One year ago (June 15th, 2010 to be precise), I wrote a post titled Social Media: The New Front End of CRM System in which I highlighted that in spite of undergoing a fascinating technological transformation over the last decade, Customer Relationship Management (CRM) systems essentially record transactional information using pre-determined fields on the screen (front-end) and store that information in database. This customer transaction data repository is essentially at the heart of any CRM system. …………………….

5 Key Tech Trends driving Social CRM

One year ago (June 15th, 2010 to be precise), I wrote a post titled Social Media: The New Front End of CRM System in which I highlighted that in spite of undergoing a fascinating technological transformation over the last decade, Customer Relationship Management (CRM) systems essentially record transactional information using pre-determined fields on the screen (front-end) and store that information in database. This customer transaction data repository is essentially at the heart of any CRM system.

In “Social” age, customers are empowered like never before as they can share their experiences and opinions about brands/products on Social Media channels and marketers have no control over what customers are saying about their brands/products. This discussion is visible to all including other customers, potential customers and competitors.

The best any marketer can do is to Listen and Learn from what customers are saying and Engage them in meaningful conversations. In other words, Social Media channels are the new front-end of CRM system and CRM system should be designed in such a way that it captures all relevant information from Social Media channels and uses Predictive Analytics and Knowledge Management tools to derive insights and help in decision making.

Here’s how five key technological trends are driving evolution of CRM into next generation Social CRM systems:

1) Cloud Computing/SaaS CRM:

Social Media channels (like Twitter and Facebook) generate tremendous volume of user generated content created by millions of users. Not possible for CRM system to import/store the data “locally”. This is unlike “traditional” CRM, where data was generated by few users and stored in “local” database. SaaS Model makes it possible to store information in the “cloud” (shared space) and access it from (Social) CRM application “on-demand”

Social Media space is changing and evolving rapidly. Very difficult, if not impossible, for any CRM vendor to incorporate all new channels and feeds “locally” for every installation of CRM system. Under the SaaS model, it is not difficult to add new Social Media channels/feeds to the “hosted” (Social) CRM application and make it available to users “on-demand”

2) Service Oriented Architecture (SOA):

Service Oriented Architecture and Cloud Computing not only make it easy to integrate applications, but also facilitate “plug and play” modules and add-ons that can dramatically reduce time and cost involved in extending functionality of the application. SOA design is of great help in Social CRM as new social media tools and functionality can be added without expensive customization or upgrades as was the case in traditional CRM systems.

3) Real Time “In Process” Analytics:

Predictive analytics has made it possible not only to analyze past customer behavior, but predict future behavior too based on statistical models. Predictive analytics logic/modules can be “embedded” in Social CRM work-flows to analyse and predict customer behavior from “real-time” social network data feed and take corrective action by triggering appropriate work-flows based on pre-defined business rules. For example, if a customer (or a group of customers) tweet about their dissatisfaction with a product or service, predictive analytics can help in identifying who among them are most likely to defect so that company can take corrective action before it is too late. Better still, if they happen to be customer(s) of a competitor, company can make an attractive offer and win them over. And thanks to SaaS model and SOA, this level of real-time “In Process” analytics functionality is available to small and medium sized companies with no large scale investment requirements upfront.

4) Smart Phones and Tablet PCs:

Mobile phones have evolved from “simple” telephones to mobile multi-media communication hub connected to internet via “always on” wireless broadband connection. This is going to be one of the big stories over the next couple of years that will fuel exponential increase in Social Networking Sites and their user base. It is estimated that currently more than 650 million people worldwide, or 13.4% of mobile subscribers, use the Web via a mobile device at least once a month (see this link). This number is all set to skyrocket as inexpensive smart phones continue to flood the market.

Similarly, Tablet PCs, given their large hi-resolution screen with multi-touch input, Accelerometer sensor for UI, touch-sensitive controls and high speed internet access via 3G/4G or Wifi/WiMax have the potential to change the way we use Social Media tools and take Social Networking to a whole new level.

Current Social Media tools such as Twitter or Facebook are “text” or “web-page” UI based. NextGen Social Media tools will leverage full range of functionality available in Tablet PCs and make media consumption for information & entertainment or playing online games a truly Social experience.

5) Enterprise Application and Data Mashups:

In any large or medium enterprise, we have a diverse range of applications such as “on premise” CRM or SaaS CRM, BPM, MDM, ERP etc. to name just a few. Adding Social Networks to Enterprise Application landscape increases complexity of integrating and managing all the applications exponentially not only because of amount of data generated by users on Social Networks but also the need to monitor and respond in “real time”. Enterprise Application and Data Mashupscan solve this problem by combining data or functionality from multiple applications and presenting information in the required format in a seamless manner.

In a Social CRM system for example, Enterprise Application and Data Mashups can be used to combine data/functionality from multiple applications such as CRM, MDM, ERP etc. and new services can be created “on the fly” or specific work-flows can be triggered based on pre-defined business rules in a user friendly way.

All the five tech trends discussed above, namely Cloud Computing/SaaS CRM, Service Oriented Architecture (SOA), Real Time “In Process” Analytics, Smart Phones/Tablet PCs and Enterprise Application/Data Mashups are now converging and are set to transform how marketers engage their customers through social media with goal of building trust and brand loyalty!

<div style=”width:425px” id=”__ss_8349842”> <strong style=”display:block;margin:12px 0 4px”>Key Tech Trends driving Social CRM</strong> <div style=”padding:5px 0 12px”> View more presentations from Harish Kotadia </div> </div>

What do you think? Please do share your thoughts and opinion:

This is a repost from blog of Dr. Harish Kotadia originally posted at http://HKotadia.com/

How IT Services Co.s can Thrive in the Age of Cloud | Dr. Harish Kotadia

After a disappointing 2009, a year in which global tech spending fell by 4.2 percent, IT Services companies are experiencing renewed demand for their services as global tech spending rebounds this year and is set to rise by 3.8 percent, and touch $1.5 trillion according to market researcher  IDC (for more, read this Businessweek article Tech Spending Is Back. And It May Even Last.

But before settling down to Business As Usual model of pre-recession days, IT services companies should look at changing tech landscape and “Clouds” on tech horizon – Cloud Computing that is! In the words of Irving Wladawsky-Berger, “IT is undergoing its biggest changes since the advent of client/server computing in the 1980s.  These changes are being driven by many factors, chief amongst them the emergence of a different model of computingcloud computing.  We are entering the Age of the Cloud.”(for more, read his excellent blog post titled IT in the Age of the Cloud)

In his post, Irving Wladawsky-Berger has quoted findings of study on The Future of Corporate IT by The Corporate Executive BoardAfter interviewing and surveying hundreds of IT and business leaders, this study concluded that “The IT function of 2015 will bear little resemblance to its current state. Many activities will devolve to business units, be consolidated with other central functions such as HR and Finance, or be externally sourced. Fewer than 25% of employees currently within IT will remain, while CIOs face the choice of expanding to lead a business shared service group, or seeing their position shrink to managing technology delivery.

The Corporate Executive Board study has further identified five emerging shifts in IT value and role. These are:

  • Shift 1: Information Over Process
  • Shift 2: IT Embedded in Business Services
  • Shift 3: Externalized Service Delivery
  • Shift 4: Greater Business Partner Responsibility
  • Shift 5: Diminished Standalone IT Role

IT Services companies need to prepare for these emerging shifts and incredible opportunity they present by expanding their “Cloud” service offerings.

Unlike product companies, one of the issues many IT service providers (and especially those that operate in the lower end of price spectrum) face is that their revenue is directly linked to “billable” headcount. And to grow their revenue beyond certain point, these companies need to have a “product” or “license” based revenue model rather than “headcount” based model. Cloud computing offers an excellent opportunity for IT services companies to develop service offerings that can be offered to client under  Software as a Service(SaaS) model.

Talking specifically about CRM and Social CRM, IT Services companies should extend their CRM and BPO service offering to cloud based services in following areas:

  • Development of Engagement Platforms and Communities
  • Integration of “On-premise” CRM apps with “Cloud based” Social CRM apps for 360 degree “view of customer”
  • Cloud based Social Media Monitoring, Reporting and Analytics
  • Cloud based Social Media and Network Analytics solution

Affiliated Computer Services, a leading service provider recently launched “Community as a Strategy” – a suite of social CRM services that captures customer insights from social media sites to improve service and responsiveness of organizations. Other IT and BPO Service Providers should take notice of this development and follow ACS’ lead in this direction.

What do you think? How IT and BPO Service Providers can can Thrive in the Age of Cloud? Please do share your thoughts and opinion:

This is a repost from blog of Dr. Harish Kotadia, originally posted at: http://hkotadia.com/archives/2962

Related posts:

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  2. CRM Paradigm Shift Having watched the CRM (R)evolution for over a decade, I am very excited about the developments that have taken place over the last few years….
  3. Rise of Social CRM and how IT & BPO Companies can Profit from it In my first post of this year published on January 2nd, titled 2010: Year of Social CRM, I highlighted why Social CRM is important and…
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This is a repost from blog of Dr. Harish Kotadia originally posted at http://HKotadia.com/

Why Social Media will drive adoption of SaaS CRM

SaaS CRM ( Software as a Service) has been around for a while.  Salesforce.com, one of the largest service providers in SaaS CRM space has been around for more than ten years and has been listed on NYSE for almost six years now. I can still recall the day Salesforce.com was listed on NYSE, having seen a giant banner with the letters “CRM” (ticker symbol of Salesforce.com) on NYSE building on that day on my way to work in lower Manhattan, where I was working as a CRM Program Manager for a Fortune Top 10 client (on how many occasions you get to see “CRM” banner on NYSE building!)

But inspite of the fact that SaaS CRM has been around for a decade, it is not as popular or widespread as what some might have expected it to be by now. I think this is about to change. As I noted in my previous post, four independent trends, namely Social Media, Smart Phones, Predictive Analytics and SaaS are now converging to bring about a Paradigm Shift in CRM.

In particular, Social Media will drive adoption of cloud computing/SaaS CRM going forward. Some of the key reasons why I think this is likely to happen are as follows:

  • Social Media channels (like Twitter and Facebook) generate tremendous volume of user generated content created by millions of users. Not possible for CRM system to import/store the data “locally”. This is unlike “traditional” CRM, where data was generated by few users and stored in “local” database. SaaS Model makes it possible to store information in the “cloud” (shared space) and access it from (Social) CRM application “on-demand”
  • Social Media space is changing and evolving rapidly. New Social Media channels and tools are being added almost every day. Very difficult, if not impossible, for any CRM vendor to incorporate all new channels and feeds “locally” for every installation of CRM system. Under the SaaS model, it is not difficult to add new Social Media channels/feeds to the “hosted” (Social) CRM application and make it available to users “on-demand”
  •  Service Oriented Architecture and  Cloud Computing not only make it easy to integrate applications, but also facilitate “plug and play” modules and add-ons that can dramatically reduce time and cost involved in extending functionality of the application. This can be of great help in Social CRM as Social Media space is changing and evolving rapidly.

CRM and Analytics application vendors such as Oracle, SAP and SAS should take note of this trend towards SaaS and should extend their service offerings to include CRM SaaS.

What do you think? Please do share your thoughts and comments on impact of Social Media on SaaS CRM.

This is a repost from blog of Dr. Harish Kotadia originally posted at: http://hkotadia.com/archives/2634

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This is a repost from blog of Dr. Harish Kotadia originally posted at http://HKotadia.com/

CRM Paradigm Shift

Having watched the CRM (R)evolution for over a decade, I am very excited about the developments that have taken place over the last few years. Four important technological trends have the potential to fundamentally change the way organizations “manage” relationship with their customers and revolutionize CRM. These tech trends are:

All these four independent trends are now converging to bring about a Paradigm Shift in CRM.

“Managing” customer relationships till now involved recording “transactions” between company and the customer over phone, email and web-site besides “snail” mail and face-to-face exchanges and using the “historical” or “past” information to better serve the customers. Company was in total control of this conversation with customer at every stage. Information was recorded using pre-determined fields in the database, by company employees (or by contractors trained by the company) using script in CRM application controlled by the company. Thanks to the convergence of cloud computing, social media, predictive analytics and smart phones, this comfortable existence of marketers (and CIOs, CTOs as well) is about to come to an end.

Social Media has empowered customers like never before and they can discuss about brands/products on Social Media channels. This discussion is visible to all including other customers, potential customers and competitors.

Smart Phones/Portable devices with high speed internet access, geo-location tools and camera have ensured that customers can use information gained from Social Networks and Internet to maximum advantage. For example, scanning product bar codes to ascertain the lowest price of a product in geographical vicinity.

Software as a Service (SaaS) has made “on-demand” full functionality CRM application possible, with no large scale investments requirement upfront. CRM system’s integration with multiple other systems was one of the biggest challenges, requiring substantial investment in terms of time and cost. No more, thanks to Cloud computing/SaaS model. It is possible to integrate SaaS and cloud applications with enterprise apps in days, what used to take weeks or even months earlier. This has further lowered entry barriers and made available complex, full featured CRM applications to small and medium sized firms – what so far was available to only companies with large IT/Marketing budgets, empowering smaller firms to compete with their larger rivals on equal footing.

And last but not least, predictive analytics has made it possible not only to analyse past customer behavior, but predict future behavior too based on statistical models. When combined with real-time Social Network data feed, it is THE killer app for next gen CRM system. Predictive analytics can help in identifying minor issues and help in taking corrective action before they become a crisis. For example, if a customer (or a group of customers) tweet about their dissatisfaction with a product or service, predictive analytics can help in identifying who among them are most likely to defect so that company can take corrective action before it is too late. Better still, if they happen to be customer(s) of a competitor, company can make an attractive offer and win them over. And thanks to SaaS model, this level of analytics functionality is available to small and medium sized companies with no large scale investments requirement upfront.

Given this CRM Paradigm Shift, how well your organization is prepared? Will it effectively engage “empowered” Social Customer? Will it compete against competitors who use low-cost “SaaS” model? Is your CRM system smart enough to predict customer behavior and help in taking corrective action before minor issues become crisis? Would love to hear from you on this Paradigm Shift.

This is a repost from blog of Dr. Harish Kotadia, originally posted at http://hkotadia.com/archives/2539

 

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This is a repost from blog of Dr. Harish Kotadia originally posted at http://HKotadia.com/

Why Social Media will drive adoption of SaaS CRM

SaaS CRM ( Software as a Service) has been around for a while.  Salesforce.com, one of the largest service providers in SaaS CRM space has been around for more than ten years and has been listed on NYSE for almost six years now. I can still recall the day Salesforce.com was listed on NYSE, having seen a giant banner with the letters “CRM” (ticker symbol of Salesforce.com) on NYSE building on that day on my way to work in lower Manhattan, where I was working as a CRM Program Manager for a Fortune Top 10 client (on how many occasions you get to see “CRM” banner on NYSE building!)

But inspite of the fact that SaaS CRM has been around for a decade, it is not as popular or widespread as what some might have expected it to be by now. I think this is about to change. As I noted in my previous post, four independent trends, namely Social Media, Smart Phones, Predictive Analytics and SaaS are now converging to bring about a Paradigm Shift in CRM.

In particular, Social Media will drive adoption of cloud computing/SaaS CRM going forward. Some of the key reasons why I think this is likely to happen are as follows:

  • Social Media channels (like Twitter and Facebook) generate tremendous volume of user generated content created by millions of users. Not possible for CRM system to import/store the data “locally”. This is unlike “traditional” CRM, where data was generated by few users and stored in “local” database. SaaS Model makes it possible to store information in the “cloud” (shared space) and access it from (Social) CRM application “on-demand”
  • Social Media space is changing and evolving rapidly. New Social Media channels and tools are being added almost every day. Very difficult, if not impossible, for any CRM vendor to incorporate all new channels and feeds “locally” for every installation of CRM system. Under the SaaS model, it is not difficult to add new Social Media channels/feeds to the “hosted” (Social) CRM application and make it available to users “on-demand”
  •  Service Oriented Architecture and  Cloud Computing not only make it easy to integrate applications, but also facilitate “plug and play” modules and add-ons that can dramatically reduce time and cost involved in extending functionality of the application. This can be of great help in Social CRM as Social Media space is changing and evolving rapidly.

CRM and Analytics application vendors such as Oracle, SAP and SAS should take note of this trend towards SaaS and should extend their service offerings to include CRM SaaS.

What do you think? Please do share your thoughts and comments on impact of Social Media on SaaS CRM.

This is a repost from blog of Dr. Harish Kotadia originally posted at: http://hkotadia.com/archives/2634

Thoughts on Social CRM and Analytics

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This is a repost from blog of Dr. Harish Kotadia originally posted at http://HKotadia.com/

Why Social Media will drive adoption of SaaS CRM

SaaS CRM ( Software as a Service) has been around for a while.  Salesforce.com, one of the largest service providers in SaaS CRM space has been around for more than ten years and has been listed on NYSE for almost six years now. I can still recall the day Salesforce.com was listed on NYSE, having seen a giant banner with the letters “CRM” (ticker symbol of Salesforce.com) on NYSE building on that day on my way to work in lower Manhattan, where I was working as a CRM Program Manager for a Fortune Top 10 client (on how many occasions you get to see “CRM” banner on NYSE building!)

But inspite of the fact that SaaS CRM has been around for a decade, it is not as popular or widespread as what some might have expected it to be by now. I think this is about to change. As I noted in my previous post, four independent trends, namely Social Media, Smart Phones, Predictive Analytics and SaaS are now converging to bring about a Paradigm Shift in CRM.

In particular, Social Media will drive adoption of cloud computing/SaaS CRM going forward. Some of the key reasons why I think this is likely to happen are as follows:

  • Social Media channels (like Twitter and Facebook) generate tremendous volume of user generated content created by millions of users. Not possible for CRM system to import/store the data “locally”. This is unlike “traditional” CRM, where data was generated by few users and stored in “local” database. SaaS Model makes it possible to store information in the “cloud” (shared space) and access it from (Social) CRM application “on-demand”
  • Social Media space is changing and evolving rapidly. New Social Media channels and tools are being added almost every day. Very difficult, if not impossible, for any CRM vendor to incorporate all new channels and feeds “locally” for every installation of CRM system. Under the SaaS model, it is not difficult to add new Social Media channels/feeds to the “hosted” (Social) CRM application and make it available to users “on-demand”
  •  Service Oriented Architecture and  Cloud Computing not only make it easy to integrate applications, but also facilitate “plug and play” modules and add-ons that can dramatically reduce time and cost involved in extending functionality of the application. This can be of great help in Social CRM as Social Media space is changing and evolving rapidly.

CRM and Analytics application vendors such as Oracle, SAP and SAS should take note of this trend towards SaaS and should extend their service offerings to include CRM SaaS.

What do you think? Please do share your thoughts and comments on impact of Social Media on SaaS CRM.

This is a repost from blog of Dr. Harish Kotadia originally posted at: http://hkotadia.com/archives/2634

Thoughts on Social CRM and Analytics

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This is a repost from blog of Dr. Harish Kotadia originally posted at http://HKotadia.com/

CRM Paradigm Shift

Having watched the CRM (R)evolution for over a decade, I am very excited about the developments that have taken place over the last few years. Four important technological trends have the potential to fundamentally change the way organizations “manage” relationship with their customers and revolutionize CRM. These tech trends are:

All these four independent trends are now converging to bring about a Paradigm Shift in CRM.

“Managing” customer relationships till now involved recording “transactions” between company and the customer over phone, email and web-site besides “snail” mail and face-to-face exchanges and using the “historical” or “past” information to better serve the customers. Company was in total control of this conversation with customer at every stage. Information was recorded using pre-determined fields in the database, by company employees (or by contractors trained by the company) using script in CRM application controlled by the company. Thanks to the convergence of cloud computing, social media, predictive analytics and smart phones, this comfortable existence of marketers (and CIOs, CTOs as well) is about to come to an end.

Social Media has empowered customers like never before and they can discuss about brands/products on Social Media channels. This discussion is visible to all including other customers, potential customers and competitors.

Smart Phones/Portable devices with high speed internet access, geo-location tools and camera have ensured that customers can use information gained from Social Networks and Internet to maximum advantage. For example, scanning product bar codes to ascertain the lowest price of a product in geographical vicinity.

Software as a Service (SaaS) has made “on-demand” full functionality CRM application possible, with no large scale investments requirement upfront. CRM system’s integration with multiple other systems was one of the biggest challenges, requiring substantial investment in terms of time and cost. No more, thanks to Cloud computing/SaaS model. It is possible to integrate SaaS and cloud applications with enterprise apps in days, what used to take weeks or even months earlier. This has further lowered entry barriers and made available complex, full featured CRM applications to small and medium sized firms – what so far was available to only companies with large IT/Marketing budgets, empowering smaller firms to compete with their larger rivals on equal footing.

And last but not least, predictive analytics has made it possible not only to analyse past customer behavior, but predict future behavior too based on statistical models. When combined with real-time Social Network data feed, it is THE killer app for next gen CRM system. Predictive analytics can help in identifying minor issues and help in taking corrective action before they become a crisis. For example, if a customer (or a group of customers) tweet about their dissatisfaction with a product or service, predictive analytics can help in identifying who among them are most likely to defect so that company can take corrective action before it is too late. Better still, if they happen to be customer(s) of a competitor, company can make an attractive offer and win them over. And thanks to SaaS model, this level of analytics functionality is available to small and medium sized companies with no large scale investments requirement upfront.

Given this CRM Paradigm Shift, how well your organization is prepared? Will it effectively engage “empowered” Social Customer? Will it compete against competitors who use low-cost “SaaS” model? Is your CRM system smart enough to predict customer behavior and help in taking corrective action before minor issues become crisis? Would love to hear from you on this Paradigm Shift.

This is a repost from blog of Dr. Harish Kotadia, originally posted at http://hkotadia.com/archives/2539

 

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This is a repost from blog of Dr. Harish Kotadia originally posted at http://HKotadia.com/