Chapter 8 : Customer Relationship Management Heads To The Cloud

1. What types of companies are most likely to adopt cloud-based CRM software services? Why? What companies might not be well-suited for this type of software?

Answer:

The companies that most likely to adopt cloud-based CRM software services are small companies such as Fireclay Tile, a small sustainable tile manufacturer and Large companies such as Siemens, the Wall Street Journal, Pitney Bowes and Starbucks. Small companies adopt cloud-based CRM software service to find the on-demand model especially appealing because there are no large up-front hardware and software investment on lengthy implementation corporate computer systems. Large companies adopt cloud-based CRM software service track sales performance against objective in real time and to monitor key performance indicators, sales calls and sales volume. The companies like Nikon might not be well-suited for cloud-based CRM software service because Nikon had been using different system to perform business functions and was struggling to merge customer data located on a variety of legacy systems.


2. What are the advantages and disadvantages of using cloud-based enterprise application?

Answer:

Advantages

• Helped the company quadruple new sale leads by using e-mail and Web-to-lead
• Can tracks more field activities with automated reports and dashboards monitoring key performance indicators, sales calls and sales volume
• Embedded tools for forecasting and analytics and interactive dashboard
• To merge customer data from disparate sources and applications into a single system
• Customizable applications, impeccable customer service and robust infrastructure
• Implement a Web-based FAQ system to answer customer questions and provide support on the data and thus to reduce the number of incoming calls
• Combine outbound e-mail, contact management, and customer records into a single system in cloud
• Receive a solid return on the investment (ROI) and saving money

Disadvantages

• Assurances and service level agreements are not always available
• No guarantees that their data will be available all the time
• Users dependent on the cloud computing provider
• Facing security risks related to entrusting their critical data and systems to an outside vendor that also works with other companies

3. What people, organization, and technology issues should be addressed in deciding whether to use a conventional CRM system versus a cloud-based version?

Answer:

Many companies are concerned about maintaining control of their data and security. Although cloud computing companies are prepared to handle these issues, availability assurances and service level agreements are not always available. At the same time, companies that manage their CRM apps with a cloud infrastructure have no guarantees that their data will be available at all times or even that the provider will still exist in the future.