 Randy Saunders Marketing Director Customer Experience Management Products Cincom
On-demand CRM solutions can be an option for any
organization – regardless of size. If your company could benefit from lower
risk, lower costs, rapid ROI and high value CRM solutions, then you may want to
further research on-demand CRM. There are four main reasons why more and more
companies are considering on-demand CRM.
Hosted or on-demand solutions now offer a serious
alternative to the complexities and risks associated with traditional CRM
solutions. Consequently, more and more companies are discovering that on-demand
CRM solutions simplify the management of complex business processes resulting in
low risk, low cost, rapid ROI and high value.
Here are four main reasons why more and more companies are considering on-demand
CRM:
-
Simplifying Choices Means Lower Risk
Unlike traditional CRM solutions, on-demand CRM solutions offer companies a
choice in how they want the solution delivered. Companies can choose to
purchase a license and let a service provider manage the logistics and
infrastructure of their software or they can choose to rent a solution,
utilize it in their operations and decide to purchase the solution at a
later date. Alternatively, an additional on-demand option is emerging. Large
organizations can now opt to purchase the right to use a software license,
install the software at their location and host it for each of their
departments, thereby reaping significant savings in avoided individual
license costs.
Once a company has chosen how it wants the solution to be delivered, it is
free to change the delivery model should the company's needs change. So a
company can choose to access the on-demand solution, then after a few years
of paying subscription fees, decide that it is more economical to own the
solution, purchase it and bring it in-house. All of this can be done
seamlessly without the actual user even noticing a difference.
Whatever the choice, on-demand solutions make it simple for companies to use
applications the way they want, for as long as they want. The choices that
an on-demand solution offers are virtually unlimited, not just in delivery
and pricing options, but also in terms of customization, service and
features.
-
Simplifying Implementations Means Rapid ROI
Bundling software, hardware, systems configuration and integration into one
offering that can be configured to a company's needs reduces implementation
time drastically. This translates into faster time-to-customer and rapid ROI.
-
Simplifying Processes and Services Means Lower
Costs
With an on-demand solution, an organization can take advantage of lower
costs and rapid ROI. With software running at a centralized, remote
location, on-demand solutions can reduce software implementation and
customization costs dramatically. Initial start-up fees are minimal and the
monthly subscription fee is based on usage, providing complete transparency
into billing.
On-demand applications eliminate the need for the installation of software
at the client site, thus saving in initial installation and ongoing
maintenance. The service provider guarantees performance, reliability and
support through service-level agreements with the client. Software
maintenance, support and updates as well as infrastructure systems and
network monitoring are centrally administered with on-demand CRM solutions.
This frees up technical resources for other projects.
-
Simplifying Delivery Means High Value
The on-demand CRM solution is designed to minimize the risks associated with
implementing a traditional, on-premise solution. The figure below depicts
how the general risks of using a traditional, licensed offering directly
correspond with the general benefits of choosing an on-demand solution.
|
On-Premise |
On-Demand |
|
Lengthy implementations (six+ months) and slow speed-to-market |
Short
implementations (30-45 days) and quick speed-to-market |
|
Price ranges in the
millions |
Price ranges in the
thousands |
|
Service costs
greater than license costs |
License costs
greater than service costs |
|
Relatively high
capital investment |
Low capital
investment |
|
Hardware, support
and services not typically included in license cost |
Subscription
includes all resources (hardware, software and people) |
|
Upgrades and
maintenance are separate investments from the license |
Upgrades and
maintenance are included in the subscription |
On-demand CRM solutions can be an option for any
organization – regardless of size. If your company could benefit from lower
risk, lower costs, rapid ROI and high value CRM solutions, then you may want to
further research on-demand CRM.
This article is an excerpt from the Cincom white
paper "On-Demand CRM: Simplifying Contact Center and CRM Solutions
About Randy Saunders: Randy Saunders is the Marketing Director for Cincom’s Customer Experience Management products, with more than 25 years experience working with partners, Fortune 1000 and small-to-medium-sized businesses. Previously Randy has held marketing, sales and management positions at BusinessLabs, Gannett, SmartStar, and The Kroger Company. About Cincom: Cincom Systems delivers software and services to simplify complex business processes. For nearly 40 years, we have empowered thousands of clients worldwide to outperform their competition by providing ways to increase revenue, control cost, minimize risk, and achieve rapid ROI. | | Date Published: Friday, September 30, 2005 |
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