Convergence of CRM, BPM, MDM and BI: The Fantastic Four of Customer Centricity

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To get increasingly closer to customers and work with them more proactively, organizations need to look beyond traditional technology silos and apply synergies from related systems disciplines.

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Convergence of CRM, BPM, MDM and BI: The Fantastic Four of Customer Centricity

  1. 1. • Cognizant 20-20 InsightsConvergence of CRM, BPM, MDM and BI:The ‘Fantastic Four’ of Customer CentricityTo get increasingly closer to and work more proactively with customers,organizations need to look beyond traditional technology silos and applysynergies from related systems disciplines. Executive Summary the forefront, in a literal sense. Further, smart- phones and tablet computers have redefined In the name of improving the customer how employees interact with their organizations, experience, organizations have spent millions of customers and business partners. So, while each dollars in the past few years on the technologies technology stack has its own individual merits, the surrounding customer relationship management more recent thinking is focused on convergence. (CRM), business process management (BPM) and This is encapsulated by Forrester Research, Inc.’s master data management (MDM). However, many recognition of emerging and disruptive trends have not achieved the coveted ROI. within this space: “process-centric CRM,” which In the quest of understanding customer behavior is a convergence of CRM and BPM;1 “business and improving every customer interaction, a few data management,” which is a convergence of basic questions remain unanswered: BPM and MDM;2 and the importance of utilizing a business activity monitoring (BAM) tool, which • How have social media and virtualization trans- is part of BPM. formed customer management? Although there is a clear sign of convergence • Why the sudden emphasis on “customer- within CRM, BPM and MDM, business intelligence centricity?” (BI) is an important addition to this trio, as it • Why have investments in each of these helps to accurately predict customer behavior.3 technology stacks seldom resulted in expected When used in combination, these four tech- returns? nologies enable immense insight into customer patterns and behaviors, thereby assisting orga- • Why does the goal of truly satisfying customers nizations in offering services to win customers’ remain a distant dream? hearts and pocketbooks. Further, recent evidence The answer to all these questions becomes proves that predictive analytics and effective BI more clear with the understanding of how CRM, insights provide organizations with an edge over BPM and MDM are converging. Social media and rivals when it comes to maintaining sustainable cloud solutions have moved the customer to customer relationships. cognizant 20-20 insights | november 2012
  2. 2. Fantastic Four of Customer Centricity 360-degree view of customer across all channels and platforms CRM Consistent, accurate and timely customer data Process-centric and robust business rules-driven customer relationship Customer BPM Accurate forecasting and better BI Centricity decision-making Enhanced customer focus and loyalty benefits Better segmentation, targeting and positioning MDM Accurate total contract value throughout customer lifecycleFigure 1These four technology stacks are very tightly Organizations will benefit if they combine initia-coupled with every customer-related process, tives around these technologies, create a commonand they deliver the greatest benefit to organi- business case and approach the entire stack aszations when implemented in tandem, in terms a single program. Only then can they achieveof a universal, complete and accurate view of manifold returns from each of the technologycustomer relationships. Due to their inherent stacks by driving continuous improvements thatbonding, we refer to them as the ”Fantastic Four result in happy and satisfied customers.of Customer Centricity” (FFCC). Individually,these technology stacks are at different levels of A good example of how these convergedmaturity in terms of managing customer relation- technology stacks can ensure a strong customerships, but when coupled, they can help companies experience is in lead management. In tradi-forge enduring relationships with customers (see tional CRM scenarios, organizations pursue leadFigure 1). management as a sales initiative and involve the sales team in designing the future state of theirHow Organizations Benefit from FFCC CRM application. Therefore, the software is builtWhen it comes to implementing CRM, BPM, MDM in modules (Lead Generation, Lead Qualifica-and BI initiatives, many companies have taken tion, Maintain & Track Lead, Closure), with limiteda fragmented approach. Sales, marketing and coordination or input from other departments.customer service departments cooperatively Moreover, this approach eliminates the possibilitymake investment decisions in CRM, but when it of incorporating updates or changes to the devel-comes to MDM, IT organizations typically decide opment process to adapt to changing businesson the product that suits the business require- requirements.ments. With the disparity in outlook, as well as However, with an FFCC initiative, the organiza-the diversity of people involved in shaping the tion brings together the various teams (sales,roadmap for each of these technology stacks, marketing, IT, BI, etc.) under a single umbrellaan important component is often missed: the to deliver individual customer-centric processescustomer. Inconsistent customer data shared wherein various departments provide inputs atacross various systems within an organiza- different points in time. The result: drasticallytion can undermine customer satisfaction, no reduced times in which leads are generated, withmatter how strong the CRM system is. Similarly, improved visibility and consistent informationwithout proper rules-based processes to power a across departments.CRM system, a great CRM strategy will not yielddesired results. cognizant 20-20 insights 2
  3. 3. Traditional CRM Lead Management Processes t t+1 t+2 Lead generated through Maintain and track Loss marketing Opportunity Provide reason opportunity win/loss campaigns/advertising/ & close progress sales events, etc. Win Lead moves to Leads assigned to Create customer qualified prospect/ sales rep record opportunity stage Yes Sales rep qualifies lead Qualify success No Provide reason & closeFigure 2To further substantiate the point, we can look at a ability or any other predefined criteria. In thetypical lead management process and how FFCC case of nonavailability, the lead can be routed toprinciples can be applied to improve response either the next available member within the teamtime, as well as infuse efficiencies into the process or to the supervisor. These pre-set rules ensure(compare Figures 2, 3 and 4). continuous tracking of the lead through multiple stages and communication with the customer atWith properly configured CRM systems, lead each stage of the process. Predefined businessgeneration can seamlessly integrate with social rules can also assist sales reps with relevantmedia to gather additional information around contextual information and intelligence to makethe customer. Captured leads can be automati- informed decisions in real-time (see Figure 3).cally routed to relevant sales/marketing teammembers for further processing, based on skill The final state of the lead management processsets, territory (geographical coverage), avail- is fully automated, with built-in intelligence, time-Improved Lead Generation and Assignment t t+1 t+2 CRM + BPM Loss Maintain and track Provide reason Opportunity • Automated lead capture and opportunity progress win/loss & close lead assignment process with multichannel integration • Pre-defined rule sets ensure Win continuity and ownership of lead Lead moves to • Marketing and sales are in qualified prospect/ Create customer sync with complete visibility opportunity stage record Provide reason • Improved and consistent & close communication Yes Sales rep Qualify success qualifies lead No Provide reason & closeFigure 3 cognizant 20-20 insights 3
  4. 4. sensitive updates, pre-set business rules and cess framework that coordinates with differ- comprehensive information at every stage of ent departments (e.g., sales, manufacturing, qualification. The outcome and conversion rate customer service and finance) and fulfills the improves drastically (see Figure 4). customer requirements. Further, based on past orders, customer service agents can provide Here are additional examples of how FFCC real-time intelligence to cross-sell and upsell to principles can be applied to add efficiency and customers during the quote process. Customer effectiveness into existing processes: information is shared across the enterprise in real-time to enable informed and effective de- • Quote to order to cash: Our FFCC principles cisions. can help define and drive organizational flex- ibility and agility at every level of the process. • Capacity planning and inventory manage- For example, say a cus- ment: These principles can be extended be- yond CRM processes. One example is in the im-The final state of the lead tomer prefers to have provement of capacity planning and inventory multiple orders deliv- management process ered to various ware- management, overseen by supply chain man- is fully automated, with house locations and use agement (SCM) systems. Based on the prob- ability of getting an order from a prospective built-in intelligence, multiple payment meth- customer, an integrated CRM/SCM system can ods to complete the or- time-sensitive updates, der. The process under generate prior estimates for capacity resource pre-set business rules an FFCC approach can planning, and as soon as the customer places the order, it can trigger automatic inventory and comprehensive execute in real-time be- management processes. This dramatically im- cause the front end of information at every CRM is built on top of proves the cycle time of the customer order stage of qualification. a robust business pro- and adds transparency to the system. Lead Management Process Using FFCC Principles t t+1 Lead Generation and Opportunity Conversion: Create customer Assignment: CRM + BPM CRM + BPM + BI record • Automated lead capture • Pre-set business rules automate and lead assignment process the qualification and approval with multi-channel integration process for the opportunity • Pre-defined rule sets ensure • Business layer provides revenue continuity and ownership of lead potential and other financial metrics associated with opportunity • Marketing and sales are in sync with complete visibility • BI provides comprehensive probability and scenario analysis • Improved and consistent to increase conversion rate communication Lead Qualification: CRM+ BI • BI provides relevant, contextual and real-time intelligence • Historical and competitive comparison offers a different perspective to better qualify leads and lead scoring process • Any update in social circle of customer gets fed into qualification analysis Figure 4 cognizant 20-20 insights 4
  5. 5. FFCC Market Landscape gies, but they are both far from realizing and delivering all the four forces under one platformAt one end of the market spectrum, CRM product and offer it as-a-service.vendors are building their capabilities across theCRM, BPM and MDM technology stacks through a On the other end of the spectrum, many systemseries of mergers and acquisitions. However, they integrators remain rigidly organized on each ofare still at a nascent stage of integrating these the four technology stacks; in fact, to some SIs,technology stacks onto a common platform to each technology stack resembles a businessprovide it as a platform-as-a-service (PaaS). unit. The result is a lack of coordination as they compete with each other in spaces where thesePega recently launched its Sales Force Automation technologies converge.framework, in addition to its Customer ProcessManager (CPM) framework on the One-BPM We have already realized the potential oflayer in order to provide a true customer-centric combining the FFCC forces and establishedprocess. Similarly, SFDC has launched Virtual enterprise application services as one businessProcess Manager (VPM) on a cloud infrastruc- unit that provides business solutions around CRM,ture to enable use of business rule automation, BPM, MDM and BI. Through an established globalworkflows, etc. Oracle’s Fusion platform and collaboration platform that we call Cognizant 2.0,SFDC’s Force.com are slowly delivering a common we are delivering FFCC principles to clients acrossplatform to integrate customer-centric technolo- all engagements. Quick TakeU.S.-Based Railroad Transport GiantIn a recent engagement, we defined a customer- • Disparate CRM modules are broken intocentric roadmap for a major railroad transpor- broader processes that involve coordinationtation company in an attempt to transform its across various functional areas.redundant legacy applications into more agile, • Common and uniform processes are definedflexible, scalable and business-centric processes. across all business units and are processedSales, service, operations and engineering were through common business services. Businesscompletely fragmented, resulting in a time- unit-specific processes and underlying businessconsuming, manual and ineffective customer services are minimized to avoid customization.management process. Sales and service teams • A common knowledge base across theused more than 40 applications to perform their enterprise provides increased visibility today-to-day operations. There was no common customer information.platform for knowledge sharing, and BI andreporting across the enterprise and customer • A completely scalable and flexible process, datadata resided in multiple disparate systems. and BI solution can accommodate business changes.To provide the roadmap, we incorporated FFCC • A customer hub will provide a single sourceprinciples to streamline the disparate processes of truth for accounts, contacts and addressesand technologies. The suggested business archi- across the enterprise.tecture integrates sales, marketing and service • Data governance and data quality initiativesprocesses with the common business service ensure consistent, clean and accurate data islayer (CRM and BPM), which is backed up by available across the enterprise.reference data and enterprise BI initiatives. • A centralized data warehouse and commonThe proposed solution provides several client reporting platform is available across thebenefits: enterprise. cognizant 20-20 insights 5
  6. 6. Although many industry leaders have acknowl- ening customer relationships. The key to estab-edged FFCC, they have still not evaluated product lishing an enriching customer experience is tovendors on FFCC capabilities. Doing so would acknowledge the power of FFCC and implementresult in more effective analysis to help organi- these technology stacks as a single largezations make the right choice with a high prob- initiative. Progressive organizations have alreadyability of realizing ROI faster, as the benefits started putting serious thought and effort intoare magnified almost instantly. Further, such achieving this unified architectural goal. Successan analysis would also reveal the maturity and will primarily depend on the extent to whichcapability of product vendors, in terms of how companies synthesize the essence of the fourseamlessly they align all four technology stacks forces of customer centricity to address theirto provide consistent, effective and meaningful needs and those of their clients.customer interactions. The earlier that companies assimilate theA Way Forward synergies of these four forces, the closer they willThe convergence among CRM, BPM, MDM and be in achieving their ultimate goal of building aBI technologies is changing the way organiza- customer-centric enterprise that “truly under-tions need to strategize and invest in strength- stands” the customer. Quick TakeHow CRM, MDM and Process Analysis Redefined CustomerService for a U.S.-Based Health InsurerWe were engaged by a major health insurer to The proposed solution provides several clientimprove the technology, processes and infrastruc- benefits:ture of its current customer service environment.The client wanted us to define and implement • Created a five-year roadmap, with total savingsits next-generation customer workstation for of $7.8 million.customer service and enable an integrated • Recommended automated case creation andworkflow for the tracking and resolution of rules-based routing, leading to operationalcustomer queries, service delivery issues and efficiency. Recommended workflow manage-service requests. Customer information resided in ment improvements.multiple systems across different source systems; • Improved data insight through a centralizedhence, the client envisioned a “360-degree view” repository of accurate product, customer andof its customers to support query resolution and consumer information and more accurateproactively monitor customer satisfaction. reporting.We performed a business process analysis and • Improved response time for compliance-relat-suggested improvements to increase efficiency. ed queries.The process analysis was backed up with CSR • Generated a high level of data quality, accuracyworkbench functional specifications and key and uniqueness, resulting in better reportingcontact center metrics. To improve data quality and customer targeting.and establish data governance, we developed adata governance blueprint and data steward- • Helped the client achieve economies of scaleship structure. The proposed solution took into with a single global system rather than siloedaccount synergies between CRM, BPM and MDM systems across business units.to build a comprehensive contact center solutionfor the client. cognizant 20-20 insights 6
  7. 7. Footnotes1 William Band, “CRM And BPM Solutions Converge To Domesticate Untamed Customer Processes,” Forrester Research, Inc. blog, Jan. 9, 2012, http://blogs.forrester.com/william_band/11-12-20-crm_and_ bpm_solutions_converge_to_domesticate_untamed_customer_processes.2 Rob Karel, “MDM in 2012: What Was, What Will Be … And Won’t Be,” Forrester blog, Jan. 5, 2012, http://blogs.forrester.com/rob_karel/12-01-05-mdm_in_2012_what_was_what_will_be_and_what_wont_ be.3 Holger Kisker, “On the Convergence of BI and BPM,” Forrester blog, Feb. 16, 2010, http://blogs.forrester.com/holger_kisker/10-02-16-convergence_bi_and_bpm.About the AuthorPartha Chatterjee is Consulting Manager within Cognizant Business Consulting’s Customer SolutionsPractice. He has more than a decade of expertise in assisting global organizations with their CRM processimprovements, CRM cloud initiatives, customer experience management and customer analytics. He canbe reached at Partha.Chatterjee@cognizant.com.About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered inTeaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industryand business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50delivery centers worldwide and approximately 145,200 employees as of June 30, 2012, Cognizant is a member of theNASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performingand fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters European Headquarters India Operations Headquarters 500 Frank W. Burr Blvd. 1 Kingdom Street #5/535, Old Mahabalipuram Road Teaneck, NJ 07666 USA Paddington Central Okkiyam Pettai, Thoraipakkam Phone: +1 201 801 0233 London W2 6BD Chennai, 600 096 India Fax: +1 201 801 0243 Phone: +44 (0) 20 7297 7600 Phone: +91 (0) 44 4209 6000 Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7121 0102 Fax: +91 (0) 44 4209 6060 Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com©­­ Copyright 2012, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein issubject to change without notice. All other trademarks mentioned herein are the property of their respective owners.

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