Sugar On-Demand </li></ul><ul><li>Now but will most likely move </li></ul><ul><li>our customer assets to </li></ul><ul><li>Sugar On-Premise in the future. </li></ul><ul><li>Salesforce.com cannot provide us that </li></ul><ul><li>kind of flexibility.” </li></ul><ul><li>Christopher Edwards </li></ul><ul><li>General Manager </li></ul><ul><li>Sterling PCU </li></ul>Copyright © 2007 SugarCRM, Inc. All rights reserved.
    14. 14. Case Study: Athena Health Company Background Business Challenges <ul><li>Old CRM did not allow for tighter integration with company's internal system. </li></ul><ul><li>Old CRM was not flexible or customizable enough to keep up with company's growth. </li></ul><ul><li>Extensive licensing costs and costs of customization. </li></ul><ul><li>Provider of physician revenue cycle management services that integrate workflow, billing and collections into a single service. </li></ul><ul><li>More than 450 customers, with over $1B in physician revenues. </li></ul><ul><li>Founded in 1997 </li></ul><ul><li>Based in Watertown, MA. </li></ul>Company Copyright © 2007 SugarCRM, Inc. All rights reserved.
    15. 15. Open Source Deployment <ul><li>In only 2 months athenahealth was able to customize Sugar Professional and seamlessly integrate it with their revenue-cycle management system. </li></ul><ul><li>The nature of open source allows athenahealth to work closely with SugarCRM in an iterative process: athenaheatlh develops extensions that can make their way back to the core product. And the openness of Sugar’s code allows athenahealth to develop with confidence. </li></ul><ul><li>Regulatory issues in healthcare required athenahealth to opt for a more flexible product that could constantly meet changing compliance needs. SugarCRM meets those needs. </li></ul>How Open Source Helped Copyright © 2007 SugarCRM, Inc. All rights reserved.
    16. 16. Results Business Results <ul><li>athenahealth now has a much more flexible CRM system in place, which meets changing regulatory mandates. </li></ul><ul><li>The CRM system is also now fully integrated with its athenaNET physician revenue-cycle management system. </li></ul><ul><li>“… We will break even in three months, </li></ul><ul><li>and meet our ROI goal in nine months. </li></ul><ul><li>After that, value will continue to </li></ul><ul><li>accrue indefinitely….” </li></ul><ul><li>Bob Gatewood </li></ul><ul><li>Chief Technology Officer </li></ul><ul><li>athenahealth </li></ul>Copyright © 2007 SugarCRM, Inc. All rights reserved.
    17. 17. Results Implementation Results <ul><ul><li>ROI in nine months </li></ul></ul><ul><ul><li>Implemented in less than two months </li></ul></ul><ul><ul><li>90%+ adoption levels </li></ul></ul><ul><ul><li>Able to quickly scale from 200+ to 400+ users. </li></ul></ul>The cost to complete the basic Sugar Professional customization and integration work cost the same as three months of their previous Salesforce.com subscription costs Copyright © 2007 SugarCRM, Inc. All rights reserved.
    18. 18. Case Study: State of Oregon Background Business Challenges <ul><li>Paper-based processing of Medicaid claims were time intensive and led to manual error </li></ul><ul><li>No single system for managing communications related to outreach and education efforts </li></ul><ul><li>Communications managed through Sticky Notes, Memory, Excel Spreadsheets, MS Access Database </li></ul><ul><li>Department of Human Services is the largest state agency with over 9,000 employees </li></ul><ul><li>Assists residents in sustaining independent, healthy, and safe lifestyles </li></ul><ul><li>Established in 1971 </li></ul><ul><li>Headquartered in Salem, OR </li></ul>Company Copyright © 2007 SugarCRM, Inc. All rights reserved.
    19. 19. Open Source Deployment <ul><li>The department feared that CRM would be too expensive and time consuming to install. However, a system architect simply downloaded and installed the open source version in one day. </li></ul><ul><li>The department was able to use Sugar Professional to automate many of its core processes, and even eliminate paper-based transactions for many processes. </li></ul>How Open Source Helped Copyright © 2007 SugarCRM, Inc. All rights reserved.
    20. 20. Results Business Results <ul><li>The department is now HIPPA compliant. </li></ul><ul><li>Reduced Medicaid paper claims processing from 60,000 to just 37 in three months . </li></ul><ul><li>Provided a single system of record and communications across the Department of Human Services </li></ul><ul><li>“ Soon after the SugarCRM rollout, </li></ul><ul><li>I started getting calls from </li></ul><ul><li>providers saying that we really </li></ul><ul><li>seemed to be on the same page </li></ul><ul><li>in terms of providing consistent </li></ul><ul><li>responses and sharing information.” </li></ul><ul><li>Bill Crowell </li></ul><ul><li>Chief Information Officer </li></ul><ul><li>State of Oregon </li></ul>Copyright © 2007 SugarCRM, Inc. All rights reserved.
    21. 21. Results Implementation Results <ul><ul><li>Expected to take up to 12 months to evaluate and deploy CRM – was up and running almost instantly </li></ul></ul><ul><ul><li>Department now has a centralized email management, document management, and collaboration platform </li></ul></ul>Copyright © 2007 SugarCRM, Inc. All rights reserved.
    22. 22. Thank Y <ul><li>Jacob Taylor </li></ul><ul><li>CTO and Co-Founder </li></ul><ul><li>SugarCRM Inc. </li></ul><ul><li>Contact Information: </li></ul><ul><li>408-454-6900 </li></ul><ul><li>[email_address] </li></ul>ou Copyright © 2007 SugarCRM, Inc. All rights reserved. Thank Y ou

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