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INDUSTRY ANALYSIS

Salesforce.com Ups the Ante in IT

Luck plays a role in life. I don't pretend to understand it, and I believe we make our own luck, but occasionally we also inherit some from the cosmos. How else do you explain the timing of Salesforce.com's announcements last week at DreamForce, its annual user group meeting in San Francisco? ...

OPINION

Industry Analysis Is a Practice, Not a Job

Analyzing the industry analysts has become a popular indoor sport in CRM and beyond. Ever since the scandals involving a few financial analysts kiting stocks for their investment bank employers, there has been an attempt to upgrade the standards by which financial analysts are judged and to apply those standards to industry analysts as well ...

INDUSTRY ANALYSIS

Has CRM Bottomed Out?

Forgive me, but amid all the excitement of the baseball post-season, it's hard to believe there are other important things going on in the world ...

INDUSTRY ANALYSIS

Plumbers and Professors in CRM

Last week the numbers moved. No, not the election, but something equally important. Let me explain ...

INDUSTRY ANALYSIS

Siebel Highlights Analytics and New Service Offerings

The annual meeting of the North American Siebel user group is a big deal, and last week's convocation in Los Angeles played true to form. In addition to the usual swarm of product announcements, education sessions, and the partner pavilion, it was new CEO Mike Lawrie's first opportunity to address the group and meet with customers, press and analysts on a grand scale...

Cooperative Program Builds Relationships, Brand Loyalty

Denis Rehm, director of builder sales for Maxim Lighting, knew that had to change "[Small and medium]-size businesses are difficult for manufacturers to have a direct communication with," Rehm told CRM Buyer. With these smaller customers, purchase volume often pales in compari...

INDUSTRY ANALYSIS

The Hosted Contact Center

In a sign of the times, last week Salesforce.com introduced a new call and contact center service called Supportforce.com. It appears to be a slick package that includes the hardware and software any company needs to initiate or enhance call center activities right down to voice over IP. Salesforce now joins the ranks of companies such as RightNow Technologies and Siebel Systems in offering on-demand call and contact center applications...

INDUSTRY ANALYSIS

Has Oracle Lost Its Way?

They're at it again -- Oracle and (reluctantly) PeopleSoft -- like siblings in the back seat on the ride to grandma's house. Now that a federal court has said that Oracle's pursuit of its rival is OK on anti-trust grounds, Oracle is trying to clear the remaining hurdles, such as the European Commission's potential objections, while PeopleSoft's executives are spending valuable cycles inventing poison pills...

INDUSTRY ANALYSIS

SFA, Component CRM and Other Research Notes

This week I'm trying something different ...

INDUSTRY ANALYSIS

On and Offshore: Call Center Economics

Much heat, and little light, is emanating from this season's political debate about the offshoring of American jobs ...

Judge Rules Oracle Can Pursue PeopleSoft Takeover

"Pressing on by Oracle will be the business equivalent of invading Iraq," Denis Pombriant, managing principal of Beagle Research, told the E-Commerce Times Benefits of the Acquisition?...

INDUSTRY ANALYSIS

Network Integration and the Pivotal Role of CRM

Technology cooperation networks, which allow firms to share valuable knowledge and expertise in the research and development of product lines. The point that stuck with was that enterprise software is already roughly aligned with the five types of networks Castells describes. Bringing Networks Together Most interestingly, the first three network types -- supplier, producer and customer -- correspond well with the most prominent kinds of enterprise software: supply chain, ERP and CRM. The top three can also be considered "old style" in that their actions are based on transactions, while the last two network types have an aura of Buck Rogers and the twenty-first century about them. Large pharmaceutical companies and academic medicine seem to come together in technology cooperation networks to cure disease or discover a new drug. Such networks also increasingly bring together competitors to develop technologies like the new cross-service fighter jet being developed by Lockheed and Boeing. Central Role for CRM But what really takes your breath away is the potential importance of CRM to the mix. In a highly networked world where everyone is a vendor and everyone is a customer, CRM occupies a unique place in bringing the various networks together. That's why integration has to be at the forefront of any CRM company's thinking today. And by integration, I mean process integration, not simply integrating data. Data integration has been a powerful tool in integrating any single network type, but process integration is required to integrate across networks. While it might be relatively easy to vertically integrate data up and down the processes of a single network type, it is far more difficult to integrate horizontally, across networks. For example, while a modern CRM system can capture a complete view of the customer's needs, it is far more difficult to translate this information into product specifications that participants in either a supplier network or a producer network (or both) can use to design, build and deliver the right product at the right time. Challenge of Integration Similarly, technology cooperation networks performing high-value research -- such as new drug discovery or deep market studies -- depend on deep understanding of different aspects of the customer to perform their functions. All this and more argues for inter-process integration. Because there are so many disparate processes and systems that manage each of these kinds of networks, it is virtually impossible to consider developing and maintaining traditional point-to-point interfaces between all of them. It is also highly doubtful that any single vendor can provide the best applications for all aspects of a trans-network business process. All of this leads us to the importance of integration strategies that are just coming to market. In this space I have discussed the virtues of Web Services, XML, SOAP and more ambitious approaches such as Siebel's Universal Application Network and SAP's NetWeaver. I've also discussed the need for deep support articulated by Shoshana Zuboff in The Support Economy. The challenge of building better products that are more useful and less expensive resides in integrating the numerous networks that support the different phases of product analysis, development, delivery and support. This can be done only by continuously improving inter-process integration. Denis Pombriant is former vice president and managing director of Aberdeen Group's CRM practice and founder and managing principal of Beagle Research Group. In 2003, CRM Magazine named Pombriant one of the most influential executives in the CRM industry. ...

New Business Model Emerging for Enterprise-Software Industry

Because the publisher will have a relatively captive customer base (similar to your phone or electric company) the publisher will have an instant sales channel for new products and will be able to sell through the channel at a far lower cost than today's software companies encounter. Many people have noted the seeming lack of some "new, new thing" to propel the tech industry. Some have advocated taking care of the unfinished business of making everything that we already have work. But making everything work doesn't mean hanging on to the status quo. The new, new thing is a new business model based on an architecture that really can promote interoperability. That's a worthwhile challenge and one that will employ quite a few of us over the next decade. Denis Pombriant is former vice president and managing director of Aberdeen Group's CRM practice and founder and managing principal of Beagle Research Group. In 2003, CRM Magazine named Pombriant one of the most influential executives in the CRM industry. ...

INDUSTRY ANALYSIS

Voice of Customer Driving Music Industry Evolution

One of the hardest things about observing evolution -- even business evolution -- is that the pace is so slow that the turning points are not apparent except in retrospect. Does anyone remember when Digital Equipment Corporation or Wang Laboratories became irrelevant? They are gone today and have been for many years but at one point they ruled an important swath of the computer industry. Yet they fell into insignificance and disappeared...

Salesforce.com Builds Momentum, Targets Large Companies

Denis Pombriant, founder and managing principal of Beagle Research, said, "There's no greater testament or compliment to Salesforce.com's success than the fact that a number of very large enterprise software companies are imitating their model." He noted that major competitors...

INDUSTRY ANALYSIS

Analyst Glut Might Not Last

Too many dollars chasing too few products results in inflation. We've all seen that phenomenon. But what happens when too many similar products swamp the market? Usually the oversupply results in falling prices, and that seems to be what's been happening in the analyst business for several years ...

Microsoft CRM Customers: Don’t Use SP2 Yet

Beagle Research founder Denis Pombriant told CRM Buyer that the glitch is a big problem, but that he does not imagine Microsoft will let it stand for long. "I would expect that Microsoft will have a solution for those customers pretty soon," he said. "They're usually pretty good about that sort of thing."

OPINION

Economics, the Tech Industry and the Election

E-mail, once an application for intraorganizational communications, became one of the fastest and least expensive means of connecting with colleagues in the next office or on the other side of the planet. The list goes on, and it is a long one. But even this short examination shows that the benefits of investment in technology have significant follow-through in the rest of the economy. Will the economy reignite after the election with growth in good new jobs at aspiring companies intent on inventing the future? That's hard to say, and there are myriad variables that need to align to make that happen. But one thing is certain: Government policy in the form of carrots and sticks that encourage investors to risk their capital on new ideas, new markets and new solutions is an essential element of any recovery. Personally, I am looking for the candidate who can best articulate that vision. Denis Pombriant is former vice president and managing director of Aberdeen Group's CRM practice and founder and managing principal of Beagle Research Group. In 2003, CRM Magazine named Pombriant one of the most influential executives in the CRM industry. ...

INDUSTRY ANALYSIS

What’s Next in CRM?

I have heard a lot of talk in the industry lately about CRM being "over." The current phase lacks the 40 percent-plus growth rates of the 1990s, and many people have concluded that means the need for customer relationship management solutions is waning. But maybe not. ...

INDUSTRY ANALYSIS

Race for Ultimate Hosted CRM Model Underway

Marc Benioff, chairman and CEO of Salesforce.com, rang the closing bell at the New York Stock Exchange last Wednesday, an act that some day may be viewed as the end of the beginning of the hosted enterprise-software revolution. The ritual market closing was part of a bigger event: the company's first presentation to the press and financial analysts since going public in June...

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