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Choosing the Best CRM
for Your Organization
2 0 0 7 W H I T E P A P E R
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 1
Choosing the Best CRM for Your Organization
By Paul Gillin
Executive Summary
CRM buyers have a wealth of deployment options available to them, providing unprecedented flexibility, cost-
efficiency and business value. They can opt for a traditional on-premise packaged software installation, subscribe
to one of the new breed of on-demand services delivered via the Internet, host their own on-demand solution or
deploy a combination of those approaches. This gives IT organizations the power to fine-tune CRM deployments to
match their needs, strategic objectives and the budgets of business users.
But with choice comes complexity. Not only must IT managers carefully analyze their business scenarios, they also
must understand the strengths and weaknesses of the available products. There are many new hosted solutions,
but most don't integrate well with the market-leading packaged solutions or with legacy systems. These so-called
software-as-a-service (SaaS) products also have a wide range of capabilities for customization and standards
compliance. Vendor stability and reliability also are important issues. With consolidation inevitable in the market,
users need to choose vendors wisely.
This white paper describes and analyzes the four most popular deployment scenarios, then offers a guide to
choosing a hybrid approach that best matches the needs of the business while delivering superior performance,
application integration and functionality.
Introduction
Customer relationship
management (CRM) has been one
of the most compelling operational
concepts of the past 15 years.
Beginning with humble roots in
sales force automation, CRM has
expanded to include a wide range
of tasks, analytics and
engagement tactics that maximize
the value of the customer
relationship and contribute to
sustainable revenue growth. Total
CRM revenues reached
$8.4 billion in 2006, up 7 percent
from the previous year, according
to Forrester Research. AMR
Research, which includes a
broader range of applications in its
forecast, predicts that the market
will grow from $8.6 billion in 2006
to $18 billion in 2010, a 21 percent
compound annual growth rate.
As CRM has expanded to
encompass elements of
collaboration and Web 2.0-style
engagement, the software tools to
support it have grown and become
more diverse as well. Today,
buyers have the luxury of choosing
from a vast selection of products to
help develop and nurture customer
relationships.
· Broadly defined, CRM
encompasses everything
companies use to manage
customer relationships,
including capture and analysis
of customer information and
analytics to leverage that data
toward better sales
performance.
Why is CRM
important?
Common sense dictates that it's
cheaper to generate more revenue
from existing customers than to
acquire new ones. According to
surveys, the cost of finding new
customers is estimated at three to
five times the cost of customer
retention.
Retaining customers isn't easy,
though. The Internet has lowered
the cost of switching and made
markets more price-sensitive.
Customers increasingly are asking
for custom solutions to their
problems, using comparative
shopping services and freely
available rating systems to pit
companies against each other.
In this increasingly competitive
environment, businesses must
differentiate not only their
products, but their customer
experience. In fact, customer
experience is emerging as the
most important competitive
differentiator between vendors in
many markets. The focused ability
to anticipate and respond to
customer needs will separate
market leaders from also-rans.
Choosing the Best CRM for Your Organization
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 2
CRM systems support business
growth in two critical ways. First,
they enable sales and support
personnel to gather detailed
information about individual
customer needs, enabling them to
offer custom products and services
the customer can t find anywhere
else.
Secondly, analytics provide insight
about customer behavior on a
broad scale. For example,
knowing that customers who buy
red sports cars also are highly
likely to buy premium sound
systems can help an automaker
shave costs and deliver more
targeted products. These
correlations aren't always evident,
so analytics and data mining can
reveal hidden information about
customer behavior that can greatly
benefit the business.
Finally, call-center and customer-
care applications enable
businesses to deliver highly
customized service. By knowing in
detail the customer's background,
product configuration, service
history and satisfaction, customer-
service representatives can
address each situation uniquely.
Recently, CRM tools have begun
to take on an exciting new
dimension by leveraging Web 2.0-
like social media features to build
online communities of customers,
channel partners and suppliers.
While these efforts are still at an
early stage, they show great
promise to take CRM to the next
level and further drive growth in
the market.
Technology has evolved to support
these needs. From the early
database-oriented sales-force-
automation applications, CRM
systems have blossomed to
include data mining, dashboards,
alerts, multimedia, e-mail
integration, free-form text analysis
and other sophisticated features.
The best CRM systems enable
buyers to extend capabilities as
their business demands and to
customize the solution to their
industry. Integrated with core
financial systems, Internet
commerce servers and customer
contact center software, robust
CRM systems can give a 360-
degree view of the customer,
enabling a business to track every
customer "touch." This helps the
business build a robust profile of
each customer and deliver a much
more targeted set of goods and
services.
Deployment Options
Proliferate
Just a few years ago, customers
had few choices in CRM
deployment. The standard option
was an on-premise installation,
which involved significant up-front
cost and often long deployments.
For many organizations, an on-
premise deployment is still the best
option because it provides superior
customization and integration
capabilities. Users have complete
control over the application and
infrastructure, giving them the
ability to apply additional
horsepower for transaction-
intensive applications and to use
their preferred programming and
customization tools to extend the
application s functionality.
However, new alternatives are
emerging.
The most popular of these is
software as a service (SaaS). This
is the next generation of the
application service provider (ASP)
model popular in the late 1990s.
However, there are night-and-day
differences between SaaS and the
old ASP model. Today's SaaS
services offer superior scalability,
reliability and data integrity.
Whereas early ASP services were
often plagued by outages and
In the CRM feedback circle, data gathered from multiple customer touch points
are stored in centralized databases. Sophisticated analytics are then applied to
discern patterns of customer behavior and to craft custom products and programs
for customers and groups of customers.
Choosing the Best CRM for Your Organization
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 3
performance problems, modern
SaaS applications are based on
much more reliable technology,
incorporating world-class data
centers, redundant services and
state-of-the-art security.
There also are big differences
between the relatively inflexible
ASP services of a decade ago and
modern SaaS. Web services
standards and the emerging
service-oriented architecture make
it possible for SaaS services to be
customized to a much greater
degree than their predecessors.
This is why many customers now
look at SaaS as a complement to
or a replacement for on-premise
deployments.
SaaS isn't for everyone, though.
Buyers should carefully consider
the merits of on-premise and on-
demand deployments before
choosing a course. A new hybrid
alternative has recently emerged
that offers compelling benefits.
This will be discussed later in this
white paper.
Next, we will discuss four basic
options for CRM implementation:
· Customer-Managed
On-Premise
· Privately Managed and
Hosted On-Premise
· Multi-tenant On-Demand
(SaaS)
· Private On-Demand (SaaS)
Customer-Managed
On-Premise
In a traditional on-premise
deployment, the customer buys or
leases infrastructure, including
hardware, operating systems,
databases and other system
software, and installs a packaged
application in its data center. The
customer owns the entire package
and is free to customize it as
needed. The customer has
complete control over the
infrastructure and data.
Siebel Systems (now part of
Oracle) was a pioneer in on-
premise CRM and is still the
market leader. Forrester Research
estimates that on-premise
solutions still make up about 90
percent of CRM sales
1
.
Advantages: For customers who
need complete ownership and
control over every aspect of the
deployment and maintenance of
the CRM application and its
infrastructure, on-premise is the
way to go. Customers who choose
this option can achieve a high level
of integration with operational and
legacy applications and can
customize the deployment as
much they want. Customers are
also in complete control of data
storage and protection, which
minimizes the risk of legal
exposure and embarrassment due
to another party's mistake. Finally,
some CRM providers and
specialized third parties offer
highly customized vertical industry
solutions that extend on-premise
deployments with a level of
sophistication that on-demand
services can t match.
Disadvantages: The primary
downside of on-premise
deployment is cost and time.
Acquiring hardware and software
infrastructure is expensive and
time-consuming. However, over
time an on-premise deployment
can be the least expensive option
1
CRM market to grow steadily,
Forrester study says,
SearchCRM.com, Nov. 14, 2006
if a customer deploys the
application widely over a period of
years. Deployment times for highly
customized applications can
stretch to a year or more and may
involve the use of dedicated IT
resources and external
consultants. Customers also have
limited options for migrating to
other CRM applications because of
the need to realize a return on
investment on the up-front cost.
User View: The intensely
competitive airline industry
demands that carriers identify
every possible opportunity to cut
costs and maximize customer
loyalty. Alaska Airlines has long
tracked customer behavior, but
data was scattered in silos
throughout the company. It knew it
needed an on-premise solution so
executives could aggregate data
from various legacy systems.
It chose Siebel CRM to gain insight
into customer loyalty. Using
dashboards, the company could
collect a variety of information
about scheduling, ticket
purchases, seat selection, on-time
flight performance and other
metrics to gain a richer view of the
factors that drive loyalty. This
insight has helped the airline target
offers to customers based upon
their history and behavior.
The use of on-premise CRM has
changed the company, says
James Archuleta, CRM director.
"People are starting to realize that
there are causes and effects
between all of the elements of a
business, and so it is truly affecting
us in breaking down those silos
within the organization," he says.
Recommendations: Choose on-
premise if you are ready to make a
commitment to CRM as a
Choosing the Best CRM for Your Organization
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 4
foundation of your business and
find an application that meets your
requirements. On-premise
deployment is also a wise choice if
you have specific integration
needs or an interest in controlling
the infrastructure.
Privately Managed and
Hosted On-Premise
This approach is identical to the
one outlined above except that a
vendor provides most or all
operational support for the
application at its hosting site. The
customer preserves all the
functionality of the application and
the ability to customize and
integrate with legacy systems with
a high degree of control.
Modifications may be done with a
mix of internal and vendor-supplied
resources.
Advantages: This option has all
the advantages of the customer-
managed approach as well as the
added advantages of shorter
deployment and access to outside
expertise. Because the application
provider has extensive knowledge
and experience with the CRM
software, customers cut the staff
learning curve and can be up and
running in less time than a
traditional on-premise deployment
requires. The vendor also might
be able to improve functionality
with custom and industry-specific
deployments, without extensive
ramp-up time.
Disadvantages: The biggest
downside is cost. Using contracted
skills is often more expensive than
relying on in-house resources,
although these costs are typically
built into the per-user costs.
Vendors also may need additional
time to learn the specific needs of
the business. This approach also
might involve additional
management overhead to
coordinate the activities of external
and internal staff.
Recommendations: For users
who want the advantages of best-
of-breed functionality, complete
infrastructure control and the
highest levels of security and data
protection, the Privately Managed
and Hosted On-Premise approach
deserves serious consideration.
However, customers should
negotiate service agreements
carefully to be sure they have a
clear picture of the required
investment.
Multi-tenant On-Demand
(Software-as-a-Service)
In a typical software-as-a-service
(SaaS) deployment, a vendor
provides the application as a
service that is licensed by multiple
customers. All aspects of
infrastructure management and
application delivery are handled by
the service provider, conforming to
a service-level agreement
negotiated with the customer.
Delivery is typically over the public
Internet. The customer typically
does not maintain software or
hardware and pays for access to
the application only. The customer
owns the data, unless otherwise
negotiated with the vendor.
Typically, SaaS services are
delivered through a multi-tenant
architecture. In this approach, all
underlying server resources,
system software and databases
are shared and a single application
is presented in multiple views
customized as if they belong to the
individual customer.
The SaaS market is growing
rapidly, with hundreds of
companies delivering all kinds of
In this simplified representation of a multi-tenant architecture, physical servers
share data center resources on the back end. Virtualization is used to create
multiple virtual machines (VM) and application spaces (AS) that are independent
of physical devices. Each group of customers sees only its own applications.
This architecture provides the illusion of a customized computing space while
achieving efficiencies through economies of scale due to consolidation.
Choosing the Best CRM for Your Organization
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 5
applications this way. Research
firm Gartner estimates the market
was worth $6.3 billion in 2006 and
predicts it will grow to $19.3 billion
by the end of 2011, a 25 percent
compound annual growth rate.
CRM has been a prime driver in
this market because basic CRM
functions apply to many
businesses and rapid deployment
is attractive to companies seeking
immediate sales impact.
Advantages: Multi-tenant On-
Demand SaaS is the ideal option
for customers with limited capital
resources, variable work force
needs or reluctance to commit to a
specific CRM application. There is
almost no up-front investment;
costs are usually borne as an
operating expense and users can
be added or dropped as business
demands, with a corresponding
impact on costs. In its early years,
the SaaS model acquired a
reputation for unpredictable
performance and availability, and
security was always a question
mark. However, modern SaaS
systems housed in world-class
data centers provide superior
performance and "five-nines"
availability. There have been no
reported security breaches of
SaaS systems operated by major
vendors. SaaS also offers a best-
practices approach to deployment
because vendors learn from
managing a large number of users,
each with different needs.
Upgrades and fixes are done
quickly, often without the customer
even noticing. This minimizes
maintenance for IT staff.
Disadvantages: Although service
providers have come a long way
toward delivering customization
features, it is impossible for
software delivered as a service to
be as easily molded to a
customer s needs as software
deployed on-premise. In the SaaS
model, customization is usually
handled with a high-level
programming language or a
proprietary toolset. This may
present training issues and could
increase switching costs if the
customer later chooses a different
service provider. SaaS
applications also are more difficult
to integrate with legacy systems,
particularly if proprietary coding is
involved. While integration can be
streamlined through the use of
Web services and a service-
oriented architecture, the on-
demand model has inherent
disadvantages in this area.
SaaS customers also give up
some control over upgrades,
enhancements and planned
downtime. Service-level
agreements need to be negotiated
carefully to minimize surprises and
disruptions. Data ownership
issues also have been an issue
when data is hosted off site. Again,
careful attention to contractual
obligations is required. SaaS
implementations also can carry a
hidden cost disadvantage. While
per-user pricing is attractive in the
short term, large installations might
be more expensive over time than
on-premise solutions. Also,
because SaaS costs are usually
borne as an operating expense,
the cost could be less predictable
and could affect profitability.
User view: Heat and Control Inc,
one of the world s leading
manufacturers of food processing
and packaging equipment,
deployed the Siebel CRM On
Demand SaaS service to get a
better handle on sales activities.
Previously, information was stored
locally by individuals around the
world, which meant that a lot of
communication was required to get
deals done.
With Siebel CRM On Demand, the
company quickly gained access to
best practices for lead tracking and
pipeline status. For example,
Siebel s Sales Process Coach
enabled Heat and Control to
develop a standard terminology for
all sales activities and stages.
Managers no longer had to sort out
the terms used by individual sales
reps and organizations.
Pipeline analysis is now overlaid
with production planning.
Depending on where an
opportunity is in the sales cycle,
the engineering and manufacturing
teams can get a clear picture of
what future production demands
might be. From purchase to go-
live, Heat and Control s
implementation process took just
three and a half months.
Recommendations: If flexibility,
speed of deployment and ease of
switching are important, then SaaS
is the right solution for you. SaaS
also makes sense if the user base
is in the hundreds or thousands
as opposed to many tens of
thousands or if different solutions
need to be deployed in different
departments. For maximum
flexibility and long-term cost
control, on-premise solutions still
might be the better bet. However,
SaaS is an increasingly popular
option for customers who want fast
results at a relatively low start-up
cost.
Choosing the Best CRM for Your Organization
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 6
Private On-Demand
Although multi-tenant SaaS
implementations can generally be
considered very reliable and
secure, some customers like to
have the peace of mind of knowing
that there is an infrastructure
dedicated to their application.
Historically, their only option has
been a full on-site deployment of a
packaged application. But vendors
are beginning to innovate with
versions of their SaaS products
that deliver the cost and availability
benefits of a hosted solution while
adding a level of customer
ownership. There is no standard
terminology for this model, so we ll
call it Private On-Demand.
A Private On-Demand service is
identical in every way to a multi-
tenant hosted model except that
the SaaS application is run on an
infrastructure dedicated to one
customer. This includes servers
and software and may also extend
to bandwidth. Upgrades and new
functionality are provided on the
same schedule as with a multi-
tenant environment. Contract
terms are similar, although at a
higher cost.
Advantages: A Private On-
Demand model potentially opens
the SaaS option to a class of
customer that wouldn t consider it
otherwise. These include
customers in highly regulated or
security-conscious industries,
where any kind of shared-space
deployment would be considered
too risky. These customers can get
all the advantages of SaaS
including best-of-breed
functionality, rapid implementation,
expert service and variable cost
without giving up control.
Disadvantages: The cost of this
option is understandably higher
than that of multi-tenant SaaS.
Vendors must cover the additional
overhead of providing dedicated
technology, and possibly staff, so
the per-user charges and
minimum-user guarantees of a
Private On-Demand option will
almost certainly be higher than
those of a multi-tenant SaaS
deployment. Customers also can t
expect to have as much control
over upgrades and customization
as they would for an on-site
deployment.
Recommendations: For
organizations that couldn't
otherwise consider a SaaS
solution, this option could be a
godsend. It has all the benefits of
SaaS without the perceived risks.
However, this option is not a
replacement for Customer-
Managed or Privately-Managed
On-Premise deployments, which
offer the customer more control in
a number of areas. Also, a Private
On-Demand service may cost
more than an on-premise
deployment in the long run.
Factors for IT
to Consider
Implementing and managing a
CRM system invariably falls to the
IT organization, and the associated
resource demands require careful
consideration. Licensing fees,
customization, support and
maintenance all carry cost. These
must be matched to the needs of
the business, meaning that IT and
end-users must collaborate
carefully when choosing a
deployment. Here are some key
factors to consider:
Staffing: All options include some
staff expense. An on-premise
installation will require server
administration as well as software
installation and custom
programming. This is clearly the
most costly option, but it also
delivers the most customized
results.
SaaS vendors promote their
products as being easy to use and
to customize, but few IT
organizations want to put
programming in the hands of
business users. If your SaaS
installation requires extensive
customization or legacy
integration, you'll need to factor
this into your staffing costs. Many
SaaS implementations also require
extensive configuration before
deployment. Be sure to ask
vendors about these options,
negotiate service-level agreements
carefully and budget appropriately.
Finally, training and helpdesk
support also consume resources.
For an on-premise deployment,
these costs fall almost entirely on
the IT organization and its
contractors, but even a SaaS
solution may require IT helpdesk
support. Again, it's a good idea to
negotiate these costs and
responsibilities with a service
provider before making a
commitment.
Budget: Although on-premise
deployments generally cost more,
much of the cost of servers and
license fees is allocated and
depreciated as a capital expense.
This may be desirable for
companies that want to amortize
the cost of their CRM project over
several years. In contrast, SaaS
solutions are usually paid out of
operating expenses and those
Choosing the Best CRM for Your Organization
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 7
costs may very widely as the
number of users changes If you
choose SaaS, negotiate a price
schedule you can live with over a
period of years.
Business structure: A crucial but
often-overlooked factor in CRM
implementations is the nature of
the business itself. Highly
centralized organizations may
enjoy the economies of scale of
implementing a single solution and
sharing it broadly. On-premise
solutions are more appealing in
this environment. Decentralized
organizations typically push
decision-making power down to
business units. In these situations,
SaaS solutions offer the kind of
flexibility that business owners
often desire.
Features: CRM solutions, whether
packaged or delivered online,
come with a basic set of features.
For many sales organizations, this
will deliver 80 percent to 90
percent of the functionality they
need. However, vertical industry
applications and company-specific
features will require custom
programming, as will integration
with legacy systems. Consider
carefully how much customization
your deployment will require.
Match this against the features the
vendors provide and inquire about
the cost and complexity of
extending packaged solutions.
Consider whether developers can
use off-the-shelf programming
tools to extend this functionality or
whether they must learn a
proprietary language. Consider,
also, the readiness of your legacy
systems for this kind of integration.
If you are using a service-oriented
architecture, then integration is
more straightforward than if
custom programming is required.
All vendors have different degrees
of expertise in back-end
integration. Purchasing a CRM
solution from a vendor that also
provides ERP and database
engines might significantly reduce
your costs.
External issues: CRM involves
the gathering and analysis of large
amounts of customer data. In
some industries, this is easier to
accomplish than in others. Heavily
regulated industries such as health
care and banking need to pay
particular attention to privacy and
compliance issues. Whether
choosing an on-premise or SaaS
solution, look for vendors with
significant expertise in these
industries.
Control: Some companies are
reluctant to give up control over a
precious asset like customer data.
Although most SaaS vendors offer
excellent security, backup and
data protection, customers must
still make a leap of faith by putting
data in the hands of a third party.
Many customers also will want
control over downtime and
upgrades. Integration projects
may require special testing and
training on a schedule that the IT
organization needs to control, or
projects may need to be released
in stages to production. SaaS
vendors usually are willing to
preview planned upgrades to
customers. However, they have
the needs of many customers to
consider, so the availability of
staging sites should be negotiated
carefully in advance. While many
users are delighted to log in and
find new features available to
them, IT organizations aren't
always comfortable with this idea.
If control is an important issue,
then an on-premise or privately
managed on-demand service
provides extra peace of mind.
Best of both worlds
Choosing a CRM solution involves
making tradeoffs in flexibility,
customizability, cost, convenience
and speed of deployment. Few
customers will find the perfect
match for all their needs, but there
is an intriguing new option
emerging that may satisfy most
requirements. It's called hybrid
deployment, and it delivers the
best features of SaaS and on-
premise solutions with few of the
downsides.
A hybrid deployment uses both on-
demand and on-premise solutions
with a high degree of back-end
integration and database sharing.
Users mix solutions according to
their needs and may even
intermingle deployment models
within the same department or
workgroup. The use of a
consistent data model and user
interface minimizes user confusion
and IT helpdesk expense. The
CRM solution may thus be more
easily mapped to specific business
units needs.
A hybrid CRM deployment offers
the following benefits:
Maximum flexibility IT
organizations can deploy the CRM
approach that makes the most
sense for their customers.
Workgroups or business units that
are transaction intensive, such as
call centers, or business units that
need a high level of customization
may choose the on-premise
option, while highly collaborative
field representatives or occasional
CRM users can opt for the on-
Choosing the Best CRM for Your Organization
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 8
demand model. In all cases, users
share a common database that
can be located on site, at the
hosting provider s location or a
combination of the two. The
choice is up to the customer.
Superior business alignment
Each business function may
choose the deployment option that
makes sense for its particular
needs. This puts more decision-
making capability in the hands of
the business units without
requiring IT to maintain and
synchronize separate database
functions and business rules.
Features are matched to user
requirements and users can move
easily between on-premise and on-
demand options without extensive
education or administrative
expenses.
Best-of-breed functionality
Only a few vendors have the
resources and market experience
to compete in both the on-premise
and SaaS businesses. Each
requires a different set of skills and
industry focus. The vendors who
can successfully address both
markets are more likely to bring a
broad range of capabilities to bear
to solve a specific customer need.
IT control: A hybrid deployment
provides IT organizations with the
highest degree of control over
costs and configuration. Because
customers can freely move
between on-premise and on-
demand models, they can tune
their configuration to match
budgetary and strategic needs.
They can also locate customer
data where they wish.
Considerations in hybrid
deployment
A hybrid deployment isn't right for
everyone, and businesses should
carefully assess their long-term
needs before choosing this
approach. Large, diversified
organizations are most likely to
benefit from a hybrid approach
because their needs are so
variable. However, even small
organizations may find the hybrid
model attractive as a way to
"bridge" into a full on-premise
solution.
When investigating this option,
there are a few key questions to
ask:
· Does the vendor have the
expertise and resources to fully
support both models and to
provide world-class service no
matter what the deployment
scenario?
· Is the vendor truly neutral in its
approach to this option, or does
it have a bias toward a
particular model and is merely
offering the hybrid choice as an
obligation or trial balloon?
· Are the on-premise and on-
demand solutions truly
integrated? If either was the
result of an acquisition, they
probably aren t. The ideal
hybrid model involves a single
solution that has evolved to
support multiple deployment
scenarios.
· Do product features match the
customer s need in all cases?
· Do you need on-demand an on-
premise versioning to be
synchronized? Typically, on-
demand customers have
quicker access to new features,
a key benefit of that approach
that they would lose with
synchronization.
· Can legacy integration be
handled flexibly on both the on-
premise and on-demand sides?
Equally important, does the
vendor already have a
presence in the customer s
legacy computing
infrastructure?
· Does the vendor maintain a
world-class infrastructure to
deliver its on-demand services?
· Does the vendor enforce the
highest standards of data
protection and security, keeping
in line with government and
regulatory agency mandates in
these areas?
· Does the vendor offer 24/ 7
support and on-site field service
to meet the demands of real-
time business?
· Does the vendor help the
customer calculate return on
investment and total cost of
ownership to determine the
optimal deployment scenario?
About Oracle s
Siebel CRM Solutions
Oracle offers information-driven
CRM applications that leverage
enterprise data to drive profitable
customer interactions. Oracle's
Siebel CRM products cover the
breadth of CRM functionality, from
sales, marketing and e-commerce,
to customer service, multi-channel
interaction and analytics. Oracle's
information-driven CRM
applications leverage enterprise
information from all areas within
organizations to help achieve
optimal business performance and
create new revenue opportunities.
Solutions help customers drive
incremental revenue, reduce
interaction costs and increase
customer value.
Choosing the Best CRM for Your Organization
Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 9
Oracle
Oracle (NASDAQ GS: ORCL) is the world s largest enterprise software company. Oracle technology can be
found in nearly every industry around the world and in the offices of 98 of the Fortune 100 companies.
Oracle's Siebel CRM On Demand delivers the industry's most complete subscription-based solution for
sales, marketing, and service, providing organizations of all types and sizes with rapid time to business
value. Oracle is the world s leading supplier of software for information management, and the world s
second-largest independent software company. Visit our Web site at: www.oracle.com/crmondemand.com
IT Business Edge
IT Business Edge delivers the information, analysis and context business technology decision makers need
to maximize returns on IT investments and align IT initiatives with business objectives. As a technology
intelligence agent, IT Business Edge provides content different from that of a traditional IT publisher, news
service or analyst firm. Our editors monitor all these sources plus many others for critical IT
information that they translate into actionable advice for high-level IT and business managers. Subscribers
access our practical content and useful decision-making tools through a rich Web site, targeted e-mail
newsletters, and varied RSS feeds. All these outlets feature our business-focused blogs, exclusive
interviews with field experts and industry insiders, plus our database of more than 20,000 abstracts
summarizing content from 2,500-plus sources. Visit our Web site at: http://www.itbusinessedge.com
About the Author
Paul Gillin has chronicled the information technology revolution since the dawn of the PC era. He joined
Computerworld as a staff writer in 1982 and served as senior software editor at PC Week and founding
news editor at Digital Review before returning to Computerworld in 1987. In 1999, he became the sixth
employee at a startup soon renamed TechTarget, where he engineered its transition into a leading source of
original news and technical advice. He now operates his own firm, helping technology companies connect
with their customers through quality content and innovative communications strategies.

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Choosing the-best-crm-for-your-organization

  • 1. Choosing the Best CRM for Your Organization 2 0 0 7 W H I T E P A P E R
  • 2. Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 1 Choosing the Best CRM for Your Organization By Paul Gillin Executive Summary CRM buyers have a wealth of deployment options available to them, providing unprecedented flexibility, cost- efficiency and business value. They can opt for a traditional on-premise packaged software installation, subscribe to one of the new breed of on-demand services delivered via the Internet, host their own on-demand solution or deploy a combination of those approaches. This gives IT organizations the power to fine-tune CRM deployments to match their needs, strategic objectives and the budgets of business users. But with choice comes complexity. Not only must IT managers carefully analyze their business scenarios, they also must understand the strengths and weaknesses of the available products. There are many new hosted solutions, but most don't integrate well with the market-leading packaged solutions or with legacy systems. These so-called software-as-a-service (SaaS) products also have a wide range of capabilities for customization and standards compliance. Vendor stability and reliability also are important issues. With consolidation inevitable in the market, users need to choose vendors wisely. This white paper describes and analyzes the four most popular deployment scenarios, then offers a guide to choosing a hybrid approach that best matches the needs of the business while delivering superior performance, application integration and functionality. Introduction Customer relationship management (CRM) has been one of the most compelling operational concepts of the past 15 years. Beginning with humble roots in sales force automation, CRM has expanded to include a wide range of tasks, analytics and engagement tactics that maximize the value of the customer relationship and contribute to sustainable revenue growth. Total CRM revenues reached $8.4 billion in 2006, up 7 percent from the previous year, according to Forrester Research. AMR Research, which includes a broader range of applications in its forecast, predicts that the market will grow from $8.6 billion in 2006 to $18 billion in 2010, a 21 percent compound annual growth rate. As CRM has expanded to encompass elements of collaboration and Web 2.0-style engagement, the software tools to support it have grown and become more diverse as well. Today, buyers have the luxury of choosing from a vast selection of products to help develop and nurture customer relationships. · Broadly defined, CRM encompasses everything companies use to manage customer relationships, including capture and analysis of customer information and analytics to leverage that data toward better sales performance. Why is CRM important? Common sense dictates that it's cheaper to generate more revenue from existing customers than to acquire new ones. According to surveys, the cost of finding new customers is estimated at three to five times the cost of customer retention. Retaining customers isn't easy, though. The Internet has lowered the cost of switching and made markets more price-sensitive. Customers increasingly are asking for custom solutions to their problems, using comparative shopping services and freely available rating systems to pit companies against each other. In this increasingly competitive environment, businesses must differentiate not only their products, but their customer experience. In fact, customer experience is emerging as the most important competitive differentiator between vendors in many markets. The focused ability to anticipate and respond to customer needs will separate market leaders from also-rans.
  • 3. Choosing the Best CRM for Your Organization Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 2 CRM systems support business growth in two critical ways. First, they enable sales and support personnel to gather detailed information about individual customer needs, enabling them to offer custom products and services the customer can t find anywhere else. Secondly, analytics provide insight about customer behavior on a broad scale. For example, knowing that customers who buy red sports cars also are highly likely to buy premium sound systems can help an automaker shave costs and deliver more targeted products. These correlations aren't always evident, so analytics and data mining can reveal hidden information about customer behavior that can greatly benefit the business. Finally, call-center and customer- care applications enable businesses to deliver highly customized service. By knowing in detail the customer's background, product configuration, service history and satisfaction, customer- service representatives can address each situation uniquely. Recently, CRM tools have begun to take on an exciting new dimension by leveraging Web 2.0- like social media features to build online communities of customers, channel partners and suppliers. While these efforts are still at an early stage, they show great promise to take CRM to the next level and further drive growth in the market. Technology has evolved to support these needs. From the early database-oriented sales-force- automation applications, CRM systems have blossomed to include data mining, dashboards, alerts, multimedia, e-mail integration, free-form text analysis and other sophisticated features. The best CRM systems enable buyers to extend capabilities as their business demands and to customize the solution to their industry. Integrated with core financial systems, Internet commerce servers and customer contact center software, robust CRM systems can give a 360- degree view of the customer, enabling a business to track every customer "touch." This helps the business build a robust profile of each customer and deliver a much more targeted set of goods and services. Deployment Options Proliferate Just a few years ago, customers had few choices in CRM deployment. The standard option was an on-premise installation, which involved significant up-front cost and often long deployments. For many organizations, an on- premise deployment is still the best option because it provides superior customization and integration capabilities. Users have complete control over the application and infrastructure, giving them the ability to apply additional horsepower for transaction- intensive applications and to use their preferred programming and customization tools to extend the application s functionality. However, new alternatives are emerging. The most popular of these is software as a service (SaaS). This is the next generation of the application service provider (ASP) model popular in the late 1990s. However, there are night-and-day differences between SaaS and the old ASP model. Today's SaaS services offer superior scalability, reliability and data integrity. Whereas early ASP services were often plagued by outages and In the CRM feedback circle, data gathered from multiple customer touch points are stored in centralized databases. Sophisticated analytics are then applied to discern patterns of customer behavior and to craft custom products and programs for customers and groups of customers.
  • 4. Choosing the Best CRM for Your Organization Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 3 performance problems, modern SaaS applications are based on much more reliable technology, incorporating world-class data centers, redundant services and state-of-the-art security. There also are big differences between the relatively inflexible ASP services of a decade ago and modern SaaS. Web services standards and the emerging service-oriented architecture make it possible for SaaS services to be customized to a much greater degree than their predecessors. This is why many customers now look at SaaS as a complement to or a replacement for on-premise deployments. SaaS isn't for everyone, though. Buyers should carefully consider the merits of on-premise and on- demand deployments before choosing a course. A new hybrid alternative has recently emerged that offers compelling benefits. This will be discussed later in this white paper. Next, we will discuss four basic options for CRM implementation: · Customer-Managed On-Premise · Privately Managed and Hosted On-Premise · Multi-tenant On-Demand (SaaS) · Private On-Demand (SaaS) Customer-Managed On-Premise In a traditional on-premise deployment, the customer buys or leases infrastructure, including hardware, operating systems, databases and other system software, and installs a packaged application in its data center. The customer owns the entire package and is free to customize it as needed. The customer has complete control over the infrastructure and data. Siebel Systems (now part of Oracle) was a pioneer in on- premise CRM and is still the market leader. Forrester Research estimates that on-premise solutions still make up about 90 percent of CRM sales 1 . Advantages: For customers who need complete ownership and control over every aspect of the deployment and maintenance of the CRM application and its infrastructure, on-premise is the way to go. Customers who choose this option can achieve a high level of integration with operational and legacy applications and can customize the deployment as much they want. Customers are also in complete control of data storage and protection, which minimizes the risk of legal exposure and embarrassment due to another party's mistake. Finally, some CRM providers and specialized third parties offer highly customized vertical industry solutions that extend on-premise deployments with a level of sophistication that on-demand services can t match. Disadvantages: The primary downside of on-premise deployment is cost and time. Acquiring hardware and software infrastructure is expensive and time-consuming. However, over time an on-premise deployment can be the least expensive option 1 CRM market to grow steadily, Forrester study says, SearchCRM.com, Nov. 14, 2006 if a customer deploys the application widely over a period of years. Deployment times for highly customized applications can stretch to a year or more and may involve the use of dedicated IT resources and external consultants. Customers also have limited options for migrating to other CRM applications because of the need to realize a return on investment on the up-front cost. User View: The intensely competitive airline industry demands that carriers identify every possible opportunity to cut costs and maximize customer loyalty. Alaska Airlines has long tracked customer behavior, but data was scattered in silos throughout the company. It knew it needed an on-premise solution so executives could aggregate data from various legacy systems. It chose Siebel CRM to gain insight into customer loyalty. Using dashboards, the company could collect a variety of information about scheduling, ticket purchases, seat selection, on-time flight performance and other metrics to gain a richer view of the factors that drive loyalty. This insight has helped the airline target offers to customers based upon their history and behavior. The use of on-premise CRM has changed the company, says James Archuleta, CRM director. "People are starting to realize that there are causes and effects between all of the elements of a business, and so it is truly affecting us in breaking down those silos within the organization," he says. Recommendations: Choose on- premise if you are ready to make a commitment to CRM as a
  • 5. Choosing the Best CRM for Your Organization Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 4 foundation of your business and find an application that meets your requirements. On-premise deployment is also a wise choice if you have specific integration needs or an interest in controlling the infrastructure. Privately Managed and Hosted On-Premise This approach is identical to the one outlined above except that a vendor provides most or all operational support for the application at its hosting site. The customer preserves all the functionality of the application and the ability to customize and integrate with legacy systems with a high degree of control. Modifications may be done with a mix of internal and vendor-supplied resources. Advantages: This option has all the advantages of the customer- managed approach as well as the added advantages of shorter deployment and access to outside expertise. Because the application provider has extensive knowledge and experience with the CRM software, customers cut the staff learning curve and can be up and running in less time than a traditional on-premise deployment requires. The vendor also might be able to improve functionality with custom and industry-specific deployments, without extensive ramp-up time. Disadvantages: The biggest downside is cost. Using contracted skills is often more expensive than relying on in-house resources, although these costs are typically built into the per-user costs. Vendors also may need additional time to learn the specific needs of the business. This approach also might involve additional management overhead to coordinate the activities of external and internal staff. Recommendations: For users who want the advantages of best- of-breed functionality, complete infrastructure control and the highest levels of security and data protection, the Privately Managed and Hosted On-Premise approach deserves serious consideration. However, customers should negotiate service agreements carefully to be sure they have a clear picture of the required investment. Multi-tenant On-Demand (Software-as-a-Service) In a typical software-as-a-service (SaaS) deployment, a vendor provides the application as a service that is licensed by multiple customers. All aspects of infrastructure management and application delivery are handled by the service provider, conforming to a service-level agreement negotiated with the customer. Delivery is typically over the public Internet. The customer typically does not maintain software or hardware and pays for access to the application only. The customer owns the data, unless otherwise negotiated with the vendor. Typically, SaaS services are delivered through a multi-tenant architecture. In this approach, all underlying server resources, system software and databases are shared and a single application is presented in multiple views customized as if they belong to the individual customer. The SaaS market is growing rapidly, with hundreds of companies delivering all kinds of In this simplified representation of a multi-tenant architecture, physical servers share data center resources on the back end. Virtualization is used to create multiple virtual machines (VM) and application spaces (AS) that are independent of physical devices. Each group of customers sees only its own applications. This architecture provides the illusion of a customized computing space while achieving efficiencies through economies of scale due to consolidation.
  • 6. Choosing the Best CRM for Your Organization Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 5 applications this way. Research firm Gartner estimates the market was worth $6.3 billion in 2006 and predicts it will grow to $19.3 billion by the end of 2011, a 25 percent compound annual growth rate. CRM has been a prime driver in this market because basic CRM functions apply to many businesses and rapid deployment is attractive to companies seeking immediate sales impact. Advantages: Multi-tenant On- Demand SaaS is the ideal option for customers with limited capital resources, variable work force needs or reluctance to commit to a specific CRM application. There is almost no up-front investment; costs are usually borne as an operating expense and users can be added or dropped as business demands, with a corresponding impact on costs. In its early years, the SaaS model acquired a reputation for unpredictable performance and availability, and security was always a question mark. However, modern SaaS systems housed in world-class data centers provide superior performance and "five-nines" availability. There have been no reported security breaches of SaaS systems operated by major vendors. SaaS also offers a best- practices approach to deployment because vendors learn from managing a large number of users, each with different needs. Upgrades and fixes are done quickly, often without the customer even noticing. This minimizes maintenance for IT staff. Disadvantages: Although service providers have come a long way toward delivering customization features, it is impossible for software delivered as a service to be as easily molded to a customer s needs as software deployed on-premise. In the SaaS model, customization is usually handled with a high-level programming language or a proprietary toolset. This may present training issues and could increase switching costs if the customer later chooses a different service provider. SaaS applications also are more difficult to integrate with legacy systems, particularly if proprietary coding is involved. While integration can be streamlined through the use of Web services and a service- oriented architecture, the on- demand model has inherent disadvantages in this area. SaaS customers also give up some control over upgrades, enhancements and planned downtime. Service-level agreements need to be negotiated carefully to minimize surprises and disruptions. Data ownership issues also have been an issue when data is hosted off site. Again, careful attention to contractual obligations is required. SaaS implementations also can carry a hidden cost disadvantage. While per-user pricing is attractive in the short term, large installations might be more expensive over time than on-premise solutions. Also, because SaaS costs are usually borne as an operating expense, the cost could be less predictable and could affect profitability. User view: Heat and Control Inc, one of the world s leading manufacturers of food processing and packaging equipment, deployed the Siebel CRM On Demand SaaS service to get a better handle on sales activities. Previously, information was stored locally by individuals around the world, which meant that a lot of communication was required to get deals done. With Siebel CRM On Demand, the company quickly gained access to best practices for lead tracking and pipeline status. For example, Siebel s Sales Process Coach enabled Heat and Control to develop a standard terminology for all sales activities and stages. Managers no longer had to sort out the terms used by individual sales reps and organizations. Pipeline analysis is now overlaid with production planning. Depending on where an opportunity is in the sales cycle, the engineering and manufacturing teams can get a clear picture of what future production demands might be. From purchase to go- live, Heat and Control s implementation process took just three and a half months. Recommendations: If flexibility, speed of deployment and ease of switching are important, then SaaS is the right solution for you. SaaS also makes sense if the user base is in the hundreds or thousands as opposed to many tens of thousands or if different solutions need to be deployed in different departments. For maximum flexibility and long-term cost control, on-premise solutions still might be the better bet. However, SaaS is an increasingly popular option for customers who want fast results at a relatively low start-up cost.
  • 7. Choosing the Best CRM for Your Organization Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 6 Private On-Demand Although multi-tenant SaaS implementations can generally be considered very reliable and secure, some customers like to have the peace of mind of knowing that there is an infrastructure dedicated to their application. Historically, their only option has been a full on-site deployment of a packaged application. But vendors are beginning to innovate with versions of their SaaS products that deliver the cost and availability benefits of a hosted solution while adding a level of customer ownership. There is no standard terminology for this model, so we ll call it Private On-Demand. A Private On-Demand service is identical in every way to a multi- tenant hosted model except that the SaaS application is run on an infrastructure dedicated to one customer. This includes servers and software and may also extend to bandwidth. Upgrades and new functionality are provided on the same schedule as with a multi- tenant environment. Contract terms are similar, although at a higher cost. Advantages: A Private On- Demand model potentially opens the SaaS option to a class of customer that wouldn t consider it otherwise. These include customers in highly regulated or security-conscious industries, where any kind of shared-space deployment would be considered too risky. These customers can get all the advantages of SaaS including best-of-breed functionality, rapid implementation, expert service and variable cost without giving up control. Disadvantages: The cost of this option is understandably higher than that of multi-tenant SaaS. Vendors must cover the additional overhead of providing dedicated technology, and possibly staff, so the per-user charges and minimum-user guarantees of a Private On-Demand option will almost certainly be higher than those of a multi-tenant SaaS deployment. Customers also can t expect to have as much control over upgrades and customization as they would for an on-site deployment. Recommendations: For organizations that couldn't otherwise consider a SaaS solution, this option could be a godsend. It has all the benefits of SaaS without the perceived risks. However, this option is not a replacement for Customer- Managed or Privately-Managed On-Premise deployments, which offer the customer more control in a number of areas. Also, a Private On-Demand service may cost more than an on-premise deployment in the long run. Factors for IT to Consider Implementing and managing a CRM system invariably falls to the IT organization, and the associated resource demands require careful consideration. Licensing fees, customization, support and maintenance all carry cost. These must be matched to the needs of the business, meaning that IT and end-users must collaborate carefully when choosing a deployment. Here are some key factors to consider: Staffing: All options include some staff expense. An on-premise installation will require server administration as well as software installation and custom programming. This is clearly the most costly option, but it also delivers the most customized results. SaaS vendors promote their products as being easy to use and to customize, but few IT organizations want to put programming in the hands of business users. If your SaaS installation requires extensive customization or legacy integration, you'll need to factor this into your staffing costs. Many SaaS implementations also require extensive configuration before deployment. Be sure to ask vendors about these options, negotiate service-level agreements carefully and budget appropriately. Finally, training and helpdesk support also consume resources. For an on-premise deployment, these costs fall almost entirely on the IT organization and its contractors, but even a SaaS solution may require IT helpdesk support. Again, it's a good idea to negotiate these costs and responsibilities with a service provider before making a commitment. Budget: Although on-premise deployments generally cost more, much of the cost of servers and license fees is allocated and depreciated as a capital expense. This may be desirable for companies that want to amortize the cost of their CRM project over several years. In contrast, SaaS solutions are usually paid out of operating expenses and those
  • 8. Choosing the Best CRM for Your Organization Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 7 costs may very widely as the number of users changes If you choose SaaS, negotiate a price schedule you can live with over a period of years. Business structure: A crucial but often-overlooked factor in CRM implementations is the nature of the business itself. Highly centralized organizations may enjoy the economies of scale of implementing a single solution and sharing it broadly. On-premise solutions are more appealing in this environment. Decentralized organizations typically push decision-making power down to business units. In these situations, SaaS solutions offer the kind of flexibility that business owners often desire. Features: CRM solutions, whether packaged or delivered online, come with a basic set of features. For many sales organizations, this will deliver 80 percent to 90 percent of the functionality they need. However, vertical industry applications and company-specific features will require custom programming, as will integration with legacy systems. Consider carefully how much customization your deployment will require. Match this against the features the vendors provide and inquire about the cost and complexity of extending packaged solutions. Consider whether developers can use off-the-shelf programming tools to extend this functionality or whether they must learn a proprietary language. Consider, also, the readiness of your legacy systems for this kind of integration. If you are using a service-oriented architecture, then integration is more straightforward than if custom programming is required. All vendors have different degrees of expertise in back-end integration. Purchasing a CRM solution from a vendor that also provides ERP and database engines might significantly reduce your costs. External issues: CRM involves the gathering and analysis of large amounts of customer data. In some industries, this is easier to accomplish than in others. Heavily regulated industries such as health care and banking need to pay particular attention to privacy and compliance issues. Whether choosing an on-premise or SaaS solution, look for vendors with significant expertise in these industries. Control: Some companies are reluctant to give up control over a precious asset like customer data. Although most SaaS vendors offer excellent security, backup and data protection, customers must still make a leap of faith by putting data in the hands of a third party. Many customers also will want control over downtime and upgrades. Integration projects may require special testing and training on a schedule that the IT organization needs to control, or projects may need to be released in stages to production. SaaS vendors usually are willing to preview planned upgrades to customers. However, they have the needs of many customers to consider, so the availability of staging sites should be negotiated carefully in advance. While many users are delighted to log in and find new features available to them, IT organizations aren't always comfortable with this idea. If control is an important issue, then an on-premise or privately managed on-demand service provides extra peace of mind. Best of both worlds Choosing a CRM solution involves making tradeoffs in flexibility, customizability, cost, convenience and speed of deployment. Few customers will find the perfect match for all their needs, but there is an intriguing new option emerging that may satisfy most requirements. It's called hybrid deployment, and it delivers the best features of SaaS and on- premise solutions with few of the downsides. A hybrid deployment uses both on- demand and on-premise solutions with a high degree of back-end integration and database sharing. Users mix solutions according to their needs and may even intermingle deployment models within the same department or workgroup. The use of a consistent data model and user interface minimizes user confusion and IT helpdesk expense. The CRM solution may thus be more easily mapped to specific business units needs. A hybrid CRM deployment offers the following benefits: Maximum flexibility IT organizations can deploy the CRM approach that makes the most sense for their customers. Workgroups or business units that are transaction intensive, such as call centers, or business units that need a high level of customization may choose the on-premise option, while highly collaborative field representatives or occasional CRM users can opt for the on-
  • 9. Choosing the Best CRM for Your Organization Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 8 demand model. In all cases, users share a common database that can be located on site, at the hosting provider s location or a combination of the two. The choice is up to the customer. Superior business alignment Each business function may choose the deployment option that makes sense for its particular needs. This puts more decision- making capability in the hands of the business units without requiring IT to maintain and synchronize separate database functions and business rules. Features are matched to user requirements and users can move easily between on-premise and on- demand options without extensive education or administrative expenses. Best-of-breed functionality Only a few vendors have the resources and market experience to compete in both the on-premise and SaaS businesses. Each requires a different set of skills and industry focus. The vendors who can successfully address both markets are more likely to bring a broad range of capabilities to bear to solve a specific customer need. IT control: A hybrid deployment provides IT organizations with the highest degree of control over costs and configuration. Because customers can freely move between on-premise and on- demand models, they can tune their configuration to match budgetary and strategic needs. They can also locate customer data where they wish. Considerations in hybrid deployment A hybrid deployment isn't right for everyone, and businesses should carefully assess their long-term needs before choosing this approach. Large, diversified organizations are most likely to benefit from a hybrid approach because their needs are so variable. However, even small organizations may find the hybrid model attractive as a way to "bridge" into a full on-premise solution. When investigating this option, there are a few key questions to ask: · Does the vendor have the expertise and resources to fully support both models and to provide world-class service no matter what the deployment scenario? · Is the vendor truly neutral in its approach to this option, or does it have a bias toward a particular model and is merely offering the hybrid choice as an obligation or trial balloon? · Are the on-premise and on- demand solutions truly integrated? If either was the result of an acquisition, they probably aren t. The ideal hybrid model involves a single solution that has evolved to support multiple deployment scenarios. · Do product features match the customer s need in all cases? · Do you need on-demand an on- premise versioning to be synchronized? Typically, on- demand customers have quicker access to new features, a key benefit of that approach that they would lose with synchronization. · Can legacy integration be handled flexibly on both the on- premise and on-demand sides? Equally important, does the vendor already have a presence in the customer s legacy computing infrastructure? · Does the vendor maintain a world-class infrastructure to deliver its on-demand services? · Does the vendor enforce the highest standards of data protection and security, keeping in line with government and regulatory agency mandates in these areas? · Does the vendor offer 24/ 7 support and on-site field service to meet the demands of real- time business? · Does the vendor help the customer calculate return on investment and total cost of ownership to determine the optimal deployment scenario? About Oracle s Siebel CRM Solutions Oracle offers information-driven CRM applications that leverage enterprise data to drive profitable customer interactions. Oracle's Siebel CRM products cover the breadth of CRM functionality, from sales, marketing and e-commerce, to customer service, multi-channel interaction and analytics. Oracle's information-driven CRM applications leverage enterprise information from all areas within organizations to help achieve optimal business performance and create new revenue opportunities. Solutions help customers drive incremental revenue, reduce interaction costs and increase customer value.
  • 10. Choosing the Best CRM for Your Organization Copyright © 2007 Oracle Corporation and IT Business Edge. All rights reserved. 9 Oracle Oracle (NASDAQ GS: ORCL) is the world s largest enterprise software company. Oracle technology can be found in nearly every industry around the world and in the offices of 98 of the Fortune 100 companies. Oracle's Siebel CRM On Demand delivers the industry's most complete subscription-based solution for sales, marketing, and service, providing organizations of all types and sizes with rapid time to business value. Oracle is the world s leading supplier of software for information management, and the world s second-largest independent software company. Visit our Web site at: www.oracle.com/crmondemand.com IT Business Edge IT Business Edge delivers the information, analysis and context business technology decision makers need to maximize returns on IT investments and align IT initiatives with business objectives. As a technology intelligence agent, IT Business Edge provides content different from that of a traditional IT publisher, news service or analyst firm. Our editors monitor all these sources plus many others for critical IT information that they translate into actionable advice for high-level IT and business managers. Subscribers access our practical content and useful decision-making tools through a rich Web site, targeted e-mail newsletters, and varied RSS feeds. All these outlets feature our business-focused blogs, exclusive interviews with field experts and industry insiders, plus our database of more than 20,000 abstracts summarizing content from 2,500-plus sources. Visit our Web site at: http://www.itbusinessedge.com About the Author Paul Gillin has chronicled the information technology revolution since the dawn of the PC era. He joined Computerworld as a staff writer in 1982 and served as senior software editor at PC Week and founding news editor at Digital Review before returning to Computerworld in 1987. In 1999, he became the sixth employee at a startup soon renamed TechTarget, where he engineered its transition into a leading source of original news and technical advice. He now operates his own firm, helping technology companies connect with their customers through quality content and innovative communications strategies.