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RESEARCH NOTE

CRM TECHNOLOGY VALUE MATRIX FIRST HALF 2012

THE BOTTOM LINE

Many companies are evaluating additions, upgrades, and changes to their core CRM solutions because of the innovations vendors are driving in areas such as social collaboration, mobile access, and analytics. In turn, vendors are accelerating the pace of upgrades and new functionality delivery. The Technology Value Matrix evaluates the usability and functionality of solutions that support sales, marketing, and customer service.

M AR KET OVE RVIEW

The Value Matrix for the first half of 2012 addresses both on-premise and software-as-aservice (SaaS) vendors. The past six months of the CRM market have been busy with numerous acquisitions and product announcements. Nucleus has found that CRM investment continues for three main reasons:

Many initial CRM deployments that were highly customized are reaching maturity. Companies facing the prospect of a costly and potentially disruptive upgrade are broadening their strategy evaluation to consider other vendors.

Vendors increased focus on user productivity and collaboration is creating new opportunities for return on investment in areas such as social and mobile CRM (Nucleus Research m13 - Market Focus Report - Mobile and Social CRM, March 2012).

The expansion of vendor ecosystems particularly those of Salesforce.com and Microsoft has encouraged companies to look at areas of incremental benefit such as marketing automation (Nucleus Research m22 - Marketing automation drives CRM ROI, April 2012) and sales compensation management.

LEADERS
Leaders in the CRM Value Matrix for the first half of 2012 include Microsoft Dynamics CRM, Oracle Fusion CRM, and Salesforce.com.

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MICROSOFT DYNAMICS CRM

Microsoft Dynamics CRM maintains its position in the Leaders quadrant of the Value Matrix. In February, Microsoft announced its Dynamics CRM Q2 2012 service update (Nucleus Research m15 - Microsoft Dynamics CRM Q2 2012 service update, February 2012) which will include a number of enhancements in functionality and usability including:

Native mobile client services for Windows Phone 7, Apple iPad and iPhone, and Android and BlackBerry mobile devices. Support for more Web browsers including Internet Explorer, Chrome, Firefox, and Safari running on PCs, Macintoshes, and iPads. Enhanced social functionality including Activity Feeds that support like and unlike status updates, improved status filtering, and the ability to view all status updates related to a particular record.

For on-premise customers, improved analytics based on Microsoft SQL Server 2012 including better data visualization, report editing tools for end users, and time-series data animation.

Nucleus expects these capabilities, scheduled for release later this year, will have an impact on Microsofts positioning in future Value Matrices. Although Microsoft still has work to do on social capabilities to be on par with the other Leaders, Nucleus has found many companies are closing the gaps today with existing SharePoint and Outlook integration. Nucleus will be monitoring adoption of the latest update as it becomes available as well as Microsofts ongoing efforts to leverage analytics and other Microsoft R&D to make CRM users more productive.

2012 Nucleus Research, Inc. Reproduction in whole or part without written permission is prohibited. Nucleus Research is the leading provider of value-focused technology research and advice. NucleusResearch.com

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SALESFORCE.COM
Salesforce.com maintains its position as a Leader in the Matrix and continues to drive innovation both in its CRM offering and in areas not directly addressed by this Value Matrix, such as Rypple performance management integration, Sites.com enhancements, and its evolving partnership with Infor (Nucleus Research m25 - The new Infor, March 2012). The Spring 12 release included functionality enhancements in a number of areas including:

Chatter. Chatter quickstart and the availability of Chatter Messenger so users can chat with people they follow will make it easier for new users to adopt Chatter and reduce the need to jump between Chatter and other instant messaging clients.

Sales. The ability to create cases directly within Microsoft Outlook and better controls for managing e-mail are two additions that should drive greater productivity for sales people and reduce the time spent switching between applications.

Mobile. Salesforce extended its mobile support including Chatter for Android tablets, Mobile Dashboards for iPad, and the Salesforce Mobile SDK.

In January, Salesforce announced availability of Desk.com, which enables companies to provide easy, mobile, and personalized support and customer service throug Twitter, Facebook, telephone, e-mail, and the Web. This increases Salesforces customer services capabilities to companies of all sizes, even those without IT staff. On April 25, Salesforce announced the Government Cloud, which will include a dedicated, multi-tenant instance of Salesforce.coms cloud infrastructure that will allow U.S. federal, state, and local agencies to comply with Federal Information Security Management Act (FISMA) requirements.

ORACLE FUSION CRM

Nucleus includes Oracle Fusion CRM in the Leaders quadrant for the first time in this Matrix. Today, Oracle offers a number of modules in addition to Oracle Fusion CRM Base for Sales that include support for incentive compensation, opportunity landscape, quota management, sales campaigns, sales catalog, sales predictor, territory management, business intelligence, marketing, partner relationship management, and customer data management. Although deployment of Fusion CRM is limited today, in the customer deployments Nucleus explored analysts found Fusion CRMs Microsoft Outlook integration and mobile capabilities contributed to high usability for customers, as did the ability to configure the user interface for specific user needs. These features, coupled with the ability to integrate Fusion CRM with other applications such as financials, drove greater visibility into data for end users. Nucleus also found Fusion CRMs marketing and territory management capabilities were on par or better than other Leaders in the Matrix.

2012 Nucleus Research, Inc. Reproduction in whole or part without written permission is prohibited. Nucleus Research is the leading provider of value-focused technology research and advice. NucleusResearch.com

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E XP ERT S
Oracle CRM OnDemand, Oracle Siebel CRM, SAP, and Cegedim are included in the experts quadrant of this Matrix and are also arguably the four most mature offerings in this space:

Although a current product roadmap exists for upgrades to Oracle CRM OnDemand and Siebel CRM, Nucleus expects that, moving forward, Oracle will focus more of its CRM research and development on Fusion CRM.

SAP continues to invest in deep industry-specific functionality around CRM and has focused on mobility and high speed in-memory computing (with HANA) to provide existing and new customers with new opportunities to leverage internal and external CRM data. Nucleus has also been following SAPs rapid deployment solutions in the CRM space (to date, SAP has delivered four rapid deployment solutions for CRM). These custom-tailored license options and fixed-price implementation engagements reduce the cost and risk associated with a traditional CRM deployment and drive greater usability by making the software easier to adopt.

Cegedims offering has deep functional capabilities specifically for life sciences. For example, the latest version of Cegedim Mobile Intelligence includes features such as electronic signature capture and Geo mapping and location-based services so a sales person can identify nearby prospects while theyre on the go.

F A CI L IT ATO RS
Facilitators in this edition of the Value Matrix include Aplicor, Infusionsoft, Oracle RightNow, Veeva Systems, and Zoho. The Aplicor Cloud Business Suite combines core CRM and back-office applications such as general ledgers, accounts receivable and payable, order entry, and inventory management. In May, Aplicor announced its Spring Update with two new CRM editions, giving customers the flexibility to choose the level of functionality they need at the price point they want. Particularly in smaller organizations where employees may wear more than one hat, integrated back office and customer-facing capabilities can boost productivity while enabling small firms to excel at customer service. Veeva Systems appears on the Value Matrix for the first time, as Nucleus has seen an uptick in adoption of Veeva as customers in the biotech and pharmaceuticals verticals have sought to replace aging CRM solutions with a SaaS solution that was developed to meet specific industry needs. Veevas iRep application for the iPad provides closed-loop marketing feedback capabilities, enabling sales people to have what they need on a tactical basis while providing sales and marketing management with real insights into how collateral is being used.

2012 Nucleus Research, Inc. Reproduction in whole or part without written permission is prohibited. Nucleus Research is the leading provider of value-focused technology research and advice. NucleusResearch.com

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Infusionsoft also appears on the Value Matrix for the first time. Designed specifically for small businesses, Infusionsoft provides full marketing automation (including social media marketing), sales management, and e-commerce functionality within the same application. Nucleus has found the integration and automation of sales, marketing, and e-commerce capabilities and the intuitive nature of the application give it high ratings for usability and functionality in two of the three CRM pillars (sales and marketing). Zoho continues to be a strong Facilitator in the Matrix and Nucleus has seen a number of customer instances where Zoho has replaced one of the Leaders, particularly in the SMB market where price-sensitive customers often choose what is perceived as a market leader and then discover that they can access all the CRM functionality they need at a much lower price point. In terms of functionality, since the last publication of the Matrix, Zoho has added a pulse capability for automatic updates, provided LinkedIn and Facebook integration capabilities, integrated Zoho CRM with Creator to enable custom module development, and expanded its marketplace of partner applications. Oracle RightNow continues to improve its position in the Value Matrix as Oracle has laid out its roadmap for investment in RightNow as a core component of Oracles customer experience management (CEM) strategy. RightNow is primarily a customer service and support solution, and arguably has some of the best service, Web self-service, and contact center capabilities of all the products in the Matrix.

METHO DOLOG Y
The Value Matrix is based on functionality and usability, the two core measures that Nucleus has found indicate an applications ability to deliver initial ROI and, ultimately, maximum value over time. Usability composite scores are based on a number of factors including intuitiveness of the application, availability of role-based interfaces, training requirements, and productivity impact on users. Functionality composite scores are based on the breadth and repeatability of functionality in the core application, the availability and ease of integration of add-on functionality that delivers additional benefit, and the vendors investment in innovative functionality outside the application that will deliver additional benefits. The Matrix is divided into four quadrants: Leaders, Experts, Facilitators, and Core Providers:

Vendors in the Leaders quadrant have invested in both functionality and usability features likely to deliver the greatest potential returns. Vendors in the Experts quadrant have invested in deep functional capabilities that, by nature, make the application more complex and thus require more training and expertise to use than Leaders.

2012 Nucleus Research, Inc. Reproduction in whole or part without written permission is prohibited. Nucleus Research is the leading provider of value-focused technology research and advice. NucleusResearch.com

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Vendors in the Facilitators quadrant have invested in making their applications intuitive and easy to use, driving rapid adoption with limited training requirements. Vendors in the Core Providers quadrant are point solutions or those that provide limited functionality at a relatively low cost, giving them a high value proposition when limited functionality is needed.

Companies can use this Matrix to assess their investment short list as well as to evaluate the case for maintaining an existing product that may lag behind the value offered by other options. Nucleus expects the center point of the Matrix, which represents the composite average point in the market, will move up and to the right over time as vendors make more investments in functionality and usability effectively increasing the average value delivered across all products.

2012 Nucleus Research, Inc. Reproduction in whole or part without written permission is prohibited. Nucleus Research is the leading provider of value-focused technology research and advice. NucleusResearch.com

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