06-11-2012, 04:56 PM
The Top 10 Myths of Hosted CRM
1The Top 10 Myths.pdf (Size: 779.57 KB / Downloads: 19)
If the Internet is down then my operation is down!
For the first generation of hosted solutions a live connection to the Internet was required in order
to operate. However, this situation has changed dramatically over the last twelve months with
leading hosted vendors offering off-line access and disconnected software utilization.
At the most basic level, the hosted providers offer the ability to download information to a
spreadsheet or other desktop tool. This allows you to work with the data in an off-line mode and
resynchronize when the Internet connection is reestablished. Although a fairly crude implementation,
this method can be effective at bridging the gaps during short periods of downtime.
However, if data volumes are significant this method may not prove to be a workable solution.
The more advanced hosting providers are now offering fully functional off-line versions of their
products. These off-line tools can be used in exactly the same fashion as their online counterparts
and provide not only access during periods of Internet downtime but more fully enable the mobile
workforce. Providers such as Saleforce.com and Aplicor provide fully functional off-line versions of
their sales force automation products as part of the standard subscription fee. Additionally, both
vendors offer mobile editions of their product for use on handheld devices such as the Pocket PC.
These alternatives provide another method for accessing critical customer data while on the road
or away from the office Internet connection. AvantGo provides Salesforce.com’s solution for an
additional $25 per month while Aplicor’s mobile edition is provided directly by Aplicor without
additional charge.
Hosted solutions are only for small or midsize companies.
This statement is true except for the use of the word “only”. Hosted solutions became popular
with small and mid-market companies by virtue of the low upfront cost and rapid time to deployment.
Research from industry leading analyst Denis Pombriant of Beagle Research Group indicates
that the majority of hosted CRM deployments are less than 50 users. In many ways hosted CRM has
struggled to extricate itself from this market perception that has ironically driven its initial success.
Actual and perceptual barriers for hosted solutions to break-through and penetrate the enterprise
market vary by vendor. These barriers are generally related to depth of functionality, customization
capability, security and systems integration. The market’s leading providers now effectively
address these issues. Fortune 500 companies adopting hosted solutions from companies such as
Salesforce.com, Siebel OnDemand and Aplicor have proven enterprise level success and penetration.
Each of these hosting providers has client implementations with hundreds or even thousands
of users. Political environments, existing investments and vested interests may cause larger organizations
to continue to be laggards in terms of adopting hosted CRM. However, those enterprise
companies evaluating the hosting model irrespective of sunk costs are now realizing that software-
as-a-service solutions provide very viable alternatives to the traditional on-premise products.
Hosted solutions have only basic functionality.
What constitutes meaningful CRM functionality is relative to the specific needs of any particular
organization. Prior to undertaking a CRM evaluation project, a complete analysis of sales, marketing
and customer support processes should be conducted. Based on this analysis specific requirements
can be identified, weighted and subsequently prioritized. Only after this analysis is complete
should you begin the process of evaluating software alternatives. It is highly unlikely that at the
conclusion of the evaluation process you will reach a 100% functional match with any one vendor.
The question will therefore be which product best meets your highest priority requirements.
Content Management and Publishing
A Content Management system is a tool which permits users to publish custom web pages such as
supporting business processes, sales cycle steps, customer support policies or marketing best practices.
This tool empowers users to complement their CRM application with company-specific content
typically contained in an Intranet or three ring binder. Linking that custom content to the
specific page or location in the hosted CRM system where those business processes can be referenced
and applied is an outstanding aid in integrating business processes with software technology.
For example, in the application I reviewed, I was able to create a richly formatted web page
guideline for sales professionals regarding discounting policies. I then linked this document to the
opportunity management form within the application. Thereafter, with a single click any user is
able to instantly access this information at the point in the sales cycle where it is most helpful.
This is a very useful tool for communicating policies, guidelines, tips and advice to effectively support
all customer-facing professionals.
Data Warehousing and Online Analytical Processing (OLAP)
While each hosting application provides basic reporting, the reports are limited to pre-defined
sorts, filters and sub-groupings and are fairly static in overall report format and structure. Report
processing time also slows as data volumes increase. Data warehousing and OLAP provide a
higher level of report flexibility, presentation, performance and analysis. OLAP reporting can
change reporting structures and regenerate views on the fly by simply by dragging and dropping
a variety of dimensions onto the analysis presentation. Additionally, these tools provide drilldown
investigation to source level transactions. OLAP analysis is invaluable in advancing beyond
static report content to discovering the underlying variables that most influence operational
results. Both Siebel and Aplicor offer built-in data warehousing and online analytical tools.
Salesforce.com can provide this type of analysis from a third party partner.