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Posts Tagged ‘software’

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.

Proposing a new EA Strategy:SaaS as the Testing Ground

February 1, 2010 1 comment

The years 2008 and 2009 were very turbulent for businesses in almost every industry. Many companies fell prey to the brutal shake up that happened in last two years. Others survived.

As the saying goes, circumstances which are not able to kill you only make you stronger. The businesses which have survived the tough times are taking a very cautious approach to future endeavours. As I wrote in an earlier post, organizations want bang for their buck. Every penny spent is expected to earn dollars for the business.

The year 2010 brings with it hope that the recovery is on its way and the business world will ride the high waves again. The spending is increasing. For my vested interests, I am more interested in tracking the pattern of spending in the Enterprise Solutions space.

Small businesses have realized the importance of implementing EA for their businesses. But the biggest problem for them is spending on these solutions. According to a CVS survey (also pointed out in one of my earlier posts), it takes on an average $0.19 million for implementing an Enterprise Solution for an S/MB. The same solution can be implemented through SaaS delivery model at as low as $1000 a year. This comes with the added advantage that the enterprise does not need to maintain an in house IT team to manage and maintain the system.

Using SaaS as the first step:

Many big organizations also want to implement ES, but are sceptical about the results. The failure stories of ES are still abounding. I propose the SaaS as a first step of ES implementation for bigger companies as well.

These companies can go for a single tenant SaaS solution where the application and the hardware are used by a single tenant only. Although it is slightly costly than a multi-tenant solution, but is still much cheaper than the on-premise solutions.

Once the organization realizes the benefits of the system, it has the option to “own” the system or continue in the SaaS mode. As the organization is the only tenant on the system, the ownership and the location of the system resources can be easily shifted to the enterprise premise.

Thus, vendors and SIs (System Integrators) can gain access to a large market of SMEs and even large organizations through this model. The model addresses the requirements of both the SMEs and the large organizations but also keeps in mind their budget constraints.

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. 

Competing on Analytics: Part 2

December 13, 2009 1 comment

We have seen in my earlier post on Analytics that how and which companies are competing on the basis of analytics. The next questions that a person is bound to ask is that what type of companies or companies in which industry sector make the best use of Analytics?

The answer is ANY. Yes, any company in any sector can compete on the basis of analytics. Analytics does not mean that one has to have hoards of data and numbers. Analytics can also be use on transactions that involve verbatim details. Companies even make use of the analytics in analyzing words, phrases, the sentiments etc.

So now we know that any company can implement analytics. But, to make use of the analytics framework and to derive the desired results, the human component is as important as the mathematical model and IT component driving it.

There are a few more questions that arise in the implementation of analytics:

What data to capture?

This question has no straightforward answer. The executives driving the implementation should decide on what data will enable them to achieve the insights required. Some executives try capturing every bit of data that they can lay their hands on. It is good to capture as much data as one can because you never know what will be required at what point in time. But al J.L. Distinguished Prof. of Kellogg University puts it “It may lead to data obesity and knowledge starvation”. There no measure to determine the “optimum” amount of data or the “optimum” parameters on which to collect data. Thus, it is a pure Human component of the implementation that decides what to capture (unless one is implementing a package which requires mandatory fields to be captured). The capture of data also depends upon the requirements of the “downstream” systems and channels. For example in the CRM system may not require all the data for itself, but has to mandatorily capture it for the downstream systems such as Billing and Finance.

Correct: The data captured should be correct in all respects. Incorrect data will spoil the quality of results and may even lead one to wrong results.

Complete: The data to be captured should complete. There should be no missing fields. The missing fields may be considered as “zero” or “null” by the analytical tool. This may again lead to incorrect results.

Current: The data should be consistent with the time line. The data being captured at this moment should be current. Any data that is not current should specify the timeline when it was captured.

Consistent: The data should be consistent along the time line. There should not be huge deviations and fluctuations in the quantity and quality of data. This discounts the cyclicity of the data.

Context: The data being captured should be in line with the context. The context is again defined by the parameters which define the scope and scale of the framework.

Controlled: The data should be controlled and manageable. The control on the data makes sure that the data under analysis is the sample that one wants to analyse. The control on the data also ensures the management of sudden spikes and troughs.

Competing on Analytics: Part 1

December 9, 2009 Leave a comment

Recently, while reading a book on Analytics (incidentally by the same name: Competing on Analytics, T.H Daven Port, J.G. Harris, Harvard Business School Press), I was astonished at the vast range of companies and industries making use of Analytics. The online movie rental company, Netflix uses analytics extensively to make use of data for ranking movies.  Based on the customer selection and ranking the movies are clustered into different segments, the delivery for various customers is prioritized and the demand for yet to be released movies is forecasted. The data generated is also used to the extent to forecast how many copies of a movie the company should order and what it should pay for a particular movie.

The use of analytics by Netflix is not a one off example. Analytics is being used in some areas where one would have never thought of using it a decade ago. Take the case of Boston Red Sox, who made use of analytics to end an eighty six year draught and won the World Series title in the year 2004. The team used analytics on piles of data that they had collected over decades. They analyzed the pitches, the role of weather, the abilities of different players to handle different situations etc. They also made use of data for various players to decide upon what fee to be paid for the player or how much money to be paid for a player in the event of an auction. This helped them to get the best team in the given constraints of money cap. The result was: the team went on to win the 2004 title of the World Series.

Similarly take the example of AC Milan, the team has a separate arm called Milan Labs which makes extensive use of Analytics for making sure the team puts best efforts for playing and winning matches.

The examples of competing on the basis of analytics are many. Pharma companies have made use of data for shortening the product development life cycles. The retail chains have used analytics for planning their supply chain and designing the store layouts and formats. Manufacturing companies have used analytics for planning procurement, scheduling production and saving on costs of carrying inventory. The list is almost endless.

But, the question is: Can every organization make use of analytics for competing? If yes, How?

Poor Customer Service Costs Billions

December 8, 2009 Leave a comment

A new study, “The Cost of Poor Customer Service: The Economic Impact of the Customer Experience and Engagement,” may finally put the damage bad service can create into a language executive boards understand : Dollars and Cents. According to the survey of 8,880 consumers across 16 countries, poor customer service cost an aggregate of $338.5 billion per year, the average value of each lost relationship across all countries surveyed costing $243.

According to study findings, companies in the financial services and telecommunications sectors should take special notice. Statistics reveal that financial services firms lost more than $44 billion, while cable and satellite television providers lost upwards of $37 billion. Wireless carriers and Internet service providers each lost $36 billion, with landline carriers posting $33 billion in lost revenues.

Financial services and otherwise, the most significant reasons for poor service according to the study are:

  • being trapped in automated self-service;
  • waiting too long for service;
  • callers having to repeat themselves; and
  • customer service representatives lacking the skills to answer inquiries.

Consequently, what then ended up at the top of many respondents’ wish lists for customer service improvements included better integration between self-service and assisted service, including voice and Web.

The CRM implementation: Selecting the EA Product

December 4, 2009 2 comments

The selection of the product for implementation plays a major part in the success or the failure of the implementation. The success or the failure of the implementation is measured in terms of the extent to which the set targets/ goals have been achieved by the implementation. The product selection again depends on a number of factors or constraints that the organization may be facing. I have listed a few of these factors below. The list is an indicative list and does not contain all the factors that might affect the product selection:

  1. Budget: The CRM implementation can cost an enterprise from a few thousand dollars to a few hundred million dollars. The budget allocated for the product alone can be from a 5% to 70% of this cost. There are some open source CRMs available for free downloads (Sugar CRM) where one does not have to pay a single penny for the product. Then there are products by SAP and Oracle which may cost a bomb for the vanilla product alone. Midway the two are some mid range CRMs. Though most of the CRMs claim to address most of the industry requirements, not many (read “none”) are able to meet all the requirements of the organization.
  2. Scale: The Scale also plays an equally important part in the product selection. Some company may just require managing the contacts or the interaction with the contacts form the MS Outlook. There are some small packages available which can be downloaded and easily laid on the existing MS Outlook framework. They help manage the schedules, inquiries etc. Then there may be some organizations which require just managing the sales team or the marketing team or the Call Centre operations. Most of the modern day CRMs have 20-25 modules. The Organization may require a few or all of these modules. The cost and the selection of the product depend on the need for the modules required by the organization from this list.
  3. Complexity: The processes of two industries can be vastly different from each other. Though no industry processes can be called easy to manage, but my experience says that telecom industry processes are most complex and difficult to manage. Add to this the dynamic nature of the telecom industry where new products are launched daily and new functionalities are added daily. Thus the products for telecom industry contain more functionalities than for any other industry. These products, no doubt, are costlier than their peers form other industries.
  4. Deviation from the Industry Practices: Even in the same industry, one organization may have processes very different from other organization. Every organization tries to follow the “differentiation” path to move ahead of the competition. In this quest of differentiation, these organizations have processes which are vastly different from other similar organizations in the same industry. If your organization is different from the others, the CRM product to be chosen will depend upon the extent to which you are willing to sacrifice the uniqueness of your processes and the money you are willing to pay for the customizations required in the generic product for maintaining the existing processes.
  5. Model of implementation: The CRM products differ in genre which is dictated by the mode of implementation.  For example, if the implementation on-premise, the costs may be different, than when it is a SaaS. Similarly comparing it with PaaS implementation may give different commercials. The products for SaaS, On Premise, PaaS may also be different in costs based on the vendor selected.
  6. Existing Systems: If one is looking for compatibility of the CRM to be implemented with the existing legacy systems (such as Inventory, Billing, Financials etc.), one has to be very careful while choosing the product. If proper precautions are not taken care of, the new product may pose difficulties in the integration of existing systems. The cost of the selected product again depends on the vendor who offer the most compatible product.
  7. Human Factor: The human factor comes into play at a number of instances in the selection of the product. The team or the person authorized to make the final say on the purchase may have some pre notions for some product. The employees or the implementation team also may count in the ease of use for the product. Some CRMs are more user friendly than the others and hence are favoured by the implementation teams or the advisors for product selection.

All the above factors and some more influence the selection of the EA product to be implemented by the organization. Nonetheless, the product selection is a very important and a crucial aspect for the implementation to deliver the desired results.

The CRM implementation: Is CRM really required?

November 30, 2009 Leave a comment

Every day there are stories and advertisements in business magazines and newspapers about the organizations benefitting from the implementation of ERP and CRM. The vendors (Oracle, Sales force etc.) leave no stone unturned to make sure their success stories reach the audience. Many organizations do get influenced by these messages coming from the industry as well as the vendors. No organization wants to lag behind its competition and is willing to invest a few million dollars if the implementation gives it an edge over the competition.

But, the question is: Is the CRM really required?

The legendary Harvard Professor and noted economist, Theodore Levitt once said that a customer does not want a quarter inch drill; all he wants is a quarter inch hole. The same rule applies to organizations thinking for implementing the CRM package. The question they should ask is: Do we want to implement CRM or do we want a solution for a problem? More often than not, the answer will be that the organization is looking for a solution to its problem. There can be many solutions to this problem. The organization can improve by just improving the competency of the human component or by just re-engineering its processes. Some other problems might be solved with just adding enhancements to the existing IT systems.

Build vs. Buy: When the organization is convinced that it has to improve or replace the existing IT systems, the next decision is to decide between whether the organization should build its own system or buy an EA product?

When the patchwork on the IT system stops working, the option of building the system has been ruled out its time to justify the implementation of CRM. The implementation of CRM is justified if the organization has the following requirements:

  1. The organization is a customer centric organization or wants to transform into a customer centric organization.
  2. It has multiple teams working on a single process and the process ownership changes from one stage to another.
  3. The coordination between teams and flow of data from one team to another is the key to success of a process/ transaction.
  4. It feels that customer service has to be personalized for each segment or each customer.
  5. It wants to integrates all the three functions of the customer interaction: Identification, Acquisition and Maintenance of customers.
  6. It has the money and resources to implement and maintain a CRM System.

The CRM Implementation- Introduction

November 30, 2009 Leave a comment

    Many organizations have a need and a desire of implementing CRM and the related systems. Implementing these systems if a big decision for the companies and costs a bomb in terms of money and human resource spending. Even after meticulous planning and careful implementation, the companies are not sure if they will be able to achieve the desired results.

    I have started writing a series of articles on the planning and implementation methodology that may serve as broad guidelines for companies to implement these systems. The series will take the readers from the planning through the implementation and optimizing and fine tuning the system.