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Future Trends in Customer IT Beyond CRM(aka “When did—or when will—CRM stop sucking?”)
2015.08.17
Darius Vaskelis
@vaskelis
2
@vaskelis #CRMevolution
AGENDA – RAPID-FIRE TOUR OF THE PAST, PRESENT AND FUTURE
• Darius Vaskelis: Who is this guy? And what does he mean by “customer IT”? (5 minutes)
• The Past: How did we get here? (10 minutes)
• The Present: Where are we? (15 minutes)
• The Future: Where are we going? (15 minutes)
image source: turning points
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@vaskelis #CRMevolution
HI, I’M DARIUS
• Son of Lithuanian immigrants, lucky to have had amazing global business clients, almost all CRM
• Product of the East Coast and Chicago
• Started career at IBM, later in corporate IT, part of Inforte leadership team for IPO, then Cognizant, and former CEO of Safepole, patient care device startup
• Learned CRM over a 20 year stretch from many custom systems in corporate IT, later was present for the rise and fall of Siebel, and have been there for the rise of Salesforce, along with Blackbaud, Microsoft and Oracle, having partnered with them all and implemented many others too
• Was CEO and co-founder of Sakonent since 2009, a leading Gartner-recognized CRM tech consultancy, which was acquired by Tectonic in 2014; now Tectonic’s SVP of CRM
• Focused on the sales, marketing and customer service tech scene
@vaskelis #CRMevolution
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What do you mean by “customer IT”?(CRM by any other name)
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@vaskelis #CRMevolution
REMINDER: THE VALUE CHAIN
Representation of activities within a firmto show how value is
produced*
*Michael E. Porter, Competitive Advantage (The Free Press, 1985)
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@vaskelis #CRMevolution
VALUE CHAIN IN A VALUE SYSTEM
Representation of activities across firms to show how value is produced*
*Michael E. Porter, Competitive Advantage (The Free Press, 1985)
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@vaskelis #CRMevolution
CUSTOMER IT AND THE VALUE SYSTEM
Customer IT activities are those that interact, optimize and collaborate with channels and customers
Customer IT activities
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@vaskelis #CRMevolution
CUSTOMER IT FUNCTIONALITY EXAMPLES
• Breadth of customer IT covers sales, marketing and customer service activities
• Depth of customer IT covers data, transactions, reports, analytics and dashboards
• Users can be internal or external partners, channels, prospects or customers
• Delivery can be anywhere: internal, external, and is largely mobile and integrated with social networks
• Paul Greenberg: “Customer Relationship Management is a technology and system that sustains sales, marketing and customer service activities. It is designed to capture and interpret customer data, both structured and unstructured, and to sustain the management of the business side of customer related operations. CRM technology automates processes and workflows and helps organize and interpret data to support a company in engaging its customers more effectively.”
Sales Marketing Service
Sales Force Automation (SFA)
Omnichannel Campaign Management
Contact Center Management
Partner/Channel Relationship Management Customer Data Mining Field Service Management
Quote/Order Management Email Marketing Return and Depot Repair Management
Incentive Compensation Management
Segment/List Management
Service Contract Management
Prospect/Lead Management
Marketing Resource Management
Spare Part/Inventory Logistics Management
Proposal/Contract and Billing Management
Trade Promotion Management
Warranty/Claims Management
Forecast Management Collateral and Digital Asset Management
Bug Tracking/Defect Management
@vaskelis #CRMevolution
9
Where did CRM come from?(depends on who you ask!)
SNA
Terminal
Mainframe
Connect With Your Customers in a Whole New Way
LAN / WAN
Client
Server
LAN / WAN
Client
Server
Systems of Record
Cloud
Mobile
Social
Data Science
Systems of Engagement
Systems of Intelligence
This is how Salesforce.com explains the eras of customer IT.
It’s not wrong, but did CRM really begin with mainframes? My argument is that the roots of CRM really began with the introduction of the PC.
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@vaskelis #CRMevolution
THE EVOLUTION OF CUSTOMER IT INTO CRM
Transactional-based data computation, tabulation, and recording to assist with individual clerical tasks
PCs, relational databases, PBX, ACD, fax“Data Processing era” -PIM, Contact Databases, Database Marketing
Enforcement-based automation and enhancement to assist
specific departmental activitieslocal area networks, laptops, CTI, IVR“MIS era” -
SFA, Call Center, Campaign Management
Rules-based enterprise view of departmental business processes
and decisions across functions
client/server, ERP, EAI, DSS, objects (DCOM, CORBA)
“IT - Client/Server era” -CRM
Using the Internet to deploy contractually-based business processes and decisions to entire enterprise
(self-service) and customers, channels, and suppliers
web, early mobile, XML, DW & BI, MDM, chat, analytics, web services
“eBusiness era” -“eCRM”
These concepts draw on original ideas, research with Professor Michael E. Porter, and from Professor Porter’s books and articles, in particular, “Strategy and the Internet” (Harvard Business Review, March 2001) where Darius Vaskelis was a contributor.
@vaskelis #CRMevolution
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CRM Today and the Next-gen(aka “Why do Millenials seem to like CRM?”)
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@vaskelis #CRMevolution
SOCIO-ECONOMIC ERAS: MILLENIALS/ERA OF TRUST
• Transparency/trust hurts relationships propelled by situational values
• Involve calculations about what is available in the here and now
• Ex: Great Firewall of China, “Why I Am Leaving Goldman Sachs”, etc.
• Transparency/trust helps relationships propelled by sustainable values
• Connect us deeply as humans, such as integrity, humility, excellence, loyalty and passion
• Ex: Facebook, Amazon reviews, Ralph’s doughnuts, etc.
graphic source: Michael Moon, Firebrands (McGraw-Hill Osborne Media, 2000) referencing Peter Drucker’s eras
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@vaskelis #CRMevolution
“Traditional” CRM “Next-gen CRM”Scope sales, marketing, customer service entire firm, customers, channel partners
Leadership command and controlby departmental executive management
connect and collaborateat all levels with shared standards
Incentives/Culture “carrots and sticks” to manageprocess performance and adoption
purpose and reputation supportself-governing cooperative behaviors
Timelines inside-out “big bang”(months/years)
outside-in fast & iterative(days/weeks)
Implementation re-engineer & slow, massiveonsite implementation
“turn it on”, roll it out fast, learn,tweak, continuously improve
Technology massive platform commitment “try it out”, open, modular,almost always cloud-based
Integration integrate tightly inside the enterprise loosely couple inside and outsidewith Internet data sources
Sponsorship IT selects technologyfor the business
business-drivenand IT-assisted
Devices personal computer (PC), laptop web browser, tablet, smartphone,BYOD (bring your own device)
Users forced to comply with“anti-social” system
system complies with empowered collaborating users and customers
Data structured data (tables/screens) structured and unstructured data optimized and predicted
Financial buildvs. buy buy/rent/build/open source
Maintenance dedicated IT CRM application team outsourced CRM application teamto scale up/down as needed
CRM HAS EVOLVED IN THE ERA OF TRUST
• CRM has shifted to a new generation of CRM.
• “Carrots and sticks” are giving way to purpose and reputation, particularly with millennials.
• If you implement new technology in an old paradigm, you fail.
• Underlying technology is just a start, how you implement has also changed.
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@vaskelis #CRMevolution
WHERE IS CRM TODAY: THE POST-PC ERA. “MOBILE FIRST.”
Transformational trust-based transparent optimization of activities inside and outside the socially-connected enterprise in mutual market-driven collaboration with
customers, channels, and suppliers
SaaS, PaaS, smartphones, social networking, blogs, wikis, Web 2.0+, HTML5, open source, cloud, SOA, tablet, mashups, “big data”, OData, consumerization/BYOD
“Post-PC era” –“Next-gen CRM”
@vaskelis #CRMevolution
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How is “Next-gen CRM” different?(Post-PC App implementation context)
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@vaskelis #CRMevolution
NEW APPROACH TO ORGANIZATIONAL CHANGE MANAGEMENT
YChange Management
One of the critical success factors in deploying CRM is
your ability to handle the change
LESS MORE
Carrot/Stick User Adoption
System Training
Carrot/Stick & “WIIFM” User
AdoptionProcess Training
Process & Reputation Training &
Communications
Purpose & Reputation Training &
Communications
Values-Based Culture as a
Strategy
transparency of leadership commitmentsustainability of change / emphasis on behaviors
Focus on behaviors to encourage Identify the incentivesEngage users from the very start and invest them in the requirements process along the wayScheduled application reviews to get people controlling the change
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@vaskelis #CRMevolution
WHAT’S A POST-PC “APP”? – TASKS, PART OF A PROCESS
VSpecific
CRM Process
Approval Workflow Routing
Task
Modify Data Task
Process Conclusion
Task
Enrich Data with Internal/
External/ Sensor Source
Task
Create Data Task
Dashboard Validation
Task
Decision or Next Step
Action Task
Process Initiation Task
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@vaskelis #CRMevolution
POST-PC APP CANDIDATES – TASKS IN A PROCESS (CLIENT EXAMPLE)
VStrategic Project
Opportunity
Develop Quote with
Custom Pricing
Update Forecast
Flag as “Won” Link to Order(s)
Enrich Data with
Documents/ Pictures/GPS
Schedule Follow Up
Develop Sample Book
Evaluate/ Qualify
Opportunity Score
Accept Lead, Initiate
Opportunity Process
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@vaskelis #CRMevolution
Evolution of Apps - unbundling of processes example: Facebook
Single-purpose “there’s an app for that”
Multi-purpose web app Multi-purpose mobile app
Source: Internet Trends 2014 – Code Conference (Mary Meeker, Kleiner Perkins Caufield Byers)
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@vaskelis #CRMevolution
Evolution of Apps - unbundling of processes example: Salesforce1
Single-purpose “there’s an app for that”
Concept: KCBP’s Internet Trends 2014
Post File NewTask
Log aCall
NewOpp’ty
NewLead
Multi-purpose web app Multi-purpose mobile app
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@vaskelis #CRMevolution
POST-PC APP EXTENSION FRAMEWORK – EVALUATING OPTIONS
OMOBILE CRM
Applying enterprise mobile best practices along with CRM process
best practices gives a starting point in evaluating effort/benefit
for mobile CRM usage.
HighBenefit
LowBenefit
SimplerImplementation
ComplexImplementation
Basic CRM Mobility•Re-think processes so that crossing
organizational groups are standard•Collaboration directly with customers, as part of communities or just transactions
•Benefits•Cross-organizational collaboration
•Stronger tie-in with customers making it more difficult for them to buy elsewhere
Optimized CRM Mobility
• Re-render customer UI and dashboards for optimal mobile use
• Run processes entirely from mobile, no longer need access to web application
Benefits• Online/offline/office/remote distinctions
and productivity increased• “Mobile first” so mobile is the primary UI
for everything
“Vanilla” Out-of-Box•Standard objects, potentially unoptimized
•Review permissions•Customize navigation
Benefits•Start using immediately
•Provide users mobile CRM access with integrated email, calling, and GPS/maps
Optimized and Tailored•Rethink UI beginning to end around tasks
•Configured layouts•Simple actions/”apps”
•Repurposed existing custom UI/dashboardsBenefits
•Key process wins, direct benefit link•UI now optimized for mobile driving better
adoption by bringing mobile on-par with web UI
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@vaskelis #CRMevolution
SALESFORCE1– ASSESSMENT SUMMARY (CLIENT EXAMPLE)
OSALESFORCE1 MOBILE
Applying enterprise mobile best practices along with CRM process
best practices gives a starting point in evaluating effort/benefit
for Salesforce1 usage.
HighBenefit
LowBenefit
SimplerImplementation
ComplexImplementation
Basic CRM Mobility
•Have Quote Activity approvals through SF1• Have the ability for sales reps assist in the
claim investigation process and send evidence to CS through mobile
• Update SOW entry for ease of use and activity tracking
Optimized CRM Mobility
•Re-optimize Marketing Asset distribution page to add multiple items at one time
•Add QR or “quick order” of sample chips update marketing items/merchandising
replenishment•Access marketing material and new product
presentations. Have the ability to quickly send brochures to the client
•Ability to quickly spec and quote a project“Vanilla” Out-of-Box
•Ensure SSO for everyone works•Keep “as is”
•Convert custom buttons into custom links
Optimized and Tailored
•Update pages to mobile layouts•Create Publisher Actions for
creating/updating Opportunities•Update Planning Dashboard to be viewable
in SF1
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@vaskelis #CRMevolution
HOW WE HELPED• Defined, Designed and Delivered an analytical
inspired CRM Capability to integrate seamlessly with a custom built analytics application and three Petabytes of data within a Teradata Warehouse.
CMO’S CHALLENGEMore predictable insights required in order to maximize marketing reinvestment strategiesImprove overall enterprise customer experience via deploying a more 1:1 & personalized approach towards marketing Grow Revenue
Phase 1
4 Weeks
Phase 2
8 - 10 Weeks
AUTOMATED A SET OF BUSINESS PROCESSESINTO AN INTERGRATED TECHNOLOGY SOLUTION
STANDARIZED CUSTOMER INTERACTIONS AND ENABLED MARKETING AUTOMATION
INCREASED REVENUE 9-12% PER CUSTOMER
RESULTS
IT STARTED HERE: ANALYTICS & BIG DATA CASE: HOSPITALITYImplemented Operational and Analytical CRM to drive revenue and customer Insights . . .
l
25
@vaskelis #CRMevolution
HOW WE HELPED• Defined, Designed and Delivered an analytical
inspired CRM Capability to integrate seamlessly witha custom built analytics application and threePetabytes of data within a Teradata Warehouse.
CMO’S CHALLENGEMore predictable insights required in order to maximize marketing reinvestment strategiesImprove overall enterprise customer experience via deploying a more 1:1 & personalized approach towards marketing Grow Revenue
Phase 1
4 Weeks
Phase 2
8 - 10 Weeks
AUTOMATED A SET OF BUSINESS PROCESSESINTO AN INTERGRATED TECHNOLOGY SOLUTION
STANDARIZED CUSTOMER INTERACTIONS AND ENABLED MARKETING AUTOMATION
INCREASED REVENUE 9-12% PER CUSTOMER
RESULTS
IT STARTED HERE: ANALYTICS & BIG DATA CASE: HOSPITALITYImplemented Operational and Analytical CRM to drive revenue and customer Insights . . .
l
2015.05.06
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@vaskelis #CRMevolution
CRM IT ARCHITECTURE EXAMPLE: ENABLE CUSTOMER-CENTRICITYMAPPED ENTIRELY ALONG CUSTOMER JOURNEY
BI/DWanalytical tools
CRMconfigured applications (leverage best practices)
CRMcustom applications
brand/community
target/marketing
prospect/sales
nurture-renew/service
greet/operations
market & community
analytics
marketing, lead & list analytics
sales prospecting & performance
analytics
sales account & performance
analytics
operations analytics
community relations
management
list management
opportunity management
campaign management
event management
account/ membership management
incident management
case management
forecast management
organizational account & process
collaboration
organization calendar
(community, events, external,
etc.)
community for partners and
channels (invoices, case interaction, special requests,
feedback, discussion, etc.)
onboarding/ provisioning
management
product inventory management
renewals management
donation management
grantmanagement
vendor dispatch management
survey management
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@vaskelis #CRMevolution
EXAMPLE “PLAYBOOKS” OF ACTIONS RUN FROM CRM:INSIGHT DRIVEN FROM CUSTOMER DATA (SPORTS TEAM)
brand/community
target/marketing
prospect/sales
nurture-renew/service
greet/operations
identified prospect
3 Pack Member
6 Pack Member
9 Pack Member
Partial Season Ticket
Member
Full Season Ticket
Membersave
qualified prospect
understanding needs
value discussions
proposal/ quote/invoice win
onboarding
awareness targeting
content targeting
product/ experience targeting
lead conversion targeting
capture nurture convert partner
in-game recognition
post-event follow-up
pre-event touch point
member nurturing
campaigns
• This illustrative list is the types of sets of “plays” of pre-defining actions by those who interact with a customer in any way.• Insight gained from the business intelligence foundation should feed/adjust/drive the actions recommended in CRM.• Actions should be front-and-center on the desktop or on any mobile device, and include inter-group “jumps” as goals.
@vaskelis #CRMevolution
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POST-POST-PC CUSTOMER IT(it’s already begun: the “Internet of Things”)
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@vaskelis #CRMevolution
HOW WILL CUSTOMER IT EVOLVE? BEYOND “MOBILE” ALTOGETHER.
Highly intimate, yet externally integrated, context-based intelligent notifications take information from IT applications and sensors to reduce friction and inform
other all other enterprise and customer processes.
smartcards, geolocation, ambient sensors, cameras, wearable devices, personal sensors, voice control, gesture control, haptics, augmented reality, virtual reality
“IoT era” –“Intelligent Apps”
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@vaskelis #CRMevolution
TWO IOT ERA EXAMPLES: ONE TODAY, ONE TOMORROW
Today: The Tampa Bay Rays were the first MLB team to use a smart card with proximity sensors to handle non-transferrable electronic ticketing, parking, and in-park purchases where the location and actions are tailored based on level of membership.
They know when you’re there, give you specialized treatment, and make transactions frictionless.
Tomorrow: Imagine your smart watch monitoring your heart rate, realizing it’s elevated because it ties together current geolocation data with your CRM to see you are right now presenting to a top prospect, Paul, who can make or break your quarter.
It taps you gently on the wrist, and displays “Relax. Deep breath. Tell Paul a joke and dive in.” because it also knows from your CRM that there’s advice to be casual with Paul before getting down to business.
@vaskelis #CRMevolution
31
THE FUTURE OF CUSTOMER IT(plus a peek at a use case today)
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@vaskelis #CRMevolution
WHAT’S NEXT? “THERE IS NO SPOON.”
In the movie The Matrix, the lead character is told there is no spoon” when he sees a floating spoon being warped and bent without physical force.
In the movie, it’s because the lead character no longer has need for things in the reality of the Matrix, transcending the need for physical utensils and tools.
The same thing is happening with CRM and customer IT. The device is going away.
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@vaskelis #CRMevolution
HER, IN 2013, WON AN OSCAR FOR BEST ORIGINAL SCREENPLAY
The film follows a man who develops a relationship with Samantha, an intelligent computer operating system personified through a Siri-like female voice.
“Her speech recognition, natural language understanding, speech generation, dialog, reasoning, planning, and learning all far exceed the current state of the art. She is able to take on complex tasks — she filters Theodore’s inbox with a sophisticated understanding of the goal — and is able to engage in flexible reasoning without any obviously predetermined responses.”*
Can We Build ‘Her’?: What Samantha Tells Us About the Future of AI (wired.com) Vlad Sejnoha
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@vaskelis #CRMevolution
THERE IS NO DEVICE. THERE IS NO APP. JUST YOUR DIGITAL ASSISTANT.
Invisible auto-collaboration-based activities spanning personal and professional spheres
managing everything, everywhere.
intelligent personal digital assistants, spontaneous knowledge, on-demand integrations, mesh network applications, “cyborg” implants, “replicators”, autonomous drones
“Virtual era?” –“Assistants?”
35
@vaskelis #CRMevolution
TWO ASSISTANT ERA EXAMPLES: ONE TODAY, ONE TOMORROW
Today: Technology like Crystal gives advice for better communications, including real-time prompts while writing emails to match the recipient’s detected personality based on Internet information so that the sender’s message is optimally understood.
Tomorrow: Imagine a digital assistant in your ear whispering advice for everything: where to go, what to buy, what to say, what to do next. It’ll all be based on customer, financial and personal data from all your systems and your detected optimal patterns to be healthy, happy, and successful as defined by how you measure those concepts personally.
@vaskelis #CRMevolution
36
Evolution of Customer IT(aka “When did CRM stop sucking?”)
37
@vaskelis #CRMevolution
THE EVOLUTION OF CUSTOMER IT
• Each era reflected the changing role of IT, starting originally as a finance support function.
• Business impacts started as transactional support, but have grown transformational with the IT enablers of social, mobile and “big data.”
• Many customer IT platforms have technology underpinnings rooted in an earlier era, making it more difficult to fully leverage the benefits of more modern IT.
Transactional-based data computation, tabulation, and recording to assist with individual clerical tasks
PCs, relational databases, PBX, ACD, fax“Data Processing era” -PIM, Contact Databases, Database Marketing
Enforcement-based automation and enhancement to assist
specific departmental activitieslocal area networks, laptops, CTI, IVR“MIS era” -
SFA, Call Center, Campaign Management
Rules-based enterprise view of departmental business processes
and decisions across functions
client/server, ERP, EAI, DSS, objects (DCOM, CORBA)
“IT - Client/Server era” -CRM
Using the Internet to deploy contractually-based business processes and decisions to entire enterprise (self-service)
and customers, channels, and suppliers
web, early mobile, XML, DW & BI, MDM, chat, analytics, web services
“eBusiness era” -“eCRM”
Transformational trust-based transparent optimization of activities inside and outside the socially-connected enterprise in mutual
market-driven collaboration with customers, channels, and suppliers
SaaS, PaaS, smartphones, social networking, blogs, wikis, Web 2.0+, HTML5, open source, cloud, SOA, tablet, mashups, “big data”, OData, consumerization/BYOD
“Post-PC era” –Next-gen CRM
Highly intimate, yet externally integrated, context-based intelligent notifications take information from IT
applications and sensors to reduce friction and inform other all other enterprise and customer processes.
smartcards, geolocation, ambient sensors, cameras, wearable devices, personal sensors, voice control, gesture control, haptics, augmented reality, virtual reality
“IoT era” –“Intelligent Apps”
Invisible auto-collaboration-based activities spanning personal and professional spheres
managing everything, everywhere.
intelligent personal digital assistants, spontaneous knowledge, on-demand integrations, mesh network applications, “cyborg” implants, “replicators”, autonomous drones
“Virtual era?” –“Assistants?”
✓
#CRMevolution@vaskelis
Future Trends in Customer IT Beyond CRM(aka “When did—or when will—CRM stop sucking?”)
2015.08.17
Darius Vaskelis
@vaskelis