Sunday, October 26, 2008

CRM - Open Source or Regular Software?

Open Source is great - for software that is being used en-masse around the world. It works well when

* there are millions of users around the world for that need
* when there is a strong core that stays frozen and innovation is limited to open areas
* when there is a powerful consortium playing the role of a regulator and innovator
* when there is enough motivation for partners and individuals around the world to have their own successful business models around it

I love Open Source models when it comes to Operating Systems and Databases e.g. Linux or MySQL.

For CRM, I am skeptical of Open Source doing well in the long run. This is primarily because Enterprise Applications & CRM vary depending on the industry vertical, organization model, country specific statutory needs, different product and customer models and hence there is a need for a large number of flavors. There are hundreds of vendors and most are surviving because there is a need to serve these variations. Open source solutions may appear to be adaptable to these variations, but when deeper modifications are to be done, partners in the consortium will find the going tough. Vendors who know their code and provide good tools do better.

At the surface CRM may be the same, but if you are a distribution company one CRM may be better, if you are a financial services firm something else may be better and if you are in real estate you may need a version that specializes in that vertical.

The open source model relies on partners and it is not easy for partners to modify the source code even though they have access to it. Such applications may have half a million lines of code and wrong modifications may make the applications unstable. A product with strong core functionality, business relevance to your vertical, good adaptability features and good services around it may be the better choice.

Don't be swayed by the freedom of open source - finally it is parameters like relevance to your business, reliability, service levels and affordability that matter. These do not change - open source or not.

That is why KServe is not an open source model, but an open customer model. We make sure that your business is served well by our CRM product, the associated utilities and the implementation service model.

Wednesday, October 15, 2008

Slowing Economies and CRM

The bubble has burst and economies are slowing down. It is time to cut back to the basics and the essentials. In the sales and marketing function questions different questions will inevitably be asked.

Is the sales team focussing on the right opportunities?
Can we identify the productivity of the good and not so good performers?
Are campaigns analysed for effectiveness and corrected?
Is there a need to redesign the sales organization?
If there is a plan to cut back on operations and build up of inventory, won't the sales pipeline be a better indicator than past operations data?
What are the payments due where efforts on collections can be put?
How can key customers be kept satisfied?

Organizations which had a CRM in place would be in a much better place to get quick answers, act rapidly and weather such storms - may be even gain from it. Such times are also the best times to implement a CRM since there is more leeway to create a team responsible to execute the project.

Thursday, October 9, 2008

Try getting the sales team to enter data to the Sales CRM

A typical response in Sales CRM by a rep.

"Sure, the Sales CRM is great. All big guys up there want to get real time data up to the minute. What about us - we enter the data and the same data is used to beat us up with. Moreover, its too difficult to enter. I hate reporting".

Well, partly correct. But if done correctly that same person may become an ardent fan of a Sales CRM.

"Wow, Sales CRM truly is great. Now the big guys out there are off my back and are not calling me for information about cases, or paining me for delays in reports. They get it direct from the system. I used to spend 6-8 hours a week on reporting and now I just spend 10 minutes a day. I can do it while Im traveling and I dont miss my appointments with all those nice alerts on my mobile. I seem to be getting more leads sent to me than ever before. Wonder how I managed without it".

To make this happen, you need a good CRM, a Sales CRM designed to ensure that data entered is minimum and entered once".

A well crafted software with good defaulting, good navigation and good design can achieve a lot. At KServe we make this our mission - how to make the end field person enjoy using the software and want to use it, rather than be forced to use it.

Sunday, October 5, 2008

CRM - Saas (Software as a service) or your own license?

While implementing a CRM this is a vital question and should be seriously evaluated. This question is not about hosting - because today hosting options cost the same whether you host it or your vendor does it for you. The hosting question is related to the availability of IT staff and is not answered here. The question is whether you share the application and pay a periodic payment for it with no ownership rights as per the SaaS model, or do you buy the license for usage in perpetuity.

Is the customer facing part of your business unique or is it generic?

If your business is unique - especially in some core CRM process, then shared applications are not an option. Look for a vendor that provides CRM as a more as a platform, and provides adaptability tools and services to make this happen. Then buy the product for your own usage. If your business processes maps well with the CRM products processes, then SaaS is a viable option. CRM solutions are often generic and a good product usually covers the core processes well.

Can you take the leap or do you want to test the waters?

If you you want to test the waters first before taking the leap then SaaS is a good option. It enables you to try out the application, and it even helps you determine what you need to modify before you make the actual leap. You can try it out for a smaller team first. However in cases where the fitment of the product to your process is low, this is not an option.

Which is more expensive?

If you are likely to use the application for a long period of time, ownership is the better option. If your companies budgeting policy prefers periodic spending to show faster return on investment, Saas is the better option.

Which is more secure?

Both options have good security features and need to be implemented well to be reasonably hacker proof. Full security needs a multi-pronged approach - in terms of hardware, software, application as well as usage related procedures. A fully bought out solution has more options for security, but if badly implemented can be worse off than a SaaS one.

We at K-Serve (www.KServe.net/crm) provide both the SaaS option as well as the perpetual license options. Similarly we allow hosting to an environment of choice or we provide the SaaS option. We even individualize the product for customer. That way the customer has all the options. Here are a couple of articles on this topic. Another option is to type in 'Saas or in-premise' in your search engine.

http://www.industryweek.com/ReadArticle.aspx?ArticleID=14774
http://www.online-crm.com/saas_crm.htm

Friday, October 3, 2008

Does your sales co-ordinator hate spreadsheets?

Most sales co-ordinators have nightmares about spreadsheets. A Sales CRM would make a major difference in their daily work day. Here is a typical before and after scenario for them.

"Before the Sales CRM was implemented, I spent my time chasing people for spreadsheets, and when I do get them I spend time cleaning them, aggregating them across the sales hierarchy, filling up holes with assumptions, and preparing them in the format the VP needs. And when I finally get to complete it, she wants something else. Whoever invented spreadsheets! Well, I must admit it is at least better than paper and email".

"Now I have a better role - I'm a sales analyst. Reports at all levels are coming in automatically. I spend my time analysing trends, tracking performance and even advising people on opportunities on trends that are emerging. I remember that look on my VP's face when I told him that her team should focus efforts in the healthcare segment and no longer in the financial services market because that is what the data was pointing to. Should I tell him that the Regional Manager in the West is an unrecognized star, while the territory head in the South was a big talker with no results? No I won't tell her that, but I'll give the report that lets her figure that one out easily. The effort to get the CRM implemented was definitely worth it"

The assumption is of course that the CRM implementation was done well, and a good product was implemented.

At KServe we try to focus on making life easier and better for people, and in enabling companies to get results out of their CRM. Want to know more about how it can be done? Ping us at www.KServe.net/crm.

Thursday, October 2, 2008

A tale of two VP's (of Sales)

"I need the latest projections of sales with accuracy of +/-5%, and I need it in the next two hours". A typical question like that from an alert CEO can draw highly different responses from the VP of sales, depending on how well your organization is geared up.

VP - A: "Phew - that's unreasonable. He knows it. He knows I'm going to have to cook up a good part of it. Anyway I'll do the best I can. Last months report is not too bad - the regional managers must have updated it at least 15 days back. I can't trust the figures in the East and the West as always - their sales teams projections are always over optimistic. And the South is always conservative - those guys know how to project low and achieve more. And Sandra spends all of her time just getting them to give it in the right spreadsheet format. Should do something about it. Meanwhile lets get something that will keep the CEO happy".

VP B: "Not a problem - Sandra will place it on your desk to you in the next 5 minutes, or better still - it is already there there as an alert in our Sales CRM application. You can be sure that it is as accurate as we can get - and it will be correct to the minute. Im confident that the supply chain team can do their production planning based on these figures too".

A tale of two Vice Presidents. A tale of two organizations. The difference a good Sales CRM can make. That difference may make the difference in survival in a brutal competitive environment out there. The difference, however, took a lot of effort - in choosing and implementing the CRM succesfully.

And that difference is what we want to make in organizations - India and world wide. In our organization we know that there are many providing such solutions, but like the second VP we want to do it the better way. Track us at www.KServe.net/crm to know more.

Why blog for KServe CRM

As the founder of the company that brought out the K-Serve CRM range of products, there are two primary reasons for this blog .

a) CRM as an area is moving from being a luxury being implemented by big companies to something that every company needs to have. While this is happening, there is a ton of information that needs to be conveyed about the exciting changes that are happening in CRM. These CRM products are are affordable, and affordable does not mean compromise. It just means that features that typically are available only in the the 'Porsche's of CRM are now available in the regular sedans meant for everyone.

b) We are making KServe CRM a true representative of this new generation and so a lot of what we do for KServe applies directly to these new generation of CRM products.

I hope to highlight real world situations where CRM can make a major difference, to dispel myths, to communicate CRM in a positive light, and yet be realistic in what it can do for your company.

Looking forward to your comments.

George Vettath
Founder Kallos Solutions & the K-Serve range of Enterprise products
www.K-Serve.net