Changing The Game: Monthly Technology Briefs
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1 the way we see it Changing The Game: Monthly Technology Briefs February 2008 CRM 2.0: Developing Increased CRM functionality with Web 2.0 Read the Capgemini Chief Technology Officers Blog at
2 CRM latest developments adding Web 2.0 In the last three months SAP, Oracle and Salesforce.com have all added Web 2.0 elements to their existing CRM offerings. The term CRM 2.0 has become recognizable, complete with the emergence of new pure players claiming specialization and Wikipedia opening a WiKi that allows contributors to share a repository of data, documents, videos, audio and other sources of knowledge to support the discussion and definition of CRM 2.0 that is universally accepted by the CRM community The rationale for CRM 2.0 from this new Wikipedia definition is given as: Classic CRM is no longer viable a one dimensional corporate interaction that provides processes, services and technology to the customer facing departments sales, marketing and customer service. It is time to recognize that there is a customer ecosystem that provides empowered customers, who are increasingly interested in making their own choices, in how they interact with companies that they do business with. That means that not only does the company need to provide the goods and services, but the tools and culture to make the experience of that customer one of paramount and unparalleled value to that customer and thus to the company in return. An examination of classic CRM and a way of applying it using the collaborative aspects of Web 2.0 to provide customers with the environment defined above would reveal these differences and summary: Classic CRM CRM 2.0 Customer has no direct access to CRM applications Full integration between customer community & CRM apps CRM is associated with automating internal functions Designs processes from company s point of view Resides in the traditional Application environment Focused on managing customer opportunities Interactive environment for creating responses / opportunities Responds to the customers requirements through collaboration Resides across the Web to cover Company & Customers Focused interaction to create sales opportunities A push mechanism for marketing internally designed A pull mechanism for determining what is required offers Tactical and operationally driven A sales and marketing management tool Additionally adds Strategic views of markets and customers An environment for Customer Intimacy It s easy to recognize the above traits by thinking of how airlines, and in particular low cost airlines, changed their processes some years ago to encourage potential travelers to change various parameters of their requirements and see if they could find combinations of destinations, flight times and costs that suited them individually. Today, that has moved even further into the alignment and supply of various additional elements that any traveler might want. Ryanair s Founder and Chairman states that the flight is not where Ryanair aims to make its money, but from a wide range of services and products 1
3 the way we see it that its customer community wants to buy. The vastly increased numbers of air travelers that Ryanair and other low cost airlines have brought into the market are largely lost to existing traditional airlines who they don t see prepared to interact (negotiate) on their requirements. In the words of one of the original pioneers of using Web 2.0 to sell clothes, Threadless.com, Participate! Without you baby, there ain t no us! Its whole business has been built using Web 2.0 communities to drive products and designs. However, as with the low cost airlines, Threadless is now moving to take on traditional players with its first shop opening in Chicago using its CRM 2.0 customer community to constantly generate feedback on designs of new clothes. There are numerous other examples, not just retail, but as the whole point is to embrace your own customers, most of these in other sectors will not be immediately visible without specifically searching on very specific topics of direct interest to the parties involved. So how do the new offerings from major vendors support this? The answer is that each of them has focused on slightly different aspects. If you look more carefully, SAP CRM +Web 2.0 is focused on roles and better communications by making use of Web 2.0 capabilities to improve the internal collaboration capabilities of sales and marketing staff and support customer requirements more flexibly. These capabilities are tied back through the SAP esoa offerings to internal processes and existing enterprise systems thus ensuring the existing functionality of CRM is maintained Oracle promotes integrating front and back office and specifically the enhanced experiences of Web 2.0 for delivering services to people in the way they want, integrating everything including its e-business capabilities without toggling between applications. The linking mechanism is the Oracle Fusion model which defines the use of SOA through business processes Salesforce.com who has relied on using the Web to create its business model around Salesforce Automation provisioned by Software as a Service (SaaS) has started with its FaceForce Connector 1.0 offering a full integration between any Facebook community and its services. Amongst suggested uses is partner relationship management which allows joint enterprise go-to-market promotions to create a shared community between those involved in sales and marketing teams of each partner. However, the same capabilities also allow customer communities to be built and integrated as well Microsoft has created some confusion by labeling its new SME CRM package CRM 3.0 at the time of its launch in This is purely a release reference number and has no relationship with CRM 2.0, or any subsequent version. A wide range of articles and reports on CRM 2.0 can be found at the management news and research aggregation site. Specifically, CRM 2.0 listings can be found at The impact of this and other technologies are discussed in the Capgemini CTO blog Changing The Game: Monthly Technology Briefs (February 2008) 2
4 Leading Company Results (Revenues) Leading Company Results (Revenues) Full Year: IBM $98.8bn Intel $38.3bn Q4: IBM $28.9bn Wipro $1.3bn (approx) Intel $10.7bn AMD $1.77bn Q3: Red Hat $251mn Satyam $563mn RIM (Blackberry) $1.67bn Infosys $1.08bn Cognos $288mn Half Year: CSC $7.9bn Q2: Lawson $219mn Q1: Accenture $5.67bn Movements by Industry Leaders Cisco is investing $9.5mn in SoonR a start-up developing remote access software that allows mobile phones to view files and content stored on a network attached PC. Oracle is to acquire BEA after a period of arguing over the deal price. Oracle chief executive Larry Ellison said: The addition of BEA products and technology will significantly enhance and extend Oracle's Fusion middleware software suite. In a further acquisition, Captovation will enhance the Oracle Enterprise Content Management suite. Sun has licensed Synchronica mobile synchronization software technology (Mobile Gateway SyncML) to enable over the air synchronization of Sun Java Communications Suite with compatible mobile devices. MySQL, the open source database, is to be acquired by Sun and become a widely used part of Sun Software. HP has added entry level Intel and AMD powered 1U servers bundled with Citrix AccessEssentials and Microsoft Exchange Server 2007 application solution blueprints to aid deployment for up to 1000 users. A similar approach for larger installations is built around four new rack-mounted ProLiant servers but with the addition of HP Lights-Out remote management package. The moves are part of an HP strategy to increasingly bundle added value software with cost driven hardware purchases. Intel has withdrawn from the One Laptop Per Child Program (OLPC) due to fundamental differences with the organization s approaches and directors. An updated laptop platform using 45nm chip and with active management and battery life improvement that will support smaller PCs was unveiled at Consumer Electronic Show in Las Vegas, together with an extreme version to support highend graphics and gaming. IBM is acquiring XiV, a specialist Web 2.0 storage vendor whose products will be added to the increasing number of Web 2.0 vendors acquired by IBM. Lotus is adding support for Apple iphone to its Notes product line and a new release of the free Symphony productivity suite will support imacs. IBM is to work with SAP on project Atlantic to allow Lotus Notes to fully integrate SAP workflows, analytics and reporting while running its native presentation formats. Tivoli Provisioning Manager (TPM 5.1.1) has added capabilities to discover and manage cloud computing resources. 3
5 the way we see it Microsoft moving into online services saw its Popfly site win the coveted PC World top 25 innovations in 2007 award, whilst Xbox Live has now achieved 10 million subscribers. Microsoft is to acquire FAST providing it with an Enterprise quality search engine, and prompting analysts to suggest that the new acquisition target for other major vendors would move from BI to Enterprise Search. Bill Gates used the Consumer Electronics Show to give his last keynote as a Microsoft employee, and spoke at length about changes to user interfaces, referring to moving to Natural Interfaces. Hidden away at the event was an advanced beta version of Origami?the interface for ultra mobile PCs which is close to launching. MS Mobile and Embedded DevCon event has been consolidated into MS TechEd 2008 stating that this has become part of mainstream development activities. Microsoft has warned that the Feb 12th rollout of Windows Server Update Server will include an automatic update to Internet Explorer 7.0 unless the auto approval feature is disabled. The EU has announced two new probes into Microsoft following new complaints about interoperability and functionality. Citrix has extended its cooperation on virtualization for desktop and server customers to a new generation of Citrix Presentation Server and Citrix XenDesktop based on Windows Server 2008 and Windows Optimized Desktop with management by Microsoft System Center. Virtualized Applications enhancer Calista is to be acquired as a support of Windows 2008 Hyper-V. Developers who upgrade to Visual Studio 2008 will gain access to a read-only version of the source code for the.net Framework Libraries in what is a landmark change for Microsoft. SAP has unveiled nine new offerings based on its Business Objects acquisition with teams from both SAP and Business Objects offering these to their respective client bases. The offerings connect the two product bases together to add new insights into common issues for compliance and business insights. SAP is to work with IBM on project Atlantic to allow Lotus Notes to fully integrate SAP workflows, analytics and reporting while running its native presentation formats. Google has added more personalization to its products with a Themes API to enable the design of an individual web page with a range of custom themes available as well as allowing personal creativity and a range of new services for the Apple iphone. Google Sky has added new features for professional scientists as well as students and amateurs,,increasing the range of content available. Effective real-time management of advertisers spend and return rates is improved with new features for the Conversion Optimiser allowing advertisers to manage their costper-click for consumers visiting their site by adjusting how much they are paying for Google exposure. What s Happening with Standards The OpenID standard has added Yahoo to its supporters adding 248 million users able to use the OpenID 2.0 version to access other websites particularly around social networking from within their Yahoo login. Open Source Update Joomla Content Management System (CMS) project has released the final beta for version 1.5 aimed at providing an open source solution for managing websites and any online application or service content. MySQL, the open source database, is to be acquired by Sun and become a widely used part of Sun Software. Lenovo has started selling Laptop PCs with preinstalled Novell SuSE Linux operating system starting with the business user-aimed T61 and R61 models. Changing The Game: Monthly Technology Briefs (February 2008) 4
6 More Noteworthy News Nokia is acquiring Apertio, a provider of real-time data platforms that will be used to allow Nokia to manage large volumes of live information for its growing services business. Yahoo used the huge Consumer Electronics Show to announce a new Mobile Client and Developer ecosystem as a continuation of its strategic focus to be the number one name in mobile/smart phone. Designed to allow developers, publishers, and advertisers to write one widget that can then be used for hundreds of devices via the new Yahoo Go client, the move capitalizes on the huge growth in the widget-based mobility market. Facebook users are warned not to download secret crush which has so far infected 3% of users with the Zango adware program that automatically sends itself to five of the user s friends where it monitors the users preferences for advertising purposes. AOL is stopping support for the Netscape browser from 1st February and recommends users to adopt the increasingly popular FireFox browser. Salesforce.com is offering a new pay-as-you-go offer based on per user, per session to its service with the aim of encouraging casual use leading to full contracts. More aids have been made available to developers with access to the Salesforce.com meta data model and a new collaboration service called Codeshare. Network Appliance is acquiring Onaro, a storage management service provider, to compliment its product line and strategy to move towards becoming a total solution provider. AppDNA AppTitude 2.0 automates testing for Windows Vista upgrades by adding a wide range of applications not otherwise included in the discovery and compatibility checking stages to the standard Windows Installer capabilities. Skype will be added by Sony as a capability for its PlayStation Portable console. Sony announced the news at the annual Consumer Electronics Show in Las Vegas. Wipro is opening a new center in the Philippines to cut costs confirming that the challenges of the boom in major Indian centers for IT is hitting its activities. Nicholas Carr s new book The Big Switch rewiring the world from Edison to Google predicts that internal IT will shrink as Software as a Service (SaaS) takes over offering utility level of pricing and services but fails to say when this prediction will occur. EMC updated its storage hardware adding the new CLARiiON AX4 series, with SCSI-attached Storage (SAS) for the first time and specifically intended to work with VMware Infrastructure capabilities. The new range replaces AX150 and CX300 units. A new generation of flash memory Solid State Drives (SSD) removing the disk drive to cut power requirements and increase reliability has been launched starting with the Symmetrix DMX-4 system. Document Sciences is to be acquired to add their xpression document access product which supports multi-channel communications access to documents to the capabilities of EMC document management portfolio. Apple has added new desktop and server systems claiming the new Mac Pro desktop is the fastest Mac ever made. Its latest 1U rack optimized Xserve comes complete with an unlimited Mac OS X server Leopard software pack. The new Macbook Air is claimed to be the thinnest notebook on the market. 5
7 the way we see it Aruba is acquiring AirWave for its cross vendor network management platform that supports wireless services. Government Insights in its report Worldwide Government 2008 Top Ten Predictions forecasts that Gov 2.0 will replace egov as the centerpiece of Government strategies and projects to offer increased value to citizens. SuccessFactors has added a Web 2.0 version of its employee management suite. We think of removing paper-based processes as talent management 1.0 but we see employee optimization as the second step their CEO explains. MySpace has started a new initiative to protect younger users, setting out a set of guidelines for site owners and US Law enforcement agencies called Joint Statement on Key Principles of Social Networking Sites Safety. IDC PC shipment report for Q showed strongest growth in five quarters up 14.3% to 269 million units with HP holding onto the number 1 spot, followed in order by Gateway, Lenovo, Toshiba and then Dell in fifth place. IDC report a 63% growth in on demand (SaaS) ERP services in 2006 as well as a 7% rise in traditional ERP business with SAP, Oracle, Sage, Microsoft, and Infor as the top five vendors. Satyam is acquiring Chicago-based Bridge Strategy Group, a relatively small niche player focused on certain sectors. Changing The Game: Monthly Technology Briefs (February 2008) 6
8 About Capgemini and the Collaborative Business Experience Capgemini, one of the world s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working - the Collaborative Business Experience - and through a global delivery model called Rightshore, which aims to offer the right resources in the right location at competitive cost. Present in 35 countries, Capgemini reported 2006 global revenues of EUR 7.7 billion and employs over 83,000 people worldwide. More information is available at Andy Mulholland Global Chief Technology Officer, Capgemini Tel: +44 (0) andy.mulholland@capgemini.com
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