June 15, 2007

Making On-demand CRM a Business Ally

By Spencer D. Chin
TMCnet Web Editor

On-demand is evolving rapidly into a more strategic, capable CRM technology. The myths that commonly surround on-demand CRM – less data security, on demand is only for SMBs, and on demand is only for companies with no IT staff – no longer hold water.

On-demand CRM is no longer an all-or-nothing solution. A business does not have to choose between outsourcing and using a vanilla on-demand CRM tool or pay a premium for a full, on-premise solution. Companies wishing to deploy on-demand CRM can choose from three alternatives, according to a White Paper (News - Alert) by Oracle titled “No More Limits: On Demand CRM Goes Strategic”.

One alternative is shared on-demand, which uses a multi-tenant format enabling several companies to share a technology stack with a common database, application server, and user interface running on a single, outsourced infrastructure. It is secure format as each company has access to only its own data.

The second alternative is private on-demand, which like shared on-demand uses a technology partner to manage the stack and provide service, support, and security. But, unlike shared on-demand, the stack is single tenant, which keeps data security high but enables the company to customize and configure the CRM solution.

A third alternative is an on-premise and on-demand, or hybrid approach that best suits large companies with several business lines. The hybrid approach relies on a single provider and common code, allowing migration to either a pure on-premise option or a pure on-demand one, based on the customer’s future business needs.

Regardless of the CRM approach chosen, users should follow three key strategies to maximize their investment in an on-demand approach, Oracle (News - Alert) said. They are:

--Start with customer strategy. The company should know who its customers are, what they buy, and what needs they are seeking to fulfill and their value to their enterprise. Instead of focusing on what a CRM solution offers, the company should base its CRM strategy on how it would meet its business strategy to attract and keep its customers.

--Use technology to execute. The company should use the CRM technology to examine what aspects of its business strategy are working, what is falling short of expectations, and what future task lie ahead so proactive plans can be implemented.

--Know Your Users. Besides knowing customers, the company should also understand the capabilities of those who will use a CRM system. A CRM solution needs to be understood by its users so they will effectively use it and help the company reap a return on its investment. It should not hinder users.

On-demand CRM can help many businesses achieve their goals. Companies that are winning with on-demand CRM see it not just as being a tactical fix, but a strategy that is able to align with customers and grow with the business. More on the White Paper “No More Limits” is available here.

Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.

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