SALESFORCE.COM:Software-as-a-Service goes mainstream

Viraj Rathod – A005Priyanka Asati - A010Dhruv Patel – A018Parag Mahajan - A020

AGENDA

•Information about Salesforce.com•CRM•Key Features•Challenges•Solution•Take Away Points•Question and Answers•Real Time Activities

What is Sales Force?

• Headquartered in San Francisco,USA.

•Salesforce.com hosts the applications offsite. It is best known for its Customer Relationship Management (CRM).

History of Salesforce.com

Founded

• Founded in 1999

Founder

• By former oracle executive Marc Benioff, Parker Harris, Dave Moellenhoff, and Frank Domingu

Cont....

• Its services translated into 16 different languages and currently has 82,400 customers and over 2,100,000 subscribers.

• Provides CRM solutions in the form of ‘software-as-a-service’.

What is CRM??

• Strategy for managing a company’s interactions with customers, clients and sales prospects.

• Describes a company-wide business strategy including customer-interface departments as well as other department

Cont.....

It involves using technology to• organize •automate and• synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support

USES OF CRM

SalesCRM cloud apps provide real-time visibility

into their team’s activities so they can forecast sales with confidence.

For sales reps, CRM cloud apps make it easy to manage customer information so reps spend less

time handling data and more time with customers.

Success of Salesforce.com:-

1.On demand model of software distribution:Eliminated the need for large up-front capital

investment in systems eliminates lengthy implementation on corporate

computers.

2.Cost of Subscription: For Group version for SMALL Sales and Marketing

team-$9 per month. For LARGE enterprise and ADVANCED version-$65 per

month.

Key Features

Expensive licensing

Operating systems and Application servers to install

Database servers to

installConsultants and staff

Maintenance fees

Hardware for subscribers to

purchase, scale and maintenance

Key Features(cont.)…

• Implementation time- 0 to 3 months•System is accessible via a standard web

browser•Salesforce.com continually updates its

software behind the scenes•Provided tools to customize features of the

software ▫To support a company’s unique business

processes

Key Features(cont.)Company offers better scalability than those provided by large enterprises

Of managing multiple layers of hardware and software

THREE CHALLENGES OF SALESFORCE.COM

Beat the competitors

Expansion of business

Availability of services

a. Beat the competitors Competitors like –a) The big traditional companies

b) New Challenger

a. Beat the competitors…

•Microsoft, SAP and Oracle rolled out subscription based versions of their CRM products

•Net suite have made some inroads against Salesforce’s market share

MICROSOFT’S STRATEGY•Developing an acceptable ON-DEMAND

CRM product As the average customers have already

familiarity with Microsoft applications• Offer their product at half the price of

Salesforce.com This tactic was very effective in other markets to pressurize the competitor

OTHER COMPETITOR’S STRATEGY…•Salesforce’s has yet to capture the larger

size of the market share of their competitorsAs of 2007, SAP’s CRM market share was

25.7% compared to only 7 % for Salesforce.com

• IBM’s customer base includes 9000 software companiesThese are likelier to choose IBM over

Salesforce.com

B. EXPANSION OF BUSINESS…

• Currently, Salesforce is used mostly by sales staff▫To keep track of leads and customer lists

• Salesforce made partnership with Google (more specifically Google Apps) to provide additional functionality

B. EXPANSION OF BUSINESS

•Salesforce.com is combining its service with

By allowing customers to accomplish more tasks via the Web

c. AVAILABILITY OF SERVICES

•Salesforces.com subscribers depend on the service being available 24x7

•But occassional outrages have occurred▫ Making some companies to rethink their

dependency on software as a service

How Sales Force overcome challenges?1. Increased Competition:

• SAP CRM VS Sales force CRM

SAP CRM soft Saleforce.com offers primarily a demand CRM whereas what is offered by SAP is a hybrid CRM

SAP CRM is unwieldy, complex, requires consultant support

SAP CRM On-Demand pricing is $75 per user for SFA, Marketing or service - or $125 per user for all 3 modules. There are a minimum 100 users.

CRM from Sales force cost2$ to $ 250 Per user/ month for any no of users

The Sales force. Com foundation provides free and/or deeply discounted licenses to certain categories of organizations such as 501(c)(3) corporations and B corporations.

Sales force CRM vs. Microsoft CRM

CONT………..

Microsoft CRM – There is only one edition of Microsoft CRM Dynamics online. The subscription cost is $44 per user per month. Where as professional plus costs $59 per user per month

A 12 month commitment is required, but billing can be monthly. The subscription auto-renews at the end of the subscription term.

Sales force CRM has upper hand over Microsoft CRM dynamic professional plus on basis of On Demand Service

Sales force CRM vs. Sugar CRM by IBM

Sales force CRM provide office integration support also provides for a Web-based interface and Native access via Microsoft Outlook. However, Sales force Enterprise version alone provides for Web service support

Sugar CRM from IBM requires Exchange, Riva Integration server provides native support for Snow Leopard Mac iCal, Mail and Address Book and Microsoft Entourage for Mac.

CONT………..

Sales force CRM vs Oracle On Demand CRM

Sales force had Government information support, Proprietary licenses, Template, Multi Languages, Multi currency, Customizable data fields as Channel management features

It also surpassed On Demand CRM on basis of Collaboration features like mobile access, remote access and tracking, work flow rules and management Lack of email marketing and Mailing list management was also demerit of oracle

Roles organizational hierarchy was missing also security admin profiles were not there in on demand CRM

However it was costing around $70 per user per month over $125 of SF CRM

CONT………..

NetSuite CRM lacked Financial and Government support in Industry solution feature

Collaboration feature does not has chatting feature

Security features lacked Data Encryption and Field level security support

Market automation lacking Social Media Support

CONT………..

NetSuite CRM VS Sales force CRM

Integration of various functions on sales cloud

Social Enterpris

e

Sales force.com

Chatter

Social

Mobile

Salesforce.com is pushing a cloud vision called the “Social Enterprise”.

To engage customers, co-workers, partners via social media.

Databases are maintained in real time.

CONT………..

Expanding Business

More Tasks accomplished through Web

Google applications

Sales force.co

m

Currently considered as Distribution deal galvanize On Demand software

Force.Com

Application development Platform for independent software developers

Small organizations can download these software's online

Force.com

App Exchange

Add Ons

Third Party software Development

CONT………..

What is App Exchange?

Paas (Platform as a Service). Build, develop, customize and market

your applications and share it.No need to purchase and install the

software.

Benefits of APP Exchange

Showcase their talent and take their application to market quickly.

Rapport with potential customers.

It provides the easiest and fastest access to over a thousand apps.

Innovative applications.

Demos and content, administer free trials, and provide support information.

Reviews can be posted.

Occasional Outrages

SLA

RaaS

Real-time sandbox environments

ANS: Advantages

High Adoption

Lower Initial Costs

Painless Upgrades

Seamless Integration

Q 1. What are the advantages and Disadvantages of SaaS model ?

Cont….

• Disadvantages Some organizations find it very difficult to relinquish

control or trust third parties to manage their applications and data.

Some vertical markets require industry specific business applications for which SaaS solutions are not available.

Organizations without clear Customer Relationship

Management objectives and defined business processes will be no better off with a CRM SaaS solution than with an on-premise solution.

Q 2. What are some of the challenges facing Sales force as it continues its growth ? How well it will be able to meet those challenges ?

ANS: Challenges: Beat the competitorsLike Oracle, SAP, Microsoft, IBM, NetSuite

Expansion of businessCurrently used by sales person for keeping track of leads, Customer list.Company is trying to provide additional functionality.

Availability of servicesCustomer depend on service being available 24x7 occasional outrages have occurred.

Solutions: Introduction of App exchange that is Paas System to compete with

competitorsVarious features available in software which surpass Microsoft, Oracle, SAP, IBM and NetSuite. Real-time sandbox environments. Tie up with google for Expansion.

Ans:

o Salesforce gives companies a single place to store all their information and can only be accessed by authorized employees. So almost any company can benefit from using Salesforce.com but the ones that could benefit most are:

Small to medium size businesses are most likely to benefit because of lower cost and their inability for in-house computing.

Businesses that are trying to increase the sophistication of their computing abilities could also benefit from using Salesforce.com applications (as long as the two are compatible).

Businesses that rely on Smart Customer Management would benefit immensely from the tools available at Salesforce.com.

Also, companies that have small sales and Marketing firms can benefit from the Salesforce.com business model.

Q 3. What kind of business could benefit from switching to sales force and why?

Ans:Businesses should assess the costs and benefits of the

service, weighing all people, organization, and technology issues.

Does the software-as-a-service applications integrate well with the existing systems?

Does it deliver a level of service and performance that’s acceptable for the business?

One more important thing to take into account is reliability of Internet Service as Salesforce.com applications require constant internet connection.

Finally, one would also need to think about any Security Issues that could affect the business while using cloud computing.

Q 4.What factors would you take into account in deciding whether to use Sales force for your business ?

Q5.What are the most popular applications on App Exchange ? What kinds of processes do they support ?

Ans: Data Loader for Sales force: Used to quickly import, export and

delete an unlimited amount of data in Sales force

LinkedIn for Sales force: Sales intelligence from LinkedIn - directly in Salesforce.

Dupe Catcher, Real Time DE duplication: DE duplication of leads, accounts (both person and business), and contacts

Conga Composer: Conga Composer - One click to proposals, account plans, contracts and more

Ans: Yes, certain smaller enterprises can be run

through salesforce.com and app Exchange because now app exchange has following applications in addition to previous i.e.

Human ResourcesLegalITR & DSales OperationsFinance & Accounting

Q6.Could company run its entire business on Salesforce.com and App Exchange? Explain your answer

Ans:AppExchange is a community where you can build,

develop, customize and market your applications

People across different service sectors like business analysts, developers, IT and finance professionals, to name a few, use AppExchange to their advantage.

These are being used by middle or small size enterprises as it is sufficient for their application needs.

Also these Apps are free being developed by someone for trial small enterprise can easily test particular app.

Q7.Which kind of companies more likely to use app exchange?What does this tell you about how Salesforce.com is being used?