Industry Report: The State of Customer Data Integration in 2013
Report from Scribe Software that surveyed over 900 businesses worldwide, states customer data integration has become a core business issue as organizations struggle to attain the ideal of the connected enterprise and drive business value from IT investments while managing increasingly complex IT environments. “Businesses are struggling to reach the connected enterprise nirvana,” noted Lou Guercia, CEO of Scribe. “With the continued move to cloud and complex hybrid environments, the lack of integration between these systems is becoming clearer and significantly slowing business value.”
Industry Report: The State of Customer Data Integration in 2013
Cloud Adoption, System and Data Integration Challengesand Opportunities for the Connected EnterpriseThe State of CustomerData Integration 2013
Table of ContentsLetter from Lou Guercia, CEO Scribe Software ............................................................. 3Foreword ...................................................................................................................... 4Executive Summary ...................................................................................................... 6Major Findings .............................................................................................................. 7General IT Trends and Customer Priorities ..................................................................... 11The State of Business Systems Integration ................................................................... 18State of CRM Integration .............................................................................................. 22State of Integration ........................................................................................................ 27Survey Participant Demographics ................................................................................. 31Additional Industry Resources........................................................................................ 34About Scribe Software.................................................................................................... 35Core Business Systems in Use ...................................................................................... 33
3Letter from Lou GuerciaI am thrilled to bring to you The State of Customer Data Integration 2013. We’ve come a long way since 2012! Scribe has collected and analyzedfive times the number of responses and our data is truly global. The findings in this year’s report reflect the collective insights of more than 920business leaders, partners and systems integrators from 50+ countries spanning all continents. Thank you all for your continued support!We’re at the intersection of a number of significant technology shifts happening all at the same time: the transition to the cloud, the promise of BigData and analytics, a more mobile enterprise, and improved, multi-channel customer experience. Applications and infrastructure are moving online– it’s no longer a fad. Hybrid environments are the new norm, posing interesting opportunities and challenges for IT and the business. Regardlessof where your applications live today or tomorrow, your top business priorities continue to be growing new sales and keeping your existingcustomers happy and loyal. We heard that loud and clear from all respondents regardless of function or seniority.To increase sales and maintain loyalty, you need customer data and you need it now. We expect to see a shift from talking about the value andneed for Big Data towards actually integrating relevant and actionable data. Customer data is where the recurring value lies and fuels your sales,loyalty, and satisfaction. Where CRM remains the customer hub for many businesses, that customer has many different data touch points today –financial, social, support, marketing, and others. The most successful businesses bring together customer data where and when it is needed andcreate better business outcomes. Agile customer data integration should be a part of your everyday business process and your data connectivityshould be easy and reliable.Despite all the talk about the importance of integration and the “Connected Enterprise,” we have yet to see that vision fully realized. Manybusiness systems still operate in silos or are only partially integrate. Your business needs a practical, sequential approach to data integrationto prepare for the real data marathon – the huge amount of unstructured and structured data, social, mobile, online and offline application data– where you will need to choose an approach that squarely addresses your specific needs today but allows you to build and change as futureintegration needs emerge. This is where Scribe and our growing ecosystem of partners can help. You have our combined commitment to helptackle your immediate and long-term integration needs so you can get the most out of your data, grow your business and keep your customersdelighted no matter how they engage with you.Dear Fellow Business and IT Leaders,Lou GuerciaCEO, Scribe Software
4For a second year in a row, Scribe Software launched its State ofCustomer Data Integration industry survey. The response to our2013 survey was exceptional. This year we connected with morethan 921 technical professionals and business leaders, as wellas systems integrators, VARs and partners — representing overa 200% increase in responses compared 2012 (n = 300). Thisyear our initiative was industry-wide, benchmarking important ITtrends within the enterprise such as cloud adoption by businesssystem, level of integration between business systems, and majorchallenges to connecting today’s enterprise to its critical customerdata. Leading software providers and consultants helped Scribefield the survey among their communities, including Marketo,Znode, ON24, Trillium, PowerObjects, Ledgeview, and SlalomConsulting.2013 respondents came from a cross-section of industriesand from more than 50 countries, representing all regions ofthe world. Various company sizes and levels of core businesssystems adoption and usage were represented. Respondentswere comprised of C-level executives as well as businessanalysts and IT professionals, who manage and support systemsimplementation and data integration function within theirorganizations. Additionally we heard from systems integrators andconsultants, who design and implement business systems anddata integration projects for their enterprise clients. The overallmix of industries, seniority levels of respondents and their functionwithin the enterprise are similar to our 2012 survey, allowing us toobserve and draw conclusions about our industry over time.Foreword65% 10% 9% 7% 3% 2% 2% 1% 1% United States European Union Canada United Kingdom Australia & New Zealand South America Worldwide Asian Paciﬁc Middle East & S. Africa 83% 17% Business Respondents Third-‐Party System Integrators Survey RespondentsTotal Respondents by Regionn=921
5100% 72% 63% 61% 59% 42% 36% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CRM Enterprise Resources Mgmt Business Intelligence Sales Force AutomaDon Customer Service Social CRM MarkeDng AutomaDon Similar to 2012, CRM continues to be the central hub of enterprises of all sizes. Enterprise Resources Management (ERP) andBusiness Intelligence (BI) came in second and third with reported adoption of these systems by 72% and 63% of respondents.ForewordOur 2012 survey did not poll businesses on their ERP adoption, usage and integration, as we focused primarily on customersystems such as Customer Services, Marketing Automation, Sales Force Automation, and Business Intelligence. This is why inthis year’s report we are using Core Business Systems whenever the questions cover all business systems, including ERP, andCustomer Systems whenever ERP was excluded.NoteDeployment of Core Business SystemsCore Business Systems in Use in the Enterprise: 2012n=159Business Systems in Use in the Enterprise: 2013n=765100% 72% 56% 46% 30% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CRM Business Intelligence Sales Force AutomaBon Social CRM MarkeBng AutomaBon Customer Serivce
6The State of Customer Data Integration 2013 survey report is based on over 900 responses ranging from independent business and IT leadersto Scribe’s data integration channel partners. Overall results reveal that today’s businesses are still on the journey to connect their core businesssystems and deliver customer data to their users across the business. Customer data should be free-flowing across all business touch points toenable companies to run faster, do more, and at lower cost.What’s stopping the data from getting into the hands of those who need it? An increasingly complex IT environment creates barriers and silos.While CRM is steadily transitioning to cloud, Enterprise Resource Planning (ERP) and Business Intelligence (BI) systems continue to predominantlylive behind the firewall. Despite the growing trend towards integrated ecosystems and platforms from leading providers such as Oracle,Salesforce.com, and Microsoft, companies continue to choose best-of-breed solutions over a single platform or vendor-supplied ecosystem.Over 30 disparate systems were reported in use in our survey sample, spanning all core business processes including sales, marketing, customerservice, and analytics.As the IT environment gets more complex, so too does the ownership of application budgets and data. Just a year ago, IT owned the bulk ofsystems project budgets and determined how these business systems were implemented and integrated. As businesses are driving to ever moresales, satisfaction, and loyalty, business leaders in marketing and services now claim close to 50% of project budgets for new systems. As thelines of business (LOB) continue to drive or significantly influence the technology purchase decision, IT leadership and LOBs need to partnerclosely and avoid creating new data and process silos that will hamper the company’s overall ability to improve business results.It is clear from the survey there needs to be stronger partnership between LOB, IT and outside resources. Collaboration between IT and the restof the business is essential to get the right applications connected to the business and maximize the overall value of these projects in measurableterms relevant to the overall business goals. Most respondents still report a lack of formal process for assessing the value of their applicationsand business processes. We found that survey participants who engage systems integrators and outside consultants demonstrate higher levels ofintegration and meaningful measurement of business value. Making use of experienced outside resources clearly helps companies focus on andget to value faster.In 2013 we predict better progress towards tighter integration between core business systems. There is wide industry consensus amongstbusiness leaders and systems integrators on the importance of data integration. Even though DIY integration is on the decline from 2012, customcode still ranks high as the preferred method of connecting customer data. Simple, easy-to-use integration is the missing piece of the puzzle fortightly integrated systems and data. We expect new integration offerings to evolve from “old school” tools to “new school” intuitive platforms.Executive SummaryOur 2013 survey includes an expanded response set for some questions based on industry trends and 2012 respondent feedback.Also chart data throughout the report has been rounded, therefore chart percentage totals may be slightly greater or less than 100%.Note
7Major FindingsGeneral IT Trends and Customer PrioritiesMore Business Systems Moving into the Cloud: 2013 is indeed the year of the hybrid systems environment, as increasing numberof business systems are migrating to the cloud. Cloud has penetrated all core business systems, with CRM leading the waywith 26% of respondents reporting a pure cloud environment for CRM. Enterprise Resource Planning and Business Intelligencesystems are still predominantly on-premise.Growing Importance of Hybrid Environment Support for CRM Strategy: 47% of business respondents and 73% of third-partysystems integrators point to hybrid environment support as either a top priority or important for their business.Expansion is the Top Business Priority for 2013: Businesses are clear in their priorities in 2013 – they need to sell more, but notat the expense of customer satisfaction. 73% of business respondents and 80% of systems integrators report revenue growthas a top priority, followed by increased customer satisfaction and increased revenue by customer. Business systems, whethercustomer-facing or supporting critical customer initiatives, need to enable business value faster while allowing line of businessleaders to take good care of existing customers.Close to 50% Budget Ownership for Core Business Systems is Now Outside of IT: Although IT continues to own a sizeableportion of the budget, sales, operations and marketing departments together are responsible for 48% of the planned systemsinvestments in 2013. Same budget ownership split is reported for businesses represented by third-party systems integratorsand consultants. Today’s savvy businesses care about customer data and are willing to pay for the management, distribution,and analysis of it.High, but Cautious, Investment Intent in Business Systems in 2013: 44% of business respondents plan to invest more in theirbusiness systems in 2013, although the majority of them are cautious about their level of investment. Close to 60% plan toincrease their systems investment by no more than 20%, as compared to what they spent in 2012.CRM is Going Mobile: Mobile CRM is growing in importance. 84% of systems integrators and 71% of end businesses rateMobile CRM as either important or top priority for their CRM strategy in 2013.
8Major FindingsThe State of Business Systems IntegrationConsensus on the Importance of Systems Integration: There is a cross-industry agreement that tighter integration between corebusiness systems is critical for the success of the business, with respondents placing the highest importance on CRM and BIintegration (74%), followed by CRM and Customer Support Systems (CSS) (73%), CRM and Marketing Automation (71%), andCRM and ERP (69%). Customer data drives business performance and while multiple systems all have data sets, they need adefinite home for real-time use.Low Levels of Full System Integration: We are only at the beginning of the integration journey. Only 16% of the businessessurveyed for this year’s report indicate full integration among their various business systems compared to 15% in 2012. Partialintegration is still the norm, with 10% of enterprises reporting complete lack of integration among systems. The explosion ofcustomer data sources, coming from digital, social and mobile, makes full system integration a challenge for organizations ofall sizes. Rather than chasing the elusive promise of Big Data, businesses need to focus on integrating and making smart dataavailable; data that leads to actionable business insights to drive solid decisions across the organization. We expect the trendtowards smart data integration to catch fire in 2013.Financial Data Still Siloed: The lowest levels of reported between-systems integration are between CRM and ERP, and CRM andSocial, at 13% and 10% respectively. CRM-to-ERP data integration challenges are driven primarily by valid concerns for datasecurity, governance and reporting. CRM-to-Social data integration is hard because no standards exist. Social platforms are stillevolving, and thus there are no standard ways for capturing or addressing data especially unstructured data.Systems Integrators Drive Higher System Integration: Businesses who use the help of systems integrator see higher levelsof systems integration across all core business systems, including connecting financial data housed in ERP systems withcustomer data stored in CRM systems. The critical role of third-party systems integrators and consultants becomes even moreevident when reviewing the levels of non-integration between systems – businesses serviced by systems integrators report thatthey have integrated their systems to at least some level.
9Major FindingsState of CRM IntegrationData Accuracy and Consistency Key to CRM Systems Value: Aside from the being the storage place for all prospect and customerinformation, businesses expect their CRM systems to have the ability to share data among key departments. Companiesprioritize the value of CRM data integration in terms of its ability to drive accuracy and consistency of customer information.Still No Formal Process for Evaluating Integration: Most businesses (64%) still do not have a formal process for evaluating theirCRM data integration progress. Those who engage systems integrator are more likely to have such a process in place (43%).KPIs for CRM Data Integration: Businesses measure the return of their CRM data integration in terms of CRM satisfaction (45%),ability to have a complete view of the customer (43%), and CRM systems adoption (41%). The data suggests the critical linkbetween data integration and overall CRM success. Failure to integrate CRM with other critical business systems is pushing18% of respondents to switch to a new system in 2013.
10Major FindingsIntegration TrendsDo-It-Yourself Integration Widespread But on the Decline: Custom code continues to be the main way businesses integrate theirsystems. 48% still develop their own custom code in 2013, however there is a significant drop from 2012 when 59% reporteddoing so. Other integration methods include pre-built integrations by software vendors (41%) — most probably driven byproliferation of APIs — followed by the use of third-party integration platform vendors (32%). 32% still use manual data entry orprocesses.Ease of Use the Top Selection Criteria for Data Integration Software: Ease of use trumps all other criteria ranked as most importantby 67% of business respondents and 72% of systems integrators.Internal IT Are Still the Integration Go-Getters: 80% of businesses continue to rely on their IT organization, while 40% tap intooutside systems integrators or consultants. Although IT continues to own the integration process, IT needs to reach acrossthe isle and work with their business counterparts, who are increasingly influencing systems selection and purchasing. Suchcollaboration will reduce the chance of sustaining or even building new organizational, systems and data silos.Appetite to Integrate With the Newest Enterprise Tools: Businesses want to learn more about integration with collaborationplatforms such as SharePoint, followed by email and marketing analytics solutions, social networking services, and BYOD.
11General IT Trends and Customer PrioritiesCloud Adoption by Business System2013 is indeed the year of the hybrid environment, with the cloud permeating all core business systems. Customer RelationshipManagement (CRM) is leading the way with 26% of respondents reporting a pure cloud environment for CRM. Marketing Automation(MA) comes in second at 19% in the cloud. Sales Force Automation (SFA) is at 16%, with Social CRM at 15%, and Customer Serviceat 14%. Enterprise Resource Planning (ERP) and Business Intelligence (BI) systems are still predominantly on-premise or provisionedthrough a hybrid environment. With security concerns still rampant for sensitive financial and business intelligence data, ERP and BIwill remain largely on-premise systems in the immediate future.Cloud adoption has significantly penetrated business systems, as compared to 2012 when 16% reported that they were operatingsome or all of their business systems within a cloud-only environment.General IT Trends and Customer Priorities26% 19% 16% 15% 14% 6% 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% CRM Marke2ng Automa2on Sales Force Automa2on Social CRM Customer Service Enterprise Resources Mgmt Business Intelligence Cloud Penetration Among Business Systems in 2013n=765
12Importance of Hybrid Support for CRM StrategyIt is not surprising to see that45% of business respondentsstate that hybrid environmentsupport is either a top priorityor important for their CRMstrategy is 2013. Such supportis deemed of higher importanceamongst systems integratorsand consultants, who are at theforefront of implementing new ITsystems for the enterprise. 73%of systems integrators rate hybridsupport as either important or atop priority. Expect to see morebusinesses waking up to theimportance of both hybrid andcloud in 2013 and beyond.General IT Trends and Customer Priorities8% 37% 37% 18% 9% 64% 13% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% Top Priority Important Not Important Dont Know Business Respondents Third-‐Party System Integrators Importance of Hybrid Environment Support for CRM Strategy in 2013n=765n=150
1373% 59% 47% 42% 68% 55% 45% 39% 0% 20% 40% 60% 80% 100% Increased Sales Increased Customer Sa<sfac<on Increased Revenue per Customer Increased Leads 2013 2012 Top Customer PrioritiesWith economies on a morestable track globally, the orderof business in 2013 continuesto be to increase total sales, asreported by 73% of businessrespondents and 80% ofsystems integrators. Increasedcustomer satisfaction andincreased revenue by customerare respectively secondary andtertiary objectives.Compared to 2012, the level ofreported importance of thesepriorities has increased. It isclear that businesses need tofind better, more nimble waysto impact topline revenueand revenues from existingcustomers, while keepingcustomer satisfaction in check.General IT Trends and Customer PrioritiesTop Customer Priorities in 2013 Compared to 2012n=687n=139
14Lines of Business EffectivenessThe majority of respondents continue to highly ratethe effectiveness of their colleagues across functions.Sales continues to earn the highest marks – rated ashighly effective or effective by 76% of respondents(compared to 74% in 2012). Customer Service teamsfollow at 72% (compared to 68% on 2012). Marketingat 71% (compared to 63% in 2012) and BusinessAnalytics teams at 58% (compared to 54% in 2012),report the highest improvement rates. The bumpsin effectiveness from 2012 correlate with the levelsof adoption of systems and automation within thosefunctions.Although most functions continue to get high markson effectiveness internally, businesses need to lookdeeper into how customers and prospects thinkthose functions are actually doing; especially sincesmart, data-dependent growth from the existingcustomer base is reported as a high priority. Suchexternal measurements require new types of datacollection and tracking. One important metric toconsider for tracking the health of the customerfranchise is the Net Promoter Score (NPS). It enablesbusinesses to benchmark what percentage of theircustomers are true advocates, those who are neutral,and those likely to defect the enterprise. Social andbehavioral data can be used to identify, target andservice customers with low levels of satisfaction.General IT Trends and Customer Priorities74% 68% 63% 54% 12% 13% 21% 24% 14% 17% 15% 21% 0% 20% 40% 60% 80% 100% Sales Customer Service Marke<ng Business Analy<cs Eﬀec<ve Not Eﬀec<ve Dont Know Effectiveness of Lines of Business: 2012n=13976% 72% 71% 58% 8% 10% 14% 21% 16% 18% 16% 22% 0% 20% 40% 60% 80% 100% Sales Customer Service Marke;ng Business Analy;cs Eﬀec;ve Not Eﬀec;ve Dont Know Effectiveness of Lines of Business: 2013n=687
15Budget Ownership for Customer SystemsIt is now clear that IT is splitting the budget ownership for customer-facing systemsinvestment and expansion. This year almost half of businesses report that theirsales, operations and marketing departments combine to hold over 65% of thisbudget. This stands true for all companies regardless of revenue size. However, thescales have already tipped for enterprise-level businesses with 49% of the budgetcontrolled outside of IT. In those businesses, sales and marketing tend to own thelion’s share of the systems, budget at 22% and 17% respectively.Furthermore, we see that systems integrators are also moving beyond corporate ITand are increasingly collaborating with sales, operations and marketing to select,implement and customize business IT systems.A new survey from the Chief Marketing Officer (CMO) Council, Big Data’s BiggestRole: Aligning the CMO & CIO, points to how close marketing and IT executiveshave come together in their thinking this year bound by a common directive – towork together on using analytics to make core data available across the organizationfor actionable business insights. According to this survey, the majority of marketersand IT executives state that the relationship between the two departments is criticalto the execution of customer-centric programs. Sadly very few organizations areachieving such collaboration in practices — only 4 % of marketers and 7 % ofIT executives in the CMO Council survey believed they were indeed prepared toexploit the proliferation of data and channels, despite their shared conviction thattechnology was the underpinning that shaped the entire customer experience.These findings confirm the trend of IT budgets now moving beyond IT and intoall core lines of business – further supporting the estimates by Gartner and otheranalysts that by 2017 the CMO will replace the CTO as the owner of the higherportions of the IT budget for the enterprise.General IT Trends and Customer Priorities33% 35% 15% 15% 0% 20% 40% 60% IT Sales Opera4ons Marke4ng 45% 21% 15% 13% 0% 20% 40% 60% IT Sales Opera4ons Marke4ng Business Respondentsn=460Third-Party Systems Integratorsn=107
1644% of business respondents share plans to invest more in their customer systems in 2013, a 10% increase since 2012. There wasalso a drop in the number of respondents with no plan for increased customer systems investment – 25% reported in 2013 comparedto 27% in 2012. Systems integrators are much more upbeat about the market, expecting over 71% of their clients to invest incustomer-facing systems in 2013. Respondents from the enterprise segment also report higher likelihood of investments in customersystems – 49% of businesses with revenues over $100 million plan to invest more in 2013.When asked about the levels of planned investment, 60% of respondents were cautiously optimistic — expecting moderateinvestments in their customer-facing systems of up to 20% — while 10% of the respondents plan to invest 50% or more compared totheir budgets in 2012.Enterprise-level companies are more bullish about their levels of planned investment in customer systems; 14% of respondents fromthe enterprise segment ($100 million + in revenue) share plans to invest more than 50% in customers systems in 2013:10% Increase in Companies Planning to Invest in Customer Systems in 2013General IT Trends and Customer Priorities44% 25% 32% 71% 4% 25% 0% 20% 40% 60% 80% 100% Yes No Dont Know Business Respondents Third-‐Party System Integrators 32% 24% 22% 9% 14% 0% 20% 40% 60% 80% 100% 0-‐10% 11-‐20% 21-‐30% 31-‐50% 51%+ 38% 21% 19% 11% 10% 17% 41% 31% 7% 4% 0% 20% 40% 60% 80% 100% 0-‐10% 11-‐20% 21-‐30% 31-‐50% 51%+ Business Respondents Third-‐Party System Integrators n=699Intentions to Invest in Customer-FacingSystems in 2013n=150BusinessRespondentsThird-PartySystemsIntegratorsn=429If Yes, by How Much as Compared to 2012?n=100BusinessRespondentsThird-PartySystemsIntegratorsPlans to Invest in Customer Systems in2013 Enterprise Segment ($100M+)n=149
1771% 84% 20% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Business Respondents Third-‐Party System Integrators Top Priority Not Important CRM is Going MobileMobile CRM is growing in importance — 71% of end businesses and 84% of systems integrators rate Mobile CRM as eitherimportant or top priority for their CRM strategy in 2013. On the opposite side of the spectrum, only 20% of business bespondentsrank it as non-important in 2013 vs. 35% in 2012.General IT Trends and Customer PrioritiesImportance of Mobile CRM for CRM Strategy in 2013n=765 n=150
1816% 49% 18% 10% 6% 19% 64% 11% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% Fully Integrated Par:ally Integrated Only Componants Integrated Not Integrated Dont Know Business Respondents Third-‐Party System Integrators 15% 50% 21% 14% 26% 62% 12% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% Fully Integrated Par9ally Integrated Only Componants Integrated Not Integrated Business Respondents Third-‐Party System Integrators Levels of Integration Between Business SystemsIn this new age of Big Data and real-time analytics and decisions, it’s disappointing that most businesses did not make substantialstrides toward getting their systems more closely integrated. In 2013 only 16% of businesses report full levels of integration amongbusiness systems, compared to 15% in 2012. Analyzing the responses from systems integrators, we witness a very similar trend– only 19% of systems integrators report that their clients’ systems are fully integrated. Partial or components integration is still thenorm across enterprises of all sizes. Although complete lack of integration is on the decline, the enterprise still has a ways to go inorder to shed operational silos and to get its core systems talking to each other across the enterprise.The State of Business Systems IntegrationLevels of Systems Integration: 2012 Levels of Systems Integration: 2013n=141n=115BusinessRespondentsThird-PartySystemsIntegratorsn=699n=136BusinessRespondentsThird-PartySystemsIntegrators
1966% 68% 60% 59% 52% 60% 34% 13% 10% 16% 20% 21% 17% 37% 0% 20% 40% 60% 80% 100% CRM & Business Intelligence CRM & Customer Service CRM & MarkeCng AutomaCon CRM & Enterprise Resources Mgmt CRM & Mobile CRM & Sales Force AutomaCon CRM & Social The Importance of Business Systems IntegrationThe majority ofbusiness respondentsrank tighter integrationbetween corebusiness systemsas critical. And notsurprising, we see anew type of system,Business Intelligence,as the leader inthe demand forintegration. Integrationbetween BI and CRMsystems ranked aseither very importantor important by74% of respondentscompared to 66% in2012. Consistent withthe stated businesspriorities, CustomerService and MarketingAutomation systemsintegration with CRMcontinues to be in thetop three.The State of Business Systems IntegrationImportance of Business Systems Integration with CRM: 2012n=141ImportantNot ImportantImportance of Business Systems Integration: 201374% 73% 71% 70% 66% 62% 47% 11% 10% 13% 14% 15% 15% 27% 0% 20% 40% 60% 80% 100% CRM & Business Intelligence CRM & Customer Service CRM & MarkeBng AutomaBon CRM & Enterprise Resources Mgmt CRM & Mobile CRM & Sales Force AutomaBon CRM & Social n=699ImportantNot Important
2024% 22% 21% 16% 14% 13% 10% 30% 32% 33% 21% 21% 21% 16% 0% 10% 20% 30% 40% 50% 60% CRM & Customer Service CRM & Marke;ng Automa;on CRM & Sales Force Automa;on CRM & Business Intelligence CRM & Mobile CRM & Enterprise Resource Mgmt CRM & Social Business Respondents Third-‐Party System Integrators Between-Systems IntegrationAlthough there is strong consensus amongbusiness respondents and systems integrators onthe importance of between-systems integration,enterprises of all sizes still have a ways to go to makesuch integration a reality. The highest reported levelof system integration between core business systemsis between CRM and Customer Service (24%), CRMand MA (22%), and CRM and SFA (21%). Businesseswho use the help of systems integrator see higherlevels of between-systems integration across all corebusiness systems, including connecting financial datahoused in ERP systems with customer data storedin CRM systems. These findings are in line with theresults from our 2012 State of Data Integration survey,pointing to the critical role systems integrators andconsultants play in achieving tighter integrationbetween systems.A note on the importance of data integration to BIsuccess – according to Ventana Research, whenit comes to analytics, 44% of organizations spendthe most time on data-related tasks. With a lack ofresources being the largest issue, Ventana urges IT tooperate more efficiently and look to data integrationsolutions to get business leaders the data they needon a timely basis.The State of Business Systems IntegrationBusiness RespondentsThird-PartySystems IntegratorsLevels of Between-Systems Integration: 2013n=699
21The Critical Role of the PartnerThe critical role of third-party systems integrators and consultants becomes even more evident when looking at the levels of non-integration between systems. In line with the findings in the 2012 edition of this report, businesses report between 38%-66% of non-integration depending on the type of system. This percentage drops dramatically for businesses serviced by systems integrators orconsultants, from 9-26% as shown in the graph below:The State of Business Systems IntegrationLevels of Non-Integrated Core Business Systems: 2012 Levels of Non-Integrated Core Business Systems: 2013n=141n=115Business RespondentsThird-PartySystems Integrators39% 41% 44% 43% 62% 40% 62% 8% 8% 13% 9% 12% 4% 21% 0% 20% 40% 60% 80% 100% Customer Service Marke:ng Automa:on Sales Force Automa:on Business Intelligence Mobile Enterprise Resources Mgmt Social 38% 39% 47% 42% 56% 44% 66% 11% 12% 19% 13% 20% 9% 26% 0% 20% 40% 60% 80% 100% Customer Service Marke<ng Automa<on Sales Force Automa<on Business Intelligence Mobile Enterprise Resources Mgmt Social n=699n=147Business RespondentsThird-PartySystems Integrators
22CRM Systems ValueThis year we asked respondentsto share the criteria they use toevaluate the business value oftheir CRM system(s). Aside frombeing central hub for prospectand customer information,businesses look to their CRMsystems to have the abilityto share data amongst keydepartments including sales,marketing, finance and customerservice. Businesses also look totheir CRM systems to providereporting on the health of theirsales and marketing pipelinesand activities. It is clear thatbusinesses are looking to big andsmall data to help them do theirjobs better and to help informdecisions across all lines ofbusiness.The State of CRM IntegrationTop Criteria for Evaluating Value of CRM Systemsn=68774% 73% 58% 51% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Ability to store all prospect or customer informa>on in one place Ability to share data among sales, marke>ng, ﬁnance & customer service Ability to run reports on the health of your sales pipeline Ability to run marke>ng reports (number of leads, number of qualiﬁed leads)
23Importance of CRM Data IntegrationThe State of CRM IntegrationGiven the importance of sharing prospect and customer data among departments, it’s not surprising to see that businesses rank thevalue of CRM data integration in terms of its ability to allow more accuracy and consistency of customer information (rated as 66%and 51% in 2013 compared to 63% and 60% in 2012). Corollary to accuracy and consistency, businesses rate holistic view andtimelines of customer information as the other two important drivers of CRM integration value. This is because having a holistic viewof the customer is becoming more challenging by the day. A recent Altimeter report, The Converged Media Imperative, states that theaverage person sees over 3,000 brand messages a day and points out that some consumer journeys could have 75 digital varianceper touch point across content sources, channels, and screens. Capturing these touch points and their variances is becoming moreimportant to all business leaders looking to understand their customers, offering content and communications that are of unique andimmediate value to them.66% 51% 40% 40% 29% 29% 7% 63% 60% 41% 33% 32% 20% 5% 0% 20% 40% 60% 80% 100% Accuracy of Informa8on Consistency of Informa8on Master Record Management / Holis8c View Timeliness of Informa8on Consolidated Repor8ng Cost Reduc8on Staﬀ Reduc8on 2013 2012 n=634n=131The Importance of CRM Data Integration
24No Formal Process for Evaluating IntegrationThe State of CRM IntegrationSimilar to the findings from 2012, most businesses (64%) still do not have a formal process for evaluating their CRM data integrationprocess. Businesses that employ the services of systems integrators or consultants tend to benefit from a more formal projectmanagement process leading to their better ability to articulate both the operational benefits and the returns on CRM integrationinitiatives. This can be attributed to a higher level of discipline when outsourcing, as businesses usually require vendors to provideclear ROI to justify the costs and benefits of their services. The encouraging news is that this disciplined approach is making itsway into internally managed projects as well. More businesses have embraced a formal evaluation philosophy for assessing dataintegration projects driven by internal teams – 22% of business respondents in 2013 report having such a process compared to 17%in 2012. This percentage is higher for enterprise-level businesses ($100M+ in revenue), among whom 30% report having a formalprocess for evaluating CRM data integration.22% 64% 15% 43% 44% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Dont know Business Respondents Third-‐Party System Integrators 17% 70% 13% 51% 37% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Dont know Business Respondents Third-‐Party System Integrators n=106Formal Process for Evaluating CRM Data Integration: 2012 Formal Process for Evaluating CRM Data Integration: 2013n=602n=131n=120
26Rising Importance of the Three Core Benefits of CRM Integration (cont).The State of CRM IntegrationGiven the heightened importance of CRM systems adoption and satisfaction, we asked businesses to share their current levels ofsatisfaction with their CRM systems. Most report they are either very or somewhat satisfied with their CRM system, although 14%indicate low levels of satisfaction.Combining the responses of the neutral, somewhat unsatisfied and unsatisfied, with those who share that they are looking to switchwithin the next 12 months, we see that between 14% and 25% of business respondents are looking to either switch or are in theprocess of switching their CRM system this year. This points to the heightened need for CRM systems vendor to continuously improvethe business value and user experience of their solutions. Tighter integration of CRM systems with other core business systems isone critical way to equip business users with accurate and timely information to serve their prospects and customers better; thereforeincreasing overall CRM system satisfaction while driving more business value.34% 41% 11% 10% 4% 0% 20% 40% 60% 80% 100% Very Sa0sﬁed Somewhat Sa0sﬁed Neither Sa0sﬁed nor Unsa0sﬁed Somewhat Unsa0sﬁed Unsa0sﬁed Likelihood to Switch CRM Systems in 2013n=76Satisfaction with CRM Systems n=69914% 4% 8% 74% 0% 20% 40% 60% 80% 100% Yes, in the next 1-‐12 months Yes, in 12+ months Unsure No plans to change
27Do-It-Yourself Integration is Widespread but on the DeclineThe State of IntegrationCustom code continues to be the way businesses are integrating their business systems in 2013. Although we see a significant dropin its use from 2012, (48% now vs. 59% in 2012), custom coding is still rampant despite being costly and rarely scalable for theenterprise. Custom code coupled with manual data entry costs businesses millions of dollars annually, although such costs may notbe immediately visible to IT and business leaders.These hidden costs of custom and manual data integration impact the enterprise in multiple ways. The loss of real time data andanalytics is a tremendous opportunity-cost for businesses and affects their ability to drive revenue and customer satisfaction. Customcode also increases the total cost of enterprise IT systems ownership by adding resources for training, development time from IT,along with ongoing maintenance costs. Custom code may not always anticipate new and diverse use cases and all the possiblehiccups in data conversion resulting in loss of data or added time to de-duplicate or reconcile data. For example, Ventata Researchfound that combining spreadsheets is time-consuming in more than half (56%) of organizations, mostly due to getting the data into theright shape.59% 38% 45% 35% 0% 20% 40% 60% 80% Custom code wri7en internally Manual data entry or process (loading via Excel or other batch ﬁles) 3rd party soGware product(s) Custom code wri7en by a consultant 48% 41% 32% 32% 31% 0% 20% 40% 60% 80% Custom code wri6en internally Pre-‐built integra?on provided by vendor Manual data entry or process (loading via Excel or other batch ﬁles) 3rd party soIware product(s) Custom code wri6en by a consultant Methods of Systems Integration: 2013n=634Methods of Systems Integration: 2012n=129
28Do-It-Yourself Integration is Widespread but on the Decline (cont).The State of IntegrationThe most quoted reason for the use of custom code is the perceived need for customization for company specific needs and theability of integration software options to address these needs. They also believe that custom code is both easier to customize and acheaper option than other available alternatives despite the proven experience that standardization drives costs down. With the riseof hybrid environments, the existence of multiple business systems within the enterprise, coupled with the rate of change of softwarevendors’ APIs, custom code now more than ever is becoming an obsolete way to deal with connectivity issues. We feel it is incumbentupon us at Scribe and other data integration platform providers to continue to educate the market on the benefits of platformintegration, leading to substantial savings in time, resources and cost, which may currently be hidden.32% 32% 18% 7% 7% 6% 3% 0% 10% 20% 30% 40% 50% Integra3on so6ware doesnt handle my needs Easier to code things exactly the way we want them Less expensive than purchasing a so6ware product Always used custom code; didnt consider a so6ware product Dont have the 3me or resources to learn another so6ware product Too risky to rip out & replace with something else Unaware of the beneﬁts of integra3on solou3on Reasons for Using Custom Code for Systems Integrationn=634
29Top Selection Criteria for Data Integration SoftwareThe State of IntegrationThe top considerations for both businesses and systems integrators when choosing data integration software continue to be easeof use and cost, although ease of use has surpassed cost considerations. As the demands of the new data world force businessesto recognize the value of data integration as a utility and as it becomes much more accessible and easier to use, we predict that theadoption of innovative third-party integration platforms will continue to rise in 2013.62% 62% 58% 57% 68% 75% 64% 56% 0% 20% 40% 60% 80% 100% Ease of use Cost Built for the biz app we want to integrate with Scalability & performance Business Respondents Third-‐Party System Integrators 67% 66% 51% 49% 72% 71% 54% 64% 0% 20% 40% 60% 80% 100% Ease of use Cost Built for the biz app we want to integrate with Scalability & performance Business Respondents Third-‐Party System Integrators Top Selection Criteria: 2012 Top Selection Criteria: 2013n=634 n=120n=131 n=106
30Who Implements Integration?The State of IntegrationThe top considerations for both businesses and systems integrators when choosing data integration software continue to be easeof use and cost, although ease of use has surpassed cost considerations. As the demands of the new data world force businessesto recognize the value of data integration as a utility and as it becomes much more accessible and easier to use, we predict that theadoption of innovative third-party integration platforms will continue to rise in 2013.Interest in Other Integration Trends in 2013The new types of systems implemented by businessesand the related new data types, increase businesses’appetite for new data connectors. Businesses continueto show strong interests in learning about integratingwith social collaboration platforms, such as MicrosoftSharePoint. Next in line are email and marketinganalytics solutions integration and integration of socialdata, cloud and hybrid data and BYOD.86% 35% 15% 0% 20% 40% 60% 80% 100% Our IT Organiza5on Outside Systems Integrator or Consultant Integra5on Vendor Professional Services 80% 40% 16% 0% 20% 40% 60% 80% 100% Our IT Organiza3on Outside Systems Integrator or Consultant Integra3on Vendor Professional Services 51% 44% 35% 33% 30% 25% 0% 20% 40% 60% 80% 100% SharePoint or other collabora8on tools Email & marke8ng analy8cs solou8ons Social networking services Saas or Cloud-‐based services Hybrid environments Growth of bring your own device n=131 n=630Who Implements Integration: 2012n=634Who Implements Integration: 2013
3122% 15% 22% 13% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% < $5M $5 -‐ $10M $11 -‐ $50M $51 -‐ $100M $101M+ Business RespondentsSurvey Participant Demographics2% 2% 3% 4% 6% 7% 7% 8% 8% 14% 14% 21% 0% 20% 40% 60% 80% 100% Entertainment Energy Insurance Telecommunica<ons Retail Government / Public Sector Technology (hardware) Finance Healthcare Manufacturing Professional Services Technology (soMware) Company Revenuen=612Industryn=612
32LocationSurvey Participant DemographicsOrganization RoleSeniority Level Core Business System in Use65% 10% 9% 7% 3% 2% 2% 1% 1% United States European Union Canada United Kingdom Australia & New Zealand South America Worldwide Asian Paciﬁc Middle East & S. Africa 63% 11% 9% 7% 3% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IT Marke4ng Opera4ons Sales Finance Other 29% 32% 18% 14% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Analyst Mid-‐Level Mgmt Senior Mgmt ExecuDve Other n=606n=612-154n=612 n=765100% 72% 63% 61% 59% 42% 36% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CRM Enterprise Resource Mgmt Business Intelligence Salesforce AutomaDon Customer Service Social CRM MarkeDng AutomaDon
33Core Business Systems in UseTop CRM Systems in UseSimilar to 2012, all businesses surveyed use a CRM system or a combination of CRM systems. Top CRM Systems in use includeMicrosoft Dynamics CRM, Microsoft Dynamics CRM Online, Salesfore.com, Siebel/Oracle, NetSuite, SAP and Sugar CRM.Top Sales Force Automation (SFA) Systems61% of respondents reported using a specific SFA system for their business. Top SFA systems include Microsoft, NetSuite,Salesforce.com, SalesLogix, SAP, Oracle Siebel, and SugarCRM.Top Marketing Automation (MA) Systems36% of respondents indicate they are currently using a dedicated MA system such as ClickDimensions, Marketo, ExactTarget,CoreMotives, Eloqua, HubSpot and Silverpop.Top Customer Service Support (CSS) Systems59% of respondents indicate they are using a dedicated CSS system such as Microsoft Dynamics, Oracle, Salesforce.com, SageCRM, Get Satisfaction and NetSuite.Top Enterprise Resource Planning (ERP) Systems72% of respondents reported using a dedicated ERP system such as Microsoft Dynamics AX, Microsoft Dynamics Great Plains,Microsoft Dynamics NAV, NetSuite, PeopleSoft, Oracle, Epicor, Lawson, SAP, Intact and Sage ERP.Top Business Intelligence (BI) Systems72% of respondents indicate they are currently using a BI system such as Microsoft, Cognos, GoodData, Information Builders,MicroStrategy, Oracle, SAP and SAS.Social CRM Systems in Use41% of respondents report that they are already using a Social CRM system. Top Social CRM systems in use include Microsoft,Salesforce.com, NetSuite, SAP, Sage and Jive.
34Additional Industry ResourcesScribe Software Industry Report:State of Customer Data Integration 2012: The What, Why and How of CRM IntegrationScribe Software Industry Report:SMB CRM Integration 2012: IT Pain Points and Investments 2013Scribe Software Convergence Session:The CMO Imperative – Data-Driven ResultsVentana Research, Mark Smoth:Businesses Can Turn to Scribe for Data Integration In the Cloud TimesForbes, Louis Columbus:Personas Are The Future of Enterprise Apps: Lessons Learned From Scribe Software
35About Scribe SoftwareScribe Software is an established global provider of solutions that easily bring customer data anywhere it’s needed – regardlessof IT infrastructure. Scribe’s award-winning products help 12,000 customers and 1,000 partners use customer data – cloud-based, on-premise or a mix – to increase revenue, provide superior service, and create business value faster. Its easy-to-use,enterprise-ready solutions are backed by extensive support options and training, and service customers across a wide array ofindustries including financial services, life sciences, manufacturing, and media and entertainment companies.For more information, please visit www.scribesoft.com, follow Scribe on Twitter, or subscribe to the Scribe Blog.Partner with ScribeOver 1,000 partners big and small have partnered with Scribe to deliver world-class CRM integrations. Extensible, flexible andscalable products combined with top-notch training, support and rewards programs are what make our partners successful.Whether you’re a Value Added Reseller, Solution Provider or ISV, Scribe has the integration products to help you succeed withany CRM integration need.Scribe Online IS delivers seamless and secure integration of your CRM application data with critical business applications such asbilling, ERP, sales and marketing through an intuitive visual interface. With this enterprise-grade data integration solution, your ITorganization can deliver accurate information across systems quickly and consistently without software, coding or maintenance.We offer a 15 day, unlimited free trial for Scribe Online Integration Services. Easy to set up and run – click here for a free trial.Connect Your Enterprise With Scribe