CRM SOFTWARE What is CRM Evolution of CRM

CRM SOFTWARE What is CRM, Evolution of CRM software and Saa. S, Sugar. CRM in depth, CRM SW Market

What is CRM? “customer relationship management” CRM is an information system for identifying, acquiring, and retaining customers. It helps companies to: • Target right customers • Build profitable relationships with new ones • Increase profitability of existing ones

Why do companies need CRM? • Historical trends • 1950 s: “I buy what I find” • 1970 s: “I buy what I can afford” • 1990 s - present: “I buy what I want” • Customer got the power • Companies need to differentiate themselves by focusing on how they sell, not what they sell. CRM can play a pivotal role in achieving that differentiation. Moreover, retaining customers is cheaper than acquiring them.

Evolution of CRM Software • Early 1980 s: CRM appeared on business scene, not widely used and had high failure rates • 1994: client-server based • Late 1990 s: CRM became viable for SMB => treated software as a service (Saa. S) • 2000 s: two types of CRM SW: • On-Premise • On-Demand: Saa. S (became popular beginning 2004 -2005)

Popular Trends in CRM Software ON-PREMISE Cost and Deployme nt Complexity ON-DEMAND Saa. S OPEN SOURCE 1990 s 2000 Today

On-Premise and On-Demand • On-Premise: implementation, administration and maintenance of CRM systems in-house, needs HW • Siebel • Oracle • SAP • People. Soft • Microsoft • On-Demand (Saa. S): subscription-based (pay as much as you use) with low cost and no HW requirements • Sales force • Siebel OD • Net. Suite • Sugar. CRM

On-Demand CRM SW • Advantages • • Low cost due to elimination of capital expenditures (HW) Shorter implementation time because no installation needed More powerful and secure IT infrastructure Much lower risk due to outsourced expertise Modification without IT bottleneck Automatic and frequent upgrades Vested vendor interest: vendor has to take care about IT infrastructure • Disadvantages • Third party involvement: vendor controls your software, security and data • User’s control over the application is restricted • Might be costly in the long run

On-Demand vs. On-Premise On-Demand is better than On-Premise in: – Higher “significant performance” improvement – Shorter system implementation times – Fewer project budget overruns – Higher customer satisfaction

Evolution of Saa. S 1 st Wave ASP The birth of Saa. S concept, offers subscription based packages • Expensive in the long run • Monolithic • Inefficient • Costly Intergration 2 nd Wave multitenant Saa. S Offers a superset application • Easy administration • Low subscription costs • Very limited customization • Not secure • No complex deployments 3 rd Wave Multi-instance Saa. S Rise of open source, commoditization of HW components • Fast deployments • Lower risk • High levels of customization • Easier access • Complex/simple deployments

An Attractive Alternative: Open Source • It is emerged as an alternative for proprietary CRM SWs that are very expensive and difficult to use. Open source Saa. S promises: • Faster payback • Higher quality and innovation • More control over the application • No vendor lock-in • Premier open source products like Sugar. CRM and Centric. CRM cannot compete head to head with the enterprise CRM products like Siebel but they provide many advantages and cost saving offers that are compelling and increasingly competitive for the SME and business unit implementations as well as big enterprises

Comparing CRM Saa. S Alternatives: • Open Source Saa. S’ advantages: • Free from license cost • High flexibility • Customization • Modular • No vendor lock-in • User adoption • Suitable for SMB and big enterprises • Commercial Saa. S’ advantages: • Brand name • Faster customer service & support • Industry/Domain specific functional features

Sugar. CRM • Sugar. CRM was founded in 2004 by John Roberts, Clint Oram and Jacob Taylor. The company began as an open source project on Sourceforge in April 2004. It became the world's leading provider of commercial open source CRM software for companies of all sizes. • “There a lot of smart people outside of Silicon Valley. ” Sugar. CRM currently employs over 150 people. • In just two years, Sugar Open Source has been downloaded over 1, 000 times and translated into over 50 languages. • Oram says: “Sugar. Forge is where it's built and Sugar. Exchange is where it's sold. ”

Sugar. CRM: Commercial Open Source • Sugar. CRM develops CRM software in three versions: • Sugar Enterprise • Sugar Professional • Sugar Community (Gratis) • Users have complete access to the source code which enables them to customize the SW efficiently and inexpensively. Hence, user does not adopt himself to product instead he adopts the product to himself. Moreover, it can be used modular and is operating system-neutral. • End User Demo: http: //www. sugarcrm. com/crm/community/sugarcrmcommunity. html

Saa. S CRM SW Market: per user, per month prices • Sugar. CRM • Sugar Community: Free • Sugar Professional: $40 • Sugar Enterprise: $75 • Salesforce – Professional: $65 – Enterprise: $125 • Oracle: $70 • SAP: $75 • Siebel: $70 +$125 for additional modules + fees for additonal support, external data, storage space

On-Premise CRM SW Market: per user, per year prices • People. Soft: $13, 500 • Siebel: $11, 513 + $25, 939 for initial deployment