04 - rs-iba-201001 - crm state of the market - 2008 and beyond - session 5
TRANSCRIPT
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2008 & Beyond
CRM STATE OF THE UNION:
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Pre 90s Product/Demand driven
corporate ecosystem Separate demand and
supply chains
Late 90s to nearly present Customer driven corporate
ecosystem The enterprise value chain
Present Customer ecosystem
2006 - the Era of theSocial Customer
Personal value chain
The Prosumer rises
The Business World Changed
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Sea change in use of
technology Gen Y first generation to
spend more time on theNet than watching TV
Implications formarketing staggering
40% of Gen Xers doresearch online
2006 17.6 million U.S.
seniors 62+ online Proj. 2010 25.4
million (twice the
normal growth rate)
Characteristics of the Ecosystem
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Web. 2.0 (or Business Web, or Live Web)
User created content
Co-creation of value
Experience economy
Customer managed experiences
Authenticity
Transparency
Social networking
Social media
Customer advocacy
Open source
User communities
Experience mapping and design
Experiences as economic outputs
Trusted sources
CEM
Voice of the customer
Return on customer
Customer value
Customer ecosystem
Personal value chain
Service Oriented Architecture
On Demand
Prosumer
Conversations, not marketing spin
Social customer
Personalization
Platform as a service
New Terminology
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CRM is a philosophy & a business strategy, supported by a system
& a technology, designed to improve human interactions in abusiness environment
CRM 2.0 is a philosophy & a business strategy, supported by a technologyplatform, business rules, processes and social characteristics, designed toengage the customer in a collaborative conversation in order to providemutually beneficial value in a trusted & transparent business environment. It'sthe company's response to the customer's ownership of the conversation."
CRM Definitions
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The CRM Market Continues to Grow..
2006 - $3.6 billion, CRM software licenses
2012 - $6.6 billion, CRM software licensesSource Datamonitor Economic Outlook:CRM
2007 - $6.8 billion, CRM software
2012 - $13.3 billion, CRM softwareSource: Gartner Group, CRM Outlook, April 2008
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The CRM Market Continues to Change..
1. Consolidation by the major enterprise vendorsa) Oracle purchase of PeopleSoft, Siebel, Hyperion
b) SAP purchase of Business Objectsc) IBM purchases Cognos
2. Increasing substitution of on demand for on premisemodels due to allaying of concerns over scalability and
securitya) Salesforce.com Japan Post 45,000; Merrill Lynch, 25,000b) Workday ERP on demand Flextronics 200,000 seats
3. Integration of Web 2.0 technologies with CRMa) First time ever nGenera buys Talisma a.k.a. Web 2.0
buys CRMb) SAP integrates Google-like skinnable user interface intoCRM
c) Oracle & SAP use mashups for the enterprise
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The CRM Market Continues to Change..
1. Increasing move to verticalization both on premise/on
demand esp. health services, financial services, publicsector, non-profitsa) Microsoft LiveCRM announcement for vertical hostingb) Google competition with Microsoft re: health services
2. Increasing move to specialization & complexity
a) CRM for complex systems like manufacturingb) CRM as integrated part of enterprise value chain includes back & front office, but also multiple systems
(e.g. content management w/customer friendly features)
c) Social CRM and the new desktop integration of
collaborative features3. CRM leading app for enterprise mobilitya) SAP/RIM create CRM mobile application
b) Sage uses Blackberry enabled Saleslogix based on GPSand location
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The CRM Market Continues to Change..1. Integration of Web 2.0 features, functions into CRM strategic
and operational toolkitsa) FaceForce
b) Neighborhood America as enterprise social networkingplatform
c) Lotus Connection
d) IBM innovation strategye) Proctor & Gamble use Vocalpointf) InsideView from SalesView (socialprise)
1. Transformation of CRM applications providers into platformprovidersa) Salesforce.com Force.comb) SugarCRM as platform for health services personal
applications, sales collaboration tools, and integration of
social networking into CRM tools through Q-Industriesc) SAP puts NetWeaver out as subscription based platform
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Changes to the CRM Model
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CRM Model 2008 & BeyondFrom To
Engaging customersin collaborativeactivity for mutuallycreatedvalue
Managing customerrelationships so thatthe customers canprovide value to the
company based onthe companys valueto the customer
(quid pro quo)
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CRM Model 2008 & Beyond
Providing products
and services to givethe customer qualityand price
Company remainsprovider of goods &services
Providing products,
services, and toolsfor the customers topersonalize their
own experience Company becomes
aggregator of
required parts forpersonalized
experience
From To
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CRM Model 2008 & Beyond
Operationally
focused CRMtechnologies tosupport sales,
marketing, customerservice processes
Both operational
and collaborativetechnologies toimprove the
experience of thecustomers internally &
externally
From To
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CRM Model 2008 & Beyond
Separate enterprise-
level value chainsimpacted by thefront office (e.g.
supply chainimpacted by sales)that also affect the
customers
Integrated extended
value that includescustomer-centeredsupply chain and
incorporates thecustomer (& theirpersonal value
chain)
From To
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CRM Model 2007-08 & Beyond
Strong process-
driven, operationalapplications likeSFA, enterprise
marketingmanagement,contact center
management, fieldservice
Customer-inclusive
applications likesocial networkingand other social
media applications(blogs,wikis,podcasts); use of
user generatedcontent that can beshared
From To
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Dramatic Evolution between CRM 1.0 &CRM 2.0 is in progress
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CRM 1.0 Features/Functions CRM 2.0 Features/Functions
Customer facing features - sales, marketing & support. Still
isolated from back office, supply chain
Fully integrated into an enterprise value chain that includes the
customer as part of it
Tools are associated with automating functionsIntegrates social media tools into apps/services: blogs, wikis,podcasts, social networking tools, user communities
Automate interaction history for lead nurturing and relationship
building
Utilize knowledge in context to create meaningful conversations
Models customer processes from the company point of view Models company processes from the customer point of view
Recognizes that the customer relationship encompassesinformation-seeking and information-contributing behavior
Resided in a customer-focused corporate business ecosystem Resides in a customer ecosystem
Utilitarian, functional, operational All those plus style and design matter
Marketing focused on processes that sent improved, targeted,highly specific corporate messages to customer
Marketing is front line for creating conversation with customer -engaging customer in activity and discussion
Business produces products & creates services for customerBusiness is an aggregator of products, services, tools andknowledge for the customer
Intellectual Property protected with all legal might available
Intellectual property provided when appropriate to customer,
partner, supplier, problem solver
Business focus on products and services that satisfy customersBusiness focus on environments & experiences that engage
customer
Tactical and operational Strategic
Customer strategy is part of corporate strategy Customer strategy IS corporate strategy
Innovation from the designated Innovation from both internal and external sources
Separation between work and personal life Work at home/personal things at work work personal integration
Source: CRM 2.0 Wiki (http://crm20.pbwiki.com)
CRM 1.0 v. CRM 2.0: The Customer Rules
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