Portal
Arguably a subset of the previous category, CRM portals typically integrate back-end capabilities from existing systems with their own functions, putting a consistent user interface on the whole thing."Our approach is to provide CRM functionality with our RAD toolkit and methodology to reflect the customer's beliefs about the business processes and rules that will improve their efficiency and set them apart from the competitors," says Tan.
A lot of organisations have unique business processes that do not fit into standard CRM packages, he says. "It is not cost effective to customise existing functionality to fit their business requirements. This is where we come in," says Tan.
"If you're thinking about CRM, you're thinking about customers," says Nixon, but you need to consider what is necessary to support everyone in a company as they deal with customers. Customer-facing systems are complex, but you want customers' experiences to be "as brilliant as possible".
Customers expect whoever they talk to will know everything about the issues. "A portal is a very good way to do that," he says, because portals are easy to deploy, flexible and can collect data from other systems when it is needed, avoiding the need to keep up-to-date copies of data.
"It seems simple to say 'let's copy the information'... but the devil is in the details," says Nixon. For example, if a customer's name is copied from the ERP system into the CRM, and then the customer advises a change of name, how and where do you change your records? "Who has responsibility for the accuracy?" he asks. With a portal approach, every piece of data has one owner.
The situation is even harder with pricing information, especially where complex pricing models are involved. "We go through hell and back to make sure information is only stored in one place," he says.
"You have to be super-careful with copies," Nixon adds. Like Ainsby, he points to the example of chasing a supposed debtor who has in fact just paid. Such calls and payments are typically both made at the end of the month, so batch updates should only be used for non-operational information, he says.
Nixon acknowledges that the load imposed by access to back-office systems can be an issue. He says ODBC is often used, but it is "relatively inefficient and slow," and also requires substantial network bandwidth. Intentia's approach is to use the Movex Information Engine, which runs on the server and delivers bricks of data (similar to a small spreadsheet) that are then assembled by the portal. This approach is more efficient and reduces the bandwidth required.
It is also important to ensure that new software versions are deployed automatically when users connect to a CRM, he says, and the portal approach makes this automatic whether a desktop computer or a notebook or PDA are used for access.
Kennedy says that if you can collect the right set of Web services, you can integrate the required functions, but that can be a costly exercise. It's feasible if you have the existing resources and you can get the required return on investment, but "the trend is to simplify, and have those processes done in a system that comes integrated and ready built." By and large, customers don't want the responsibility of making IT systems work, he says.
Others are more bullish on the potential for integration through Web services. "Over time, Web services will be the integration mechanism of choice," says Hay-Smith.
Integration through invoking Web services for the transfer of data and business transactions means you don't need to know about the technology used by the other side to complete the task, and that reduces the risk and the cost, explains Tan.
Why buy when you can rent?
As we have seen in previous articles a majority of CRM projects have been judged failures. Application service providers (ASPs) offering CRM claim they can get you up and running quickly and cheaply.
Greg Gianforte, CEO and chairman of RightNow Technologies says the idea that there is a contradiction between the hosted model and integration "is mostly a myth" although "there are certainly some constraints". Most integrations in this environment are carried out using Web services and XML: "They're less brittle, they're less dependent on the specific versions of the software," Gianforte explains.
One example is a US general insurance company that uses RightNow in its call centre with links to back office systems to automate common processes such as generating proof of insurance documentation for vehicle owners planning trips across the Mexican or Canadian borders, or reporting fire damage. Those processes "required a lot of customer account information that was stored back in 'vaults' [typically mainframe applications] at the company," Gianforte says.
"Most enterprise vendors have made their software too complex," he claims, adding "we're bringing shrink-wrap methodology to enterprise software."
Doug Farber, SalesForce.com's director, international product marketing, says many customers migrate from products such as ACT! or Siebel, and SalesForce.com provides an import utility to handle the necessary conversion. Once up and running, if integration is needed to other systems, this is achieved using Web services, possibly in conjunction with middleware from Tibco, Informatic, Data Junction, or other suppliers. This approach makes it possible to integrate the SalesForce.com system with applications running at customers' own data centres or at other hosted service providers.
"CRM is critical to the business, but is not considered mission critical," says Farber, so organisations are more comfortable with the idea of using Web services for integration than they would be with other applications.
Many Salesforce.com customers integrate in this way with Oracle Financials, says Farber. One example is Segway--when a customer places an order, the SalesForce.com CRM interacts with Segway's Oracle Financials software.
"We can be the system of record... or peripheral to an ERP system," says Farber. Front-end initiatives with companies including Microsoft, Borland, and Sun mean custom software such as applications created using Visual Studio can access data stored at Salesforce.com.
| -You're actually better off doing the rip and replace model. It's better and cheaper to replace your old systems." |
Net Return is preparing the Australian launch of the NetSuite Web-based SME service, covering financials, CRM, employee management and productivity, purchasing, and e-commerce. Managing director Stuart McLean says customers will have the choice of migrating completely from their existing applications to the complete hosted service, or of using the Net CRM module and integrating it to their existing systems via XML. "You're actually better off doing the rip and replace model," he says. "It's better and cheaper to replace your old systems" and prospective customers are amenable to the idea of replacement if the price is right. "We're 10 percent of the cost of some of our competitors," says McLean.
Typical customers will have grown out of packages such as MYOB, Quicken, GoldMine, or ACT!, so loaders are available to transfer data from such programs, and most customers are able to handle this task for themselves.
Integration with external programs is generally hard and expensive, says McLean. "Our view is that you don't need it," as NetSuite is a single integrated application running on one database. But when external integration is required, it can be as dynamic as the old system is, he explains, using real-time or batch updates as appropriate.
"We provide award-winning functionality," Farber says, but without requiring customers to buy hardware, software or endure a long implementation process. It's possible to take a phased approach, starting perhaps with sales force automation and then adding the aspects that involve integration. "That incremental approach is pretty powerful," he says. One example is AAPT, which started by using Salesforce.com as a standalone application for sales processes and is now beginning to integrate it with other systems. "If you try to bite off too much at once, the whole project is in peril," says Farber.
Astea offers a hosted service as an alternative to in-house deployment of its software. "You have to have the application designed correctly," says Ainsby, and unlike some of its competitors, Astea designed its software to handle multiple organisations within one database.
Buchanan argues that since customer data and processes are central to a business, there is a case for not outsourcing CRM, although it may be done selectively. Kennedy takes a different view, suggesting that CRM success comes from the use of knowledge gained from the system, not from its deployment so there's no disadvantage in going to a supplier. "IT is no enabler of customer relationship management," he says.
Executive summary
Case study: Web services gives NEC a better view
NEC Business Systems adopted Web services as a strategic integration technology early in 2002, following a broad evaluation process. "After assessing the alternative technology choices, Web services was considered to be the strongest candidate, optimising our cost, project time, and overall functionality," says data centre manager Ralph Stone.
This decision paid off when the time came to add a CRM system, because "CRM touches pretty well every part of your company" and Web services could be used to integrate CRM with the company's legacy systems.
"It allows us to have a platform where we can plug in the features we want. We work in a very broad business," says business tools project coordinator Neville Drake. Web services allows consolidation of data stored in existing systems, yet the users see a single system, he explains. "It's virtually seamless... it's a cradle-to-grave view of sales transactions."
Keith Payne, business development manager, agrees: "We can share knowledge across the entire organisation for the first time."
The CRM component was provided by Streamline Solutions, using its eTouchPoint product built on Microsoft's .NET architecture. "We use our toolkit to extend the functionality of NEC's various systems and to add business rules," says Rob Sadedin, Streamline's chief software architect.
Opportunity management is the main focus of the project, which is built around the way NEC manages the sales process from leads to fulfilment. NEC built a portal that integrates CRM with other existing applications and databases including the MFG/PRO ERP system, Exchange, customer and solutions databases, collaboration tools, and the reporting system.
The use of MFG/PRO is deeply ingrained at NEC, and it would not be practical to upgrade or replace it, Stone explains. The company had previously used direct APIs to integrate it with other software, but Web services provides a looser coupling that makes complex integrations more robust and also allows any system to be easily replaced without reworking the others. "Web services--specifically .NET--is an NEC Technology direction," says Payne.
An important part of the project was the provision of access to all those functions with a single login process that honours the access rights of different users, who range from the managing director down through the management hierarchy to account executives, sales engineers, and sales consultants.
"Administrative time has been slashed," says Drake, "we're getting 100 percent visibility of the entire sales lifecycle in real time."
"If there's anything to learn from one customer to the next, we can get at it," adds Payne. Broad visibility of information is particularly important at NEC, as individuals based at various state offices often collaborate on a single prospect or proposal.
"CRM is a high risk project," says Drake, but NEC took two years to establish the requirements and then Web services reduced the implementation risk. "Streamline's modules just snapped in when we tested them."
Implementation took just three months from approval of the specifications to rollout. "It seemed a tight schedule, but it came in exactly on time," says Stone. "We've been able to fashion a seamless data flow through the organisation with an enormous range of applications."
"We are now encouraging other departments to implement systems using Web services so their work can be used elsewhere in the organisation," Drake adds.
