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Posts Tagged ‘CRM’

How LinkedIn leveraged the benefits of Salesforce.com?


We have heard a lot of (success) stories of organizations implementing salesforce.com and how it helped their businesses. Here is another story of implementation of SFDC.

World’s largest network for professionals, LinkedIn, wanted to implement an Enterprise Solution (CRM) to help its corporate and advertising teams to streamline and grow their business. LinkedIn is used by professionals to display their online resume (work experience, past organizations, testimonials, achievements and aspirations). Many organizations use LinkedIn data base of resumes to manage their recruiting and talent requirements. The LTA (LinkedIn Talent Advantage) which maintains a database of 900+ customers and helps them scout for talent did not have a system to manage the customer details, leads, accounts and related stuff.

LinkedIn is an “internet based” business and itself is a private Cloud. Also, all it wanted was a robust ES sans a large IT team and maintenance hassles. Salesforce.com fulfilled all their expectations and had a brand name and lots of “success” stories to back its case and hence became the obvious choice.

The implementation of salesforce.com has helped the 70+ size corporate team and the advertising team to manage task scheduling, managing leads, tracking interactions and closely track the deals. Also, the marketing team can create, manage and measure the effectiveness of the campaigns.

As a result of the implementation, the sales reps became more efficient and have been able to handle about 200% more customers than the base levels. This has been a major factor in inflating the topline. Salesforce CRM helped in creating a centralized customer database which helps in providing a comprehensive view of the customers, their requirements and pipeline across the organization. The data available is consistent and updated which helps in realtime/ontime planning and decision making. The LinkedIn teams can real-time analyse and manage the ROI on the efforts spent on leads and is able to optimize its deployment of resources.

The latest Buzz: Location based mobile Ads.

February 24, 2010 4 comments

Mobile phones have been used for long by the companies to promote their products and services. The most used methodology till now has been sending text messages to the customers. There have been attempts to use recorded voice messages, but with very limited success. The marketers have been using the mobile channels based on the customer profile or on the history of previous purchases by the customer.

The latest advance in mobile/text ads is to send location based ads to mobile users. Placecast, the pioneer in this technology uses the phone’s GPS signal and the location data provided by carriers. The company plans to send the messages to users tailored for their interests and preferences.  It uses a practice called geo-fencing, which draws a virtual perimeter around a particular location. When someone steps into the geo-fenced area, a text message is sent (only if consumers have opted for the service). The application works in a similar fashion to text broadcasting where one can make use of various parameters to filter out the audience lists. Using this application, the marketers have another parameter – location, to single out the customers. When a customer passes through a new town, he can get the information on nearby stores, pubs, restaurants etc.

The application has a promising use in the recreation business. The tourists can subscribe the service whenever they visit a destination. Wherever they pass through, they will get the messages on the nearby places of interest. The service can also be great help to bargain hunters. They can get to know about the discount sales and bargain offers and that to in the same area where they are at present.

Cloud Computing made simple!

January 21, 2010 Leave a comment

No discussion on the emerging trends in EA delivery is complete without talking about the Cloud Computing and related stuff. Not many people are very clear on what exactly cloud computing is? What is the difference between Cloud, SaaS, IaaS and PaaS. This five-minute video explain all of this terminology in very simple way. 

Two things that customers want. And, Salesforce.com delivers.

January 20, 2010 4 comments

Last night I got a mail from one of the followers of this blog asking me to give the reasons of salesforce.com’s success. I chose to put it in a very simple way: Salesforce.com is delivering what the customers want!

When salesforce.com won four of the ten awards at 2009 CRM Market Awards by the CRM Magazine, many were surprised. But not me! I had expected it to happen and it did happen.

Now the question is why and how did it happen? And the bigger question is what is it that the customers want?

Most of the success that SFDC has achieved has been in the SMB segment. The small businesses have two main concerns when it comes to IT systems implementation:

One: Affordability.

Two: Robustness.

Small businesses look for affordable solutions as they are not in a position to spare and spend multimillion dollar budgets for IT implementations. Also they look for a robust solution as they cannot spend on maintaining an in-house IT team.

It’s a fact that all the businesses need to optimize the use of their resources and have a seamless flow of information across the organization units and also with the partners and customers. All the EA products available before the arrival of SFD were either very costly to implement or maintain, or were suitable for only large enterprises. Small businesses had requirements but there was no product in the market to meet them. SFDC stepped in at the right moment to plug in the gaps that the giants like SAP and Oracle left.

According to the CVS survey for SMBs, on an average of $0.19 million is required for implementing an ERP system for a medium size business. The same capabilities can be delivered through SaaS at a cost of as low as $1000 per year. This makes a very strong case for SFDC. Also, post implementation, the maintenance and upkeep of the system is to be done by the provider. This eliminates the need for an in-house IT team for maintaining the system.

It’s as simple as that: SFDC provides what (it’s) customers want. That makes it successful.

What’s in store for EA-Strategy space in 2010?


We ended the year 2009 on a positive note where almost every analyst and industry watcher was expecting the economy to look up and once again ride up the crest. Things do look better, businessmen do look confident. The economic crumble had given rise to distrust but as the things are improving, the distrust is being replaced by caution.

Yes, the year of 2010 will be one of cautious approach to every major decision. The fact is that the recession has changed many things around us. The time when anyone and everyone would jump on to the band-wagon is no longer reality. Today, and the year to come, people will be pussy-footing around the platform before making up their mind to jump onto it.

I have compiled a list of top ten things around which the business decisions will be interwoven when it comes to using IT as an enabler for strategy execution.

  1. Focus on ROI: Businesses across the globe will be focusing on RoI in any type of implementation. The companies have tightened their belts and cut on budgets and money supply is low and every manager is trying to get the bang for every buck spent. Any major implementation which does not provide substantial improvements in operations will be dinged at first go.
  2. Focus on Operations: In the recession times, the companies have come to face the reality that the most important thing to survive in a business is the cash flow from operations. If the operations are not generating enough positive cash flows, it is very difficult to survive. Companies will be stressing more on the efficiency and effectiveness of the operations and reducing the wastes (the seven types of wastes). To achieve the same, companies will take the help of IT as an integration mechanism for different operations units. At a time when all the job-shops employ the best machines and cutting edge technologies, it’s the flow of information across units and partners that holds the key to efficiency in operations.
  3. Collaboration: The decade just passed has already shown that how important it is to collaborate with all the stakeholders in the business. As the flow of information across units in the organization is important, similarly, the flow of information across partners and stakeholders is very important. When everyone is working hard to lower down costs, holding inventories, wastes, it becomes very important to share information with each other so that the other party can plan their activities accordingly.
  4. The rise of SaaS: SaaS as a delivery model for EA will be in demand. The SaaS market (though has a low base) is growing at 40% percent per annum. According to the CVS Survey, it takes about $ 0.2 million to implement an ERP solution for a SME whereas if the same application is offered through SaaS delivery model, it can be done at as low as $1000 per year. That makes a big case in favour of the SaaS model. I do not say that SaaS will completely overshadow the traditional implementation models, but, SaaS will be a force to reckon with!
  5. A renewed focus on SMBs: The rise of SaaS as a delivery model will go hand in hand with the renewed focus on Small and Medium Businesses. Most small businesses have recognized the need of an EA package to manage their operations, but, cannot afford the same. System Integrators and vendors will focus on these businesses and offer them robust and affordable solutions.
  6. Risk Management: There will be an increased push towards risk management and data security. As I have already pointed above that the flow of information will be the basic requirement for the smooth and efficient run of systems, in the same breath, the security of data and the risks posed by the unauthorized access to data will be of importance.  
  7. Business Analytics: BABI (the term coined by Dr. Bala V. Balachandran, distinguished professor at Kellogs Business School and Dean of Great Lakes Institute of Management) or Business Analytics and Business Intelligence will take to the centre-stage. The companies are making use of the data available for making informed and intelligent decisions. Analytics will play a major role in helping organizations to make the best use of already scare resources and in turn help in improving the RoI of the initiatives.
  8. Organizational alignment to the Systems: Rather than implementing new systems, organizations will make efforts to align their workforce to the systems in place.  Most of the systems fail because the human component in the implementation does not give its best to make the system a success. Falling in line, the management will give a push to the workforce for embracing change and give their best.
  9. Pay for performance or pay for used capacity: At a time when every business is concentrating on RoI, performance is being attached to investments. Organizations are taking the route of attaching payments to performance. Also, paying for used capacity rather than installed capacity (Air-Tel Bharti’s contract with vendors and IBM) will gain prominence.
  10. ERP space will remain a buyer’s market: With companies taking a cautious approach to big ticket IT spending, the ERP space will remain a buyer’s market. Vendors will have to offer very competitive prices to make buyers loosen their purse strings. Companies looking for EA implementations will bargain hard for “exciting” offers.

Why Alliances have gained prominence?

December 24, 2009 Leave a comment

Over last few years, Alliances have gained more prominence than the regular route ot mergers and acquisitions. Monetary considerations have played an important role but, are not the sole reason for organizations going in favour of alliance formation. I have listed below a few important points that have driven forces for organizations going the “Alliance Way” :

1. Core Competence:

Companies tend to build on their core competence and this very fact can give a differentiating  edge on other competitors. Thus, leaving one’s core competence and getting into a new field can be a disaster unless handled very carefully. Aligning to one’s core competence and creating an ecosystem around the core competence is the right way for expansion. The creation of ecosystem can be done through acquisitions, mergers or alliances. Mergers and Acquisitions may lead to diversifying into new territories and may dilute the core competence of the company. Thus, unless handled carefully, alliances should be the first choice for expansion.

2. Affordability:

Not every company can afford an acquisition or a merger. The costs of M&A are both in terms of tangible and intangible resources. Some companies might not have money or scale for M&A and other might not have scope for M&A.

3. Government regulations:

Sometimes government regulations prevent mergers and acquisitions. For example antitrust laws in the US or anti-Monopoly laws in other countries may hinder the M&A process. Thus, forming an alliance is the most favoured way out.

4. Entry Barriers:

Some markets and sectors have entry barriers due to favours by the home governments, access to raw materials, access to distribution channels etc. In such a case also forming an alliance with an existing player in the market or sector  is the most favoured way out. 

5. Competitive Landscape:

Companies do not operate in isolation. The company takes actions in response to the changing market dynamics and for any action that a company takes, the market forces respond to it. In a competitive environment, sometimes companies bleed to death fighting each other. Over time companies have realized that cooperation gives better results than competition. 

For example when Air Tel entered Sri Lanka, it signed a pact with the biggest telecom player in the market to use its towers and some other infrastructure.

6. Role Play in Value Chain:

All companies have been playing a particular role in the extended value chain. Sometimes the strategic role that the company plays in the value chain prohibits it to go for M&A, hence the Alliance route.

Another big factor in avoiding the M&A option is that only 43% or M&A are successful. The failure rate in IT-ITES is a staggering 80%. This can be because of many reasons. Most important out of which is that companies do not have compatible cultures and even compensation issues.  In an Alliance the companies work together to achieve the desired results, but as separate entities tied by the common goal. The cultural issues and compensation do not hinder the process.

2010: The year of exploring new avenues.

December 23, 2009 Leave a comment

Every one knows what happened in the year 2008 and 2009. The analysts have made thread bare discussions and post-mortem on the economic downturn. Now, when the economy is looking up, the businesses are again gaining their senses and gathering their strengths back to climb up the crest.

The climb, though exciting, will not be easy. The large organizations have already started making strategic alliances and partnerships to be prepared for the upturn. The smaller players are also pulling up their socks. Over the last few months, I have made a list of recommendations (mostly for small players) that will help them to gear up and make the most of the upturn:

1. Look for options: This is to make sure you don’t just jump on to the bandwagon in anticipation of success. Make sure that the bus is going in the right direction and at right speed before you decide to ride it.

2. Know yourselves well: The downturn has given companies a lot of time to retrospect, but still make sure you know waht you are good at and also know very weel what you are not good at. This will help in increasing the number of successes and decreasing the number of failures.

3. Alliances: Enter into a strategic alliance. Try to make an ecosystem around the customer so that when the customer identifies a requirement, he does not have to wander far and wide for a solution. Step forward and tell the customer that you can deliver it, if not, one of your alliance partners can deliver it.

4. Have a look at emerging markets: By emerging markets I do not mean the emerging markets like India, Brazil etc. , what I mean is look for a market of requirements. There will be lots of unment requirements and if you are an innovator, target the latent requirements of the customers.

5. Keep a track of your dollars: By this recommendation I mean, keep a track of the in-flow as well as the out-flow of cash. Cash in-flow (that too only from operations) is the real wort of the company. The economic downturn has put a lot of pressure on the fluidity and liquidity of finance options. So, make the best use of the money at hand!

These are just a few of the important observations that I came across in last few months. There are many other things organizations should take care of in the oncoming upturn, but, I thought of sharing just a few important out of them. 

Oracle Social CRM: A short review

December 16, 2009 Leave a comment

Oracle Social CRM is proving itself as the next generation collaborative CRM which incorporates some very advanced features required in today’s business environment. The below video gives an overview of the functionality of the product.

Customer Centricity wins: App Store Redesigned

December 16, 2009 1 comment

Apple has redesigned the App Store for the iPhone and iPod touch, bringing the online store in line with the rest of the iTunes shopping experience. This is mainly to standardize the customer experience across all Apple portals.

User-Centered Design

Analysts say that the design has been re-done keeping in mind the user centricity. Though there have been complaints from developers that it’s not developer friendly. In my point of view, the design of any “service” portal should be customer centric and not vendor/partner centric. Thus, Apple has done a good job by keeping in mind the user requirements before the developer requirements.

The complete analysis can be read here

Competing on Analytics: Part 3

December 14, 2009 Leave a comment

In parts 1 and 2 we have seen the power of analytics and how companies have made use of analytics to achieve substantial gains. The last part of  in the series gives the details of some other important aspects of data.

Where to capture this data?

The modern enterprise has numerous channels from which the data flows. The data can converge into a single destination or may be stored at different locations in the integrated system. The various channels of data flow may be: call centre, direct sales, partner operations, IVR, Self Service-Internet etc. It is again the decision of the management team to identify which sources of data to tap. The Six Cs (Correct, Complete, Current, Consistent, Context, Controlled) of data play an important part in the identification of places where the data can be found. For Example in a telecom enterprise, the data may be available at a number of places such as the CRM database, the Billing Database, IVR Database, the Interaction Centre, the networks etc.

How much data is needed?

The amount of data plays an important part in the ability of the enterprise to leverage the ability of the system to convert the data into knowledge and insights. Any enterprise looking for reliable results should have data at least for two years. The organizations operations in an industry sector which faces cyclicity need even more data for making sure there is no cyclicity in the cycles.

The base line is “The more (without compromising the quality) the better”. The knowledge depositories using analytics solutions build over time. The irregularities are smoothened over time and with the refinement in analysing techniques. Companies should not expect instantaneous results from implementation of analytics. The results take some time to show up and the managers also take some time to pick the fine lines in leveraging the results.

Analytical tools and Analysis

Once the data is ready, the next important aspect is the data analyzing tools. The market is abuzz with tools ranging from very simple tools like XL- Spread Sheets to very complex and powerful tools such as SAS, SPSS, Minitab etc. The organization needs to again take a subjective decision on which tool to use. Some tools offer marginal improvements at a very high additional cost. Also, the analytical tool just provides the results of analysis and is a DSS (Decision Support System). The interpretation and implementation of results is again a function of the “human factor”.

Knowledge and Insights

I always tell fellow consultants and clients that the implementation of Analytics does not “give” knowledge and insights. It has to be “achieved”. The IT component is only a small part of the whole exercise. All the stakeholders have to play their part to achieve the two. Once the trends and patterns are identified, the managers have to play their part. Many companies implement these solutions but not many can leverage the results. The analytics (or any other DSS) can increase the accuracy in identifying more factors that influence the decisions. In the end it’s the manager who makes the decision.