Tuesday, June 1, 2010

Amdocs Overhauls Its Marketing

Amdocs (NASDAQ: DOX), is a leading provider of billing systems, customer care, and support for the communications industry in North America, Europe, and the rest of the world. A global company with revenue of about $1.8 billion (USD) in fiscal 2004, Amdocs employs over 9,500 IT professionals and serves customers in more than 40 countries around the world.

Headquartered in Ra'anana, Israel, Amdocs has long been the leader in the world of telecommunications billing, by long supplying operations support software (OSS) used by telecommunications service providers to deliver voice, data, and wireless services to their customers. OSS is a generic term for a suite of software programs that enable an enterprise to monitor, analyze, and manage a network system. The term was originally applied to communications service providers (CSP), referring to a management system that controlled telephone and computer networks. However, the term has since been applied to the business world in general to mean a system that supports an organization's network operations. To that end, Amdocs' software includes modules for customer service, billing, sales, and audits, while it also offers sales and publishing software for developing print and on-line directories. It is a technology company that engages in the provision of product-driven information system solutions to major telecommunications companies.

The company's product offerings now include a library of OSS, whose core elements include customer resource management (CRM), order management, call rating, invoice calculation, bill formatting, collections, fraud management and directory publishing services, while its managed services include information technology (IT) outsourcing, application outsourcing, and business process outsourcing (BPO), particularly for customer service and data center operations. In fact, a large proportion of Amdocs' 2004 revenue came from managed services, where the company saw continued strength in its directory services business and enhanced relationships with important existing customers. For instance, following the completed acquisition of Certen from Bell Canada in mid-2003, Amdocs took over the managed services responsibilities for Bell, Existing managed services agreement with Bell extends through December 2010. Amdocs has also continued to develop an integrated billing platform to replace legacy systems built on a product-by-product basis. Thus it has further contributing to Bell's productivity improvement goals and enabling Bell to deliver on its one integrated bill commitment to its customers.

SAP Finds CRM Partner for Marketing Tools

On December 6, SAP revealed it had entered into a partnership with Recognition Systems Group of the United Kingdom to add marketing planning and campaign-management features to its customer-relationship management suite.

SAP and Recognition Systems have agreed to jointly develop integration between SAP's enterprise resource planning and data warehouse packages and Recognition's Protagon suite, which offers customer-segmentation tools to help marketing professionals plan and analyze marketing campaigns. The integrated offering will be available in the second quarter of next year. Analysts say the partnership will help SAP get to market on time in the CRM arena.

Market Impact

As we already indicated on a number of occasions, SAP has long been remiss in addressing and delivering its CRM product line, and has faced a difficult internal dilemma: whether to fully integrate its internally developed CRM modules with its R/3 ERP system and risk the possibility of losing customers to quicker-to-market ERP competitors or CRM niche players, or to jump on the bandwagon and hastily deliver sub-optimal CRM functionality. It chose a third option of partnering. We believe that SAP has caved under the pressure from the marketplace not only to deploy a solution but to also articulate its product development strategy. If SAP had blindly followed its tradition and built marketing software from scratch, as it is doing for the sales and customer support components of its CRM suite, it would have taken at least another 12-18 months to deliver. We believe that this partnership will partially fill some gaps within SAP's CRM product strategy, although no one can discount the painstaking effort in delivering a fully functional product.

A Customer Relationship Management Solution Aims To Cover all the Bases

Surado aims to provide a complete CRM suite, rather than a modularized solution targeted towards departmental delivery. Its goal is to build full-featured, integrated, and multifaceted systems, as well as out-of-the-box solutions. The vendor is a Microsoft Certified Partner and Microsoft Business Solutions Certified Gold Partner, and uses the Microsoft Solutions Framework (MSF) as the foundation for its product development. It also touts the merits of the Six Sigma methodology and Design for Six Sigma (DFSS) as quality improvement philosophies.

Surado targets the small and medium business (SMB) market, namely organizations with annual revenues of $1 million (USD) to $1 billion (USD), and approximately 88 percent of its clients fall into this category. To reinforce its position in this market segment, Surado offers Surado Small Business CRM 5.0, designed for ten users or less. Surado Small Business combines the core Surado CRM suite (Contact & Account Management, Sales Automation, Marketing Automation, and Customer Service/Help Desk) with Integration for Exchange (for e-mail, contacts, and tasks), the Surado Integration Module (for connecting to third party databases or creating custom tables and screens), and Surado CRM Web (a web interface for remote user access to basic functionality.

Although Surado CRM is not vertical-centric, it enjoys a wide installed base in traditionally "vertical CRM"-dominated industries, such as technology, health care, education, banking and finance, and government. The vendor has customers in all fifty US states and in over sixty-four countries worldwide. A sampling of its top clients from those vertical industries includes Blackbox, County Regional Medical Center, California State University, Georgia Student Finance, and the City of Riverside Economic Development Agency.

We'll analyze Surado CRM 5.0 from the perspectives of core CRM functionality, look at some of its distinguishing factors, and discuss some of the challenges users may face when considering Surado CRM for small to midsized businesses.

Core Functionality of Surado CRM 5.0

Core CRM functionality covers five aspects:

* contact and account management
* sales management
* marketing management
* customer service and support
* integration

The figure below is a TEC-created table comparing Surado against other vendors and their offerings. Surado performs above other vendors in the areas of marketing automation, sales force automation, customer service and support, and partner management. In the areas of contract management and creation, and project management, Surado's performance is above average, but below the highest-rated competitor.