| Customer Relationship Management (CRM) is
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| one of those magnificent concepts
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| | About 50% of the CRM market is currently
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| | divided between five major players
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| that swept the business world in the
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| 1990's with the promise of forever
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| | in the industry: PeopleSoft, Oracle, SAP,
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| changing
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| | Siebel and relative newcomer
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| the way businesses small and large
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| | Telemation, based on Linux and developed
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| interacted with their customer bases. In
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| | by an old standard, Database Solutions,
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| | Inc.
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| short term, however, it proved to be an
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| unwieldy process that was better in
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| | The other half of the market falls to a
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| | variety of other players, although
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| theory than in practice for a variety of
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| reasons. First among these was that it
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| | Microsoft's new emergence in the CRM
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| | market may cause a shift soon. Whether
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| was simply so difficult and expensive to
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| track and keep the high volume of
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| | Microsoft can capture a share of the
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| | market remains to be seen. However, their
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| records needed accurately and constantly
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| update them.
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| | brand-name familiarity may give them an
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| In the last several years, however, newer
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| | edge with small businesses considering a
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| software systems and advanced
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| | first-time CRM package.
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| tracking features have vastly improved
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| CRM capabilities and the real promise of
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| | PeopleSoft was founded in the mid-1980's
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| | by Ken Morris and Dave
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| CRM is becoming a reality. As the price
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| of newer, more customizable Internet
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| | Duffield as a client-server based human
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| | resources application. In 1998,
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| solutions have hit the marketplace;
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| competition has driven the prices down so
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| | PeopleSoft had evolved into a purely
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| | Internet based system, PeopleSoft 8.
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| that even relatively small businesses are
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| | There's no client software to maintain
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| reaping the benefits of some custom
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| | and it supports over 150 applications.
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| CRM programs.
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| | PeopleSoft 8 is the brainchild of over
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| | 2,000 dedicated developers and $500
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| In the beginning...
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| | million in research and development.
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| The 1980's saw the emergence of database
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| marketing, which was simply a catch
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| | PeopleSoft branched out from their
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| | original human resources platform in the
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| phrase to define the practice of setting
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| up customer service groups to speak
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| | 1990's and now supports everything from
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| | customer service to supply chain
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| individually to all of a company's
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| customers.
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| | management. Its user-friendly system
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| | required minimal training is relatively
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| In the case of larger, key clients it was
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| a valuable tool for keeping the
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| | inexpensive to deploy. .
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| lines of communication open and tailoring
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| | One of PeopleSoft's major contributions
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| service to the clients needs. In the
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| | to CRM was their detailed analytic
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| case of smaller clients, however, it
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| | program that identifies and ranks the
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| tended to provide repetitive, survey-like
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| | importance of customers based on numerous
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| information that cluttered databases and
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| | criteria, including amount of purchase,
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| didn't provide much insight. As
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| | cost of supplying them, and frequency of
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| companies began tracking database
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| | service.
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| information, they realized that the bare
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| bones
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| | Oracle built a solid base of high-end
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| | customers in the late 1980's,
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| were all that was needed in most cases:
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| what they buy regularly, what they
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| | then burst into national attention around
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| | 1990 when, under Tom Siebel, the
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| spend, what they do.
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| | company aggressively marketed a
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| Advances in the 1990's
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| | small-to-medium business CRM solution.
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| In the 1990's companies began to improve
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| | Unfortunately they couldn't follow up
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| on Customer Relationship Management
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| | themselves on the incredible sales they
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| by making it more of a two-way street.
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| | garnered and ran into a few years of real
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| Instead of simply gathering data for
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| | problems.
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| their own use, they began giving back to
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| | Oracle landed on its feet after a
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| their customers not only in terms of
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| | restructuring and their own refocusing on
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| the obvious goal of improved customer
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| service, but in incentives, gifts and
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| | customer needs and by the mid-1990's the
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| | company was once again a leader in CRM
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| other perks for customer loyalty.
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| | technologies. They continue to be one of
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| This was the beginning of the now
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| | the leaders in the enterprise
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| familiar frequent flyer programs, bonus
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| | marketplace with the Oracle Customer Data
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| points on credit cards and a host of
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| | Management System.
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| other resources that are based on CRM
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| | Telemation's CRM solution is flexible and
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| tracking of customer activity and
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| | user-friendly, with a
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| spending patterns. CRM was now being used
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| as a
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| | toolkit that makes changing features and
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| | settings relatively easy. The system
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| way to increase sales passively as well
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| as through active improvement of
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| | also provides a quick learning
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| | environment that newcomers will
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| customer service.
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| | appreciate. Its
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| True CRM comes of age
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| | uniqueness lies in that, although
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| | compatible with Windows, it was developed
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| Real Customer Relationship Management as
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| | as a
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| it's thought of today really began
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| | Linux program. Will Linux be the wave of
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| in earnest in the early years of this
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| | the future? We don't know, but if it
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| century. As software companies began
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| | is, Telemation's ahead of the game.
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| releasing newer, more advanced solutions
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| that were customizable across
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| | The last few years...
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| industries, it became feasible to really
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| | In 2002, Oracle released their Global CRM
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| use the information in a dynamic way.
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| | in 90 Days package that promised
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| | quick implementation of CRM throughout
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| | company offices. Offered with the package
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| Instead of feeding information into a
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| static database for future reference,
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| | was a set fee service for set-up and
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| CRM became a way to continuously update
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| | training for core business needs. .
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| understanding of customer needs and
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| | Also in 2002 (a stellar year for CRM),
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| behavior. Branching of information,
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| | SAP America's mySAP began using a
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| sub-folders, and custom tailored features
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| | "middleware" hub that was capable of
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| | connecting SAP systems to externals and
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| enabled companies to break down
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| information into smaller subsets so that
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| | front and back office systems for a
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| they
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| | unified operation that links partners,
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| could evaluate not only concrete
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| | employees, process and technologies in a
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| statistics, but information on the
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| | closed-loop function.
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| motivation
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| | Siebel
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| and reactions of customers.
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| | consistently based its business primarily
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| The Internet provided a huge boon to the
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| | on enterprise size businesses willing
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| development of these huge databases
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| | to invest millions in CRM systems, which
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| by enabling offsite information storage.
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| | worked for them to the tune of $2.1
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| Where before companies had difficulty
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| | billion in 2001. However, in 2002 and
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| supporting the enormous amounts of
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| | 2003 revenues slipped as several smaller
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| information, the Internet provided new
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| | CRM firms joined the fray as ASP's
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| possibilities and CRM took off as
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| | (Application Service Providers). These
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| providers began moving toward Internet
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| | companies, including UpShot, NetSuite and
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| solutions.
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| | SalesNet, offered businesses CRM-style
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| With the increased fluidity of these
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| | tracking and data management without the
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| programs came a less rigid relationship
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| | high cost of traditional CRM start-up.
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| between sales, customer service and
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| | In October of 2003, Siebel launched CRM
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| marketing. CRM enabled the development of
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| | OnDemand in collaboration with IBM.
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| | Their entry into the hosted, monthly CRM
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| new strategies for more cooperative work
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| | solution niche hit the marketplace with
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| between these different divisions
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| | gale force. To some of the monthly ASP's
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| through shared information and
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| | it was a call to arms, to others it was
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| understanding, leading to increased
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| customer
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| | a sign of Siebel's increasing confusion
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| | over brand identity and increasing loss
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| satisfaction from order to end product.
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| | of market share. In a stroke of genius,
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| Today, CRM is still utilized most
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| | Siebel acquired UpShot a few months
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| frequently by companies that rely heavily
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| | later to get them started and smooth
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| | their transition into the ASP market. It
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| on two distinct features: customer
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| service or technology. The three sectors
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| | was a successful move.
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| of
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| | With Microsoft now in the game, it's too
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| business that rely most heavily on CRM --
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| | soon to tell
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| and use it to great advantage -- are
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| | what the results will be, but it seems
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| financial services, a variety of high
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| | likely that they may get some share of
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| tech corporations and the
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| | small businesses that tend to buy based
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| telecommunications industry.
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| | on familiarity and usability. ASP's will
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| The financial services industry in
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| | continue to grow in popularity as well,
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| particular tracks the level of client
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| | especially with mid-sized businesses, so
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| satisfaction and what customers are
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| | companies like NetSuite, SalesNet and
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| looking for in terms of changes and
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| | Siebel's OnDemand will thrive. CRM on the
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| personalized features. They also track
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| changes in investment habits and spending
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| | web has come of age!
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| | This article on the "The History of CRM"
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| patterns as the economy shifts. Software
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| | reprinted with
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| specific to the industry can give
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| | permission.
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| financial service providers truly
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| impressive feedback in these areas.
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| | Copyright © 2004-2005 Evaluseek
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| | Publishing.
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| Who's in the CRM game?
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|
