CRM PROJECT

Sugar CRM
Software Evaluation

2013
Group-4
DM14235 Manoj Devraj DM14266 Ramyaa Ramesh DM14151 Surekha.R DM14157 Vikram Falor

Great Lakes

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Contents
1. Overview ............................................................................................................................ 3 2. Objectives ..........................................................................................................................3 3. Evaluation of an Open Source CRM Software Sugar CRM ............................................. 4 4. Comparison of Sugar CRM with other SAAS based CRM solutions .................................10 5. Why do companies need CRM systems? ........................................................................11 6. CRM Failures ....................................................................................................................23 7. Implications of CRM Failure.............................................................................................27 8. Reasons why CRM Fail .....................................................................................................28 9. Framework for Successful CRM Implementation ............................................................29 10. SugarCRM Integration......................................................................................................31 11. Conclusion........................................................................................................................36 12. References .......................................................................................................................36

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Overview
Sugar CRM is a software company based in Cupertino, California. It produces the web application Sugar, also known as Sugar CRM, which is a customer relationship management (CRM) system that is available in both open source and proprietary, non-free versions. Sugar's functionality includes sales-force automation, marketing campaigns, customer support, collaboration and reporting. Sugar Open Source enables organizations to efficiently organize, populate, and maintain information on all aspects of their customer relationships. Sugar Open Source provides Integrated management of corporate information on customer accounts and contacts Sales leads and opportunities. Activities such as calls, meetings, and assigned tasks.

The system also offers a graphical Dashboard to track sales pipeline, the most successful lead sources, and the month-by-month outcomes for opportunities in the pipeline. To evaluate Sugar CRM we will evaluate the 3 modules of CRM namely Operative CRM, Communicative CRM and Analytical CRM.

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Objectives
Evaluation of an Open Source CRM Software Sugar CRM. Criteria for evaluation: Approximate CRM ROI Ease of Use Simplified Workflow Customization Integration Post-Sales Support Other criteria, based on on-going software improvements

Comparison of Sugar CRM with other SAAS based CRM solutions Comparison between features, usability, and implementation provided by Sugar CRM and other Shared SaaS CRM software solutions. This will enable us to benchmark the product against competitors product and also look at the key features that the market requires. Factors affecting implementation of CRM solutions in organization Human Processes Technology

Apart from afore mentioned, we will also look at some of the successful and unsuccessful implementations of Sugar CRM. Integration of Sugar CRM with other enterprise applications. The project will look at how Sugar CRM can be integrated with enterprise application systems to create an integrated solution for an effective operation.

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Evaluation of an Open Source CRM Software Sugar CRM

As the world's leading provider of open source customer relationship management (CRM) software, Sugar CRM applications have been downloaded more than seven million times and currently serve over 600,000 end users in 80 languages. Over 6,000 customers have chosen Sugar CRM's On-Site and Cloud Computing services over proprietary alternatives. Sugar CRM and its latest version Sugar 6 was developed with the idea that CRM does not have to be complex to deploy or use, nor too expensive for growing companies. Sugar 6 closes the gap between robust CRM and applications that employees actually find easier to use. With Sugar CRM, organizations of all sizes can improve their business processes and empower their customers - with no limits or compromises. Apart from the incredible look and feel of the application, tools like the enhanced global search saves time and increase user productivity.

The SugarCRM offers different variants of the application like: Sugar Enterprise offers enterprise-grade CRM capabilities and scalability for the most demanding business. If a company needs comprehensive CRM functionality with offline client synchronization, advanced reporting, Oracle database support, and extended customer support, then Sugar Enterprise is the right choice. Sugar Professional offers a sub-set of Sugar Enterprise functionality. It provides the CRM capabilities needed for growing companies to manage customer interactions across teams and different lines of business. If a company is looking for team management capabilities, sales forecasting and quoting, wireless access for employees on the move, and standard customer support, then Sugar Professional is the best solution. Sugar Network provides the product extensions, training and support to ensure success with Sugar Open Source. Sugar Network includes SugarCRM online training, Sugar Plug-Ins for Microsoft Outlook and Word, and access to the SugarCRM support team.

SUGAR CRM Sugar Open Source is best for companies with a small number of users who only need basic functionality to manage their customer relationships.

SugarCRM Deployment Options The Sugar of offerings can also be deployed in multiple ways to meet customer needs. The Sugar CRM deployment options are: Sugar On-Demand is a hosted solution that allows customers with little or no IT infrastructure to quickly set up and deploy Sugar. Sugar On-Demand provides customers a secure and reliable solution without worrying about installations, upgrades, or patches. Sugar Cube is a stand-alone server that is pre-installed with Sugar and all supporting applications such as the database and web server. The Sugar Cube is optimized for reliability and security and offers customers a self-hosted solution that is tested and proven to run efficiently. Sugar Application Packs Sugar can be downloaded and installed by customers on their own via Application Packs. The Application Packs allow for customers to have full control of the installation, management, and customization of Sugar.

Features of Sugar CRM :

Intuitive User Experience Sugar CRM 6 delivers a clean, bold look with new buttons and icons that allow users to perform tasks more easily while increasing the information density of each screen. Simplified default views, inline filtering and one-click actions conform to the multitasking environment common to busy sales people. Users can use a Shortcut Bar to quickly log an incoming call or assign a task without ever leaving the existing screen. The Sugar CRM menus take fewer clicks to access and users can quickly find previously viewed pages from anywhere in the application. With the updated Sugar Global Search, it takes into account where users are in the application and quickly presents the most meaningful search results.

SUGAR CRM Flexible Design Building upon its reputation as the most flexible CRM on the market, the latest Sugar 6 empowers users with the ability to view and consume data and applications from nearly any source because of the ultra-flexible platform. Users can quickly and easily leverage information from social networks and data services-such as Twitter, LinkedIn and Hoover's-right inside the user interface. In addition, updates to the powerful customization utility Sugar Studio now allow administrators to alter the attributes of default fields and customize more views such as the lead conversion and popup views. Open Source Architecture As a leader in open source, Sugar CRM offers users freedom and choice in deploying and managing their CRM. Sugar 6 is designed to run on any cloud service platform or on-premise operating system.

High user Adoption Accessing Sugar through a web browser, users can choose their own user interface themes to suit their individual tastes, manage multiple information sources through Microsoft Outlook integration, and access the information they need as fast as they can click. Ease of use with the Sugar translates into more organized and efficient sales, marketing, and customer service organizations, which drives greater productivity and more visibility for managers.

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50 are lead generated

Marketing generates a campaign in Sugar Suite to contact 1000 customers about a new product launch
Customer history is integrated into account management functionality with Sugar

Management tracks the results of marketing, sales and service organisation through Sugar

Sales people are automatically assigned those leads in Sugar and turn them into qualified opportunities

Customer Service creates cases in Sugar Suite to handle all new customer inquiries and report satisfaction rates Figure 1

10 new customers are sold the new product

SugarCRM - Financial Viability SugarCRM is experiencing tremendous growth and momentum, with record revenues quarter after quarter. They closed FY 2010 with 52% year over year growth and turned cash flow positive in Q4 2010. As a privately held company, SugarCRM chooses not to disclose any additional al financial information without a signed non disclosure agreement. Q1 2011: SugarCRM Notches Another Quarter of Record Revenues and Continues Its Cash Positive Growth. The companys first quarter results represent a 9 percent jump in revenue over the final l quarter of 2010, which saw a 56 percent jump over the same quarter the previous year. This quarter also marked another in which the company was cash flow positive, building on its achievement of cash flow positive growth in 2010.

Q4 2010:
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SUGAR CRM SugarCRM Continues Record Growth in 2010. For the fiscal year, billings increased 52 percent compared to fiscal 2009. In addition, the company turned cash flow positive in 2010, capping off a milestone year of growth in all areas. This also saw the addition of more than 540 new customers in the second quarter of 2010. Cloud Services Like Salesforce.com, SugarCRM offers a SaaS solution. But, unlike Salesforce .com They also allow customers to deploy Sugar on site, behind a firewall, without any of the risks of traditional client-server deployment. For even greater flexibility, customers can choose to deploy Sugar in public or private clouds such as Amazon Web Services, Rackspace, IBM Cloud, and others. Every Customer Has Their Own Database With SugarCRM, customers have their own database. Other SaaS CRM solutions including Salesforce.com, are built on a multi - tenant SaaS data model. This means that all customers share the same underlying database. Todays databases such as MySQL are designed for cloud computing and are inexpensive to run in a massive horizontally scaled architecture like Sugar CRM. Customizations SugarCRM has more robust customization utilities than Salesforce.com. Sugar administrators have access to Sugar Studio, Sugar Logic and Module Builder, simple GUIs to create custom fields, screen and modules to meet specific business needs. Sugar customers dont have to be programmers to make customizations. With Salesforce .com, complex customizations are more expensive and more difficult to make, resulting in a large hidden increase in total cost of ownership.

Users of SugarCRM Sugar supports a variety of functions within an organization. The table below describes several business functions and how Sugar enables their productivity Business Function Description

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Sales Representatives use Sugar to automate their sales activities, including contacts, opportunities, accounts, pipeline management, and forecasting. Marketing Representatives use Sugar to target prospects, manage prospect lists, develop campaigns, and monitor the results of marketing activities. Customer Service Representatives use Sugar to manage customer cases, report product problems, and measure customer satisfaction. Management uses Sugar to analyze how the business is performing across all customer-facing activities.

Sales

Marketing Customer Service Management

Key Benefits:

Affordability- This solution can be a great fit for budget conscience organizations capable of investing additional time in their CRM product.

Open source customization- A commercial open source solution capable of ondemand, individual control (this may be a major positive or a complete turn off depending upon your tolerance for open source business applications solutions).

Good program- Available source code, good documentation, training programs and a relatively active community provide the hallmarks for a successful open source effort.

IP socialism- A collaboration of community participants and free of vendor lock-in

Few Concerns:

Open source-While open source acceptance has grown, it is far from commonly accepted among business applications champions. Perhaps more important, one of the core tenants of the SaaS value proposition is to reduce or eliminate the inhouse IT resources needed to support business systems - not hire additional programmers in order to go into the software customization business.

Small business (only) solution. Poor reporting-Pipelines, forecasts and reporting in general are very poor. Missing or limited system administration tools - such as account merges, mass modifications, flexible security models.

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Comparison of Sugar CRM with other SAAS based CRM solutions

CRM_softwares_com parison.xlsx

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Why do companies need CRM systems?

Companies in any industry mainly survive on the demand for their products/services, which is implicitly dependent on the customer needs. The size, potential, attractiveness and growth opportunities that exist within a segment of the market determines the level of competition in such an industry. When the market segment matures and the competition is intense, all the companies in that specific industry vie for the same set of customers. In such a case, the companies/organisations are at the discretion of the customer, whoever he/she decides would cater to their needs in a best possible way. The companies also began to realize that it was three times more expensive to attract new customers than retaining existing customers. All of this resulted in the breakthrough phenomenon called 'Customer Relationship Management'. Apart from the customers and competition, there are other factors which influence in companies adopting CRM systems. They can be described as below: External: o Maturity of IT o Competition o System Provider's expertise o Customer demand Internal o Top Managers' support o Innovation acceptance ability o System Management ability o Organization Flexibility o Organization Strategy Objective o Company Size o Type of Industry The above mentioned factors play a vital role in determining whether an organization should move towards adopting CRM systems or not. The inherent advantages that accompany CRM solutions also plays a major role in their adoption.
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SUGAR CRM Advantages of CRM Advantages to sales people Proponents claim that sales force automation systems can improve the productivity of sales personnel. Here are some examples: Rather than write-out sales orders, reports, activity reports, and/or call sheets, sales people can fill-in prepared e-forms. This saves time. Rather than printing out reports and taking them to the sales manager, sales people can use the company intranet to transmit the information. This saves time. Rather than waiting for paper based product inventory data, sales prospect lists, and sales support information, they will have access to the information when they need it. This could be useful in the field when answering prospects questions and objections. The additional tools could help improve sales staff morale if they reduce the amount of record keeping and/or increase the rate of closing. This could contribute to a virtuous spiral of beneficial and cumulative effects. These sales force systems can be used as an effective and efficient training device. They provide sales staff with product information and sales technique training without them having to waste time at seminars. Better communication and co-operation between sales personnel facilitates successful team selling. More and better qualified sales leads could be automatically generated by the software. This technology increases the sales persons ratio of selling time to non-selling time. Non-selling time includes activities like report writing, travel time, internal meetings, training, and seminars. Advantages to the sales manager Sales force automation systems can also affect sales management. Here are some examples: The sales manager, rather than gathering all the call sheets from various sales people and tabulating the results, will have the results automatically presented in easy to understand tables, charts, or graphs. This saves time for the manager. Activity reports, information requests, orders booked, and other sales information will be sent to the sales manager more frequently, allowing him/her to respond more directly with advice, product in-stock verifications, and price discount authorizations.
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SUGAR CRM This gives management more hands-on control of the sales process if they wish to use it. The sales manager can configure the system so as to automatically analyze the information using sophisticated statistical techniques, and present the results in a userfriendly way. This gives the sales manager information that is more useful information Providing current and useful sales support materials to their sales staff Providing marketing research data : demographic, psychographic, behavioural, product acceptance, product problems, detecting trends Providing market research data : industry dynamics, new competitors, new products from competitors, new promotional campaigns from competitors, macro-

environmental scanning, detecting trends Co-ordinate with other parts of the firm, particularly marketing, production, and finance Identifying your most profitable customers, and your problem customers Tracking the productivity of their sales force by combining a number of performance measures such as : revenue per sales person, revenue per territory, margin by , margin by customer segment, margin by customer, number of calls per day, time spent per contact, revenue per call, cost per call, entertainment cost per call, ratio of orders to calls, revenue as a percentage of sales quota, number of new customers per period, number of lost customers per period, cost of customer acquisition as a percentage of expected lifetime value of customer, percentage of goods returned, number of customer complaints, and number of overdue accounts. More complex models like the PAIRS model (by Parasuraman and Day) and the Call Plan model (by Lodish) can also be used. Advantages to the marketing manager It is also claimed to be useful for the marketing manager. It gives the marketing manager information that is useful in : Understanding the economic structure of your industry Identifying segments within your market Identifying your target market Identifying your best customers in place
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SUGAR CRM Doing marketing research to develop profiles (demographic, psychographic, and behavioural) of your core customers Understanding your competitors and their products Developing new products Establishing environmental scanning mechanisms to detect opportunities and threats Understanding your company's strengths and weaknesses Auditing your customers' experience of your brand in full\ Developing marketing strategies for each of your products using the marketing mix variables of price, product, distribution, and promotion Coordinating the sales function with other parts of the promotional mix (such as advertising, sales promotion, public relations, and publicity) Creating a sustainable competitive advantage Understanding where you want your brands to be in the future, and providing an empirical basis for writing marketing plans on a regular basis to help you get there Providing input into feedback systems to help you monitor and adjust the process

Strategic advantages Sales force automation systems can also create competitive advantage. Here are some examples: As mentioned above, productivity will increase. Sales staff will use their time more efficiently and more effectively. The sales manager will also become more efficient and more effective.(see above) This increased Productivity can create a competitive advantage in three ways: it can reduce costs, it can increase sales revenue, and it can increase market share. Field sales staff will send their information more frequently. Typically information will be sent to management after every sales call (rather than once a week). This provides management with current information, information that they will be able to use while it is still valuable. Management response time will be greatly reduced. The company will become more alert and more agile. These systems could increase customer satisfaction if they are used with wisdom. If the information obtained and analyzed with the system is used to create a product that matches or exceeds customer expectations, and the sales staff use the system to service customers more expertly and diligently, then customers should be satisfied
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SUGAR CRM with the company. This will provide a competitive advantage because customer satisfaction leads to increased customer loyalty, reduced customer acquisition costs, reduced price elasticity of demand, and increased profit margins. Marketing

Marketing sub module primarily deals with providing functionalities of Long-term planning and Short-term execution of Marketing related Activities within an organization. Planning Long-term Market Plans can be made and Quantitative as well as Qualitative measures (targets) can be set for a defined period and for different product groups, geographies etc. These are then monitored based on the actual performance throughout the defined period. Campaign management Short-Term execution includes running Marketing campaigns via different communication channels targeting a predefined group of potential buyers with a specific message referring to a product or a group of products. Lead management One key objective of the Marketing function is to generate sales related leads, which finally get converted into Sales Revenues for the company. Marketing campaigns with the specific objective of generating leads (Prospective customers who may be interested in a product). Lead management deals with processing these Leads, carrying out a sanity check, evaluating the genuineness of the information (Since, there is a lot of information that is gathered during Marketing Campaigns it becomes necessary to screen these leads), and finally converting them to Hot Leads or Cold Leads. Sales Sales functionalities are focused on helping the Sales team to execute and manage the presales process better and in an organized manner. Sales team is responsible for regularly capturing key customer interactions, any leads or opportunities they are working on etc, in CRM system. The system helps by processing this data, monitoring against the targets and proactively alerting the sales person with recommended further actions based on company's sales policy.
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SUGAR CRM Opportunity management Opportunities help the sales team by organizing all the relevant data regarding a prospective deal into one place. It is characterized by the details such as Prospective customer, expected budget, total spending, products interested in, expected closing date, key players in the deal and their key characteristics, important dates and milestones, etc. The opportunity has several phases, e.g. initiation, identification, qualification, RFP received, quotation sent, final stage, won or lost. Of course these phases can be defined based on individual company needs. A CRM system helps in each phase by "guiding" the sales representative to carry out certain suggested activities as defined by the company's sales policy. It creates reminders and planned activities within the system. For example, if the opportunity has reached "RFP received" stage, and the deal size is more than, say, US$50,000, the system can prompt the representative to hold a review discussion with a senior manager. This is often referred as Guided Sales Methodology. Opportunities can be directly converted into quotations or sales orders.

Quotation and sales order management Opportunities can be converted to a quotation, and hence to a Sales order when the customer is won over(sales closure). Standard features of creating a "linked" Quotation or sales order from opportunities are provided. These Sales orders then flow to the Back-End (ERP) system for further execution and Delivery. Activity management Activities represent various Sales or Service related interactions with the customer (meetings, discussions, telephone calls, emails). Activity management provides a platform to consolidate all the interactions with customer into a single platform, helping to build a 360 degree view of customer. Activities can be synchronized to Microsoft Outlook/Lotus Notes Calendar items (Meetings and Tasks).

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SUGAR CRM Service Service related functionalities are focused on effectively managing the customer service (Planned or Unplanned), avoid "leakage" of Warranty based services, avoid "Penalties" arising due to Non conformity of SLA (Service Level Agreements), and provide first and second Level support to Customers. Several functionalities are: Service Order Management Service Contract Management Planned Services management Warranty Management Installed Base (Equipment) Management SLA Management Resource Planning and Scheduling Knowledge Management (FAQs, How to guides) Call Center Support Resource Planning and Workforce Management

Channels of communication It is also important to mention here that a CRM system is capable of executing all the three sub modules via multiple communication Channels. These channels can be: Direct Online (Internet) Call Center (via Phone/FAX/Email etc)

Based on analysis of above factors, if organizations decide to implement CRM systems, it inadvertently results in either success or failure based on the organization's compatibility of the CRM solution. We would try and look at some of the success stories and implementation failures and try and derive factors which are responsible for the same, respectively.

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Salesforce.com at Su-Kam India

Salesforce.com gives Indias premier power backup solutions provider Su-Kam the power to manage customers more effectively in the cloud. Challenge No single, consistent process in place across all of customer service agents to efficiently handle complex information-based customer interactions Requirement to provide contextual information to call centre agents during live customer calls Month end reporting was a painstaking and time consuming process Traditional CRM systems not an option due to huge upfront costs and a need for infrastructure changes Solution Su-Kam implemented Salesforce CRM for the Service Heads within its 33 service centres around India to introduce a single, company-wide solution for managing and tracking customer data. Salesforce.com partner Lister Technologies carried out the installation, integrating the companys existing call centre application and Oracle ERP system. Salesforce CRM went live in January 2009. Results Su-Kam users have access to the same real-time data updates in the cloud from any location at any time Task of monthly reporting reduced from a full days work to a matter of minutes Su-Kam has an in-depth view into the productivity of individual users, to ensure targets are met Customer enquiries captured through the website, by phone and by email automatically routed to the appropriate agent and tracked through the service centre without ever getting lost in the system or forgotten Escalation rules ensure that Su-Kam is able to address customer complaints effectively. Salesforce.coms intuitive solutions call for minimal formal training for users SuKam employees completed basic training within two to three days workshop
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Zoho CRM and JetHub:

About JetHub JetHub is a worldwide, on-demand charter service that offers private flights to more than 7,000 airports in the United States and abroad. The company utilizes the best aircraft operators, giving its clients access to the private jets they desire. JetHubs executive team is dedicated to providing its clients the experience in private jet charter service that has been missing in the aviation industry. The JetHub team continuously evaluates the level of service they provide to their clients, making sure the client experience is beyond their expectation.

Challenge JetHub needed a better way to manage its customer information. The company had been managing some of its customer information with an industry-based, online quoting system. However, the quoting system was wide open to anybody with access to the system, leaving JetHub sales reps with no way to protect or secure their customer lists.

The other challenge was finding a way to support the distributed workforce that makes up the JetHub team. While the company is headquartered in Scottsdale, Arizona, its seven employees are spread across the country.

There are only three of us in the same state, and we still all work remotely. We dont have an office we go to. This is a completely virtual company, said Kevin Lippert, president of JetHub. I had to find a cloud-based system that would support our distributed workforce and help me protect my employees information their client information so access could be restricted to authorized users.

Solution In selecting an online CRM solution, Lippert relied on third-party experts for guidance when evaluating and selecting an online CRM solution. Ultimately, JetHub selected Zoho CRM due to its functionality, ease of use and customization, and price. I did not have any formal experience with a CRM system. Im a newbie, said Lippert. Zoho CRM had everything I needed. And I like that we could customize it on our own forms, layouts and labels, and all that was easy for us to customize, without any technical knowledge per se. And the price is very competitive.
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Lippert values the security levels that are built into Zoho CRM, which let JetHub easily grant or deny users access to any of its customer data. JetHub also integrated the industry quoting function into its Zoho CRM installation, customizing Zoho CRM to mimic the same industryspecific form layout presented by the quoting system. As a result, JetHub was able to cancel the online quoting service and pocket the savings.

Finally, Lippert has gone from CRM newbie to CRM administrator and now manages the companys use of Zoho CRM. In that capacity, Lippert notes the advantage of Zoho CRM integration with Google Apps. A big reason we went with Zoho was because were a Google Apps customer. We use a lot of tasks and events in Zoho CRM, and we post those events to our Google calendar. And weve set up mail integration, so the emails we send from Google Apps, we have them in Zoho and vice versa.

Result With Zoho CRM, we now have complete visibility of our clients and client interactions, said Lippert. We also have an easy way to follow up on the leads we get from our website. Zoho CRM lets us disperse those leads to our team, and weve set up some automated processes, alerts and tasks to make sure that we give our customers the best possible service and support.

Meanwhile, the security advantages of Zoho CRM translate to thousands of dollars. My sales reps are independent contractors, often with their own client list, said Lippert. Being able to secure access to that information could easily save us thousands in business that could otherwise walk out the door in the event of a data breach.

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SugarCRM at TechLive Connect India:

About TechLiveConnect With locations in Gurgaon, San Diego, CA and Singapore, TechLiveConnect (TLC) provides advanced, remote technology support to consumers and small businesses. Through a team of highly qualified live experts and its proprietary Consumer Managed Services Platform (CMSP) cloud platform, TLC excels at delighting its customers. TCL team has the rich experience of 9 years in delivering digital support solutions and has serviced more than 200,000 customers. Business Challenges The TechLiveConnect (TLC) remote tech support service provides advanced, remote technology support to consumers and small businesses. Through a team of highly qualified live experts and its proprietary consumer managed service provider (CMSP) cloud platform, TLC consistently delivers satisfied consumers and channel partners. With call centre volume quickly growing from 500 to 3,000 calls per day, TLCs remote technicians and managers often struggled when trying to match a customer with its channel partner. At times, customers were put on hold while agents searched through Excel spreadsheets to find partner information. TLC realized this manual process was inefficient and unsustainable at high call volumes. The company also knew that it was wasting billable agent time on customers who were delinquent. TLC wanted a system that would consistently reduce call wait time regardless of call volume, track customer payment history, and enable customer surveys on agent performance. Business Benefits TLCs Sugar solution has delivered significant time-savings across all TLC call centre operations. With an average of 18,000 calls per week, phone agents save 6,000 minutes (100 hours) per week using Sugar to match partners with customers. Bheas integration of Sugar with a third-party payment gateway saves agents an additional 100 hours every week by automatically creating contact records based on a customers email address and linking that record to the proper partner.

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SUGAR CRM TLCs Blacklist module saves agents 30 minutes in wasted support time for every non-paying customer on the list, which currently numbers 200.In addition, many of the modules developed by Bhea automate certain agent functions with custom workflows. For example, when the status of a support case changes, the change triggers an email alert to the customer. This reduces the volume of follow-up phone inquiries, which average three minutes per call, and saves agents 10 hours per week managing its average weekly case load. Bhea also created more than 80 custom reports to support TLCs management team.With Sugar, we are a much more efficient operation and we have the information we need at our fingertips, concludes Siddharth Thakur, Chief Technology Officer, TechLiveConnect. Now we have a platform that can scale to accommodate our rapid growth.

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CRM Failures:
CIGNA Healthcare In January 2002, Philadelphia-based CIGNA HealthCare migrated 3.5 million of its members to new claims processing and customer service processes and systems.6 The broad-based $1 billion initiative included CRM and overhaul of its legacy technology infrastructure. Benefits did not materialize as planned and resulting impacts on customer service caused the nations fourth largest insurer to lose 6 percent of its health-care membership in 2002. CIGNA wanted integrated processes and systems for enrolment, eligibility, and claims processing so that customers would get one bill, medical claims could be processed faster and more efficiently, and customer service reps would have a single unified view of members. This meant consolidating complex back-end processes and systems for claims processing and billing, and integrating them with new CRM applications on the front-end. The project required complex technical work and an overhaul of the way business processes work together between front and back office as well as an overhaul of customer service staffing levels and skills. In addition, new processes and applications were designed to allow members to enroll, check the status of their claims and benefits, and choose from different health-plan offeringsall online. There are several reasons why CIGNA was under considerable pressure to make these changes. First, along with other insurers such as Aetna and Humana, they were being sued by thousands of doctors about payment delays. They were also being accused of deliberately rejecting or delaying payments to save money.(CIGNA recently settled most of the doctors lawsuits by pledging faster and more accurate claims processing with the new integrated platforms and promising to pay millions to physicians in compensation.) In 2001, Georgias insurance commissioner found serious issues with CIGNAs claims processing system and it was fined by the state of Georgia. CIGNA signed a consent order pledging to reform its claims processing system.

Also, during sales cycles, CIGNA had promised large employee accounts that it would have revamped systems for improving customer service up and running by early 2002. Finally, the company had reported disappointing second quarter results in 2001 and was under pressure to
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SUGAR CRM cut costs. Although some selective hiring of staff was planned in order to alter the firms skills mix, the goal was a net reduction of staff by 2,000 people through layoffs. At first, CIGNA conducted small scale migrations, moving its members in small groups of approximately 10,000 people at a time.

During this time, problems were limited and manageable. At the same time, the customer service areas were being revamped in anticipation of the newfangled systems. Huge gains in claims processing and customer service efficiency were expected, and the company started laying off reps as part of a consolidation of service centres. In 2002, the company terminated 3,100 employees and spent $33 million in severance payments. CIGNA also invested $32 million in the new regional service centres.

At this point, in January 2002, with members renewing and new members lining up, the company performed a mass migration to the new infrastructure. Serious problems emerged immediately. Members had trouble obtaining, confirming, and inquiring about coverage. Employees at one member company effectively lost coverage due to membership data problems. Member ID cards were issued with incorrect numbers and prescription icons. Some people could not get their prescriptions filled at drugstores. As a result, a flurry of inquiries put CIGNAs new customer service operation to the test. But lower staff levels left the centres short-handed. Customers who phoned were put on hold, and when they did get through, some of the new reps struggled to navigate the new systems.

In addition, data from back-end systems did not show up properly in the customer service systems, making it difficult for reps to fully understand the customers situation. In the rush to go live, the systems ability to handle claims and service from front to back and in large volumes was not adequately tested. Problems in one area cascaded into others; staffing levels were inadequate, and staff were improperly prepared. Rather than realize that benefits would come over time as the company became used to new processes and systems, they expected them the day the switches were flipped. Given this experience, CIGNA has now slowed down the pace of migration and solidified the processes, systems, and staffing. It also has improved testing practices. By mid-2002, CIGNA was moving new members without major problems. In January 2003, it successfully performed a significant migration of 700,000 members. It also successfully launched

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SUGAR CRM www.MyCIGNA.com, a website for members to look up their benefits, select health plans, check claim status, search for health information, and communicate with nurses online.

Now that the problems have been handled, the company is processing medical claims more efficiently and servicing customers better than in the past. Some of the initiatives original goals have now been achieved. The elimination of duplication in claims processing and billing, as well as other benefits, have allowed the company to streamline its sales force and medical management team. However, the price tag for the project has exceeded the $1 billion planned and significant damage was done to the companys reputation and its financial performance.

Hershey: Candy producers record 40 percent of their annual sales between October and December. Halloween, the biggest candy-consuming holiday, accounts for about $2 billion in sales. For a candy producer, missing Halloween is like a toy company missing Christmas. Unfortunately, in 1999, thats just what happened to Hershey, the nations largest candy maker.8 Just before the big candy season, shelves at warehouses and retailers lay empty of treats such as Hershey bars, Reeses Peanut Butter Cups, Kisses, Kit-Kats, and Rolos. Though inventory was plentiful, orders had not arrived and distributors could not fully supply their retailers.

Hershey announced in September that it would miss its third quarter earnings forecasts due to problems with new customer order and delivery systems that had been recently rolled out. The new enterprise resource planning (ERP) and CRM processes and technology implemented earlier in the year had affected Hersheys ability to take orders and deliver product. The $112 million system aimed to modernize business practices and provide frontto-back automation from order-taking to truck-loading, but Hershey lost market share as problems allowed rivals to benefit during the season. Mars and Nestl both reported unusual spurts of late orders as the Halloween season grew nearer.

The most frustrating aspect of the situation is that Hershey had plenty of candy on hand to fill all its orders. It just couldnt deliver the orders to customers. By December 1999, the company announced it would miss already lowered earnings targets. It stated that lower demand in the last few months of the year was in part a consequence of the earlier fulfilment

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SUGAR CRM and service issues. Hershey had embarked on the project in 1996 to better coordinate deliveries with its retailers, allowing it to keep its inventory costs under control.

The company also needed to address Y2K problems with its legacy systems. CRM, ERP, and supply chain management systems were implemented, along with 5,000 personal computers and a complex network of servers. The intention was to integrate these software and hardware components in order to let the 1,200-person sales force shepherd orders step-bystep through the distribution process. Sales could also better coordinate with other departments to handle every issue from order placement to final delivery. The system was also designed to help Hershey measure promotional campaigns and set prices, plus help run the companys accounting operations, track ingredients, and schedule production and truck loading.

Hershey realized that the business process changes involved with such a transformation were highly intricate. However, despite the size and complexity of the undertaking, the firm decided on an aggressive implementation plan that entailed a large piece of the new infrastructure going live at the same time.

Unfortunately, the project ran behind schedule and wasnt ready until July 1999 when the Halloween orders had already begun to come in. Problems in getting customer orders into the system and transmitting the correct details of those orders to warehouses for shipping began immediately. By August, the company was 15 days behind in filling orders, and in September, order turnaround time was twice as long as usual. In recent years, Hershey sales growth had exceeded its rivals, and the company was expecting 4 to 6 percent growth that year. However, sales instead slipped and the company admitted that problems with the new system alone had reduced sales by $100 million during the period.

In the past few years, other companies have experienced similar CRM-related problems. For example, printer manufacturer Lexmark abandoned a CRM initiative in 2002 and announced that it would take a charge of $15.8 million.9 Similarly, Agilent Technologies blamed its quarterly profit shortfall in August 2002 on problems installing a new company-wide software system.10 Separately, Carsdirect.com estimated in a lawsuit that it suffered $50 million in operating losses due its inability to adequately meet customer demand after installing customer-tracking tools.
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SUGAR CRM

Implications of CRM Failure:

The cost of CRM failure is dramatic and can take its toll in many areas of the business. The following summarizes the typical impacts by category: Financial Performance Market share and operating losses Failure to achieve a return on investments Budget overruns High post-implementation running costs

Customer Service Quality Customer confusion, frustration, and dissatisfaction Lower service levels Slower time to market Negative brand perception

Sales Effectiveness Lower sales force productivity Increased sales force cynicism toward new systems Increased sales force turnover

Cultural Impacts Low morale within IT and affected departments Growing cultural cynicism within the company toward adopting business change Company-wide loss of confidence in its ability to enact change Lost jobs in the executive suite Propensity for companies to become overly conservative with regard to investments in strategic initiatives. This leads to dampened innovation, a failure to strengthen advantages, and deferring the update of aging processes and infrastructure

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SUGAR CRM

Reasons why CRM fail

Available literature on the reasons for failure of CRM solutions points to the following:

Poor objective setting: These failures relate to the overall aims of the initiative. In many ways, these are the most common cause of CRM failures, as poorly defined goals complicate downstream efforts and undermine end results. Lack of senior leadership: In many organizations, top management is either not engaged at all, loses interest once the initial high-level decisions have been made, or doesnt focus long enough to ensure successful post-implementation operation. These kinds of leadership shortfalls sound the death knell for CRM initiatives. Inadequate planning and scope setting: After objectives have been set, firms often stumble at the critical planning stage. Attempting too much, not addressing vital changes to business processes, and not removing organizational roadblocks are typical failings. Implementation missteps: Even well-planned CRM implementations are complex and myriad issues and problems can ensue. Many are common to the complexities of managing any major initiative, including following a proven methodology, risk analysis and mitigation, scope creep, and sound schedule and budget management. Lack of change management: CRM initiatives significantly impact jobs, roles, skills, and the daily routine of an organization, and are often disruptive and initially unpopular among the rank and file. The people aspects of large initiatives are often the most challenging part, with politics and organizational conflicts being the norm in CRM initiatives. Inadequate post-implementation operation: CRM is an ongoing process not an event. It must be carefully managed over time, even after a successful rollout. Even if excellent user adoption is at first achieved, success will fade if CRM is not nurtured. The results of new approaches and tool usage must be tracked and reviewed regularly by management. Hence, care should be taken to overcome the hindrances and attain successful implementation.

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SUGAR CRM

Framework amework for Successful CRM Implementation

Mohammad H A Tafti from the Hofstra University, in his paper lists factors factors which when meticulously planned results in a successful implementation. The following diagram illustrates the factors and its implications on the implementation success.

Figure 2

Table1 elucidates the framework, which can be followed to achieve a successful CRM implementation in any organization.

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SUGAR CRM
Strategic Planning It is necessary for the business to have a clear understanding of the make-up, wants and needs of its customer base The business must have a vision of where it and its customer base will be in 5-10 years The business must know & understand its most business critical data The business must have determined precise measures of the business critical data for gauging success The business comprehends the benefits CRM can bring to the organization The business understands how CRM related technology could be used to achieve the business's ends The business has defined the project initiative using best practices The business has defined define the project initiative before reviewing IT options Change Management Technology The organization must conduct a thorough vendor and tool interview and selection process Project Management

Investigate if the company accepts change well

Adequate funding must be allocated for project planning and implementation

Management must confront change

IT alternatives must be discussed and weighed

An appropriate pilot program must be chosen

Project decisions must be made with relatively little political input Strong Executive leadership must be evident on the project CRM initiative must be prioritized within the company Change Management methodology suitable for the company is planned and implemented A suitable training program is planned for the organization The company makes changes in the method of determining compensation for its employees

The CRM solution must be compatible with the size (i.e. in terms of operational volume) of the company The system must be easy to use, have a high level of responsiveness

The Project team has an appropriate make-up of business experts and IT professionals The Project Team must demonstrate a sound understanding of the necessary CRM data and process The project team must demonstrate a commitment to data quality

The most appropriate tool of all reviewed must selected The selection process should maximize availability, scalability, manageability and security of the system

A suitable methodology for implementing CRM must be implemented A plan that contains aspects of an IT project, yet also closely follows the steps of a Marketing Project methodology

Table 1
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SUGAR CRM

SugarCRM Integration
In Order of Companies to use Social CRM it is necessary to integrate CRM across the whole organisation. Hence it is vital for SugarCRM to be able to integrate with the companies ERP solutions in order to be accessible across the organisation. The Integration Challenge: Generally, ERP and CRM systems tend to remain siloed as their contrasting architectures make it difficult to streamline integration. Most of the company attempt to create seamless connectivity between the two by turning to custom point-to-point integration. This method is, expensive, fragile and also difficult to maintain. With point-to-point connections, there is a need for the developer to manage connectivity and simultaneously implement changes. These changes impact the entire system letting a large scope for errors. Hence , point-to-point integrations deliver a short-term solution and can become overly complicated as businesses grows. Swivel Chair data entry is another method that the company may resort to . This method requires an individual to manually retrieve data from one system and enter it into another. Such a procedure is error-prone and takes an extensive amount of time and human resources. Some businesses simplify the task by employing data loaders such as Dataloader.io for Salesforce.com. When working with CRM systems offered by a vendor other than Salesforce.com, however, a different solution is required. With two different systems unable to communicate with one another, it becomes nearly impossible to track all customer interactions and obtain information through one interface. Sales reps spend time jumping between applications to create a 360 degree view of their customers, slowing down sales processes. As a lack of integration creates an inefficient workspace, businesses need a robust CRM and ERP integration solution in order to streamline their business processes.

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SUGAR CRM Advantages of Integration of SugarCRM with ERP Solutions: 1. There is a huge Saving per user CRM license cost 2. The duplicity of effort in maintaining master data can be prevented 3. Enables the organisation to have a lean CRM system which can call SAP for checks and business logic. 4. Provides a better clarity in defining organizational unit. 5. Provides an intuitive user interface and rich analytic feature Mechanisms for Integration Available in SugarCRM: Logic Hooks: There are different types of events in Sugar. You can add a logic hook which will be called whenever these events happen (reading data from SugarDB, changing values, etc.). You can put in that methods whatever you like to do: contact another system's database or a another system directly etc. WebServices (SOAP/REST): the other system can call the web services from Sugar to read data or change values etc. Scheduler: you can add scheduler jobs that look for files stored by other systems to be imported, etc. roles and authorization structure based on

Features of SugarCRM integration:1. Automatic import: Users will be able to import the converted (won) opportunities from their CRM to the ERP with one click, hence rendering the manual method of transferring the knowledge unnecessary. Users may schedule the import method as per their convenience. 2. No Duplication: One individual task is made for every record to import in Tryton for accounts ,opportunities, documents and contacts so reducing knowledge redundancy. 3. Fully Tested the combination module is scrutinized by unit check cases that check the practicality of mercantilism opportunities, connected accounts and contacts. The testing ensures that the module behaviour is predictable and active development doesn't hinder the operating options. 4. Efficient import mapping: The import method is enforced with extreme effectuality avoiding knowledge corruption. each detail, like address, contact details and hooked up documents is mapped accurately to the foreign chance.
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SUGAR CRM 5. Track rate of conversion: Users will track the speed of conversion of leads into opportunities with the help of this integration module, serving to them to organise higher.

Examples: Address Book Integration: Customer contact information is required information in both SugarCRM and your ERP System. Business rules regarding synchronization of address book information between SugarCRM and ERP systems constitutes an important decision for IT departments to make in coordination with their various line-of-business users and leaders. In SugarCRM the key table is sugarcrm.contacts and in a system like JD Edwards it is F10101. Other SugarCRM tables to consider are users, prospects, leads, and accounts. Special attention needs to be paid to deduplication, disambiguation, and address correction, appending and related matters. For this purpose, you may want to also incorporate a data append API such as that from TowerData into your Magic xpi integration flow. In addition, tables such as sugarcrm.email_addr_bean_rel will define parent connections to contacts, etc.

Credit & Collections Information :Sales, service, credit and collection processes all influence one another and affect customers in a variety of interrelated ways. Sales opportunity qualification, pipeline and forecast ratings in SugarCRM can all be affected by credit and collections status maintained in your ERP system. Credit decisions and collections practices may be influenced by service histories and open issues as well. The urgency and priority of service and support activity may also be influenced by the outstanding debt or the opportunity pipeline related to particular account. Only with integration and visibility of information can this data properly influence these interrelated business processes. Notifications, alerts and escalations will need to cross traditional departmental lines in many instances bridging SugarCRM and your ERP. SugarCRM custom fields can be used for this purpose or you can allocate the meaning of an account field like rating for this purpose. Another approach is to simply log credit status into the activity history on a specified day each month and payments as they occur, or something like that.

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SUGAR CRM eCommerce Transaction Synchronization: With online web and ecommerce business transactions of various types, both SugarCRM and your ERP system are often not the repository of the relevant information. Systems like Magento, VirtueMart, PrestaShop, ZenCart, osCommerce, OpenCart, Volusion, Interspire, Yahoo! Stores, Shopify, IBM WebSphere Commerce, Shopatron, WebJaguar, etc. Only through business process integration can one be sure that eCommerce information is aligned with the mainstream business processes in a way that allows needed information access and visibility.

Pricing Systems: SugarCRM and ERP integration around pricing information can range from straightforward to complex. When commodity based pricing, complex configurations, labor estimates, and other variable factors enter into price determinations, the prices will need to be accurately accessed and used by both your ERP system and SugarCRM. Business rules around pricing may be managed by the advanced pricing module in systems like JD Edwards and simply shared with the SugarCRM sugarcrm.products tableusing Magic xpi integration flows. This SugarCRM table has fields for price, cost, discount, pricing formula, pricing factor, book value, etc.

Product Catalogs: Similarly, product catalog integration and synchronization of master item data can be complex and will use the same sugarcrm.products table. Related tables include: product_product; projects_products; documents_products; product_product; contracts_products; product_types; products_audit; and

product_categories;

product_bundle_product. In many businesses, product catalog data comes from a variety of sources (CRM, ERP, Product Configurator, Product Lifecycle Management (PLM) system, etc.). Management of the product catalog data and metadata becomes complex and the data architect and business analyst can use Magic xpi to automate decisions made about redundancy rules, information latency, data validation, source priority, etc.

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SUGAR CRM Quote-to-Order Conversion: The opportunity-to-quote and quote-to-order conversion processes will vary from business to business. In a retail business the process may be almost irrelevant while in a complex manufacturing business there may be multiple layers and approval processes involved in these conversions. In most businesses using SugarCRM, the process will need to span both SugarCRM and your ERP system upon receipt of the order or at some other appropriate trigger point. The Magic xpi Business Process Editor can be particularly helpful in illustrating these business processes so that IT analysts can gain process buy-in from business decision makers before finalizing the specifics of individual business process flows. As with all of the examples discussed here, the Magic xpi Integration Flow Editor can call Sugar CRM Web Services to read and update either a single entry or multiple entries. An event in the ERP system (such as an order) can be monitored by Magic xpi to update the SugarCRM sugarcrm.quotes table fields such as date_quote_closed and order_stage as needed. Conversely, a closed quote in the CRM system can be used to trigger the actual order in the ERP system. To accomplish this, Master Item Data for products and prices needs to be closely synchronized between systems as well.

Sales Compensation: In SugarCRM, commission calculations require customization, usually at the opportunities level. So sales compensation is another area frequently requiring SugarCRM to ERP system integration and processes. Many of the most logical methods of sales compensation require validated data from both CRM and ERP systems in order to make their calculations. The approved compensation amounts calculated then need to be recorded within the various systems involved as well. Some third-party sales compensations may be partially or fully integrated with the CRM system but effective ERP integration is less common. By pulling data from both ERP and CRM systems, sales compensation analysis and methods can use sophisticated techniques based on the actual conversion ratios and sales achievements reached by the salesperson. Automated integration and orchestration of these processes and the exceptions to them is essential if sales compensation is to be accomplished in a way that is not burdensome to IT, sales, HR and accounting professionals.

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SUGAR CRM

Conclusion
The CRM market is consolidating around three main large players: Microsoft, Oracle, and salesforce.com. Oracle and Microsoft offer a complete end-to-end solution of hardware, middleware, and software, which has demonstrable total cost of ownership benefits. Salesforce offers similar benefits using its cloud model. SugarCRM, by aligning with IBM, is also leveraging these efficiencies. Even though its a small company (about 250 employees), expect to see SugarCRM (with the help of IBM) start to surface in larger deals in which the Big Three players are competing.

References
1. http://www.irma-international.org/viewtitle/31903/ 2. http://ijebm.ie.nthu.edu.tw/IJEBM_Web/IJEBM_static/Paper-V4_N5/A07-05_4.pdf 3. http://media.techtarget.com/searchCRM/downloads/CRMUnpluggedch2.pdf 4. http://www.diva-portal.org/smash/get/diva2:428076/FULLTEXT01.pdf 5. http://shrike.depaul.edu/~jbuttime/docs/UseCaseStudy.pdf 6. http://www.uni-obuda.hu/journal/Mishra_Mishra_20.pdf 7. http://www.mulesoft.com/resources/esb/crm-erp-integration 8. http://forums.sugarcrm.com/f6/integrating-sugarcrm-erp-system-76982/ 9. http://blog.magicsoftware.com/2013/12/sugarcrm-erp-integration-example

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