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CRM Analytics, Verticalization Go Mainstream CRM Analytics, Verticalization Go Mainstream
By Kimberly Hill
March 25, 2005 10:47AM

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In a few years, the split between the makers of front- and back-office software will diminish substantially. Instead, vendors will be differentiated by their ability to support end-to-end business processes.
 

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analytics
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Within the next couple of years, CRM Relevant Products/Services deployments that do not already have them will add analytics modules, and nearly all CRM applications will be tailored to specific vertical industries. These predictions are part of a group of overall trends identified by Elizabeth Roche of Meta Group.

The changes will apply to both best-of-breed CRM applications and the CRM modules offered by larger suite vendors, according to Meta. By 2008, the makers of CRM software will have completed the process of separating their specialized business processes from infrastructure Relevant Products/Services, and will be able to make them available in composite applications, Roche says.

Majority Rules in Analytics

Somewhere between 50 percent and 60 percent of commercial CRM applications currently are marketed without analytics functionality, said Roche. Soon, that will cease to be the case, as vendors add analytics to the list of basic functions they provide to buyers of their standard CRM applications.

Indeed, companies have spent the past several years going to great lengths to analyze the data Relevant Products/Services they gather through newer CRM and supply-chain modules. For example, about 75 percent of Siebel customers pull data from applications provided by other vendors into their Siebel analytics tools, Duane Cologne, general manager of analytics applications for Siebel, said.

Moving From Horizontal to Vertical

During this year and next, predicts Roche, the makers of ERP suites finally will reach the goal of having CRM modules that compare favorably with the functionality available from best-of-breed vendors. At that point, CRM applications will be judged by their technology breadth -- including the ability to fit into enterprise Relevant Products/Services infrastructure -- and vertical depth.

After a few more years, the split between the makers of front-office software and back-office software will diminish substantially, Roche says. Instead, vendors will be differentiated by the end-to-end business processes they are able to offer, and those processes will be highly customized to respond to the needs of companies in particular vertical industries.
 

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