SaaS CSFs
A recent prognostication from a reputable source put the CRM new software acquisition market at 50% on premise and 50% hosted parity as early as next year. I think it is safe to say that SaaS is here to stay.
One of the changes that this transition to rented software brings is a shortened time frame and corresponding reduced cost for getting the technology up and running. Certainly this has much to do with the rapid expansion of market share. Let’s face it, the SaaS value proposition can be attractive.
The allure of hosted software with the ease of entry into world class CRM is also shrouded in a significant myth that can lure programs like a siren on the rocks into a treacherous situation. This myth involves the assumption that, because the software is cheaper and takes less time to implement, then it is OK for other corners to be cut as well. These corners, mostly organizational in nature, can make or break a program – leading a good business case into a disastrous loss.
There are a set of Critical Success Factors for CRM programs that apply to both large on-premise deployments as well as the small hosted variety. Ignoring them due to the belief that they only apply to big-time CRM is the current SaaS fallacy that is tripping up many would be new-comers to the CRM party.
If you are entertaining the idea of taking on SF.com, Siebel OnDemand, NetSuite or Microsoft Dynamics take a serious look at the list of CSFs below. Ignoring them may turn a sweet deal into sour even faster than the promised benefits.
• Clearly Defined CRM Direction
End state with associated business benefits
A logical path toward the end state
• Strong Management Sponsorship
Alignment between CRM and management objectives
Accountability for CRM success
• Real attention to managing change
Focus on user adoption
Adequate resources to build user capability
• Program Management and Governance
Use of project management best practices and oversight
Program design utilizing contained, realistic project phases
• Measurement of Program Effectiveness
KPIs that monitor attainment of capabilities
Metrics that quantify attainment of targeted outcomes
• Optimization of the Program Post-implementation
Follow through of action based on measurements
Enhance the processes and technology to improve effectiveness
Attending to these six CRM Critical Success Factors will take extra effort within your CRM program. But they serve as the difference makers between which programs are successful and which programs become statistics for the analyst firms.
Stay clear of those rocks, baby!