Crm State Of The Market 2008 & Beyond


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This is what CRM is looking like today as it morphs to CRM 2.0. Worth a look

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Crm State Of The Market 2008 & Beyond

  1. 1. 2008 & Beyond By Paul Greenberg President, The 56 Group, LLC Chief Customer Officer, BPT Partners, LLC Author: CRM at the Speed of Light CRM STATE OF THE UNION:
  2. 2. <ul><li>Pre 90s </li></ul><ul><ul><li>Product/Demand driven corporate ecosystem </li></ul></ul><ul><ul><ul><li>Separate demand and supply chains </li></ul></ul></ul><ul><li>Late 90s to nearly present </li></ul><ul><ul><li>Customer driven corporate ecosystem </li></ul></ul><ul><ul><ul><li>The enterprise value chain </li></ul></ul></ul><ul><li>Present </li></ul><ul><ul><li>Customer ecosystem </li></ul></ul><ul><ul><ul><li>2006 - the “Era of the Social Customer” </li></ul></ul></ul><ul><ul><ul><li>Personal value chain </li></ul></ul></ul><ul><ul><ul><li>The Prosumer rises </li></ul></ul></ul>The Business World Changed
  3. 3. <ul><li>Sea change in use of technology </li></ul><ul><ul><li>Gen Y first generation to spend more time on the ‘Net than watching TV </li></ul></ul><ul><ul><li>Implications for marketing staggering </li></ul></ul><ul><ul><ul><li>40% of Gen Xers do research online </li></ul></ul></ul><ul><ul><ul><li>2006 – 17.6 million U.S. seniors 62+ online </li></ul></ul></ul><ul><ul><ul><ul><li>Proj. 2010 – 25.4 million (twice the normal growth rate) </li></ul></ul></ul></ul>Characteristics of the Ecosystem
  4. 4. <ul><li>Managed customer relationships </li></ul><ul><li>Sales, marketing, support </li></ul><ul><li>Operational, analytic, collaborative </li></ul><ul><li>Data management </li></ul><ul><li>Business process management </li></ul><ul><li>Partner Relationship Management </li></ul><ul><li>Application Service Providers </li></ul><ul><li>Marketing’s 4Ps – Price, product, place, promotion </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>360° view of the customer </li></ul><ul><li>On premise </li></ul><ul><li>Client/server </li></ul><ul><li>Customer focused corporate ecosystem </li></ul><ul><li>Intranet </li></ul><ul><li>Product and/or services company </li></ul><ul><li>Thin client </li></ul><ul><li>E-CRM a.k.a ecommerce </li></ul><ul><li>ROI </li></ul><ul><li>TCO </li></ul><ul><li>Product sales as economic outputs </li></ul>Old Terminology
  5. 5. <ul><li>Web. 2.0 (or Business Web, or Live Web) </li></ul><ul><li>User created content </li></ul><ul><li>Co-creation of value </li></ul><ul><li>Experience economy </li></ul><ul><li>Customer managed experiences </li></ul><ul><li>Authenticity </li></ul><ul><li>Transparency </li></ul><ul><li>Social networking </li></ul><ul><li>Social media </li></ul><ul><li>Customer advocacy </li></ul><ul><li>Open source </li></ul><ul><li>User communities </li></ul><ul><li>Experience mapping and design </li></ul><ul><li>Experiences as economic outputs </li></ul><ul><li>Trusted sources </li></ul><ul><li>CEM </li></ul><ul><li>Voice of the customer </li></ul><ul><li>Return on customer </li></ul><ul><li>Customer value </li></ul><ul><li>Customer ecosystem </li></ul><ul><li>Personal value chain </li></ul><ul><li>Service Oriented Architecture </li></ul><ul><li>On Demand </li></ul><ul><li>Prosumer </li></ul><ul><li>Conversations, not marketing “spin” </li></ul><ul><li>Social customer </li></ul><ul><li>Personalization </li></ul><ul><li>Platform as a service </li></ul>New Terminology
  6. 6. CRM Definitions “ CRM is a philosophy & a business strategy, supported by a system & a technology, designed to improve human interactions in a business environment” “ CRM 2.0 is a philosophy & a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It's the company's response to the customer's ownership of the conversation.&quot;
  7. 7. The CRM Market Continues to Grow….. 2006 - $3.6 billion, CRM software licenses 2012 - $6.6 billion, CRM software licenses Source – Datamonitor “Economic Outlook:CRM 2007 - $6.8 billion, CRM software 2012 - $13.3 billion, CRM software Source: Gartner Group, CRM Outlook, April 2008
  8. 8. The CRM Market Continues to Change….. <ul><li>Consolidation by the major enterprise vendors </li></ul><ul><ul><li>Oracle purchase of PeopleSoft, Siebel, Hyperion </li></ul></ul><ul><ul><li>SAP purchase of Business Objects </li></ul></ul><ul><ul><li>IBM purchases Cognos </li></ul></ul><ul><li>Increasing substitution of on demand for on premise models due to allaying of concerns over scalability and security </li></ul><ul><ul><li> Japan Post 45,000; Merrill Lynch, 25,000 </li></ul></ul><ul><ul><li>Workday – ERP on demand Flextronics 200,000 seats </li></ul></ul><ul><li>Integration of Web 2.0 technologies with CRM </li></ul><ul><ul><li>First time ever – nGenera buys Talisma a.k.a. Web 2.0 buys CRM </li></ul></ul><ul><ul><li>SAP integrates Google-like skinnable user interface into CRM </li></ul></ul><ul><ul><li>Oracle & SAP use mashups for the enterprise </li></ul></ul>
  9. 9. The CRM Market Continues to Change….. <ul><li>Increasing move to verticalization – both on premise/on demand esp. health services, financial services, public sector, non-profits </li></ul><ul><ul><li>Microsoft LiveCRM announcement for vertical hosting </li></ul></ul><ul><ul><li>Google competition with Microsoft re: health services </li></ul></ul><ul><li>Increasing move to specialization & complexity </li></ul><ul><ul><li>CRM for complex systems like manufacturing </li></ul></ul><ul><ul><li>CRM as integrated part of enterprise value chain – includes back & front office, but also multiple systems (e.g. content management w/customer friendly features) </li></ul></ul><ul><ul><li>Social CRM and the new desktop – integration of collaborative features </li></ul></ul><ul><li>CRM leading app for enterprise mobility </li></ul><ul><ul><li>SAP/RIM create CRM mobile application </li></ul></ul><ul><ul><li>Sage uses Blackberry enabled Saleslogix based on GPS and location </li></ul></ul>
  10. 10. The CRM Market Continues to Change….. <ul><li>Integration of Web 2.0 features, functions into CRM strategic and operational “toolkits” </li></ul><ul><ul><li>FaceForce </li></ul></ul><ul><ul><li>Neighborhood America as enterprise social networking platform </li></ul></ul><ul><ul><li>Lotus Connection </li></ul></ul><ul><ul><li>IBM innovation strategy </li></ul></ul><ul><ul><li>Proctor & Gamble use Vocalpoint </li></ul></ul><ul><ul><li>InsideView from SalesView (socialprise) </li></ul></ul><ul><li>Transformation of CRM applications providers into platform providers </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li>SugarCRM as platform for health services personal applications, sales collaboration tools, and integration of social networking into CRM tools through Q-Industries </li></ul></ul><ul><ul><li>SAP puts NetWeaver out as subscription based platform </li></ul></ul>
  11. 11. Changes to the CRM Model
  12. 12. <ul><li>Managing customer relationships so that the customers can provide value to the company based on the company’s value to the customer ( quid pro quo ) </li></ul><ul><li>Engaging customers in collaborative activity for mutually created value </li></ul>CRM Model – 2008 & Beyond From To
  13. 13. <ul><li>Providing products and services to give the customer quality and price </li></ul><ul><li>Company remains provider of goods & services </li></ul><ul><li>Providing products, services, and tools for the customers to personalize their own experience </li></ul><ul><li>Company becomes aggregator of required parts for personalized experience </li></ul>CRM Model – 2008 & Beyond From To
  14. 14. <ul><li>Operationally focused CRM technologies to support sales, marketing, customer service processes </li></ul><ul><li>Both operational and collaborative technologies to improve the experience of the customers – internally & externally </li></ul>CRM Model – 2008 & Beyond From To
  15. 15. <ul><li>Separate enterprise-level value chains impacted by the front office (e.g. supply chain impacted by sales) that also affect the customers </li></ul><ul><li>Integrated extended value that includes customer-centered supply chain and incorporates the customer (& their personal value chain) </li></ul>CRM Model – 2008 & Beyond From To
  16. 16. <ul><li>Strong process-driven, operational applications like SFA, enterprise marketing management, contact center management, field service </li></ul><ul><li>Customer-inclusive applications like social networking and other social media applications (blogs,wikis, podcasts); use of user generated content that can be shared </li></ul>CRM Model – 2007-08 & Beyond From To
  17. 17. Dramatic Evolution between CRM 1.0 & CRM 2.0 is in progress
  18. 18. Source: CRM 2.0 Wiki ( CRM 1.0 v. CRM 2.0: The Customer Rules   CRM 1.0 Features/Functions   CRM 2.0 Features/Functions     Customer facing features - sales, marketing & support. Still isolated from back office, supply chain Fully integrated into an enterprise value chain that includes the customer as part of it   Tools are associated with automating functions Integrates social media tools into apps/services: blogs, wikis, podcasts, social networking tools, user communities    Automate interaction history for lead nurturing and relationship building   Utilize knowledge in context to create meaningful conversations  Models customer processes from the company point of view  Models company processes from the customer point of view     Recognizes that the customer relationship encompasses information-seeking and information-contributing behavior   Resided in a customer-focused corporate business ecosystem   Resides in a customer ecosystem   Utilitarian, functional, operational   All those plus style and design matter   Marketing focused on processes that sent improved, targeted, highly specific corporate messages to customer Marketing is front line for creating conversation with customer - engaging customer in activity and discussion   Business produces products & creates services for customer Business is an aggregator of products, services, tools and knowledge for the customer   Intellectual Property protected with all legal might available Intellectual property provided when appropriate to customer, partner, supplier, problem solver     Business focus on products and services that satisfy customers   Business focus on environments & experiences that engage customer   Tactical and operational   Strategic   Customer strategy is part of corporate strategy   Customer strategy IS corporate strategy   Innovation from the designated   Innovation from both internal and external sources   Separation between work and personal life Work at home/personal things at work – work –personal integration
  19. 19. THANK YOU For further information: Paul Greenberg President, The 56 Group, LLC Chief Customer Officer, BPT Partners [email_address] 703-551-2337 Blog: Podcast Feed: BPT Partners website: