CRM State of The Market 2008

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Presentation Description

This is a brief look from June at the CRM market and the most important trends for 2008 & beyond. Some are not that obvious

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By: bingi (23 month(s) ago)

Hello, I would like to get a copy of your presentation. Please email me bingi@ipfw.edu. Thanks. Prasad Bingi

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Presentation Transcript

Slide 1: 

2008 & Beyond By Paul Greenberg President, The 56 Group, LLC Chief Customer Officer, BPT Partners, LLC Author: CRM at the Speed of Light CRM STATE OF THE UNION:

The Business World Changed : 

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 the Social Customer” Personal value chain The Prosumer rises The Business World Changed

Slide 3: 

Sea change in use of technology Gen Y first generation to spend more time on the ‘Net than watching TV Implications for marketing staggering 40% of Gen Xers do research online 2006 – 17.6 million U.S. seniors 62+ online Proj. 2010 – 25.4 million (twice the normal growth rate) Characteristics of the Ecosystem

Slide 4: 

Managed customer relationships Sales, marketing, support Operational, analytic, collaborative Data management Business process management Partner Relationship Management Application Service Providers Marketing’s 4Ps – Price, product, place, promotion Customer satisfaction 360° view of the customer On premise Client/server Customer focused corporate ecosystem Intranet Product and/or services company Thin client E-CRM a.k.a ecommerce ROI TCO Product sales as economic outputs Old Terminology

Slide 5: 

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

Slide 6: 

“CRM is a philosophy & a business strategy, supported by a system & a technology, designed to improve human interactions in a business environment” “CRM 2.0 is a philosophy & a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It's the company's response to the customer's ownership of the conversation." CRM Definitions

Slide 7: 

The CRM Market Continues to Grow….. 2006 - $3.6 billion, CRM software licenses 2012 - $6.6 billion, CRM software licenses Source – Datamonitor “Economic Outlook:CRM 2007 - $6.8 billion, CRM software 2012 - $13.3 billion, CRM software Source: Gartner Group, CRM Outlook, April 2008

Slide 8: 

The CRM Market Continues to Change….. Consolidation by the major enterprise vendors Oracle purchase of PeopleSoft, Siebel, Hyperion SAP purchase of Business Objects IBM purchases Cognos Increasing substitution of on demand for on premise models due to allaying of concerns over scalability and security Salesforce.com Japan Post 45,000; Merrill Lynch, 25,000 Workday – ERP on demand Flextronics 200,000 seats Integration of Web 2.0 technologies with CRM First time ever – nGenera buys Talisma a.k.a. Web 2.0 buys CRM SAP integrates Google-like skinnable user interface into CRM Oracle & SAP use mashups for the enterprise

Slide 9: 

The CRM Market Continues to Change….. Increasing move to verticalization – both on premise/on demand esp. health services, financial services, public sector, non-profits Microsoft LiveCRM announcement for vertical hosting Google competition with Microsoft re: health services Increasing move to specialization & complexity CRM for complex systems like manufacturing CRM as integrated part of enterprise value chain – includes back & front office, but also multiple systems (e.g. content management w/customer friendly features) Social CRM and the new desktop – integration of collaborative features CRM leading app for enterprise mobility SAP/RIM create CRM mobile application Sage uses Blackberry enabled Saleslogix based on GPS and location

Slide 10: 

The CRM Market Continues to Change….. Integration of Web 2.0 features, functions into CRM strategic and operational “toolkits” FaceForce Neighborhood America as enterprise social networking platform Lotus Connection IBM innovation strategy Proctor & Gamble use Vocalpoint InsideView from SalesView (socialprise) Transformation of CRM applications providers into platform providers Salesforce.com Force.com SugarCRM as platform for health services personal applications, sales collaboration tools, and integration of social networking into CRM tools through Q-Industries SAP puts NetWeaver out as subscription based platform

Slide 11: 

Changes to the CRM Model

Slide 12: 

CRM Model – 2008 & Beyond Managing customer relationships so that the customers can provide value to the company based on the company’s value to the customer (quid pro quo) Engaging customers in collaborative activity for mutually created value From To

Slide 13: 

CRM Model – 2008 & Beyond Providing products and services to give the customer quality and price Company remains provider of goods & services Providing products, services, and tools for the customers to personalize their own experience Company becomes aggregator of required parts for personalized experience From To

Slide 14: 

CRM Model – 2008 & Beyond Operationally focused CRM technologies to support sales, marketing, customer service processes Both operational and collaborative technologies to improve the experience of the customers – internally & externally From To

Slide 15: 

CRM Model – 2008 & Beyond Separate enterprise-level value chains impacted by the front office (e.g. supply chain impacted by sales) that also affect the customers Integrated extended value that includes customer-centered supply chain and incorporates the customer (& their personal value chain) From To

Slide 16: 

CRM Model – 2007-08 & Beyond Strong process-driven, operational applications like SFA, enterprise marketing management, contact center management, field service Customer-inclusive applications like social networking and other social media applications (blogs,wikis, podcasts); use of user generated content that can be shared From To

Slide 17: 

Dramatic Evolution between CRM 1.0 & CRM 2.0 is in progress

Slide 18: 

Source: CRM 2.0 Wiki (http://crm20.pbwiki.com) CRM 1.0 v. CRM 2.0: The Customer Rules

Slide 19: 

THANK YOU For further information: Paul Greenberg President, The 56 Group, LLC Chief Customer Officer, BPT Partners paul-greenberg3@comcast.net 703-551-2337 Blog: www.the56group.typepad.com Podcast Feed: www.the56group.typepad.com/route_56_podcast/rss.xml BPT Partners website: http://www.bptpartners.com