After three days of cloudwashing, cloud-in-a-box and erector set private cloud musings at Oracle OpenWorld in San Francisco this week, CEO Larry Ellison chose day four to take the wraps off a legitimate move into cloud computing.
Oracle Public Cloud is the unification of the company's long-struggling software-as-a-service (SaaS) portfolio with its Fusion applications transformation, all atop Oracle VM and Sun hardware. While Ellison spent much of his keynote taking pot shots at his former sales executive and now SaaS nemesis, Salesforce CEO Mark Benioff, the actual solution being delivered is more of a direct competitor to Amazon Web Services than Force.com. The strongest evidence is in Oracle's stance on multitenancy. Ellison adamantly shunned a tenancy model built on shared data stores and application models, which are key to the profitability of Salesforce.com (and most true SaaS and PaaS solutions), stating that security comes only through application and database isolation and tenancy through the hypervisor. Oracle will no doubt use its own Xen-based hypervisor, OracleVM rather than the enterprise standard VMware vSphere, but converting images between these platforms is quickly proving trivial.
It has been a few years since Forrester delved deeply into the issues surrounding consumer privacy, and in that time, an awful lot has changed:
Facebook Connect, Google ID, Yahoo Identity, and Sign In With Twitter have emerged as a wholenew way of being recognized across a myriad of websites across the Net. As little as a decade ago, most adults online couldn’t have imagined the convenience of single sign-on.
At the same time, data capture methods have not only proliferated, they’ve become exceptionally sophisticated. Tactics like Flash-based cookies and deep packet sniffing surreptitiously collect behavioral data about online consumers, while loyalty and membership cards provide more insight into consumers’ purchasing habits at the line item level than ever before.
All that extra data is hard to protect without big changes to governance policies and technology stacks, and when data breaches happen, they're public and ugly.
Finally, legislators have forged ahead with regulations to protect consumer data. Europe's answer is the Data Protection Directive – a regulatory framework that governs the capture, management and use of consumer data, while in the US, congressional leaders, egged on by consumer advocacy groups, are introducing bills designed to limit data capture and to provide remediation in cases of data and security breach.
The statistics that salesforce.com broadcast at Dreamforce last week are impressive: a $2.2 billion annual run rate; 104,000 customers; and 35 billion transactions per quarter (see Benioff's keynote slides here). The conference was attended by 40,000 users, with a further 35,000 joining online. Salesforce.com’s cloud messaging is mature and no longer a focal point. However, what was most interesting from a customer service/CRM standpoint was the focus on the “social customer” and the way that CRM applications need to adapt to accommodate them.
Traditionally, CRM software has been anything but focused on the customer. It has been positioned as software aimed at the business user to increase their productivity and efficiency as they interact with customers, clients, and sales prospects.
Salesforce.com’s new CRM messaging spotlights the customer and the way that customers interact today using the new social channels and loose social processes to research and select products to purchase and get answers to their questions. Customers are also company employees and want to use these channels to collaborate with other employees at work in the same way they use these channels in their personal lives. This means that these social channels and processes need to also extend inside the enterprise. Check out salesforce.com’s interaction map for the social customer:
“Mobile CRM” is a hot topic with my clients. The emergence of ubiquitous high-speed broadband connectivity, smartphones, and tablet devices with enormous computing power and longer battery life, along with increased employee adoption of touchscreen devices in every sphere of life, are all trends that serve to liberate IT from the desktop.
However, the state of mobile CRM solution support is fragmented. While there are platforms and solutions that cater to specific industries, no mobile CRM vendor currently offers out-of-the-box cross-industry functionality. The gap between the functionality available via desktop and mobile CRM applications is far from being bridged. And vendors sometimes adopt a single-device or single operating system (OS) strategy, limiting the range of devices and OSes available to companies.
To help define a path for navigating this complex landscape, I interviewed 25 CRM solution vendors, systems integrators, mobile solutions developers, and user compananies. My findings are summarized in a new report: Best Practices: The Right Way to Implement Mobile CRM.
A guiding principle for getting value out of “mobile” is to look for situations where you can integrate an mobile application into the normal execution of the day-to-day business processes of managers and frontline workers. Here are some additional tips:
Understand the opportunity to improve CRM and drive adoption. For example, will enabling workers to update the CRM system and tasks in real time throughout the day when they’re in the field — rather than doing it once they get back to their desks at the end of the day — make them more productive?
We all know that companies are trying to leverage social channels for customer service. But how can they be deployed in a way that adds value to an organization? Here are my thoughts:
You can’t implement social technologies in a silo within your contact center because you have to be able to deliver a consistent experience across the communication channels you support: voice, the electronic ones, and the social ones. Read my blog post on how you can do this.
Once you get the basics right, you are ready to add social media capabilities. Best practices include:
Start by listening to customer conversations. These conversations can surface general issues with products, services, and company processes. Make sure you create workflows to route surfaced issues to the correct organization so they can be worked on.
Flag and address social inquiries. Understand the general sentiments expressed in these conversations, but also identify specific customer inquiries and route them to the right agent pool for resolution.
Extend your customer service ecosystem with communities. This allows your customers to share information, best practices, and how-to tips with each other, as well as get advice without needing to interact with your agents. But don’t implement them in a technology silo; they should be well-integrated with current contact center processes.
Today’s contact center ecosystem is complex, and comprised of multiple vendors who provide the critical software components. Read my blog post on what these critical software components are. Customers are looking for a simpler technology ecosystem to manage from both a systems perspective and a contractual perspective.
Suite solutions, available from unified communications (UC), CRM, and workforce optimization (WFO) vendors, are evolving and include comprehensive feature sets. These vendors have either built these capabilities out or acquired them via M&A activity. And we expect more M&A to happen.
What are the right metrics to track the success of a CRM initiative? I just updated my report on this topic for 2011. The report illustrates over 70 different metrics and describes how to link them to business strategies and tactics.
What’s new in the report? My clients are incorporating new measures into their portfolio. In addition to traditional operational metrics, they are adding externally focused customer perception metrics. In particular, I see a rise in adoption of voice of the customer (VoC) metrics and “social metrics”:
Forrester’s book Groundswell made the power of social media tangible with real-world examples and laid out a framework to help onboard organizations. However, many companies today still struggle to benchmark their social media journey, manage bottom-up social activities, and prove the ROI of social media activities. The new chapters published in the just-released expanded and revised edition of Groundswell highlight some best practices. Here are some of them:
Understand why you are embarking on the social journey, and connect social media objectives to the company strategy. Ask hard questions like “Will my social presence help move the customer satisfaction needle?”, “Will it help sell more products?”, and “Will it deflect costs from my service center?”.
Treat social media as another channel in which to engage customers. Customers still want to call you (a surprising 67% of the time), email you, and chat with you. Make sure that your processes, policies, and communicated information are the same across all channels — traditional and social.
Connect your social media efforts. There may be many social media technologies used within your company. Ensure that there is some level of coordination between internal organizations so that you can uphold a consistent experience and brand for your customers.
Start small and staff social media initiatives with existing employees who understand your customers and your business. This is important to help extend your brand — your DNA — to your social channels.