The Forrester Wave™: Enterprise CRM Suites, Q3 2008

Forrester evaluated leading enterprise CRM suite solutions against 516 criteria and found that with the latest releases of their solutions, Oracle’s Siebel and SAP maintain their status as Leaders with comprehensive functionality and much improved usability.

August 29, 2008 | Updated: September 2, 2008 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 by William Band for Business Process & Applications Professionals Making Leaders Successful Every Day For Business Process & Applications Professionals Includes a Forrester Wave™ August 29, 2008 | Updated: September 2, 2008 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 Buyers Face Diﬃcult Choices In A Crowded Market by William Band with Sharyn C. Leaver, Pete Marston, Natalie L. Petouhoﬀ, Ph.D., Elisse Gaynor, and Andrew Magarie EXECUT I V E S U M MA RY Forrester evaluated leading enterprise CRM suite solutions against 516 criteria and found that with the latest releases of their solutions, Oracle’s Siebel and SAP maintain their status as Leaders with comprehensive functionality and much improved usability. Microsoft, salesforce.com, RightNow, and Oracle CRM On Demand have improved their credibility as enterprise-class solutions and have graduated into the Leaders group. The latter vendors all get high marks for ease-of-use and quick time-to-value. The Leaders are challenged by Strong Performers oﬀering a diverse range of beneﬁts. Oracle’s E-Business Suite CRM and PeopleSoft CRM are good options for their respective ERP customers looking for end-to-end integration. Chordiant, ciboodle, and Pegasystems oﬀer business process management (BPM) strengths to help enterprises orchestrate complex customer-facing processes. Infor CRM Epiphany and Onyx CRM are working to regain market momentum through investments in product enhancements being made by their respective new corporate parents, Infor and Consona. Amdocs ﬁnds success with buyers as a Contender solution for service-intensive industries with custom needs, such as telecommunications. TABLE O F CO N T E N TS N OT E S & R E S O U R C E S 2 The CRM Solution Landscape Is Increasingly In Q2 2008, Forrester evaluated 35 CRM Complex solutions. In the CRM enterprise suites category, 6 Enterprise CRM Suites Evaluation Overview Forrester surveyed 10 CRM vendors, comprising 14 products: Amdocs, Chordiant Software, 10 The Results: Enterprise Buyers Have Many ciboodle, Consona, Infor, Microsoft, Oracle Choices To Sift Through (E-Business Suite CRM, PeopleSoft CRM, Siebel 12 Vendor Proﬁles CRM, and Oracle CRM On Demand products), 18 Supplemental Material Pegasystems, RightNow Technologies, salesforce. com, and SAP. We also surveyed 165 vendor customers. Related Research Documents “Topic Overview: Customer Relationship Management” March 25, 2008 “Forrester’s Best Practices Framework for CRM” August 27, 2007 © 2008, Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Forrester clients may make one xx attributed copy or slide of each ﬁgure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage information, go to www.forrester.com. Information is based on best available resources. Opinions reﬂect judgment at the time and are subject to change. To purchase reprints of this document, please email [email protected]. 2 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals THE CRM SOLUTION LANDSCAPE IS INCREASINGLY COMPLEX Since our last iteration of the Forrester Wave™ evaluation of CRM enterprise suites, the vendor solution space has continued to change in ways that makes choosing the right solution for your organization an even more complicated decision. The Cast Of CRM Characters Continues To Evolve The CRM applications vendor space has gone through a period of considerable turmoil during the past 36 months. The dust is still settling as the vendors continue to jockey for position in a market expected to grow by more than 25% from $8.6 billion in 2007 to $10.9 billion by 2010.1 What does this all mean for CRM business process and applications professionals? To make the right CRM solution investment and/or application upgrade decisions, you must navigate: · A revolving door of products and vendors. In a virtual game of capture the ﬂag, larger players have acquired smaller vendors to gain access to customers and ﬁll in product gaps. For example, Oracle completed its acquisition of PeopleSoft in early 2005 and then swallowed Siebel in early 2006. SSA Global acquired Epiphany in August 2005 and was, in turn, acquired by Infor in mid- 2006. M2M Holdings acquired Onyx in August 2006, renamed itself Consona, and then acquired KNOVA in March 2007. In April 2007, CDC Software acquired Saratoga Systems, and in April 2008, Graham Technology become part of the Sword Group and was rebranded as ciboodle. · More choices for enterprise-class organizations. CRM vendors that have traditionally served midmarket organizations are using modern architectures and new deployment options to gain a stronger foothold with enterprise-class organizations. Examples include Consona’s Onyx CRM — which oﬀers a ﬂexible, business process-centric architecture — and RightNow Technologies and salesforce.com, which are pioneering CRM SaaS deployment. Microsoft is trying to exploit its desktop applications hegemony advantage in large enterprises and promote its now more robust business applications to this sector.2 Chordiant Software and Pegasystems are gaining traction with CRM capabilities that leverage underlying business process management (BPM) platforms and advanced customer-interaction rules and business intelligence. · Diﬀerent approaches to improved usability. This desire for more user-friendly applications is driving interest in CRM application upgrades as vendors make better UIs available in new releases. For example, the new UI for SAP CRM 2007 has been completely re-architected to support varying user roles and has “iGoogle”-like ﬂexibility, with drag-and-drop personalization embedded across the entire solution. The Oracle Siebel 8.1 UI can also be highly personalized, uses embedded analytics, and is task-driven. And the Microsoft Dynamics CRM look-and-feel itself resembles a familiar tool: Microsoft Oﬃce Outlook. · SaaS and open source options and challenges. As of late 2007, SaaS adoption by large enterprises is now is 16%, up sharply from the previous year’s 12%, and CRM is one of the August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 3 For Business Process & Applications Professionals categories of highest interest for SaaS buyers.3 Vendors like BLUEROADS, NetSuite, RightNow Technologies, and salesforce.com have pioneered as SaaS pure plays, and now traditional CRM vendors have responded with their own SaaS oﬀerings like Siebel’s — now Oracle’s — CRM On Demand and SAP’s CRM on-demand solution. Microsoft now oﬀers a SaaS option, Microsoft Dynamics CRM Online. Sage Software oﬀers SageCRM as both an on-premise and SaaS solution, and SugarCRM now oﬀers a SaaS version of its open source solution development model.4 In fact, many CRM vendors now oﬀer a variety of “on-demand” deployment models: multi-tenancy, private hosting, and hosting of traditional on-premise solutions. Some also oﬀer “hybrid” deployment: a SaaS solution integrated with an on-premise version. · New approaches to upgrading customer data integration (CDI) and intelligence. By combining operational data, streamlining customer data management processes, and presenting a single view of the customer, CDI allows CRM professionals to manage compliance, improve customer interaction eﬃciencies, and focus on customer experience management. For instance, retailers and ﬁnancial services ﬁrms that rely on data from many source systems use CDI software from DWL and Oracle to consolidate and deliver customer information to and from call centers, branch oﬃces, back-end administrative systems, and Web sites to support cross- sell and upsell activities.5 The importance being placed by vendors on enhancing their data integration and business intelligence capabilities is underscored by SAP’s late 2007 acquisition of Business Objects and Oracle’s early 2008 acquisition of Hyperion. · Various mobile CRM solutions — with diﬀerent price tags. In a recent survey, we found that nearly 50% of enterprises were piloting, rolling out, or currently using mobile applications for sales. Similarly, more than 40% of small and medium-size businesses (SMBs) were piloting, rolling out, or were using mobile applications to support their sales apps. Many CRM vendors oﬀer mobile sales solutions as extensions of their CRM applications.6 Cross-market solution providers like Microsoft, Oracle, salesforce.com, and SAP oﬀer apps that can be used on handhelds as part of their CRM solutions. Midmarket-centric vendors like FrontRange Solutions (with its GoldMine oﬀering), Maximizer Software, and Sage Software also oﬀer solutions that work on a variety of handheld devices. These handheld sales solutions are natural extensions of the CRM applications that the vendors provide. But sales and IT leaders still struggle to understand the complexities of the vastly diﬀerent mobile sales options and architectures. · Emerging social consumer behavior. CRM professionals must ﬁnd innovative ways to engage with emerging “social consumers”, enrich the customer experience through community-based interactions, and architect solutions that are ﬂexible and foster strong intra-organization and customer collaboration.7 This new trend has number of names: CRM 2.0, social CRM, and collaborative CRM. Vendors like Oracle’s Siebel and Oracle CRM On Demand are just now starting to oﬀer solution enhancements based on social technologies. SAP has plans to enhance its use of social technology solutions for CRM, and Chordiant oﬀers “Chordiant Mesh”, a collaborative — social — environment for working closely with its own customers. © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008 4 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals · Niche solutions to ﬁll gaps. Notwithstanding the trend toward consolidation of CRM vendors into suite solutions, specialty players continue to innovate by oﬀering new functionality for special requirements — for example, BLUEROADS oﬀers partner channel management through the SaaS deployment model. Additionally, in the contact center/eService sector, eGain, KANA, KNOVA (acquired by Consona), and Talisma oﬀer unique capabilities. The Three Types Of CRM Vendors To Consider As a buyer considering CRM solutions, you have three groups to choose from (see Figure 1): · Enterprise CRM suites. This category comprises vendor solutions primarily targeted toward organizations with revenues of more than $1 billion per year and/or more than 1,000 employees. CRM vendors focused on the enterprise-class organizations typically oﬀer a full range of functionalities, can scale to serve large user populations, and oﬀer support for multiple languages and countries. They oﬀer their products primarily through the traditional on-premise license model. However, many of the leading players now also oﬀer hosted and SaaS deployment options. · Midmarket CRM suites. This category comprises vendor solutions primarily targeted toward the SMB market — organizations with revenues of less than $1 billion per year and/or less than 1,000 employees. CRM vendors in this group also oﬀer a breadth of CRM functionalities, but these often have more limited capabilities in speciﬁc areas and are simpler to use than solutions built for the enterprise market. These vendors are less suitable for large-scale global deployments. Vendors in this group also oﬀer a variety of deployment options, including on- premise licensed, hosted, and SaaS. A number of vendors in this category have upgraded their solutions to be more suitable to enterprise-class buyers and are gaining acceptance in that segment as well. · CRM specialty tools. This category comprises vendors that oﬀer solutions with narrow functional breadth but deep specialty capabilities, for both enterprise and midmarket organizations. Specialty CRM tools are available for marketing automation, sales force automation (SFA), customer service, partner channel management and collaboration, customer analytics, and customer data management. August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 5 For Business Process & Applications Professionals Figure 1 Types Of CRM Solutions Enterprise CRM suites CRM specialty tools CRM suites appropriate for ﬁrms with revenues of Analytics tools: $1 billion a year or more and/or 1,000 employees • SPSS Predictive Analytics or more • Amdocs CES Customer Management Customer data management tools: • Chordiant Software Cx Suite • D&B Purisma’s Purisma Data Hub • ciboodle • IBM InfoSphere MDM Server • Consona’s Onyx CRM* • Initiate Master Data Service • Infor CRM Epiphany • Oracle’s Customer Data Hub • Microsoft Dynamics CRM* • Oracle’s Siebel Universal Customer Master • Oracle CRM On Demand* • SAP NetWeaver MDM • Oracle’s E-Business Suite CRM • SAS DataFlux’s CDI Solution • Oracle’s PeopleSoft CRM • Siperian MDM Hub • Oracle’s Siebel • Sun Master Data Management Suite • Pegasystems’ Customer Process Manager • RightNow CRM* Customer service tools: • salesforce* • Consona’s KNOVA Service Resolution • SAP CRM Management Suite • eGain Service Midmarket CRM suites • Genesys Telecommunications Lab’s CIM Platform CRM suites appropriate for ﬁrms with revenues less than $1 billion a year and/or less than • InQuira’s Customer Experience Platform 1,000 employees • KANA Suite • LivePerson’s Enterprise Platform • CDC Software’s Pivotal CRM • Numara FootPrint’s for eService • Consona’s Onyx CRM* • Talisma CIM • Entellium’s eSalesforce, Rave, eCustomer Center • FrontRange Solutions’ GoldMine Enterprise Edition Marketing automation tools: • Maximizer CRM • Alterian Marketing Suite • Microsoft Dynamics CRM* • Aprimo Enterprise • NetSuite • SAS’ Customer Intelligence Platform • Oracle CRM On Demand* • Teradata Customer Management • Oracle’s Siebel CRM Professional Edition • Unica’s Aﬃnium Marketing Management • RightNow CRM* • Sage CRM Partner channel management and • Sage SalesLogix collaboration tools: • BLUEROADS • salesforce* • Click Commerce’s eCommerce Suite • Selligent X@ • Sugar Enterprise Sales force automation tools: • CDC Software’s Saratoga *These vendors have a signiﬁcant base of both enterprise and midmarket customers. Source: Forrester Research, Inc. © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008 6 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals ENTERPRISE CRM SUITES EVALUATION OVERVIEW To assess the state of the CRM market and see how the vendors stack up against each other, Forrester evaluated the strengths and weaknesses of top CRM vendors — including enterprise suite and midmarket suite vendors — across 516 criteria. We then applied two sets of criteria weightings: one appropriate for large, enterprise-class deployments and another focused on midmarket priorities.8 The following assessment will help you see how the 14 enterprise CRM suite products that we evaluated stack up against each other. Buyers Focus On Current Oﬀering, Future Vision, And Strength Of Install Base After examining past research, user need assessments, and vendor and expert interviews, we developed a comprehensive set of evaluation criteria (see Figure 2). We evaluated vendors against 516 criteria, which we grouped into three high-level categories: · Current oﬀering. We looked at the breadth of vendors’ product oﬀering(s), global capabilities, and adaptation to speciﬁc industry requirements. We evaluated vendor customer data management abilities and usability, and took into consideration cost and the strength of vendors’ technology platform and tools. · Strategy. We looked at the strength of the vendors’ product strategy and vision and how they intend to be leaders in the enterprise CRM market. An important set of criteria focuses on the methods vendors use to deliver a satisfactory application ownership experience to their customers and how long it takes customers to realize value from their solution. · Market presence. We gauged the size of the vendors’ customer base in the enterprise CRM segment and evaluated the depth of human and ﬁnancial resources available to enhance their products and serve customers. Vendors Oﬀer A Breadth Of Capabilities For Complex Enterprises We included 14 solutions in our assessment of enterprise CRM suites: Amdocs CES Customer Manager, Chordiant Software Cx Suite, ciboodle, Infor CRM Epiphany, Microsoft Dynamics CRM, Onyx CRM, Oracle CRM On Demand, Oracle E-Business Suite CRM, Pegasystems Customer Process Manager, PeopleSoft CRM, RightNow CRM, salesforce, SAP CRM, and Siebel (see Figure 3). Each of these vendors: · Oﬀers a multifunctional CRM applications suite. Each vendor included in this Forrester Wave has functionality in a minimum of three of the following CRM subdisciplines and tools: marketing, sales force automation, customer service, ﬁeld service, partner channel management, eCommerce, customer analytics, and customer data management. August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 7 For Business Process & Applications Professionals · Targets large enterprises with complex requirements. The vendors we included focus on, and have references with, enterprise-class organizations with complex requirements. These requirements include the ability to scale on a global basis, manage end-to-end business process, integrate into complex legacy environments, and manage large volumes of customer and related data. · Oﬀers a product in now general release and use by customers. The vendors we included have a speciﬁc solution (release) that was generally available at the time of data collection for this evaluation with at least three references available for contact. Figure 2 Evaluated Vendors: Product And Selection Criteria Product version Version Vendor Product evaluated evaluated release date Amdocs Amdocs CES Customer Management 7.5 January 2008 Chordiant Software Chordiant Software Cx Suite Chordiant FDN 6.1, MD, CDM December 2007 ciboodle ciboodle 2.7 April 2008 Consona CRM Onyx CRM OEP 6.0 September 2006 Infor Infor CRM Epiphany 7 May 2008 Microsoft Microsoft Dynamics CRM 4.0 December 2007 Oracle Oracle CRM On Demand Release 15 March 2008 Oracle E-Business Suite CRM R12 2007 Oracle PeopleSoft CRM 9.0 August 2006 Oracle Siebel 8.1 2008 Pegasystems Customer Process Manager 5.2.3 April 2008 RightNow Technologies RightNow CRM February ‘08 February 2008 salesforce.com salesforce Summer ’08 May 2008 SAP SAP CRM SAP CRM 2007 March 2008 Vendor selection criteria The vendor oﬀers a multifunctional CRM applications suite, comprising three or more CRM subdisciplines. The vendor targets enterprise-class organizations with complex business requirements. The solution was generally available at the time of data collection for this evaluation with at least three references available for contact. Source: Forrester Research, Inc. © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008 8 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals Figure 3 Forrester Wave™: Enterprise CRM Suites, Q3 ’08 Risky Strong Bets Contenders Performers Leaders Strong Oracle E-Business Oracle Siebel Suite CRM Go online to download SAP the Forrester Wave tool Oracle for more detailed product PeopleSoft Microsoft CRM evaluations, feature Oracle CRM salesforce On Demand comparisons, and .com customizable rankings. Consona CRM Pegasystems RightNow Infor ciboodle Technologies Current oﬀering Amdocs Chordiant Software Market presence Full vendor participation Weak Weak Strategy Strong Source: Forrester Research, Inc. August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 9 For Business Process & Applications Professionals Figure 3 Forrester Wave™: Enterprise CRM Suites Q3 ’08 (Cont.) Oracle E-Business Suite CRM Oracle CRM On Demand Chordiant Software Consona CRM Weighting Forrester’s Microsoft ciboodle Amdocs Infor CURRENT OFFERING 50% 2.40 2.37 2.68 2.89 2.69 3.56 3.33 3.71 Sales 5% 2.93 2.71 2.58 3.60 3.31 4.75 4.11 4.49 Marketing 5% 1.08 3.45 1.39 2.77 2.79 2.91 2.77 3.95 Customer service 5% 2.77 3.63 3.69 3.63 2.77 3.01 3.11 3.73 Field service 5% 2.69 0.00 1.49 1.09 0.07 2.32 0.83 4.52 eCommerce 5% 1.87 1.50 0.89 0.53 2.36 1.47 0.15 2.98 Partner channel management 5% 0.69 0.12 0.83 1.92 0.95 1.88 2.89 4.07 Analytics 10% 1.54 2.44 1.59 2.60 3.00 3.33 2.89 3.89 Customer data management 10% 1.94 1.58 2.38 2.61 1.67 3.31 2.81 3.37 Internationalization 5% 3.35 2.00 3.02 3.68 4.01 5.00 4.01 4.67 Industry business process support 5% 2.22 1.35 1.45 1.59 1.02 1.12 1.52 3.01 Architecture and platform 15% 3.31 3.71 4.29 3.56 3.39 4.16 4.41 3.68 Usability 20% 2.83 2.63 3.73 3.83 3.50 4.80 4.47 3.60 Cost 5% 2.25 2.85 2.45 2.60 3.00 3.80 4.60 2.80 STRATEGY 50% 2.27 3.12 3.36 2.96 2.99 4.44 4.05 3.04 Time-to-value 20% 1.00 3.00 5.00 3.00 3.00 5.00 5.00 1.00 Product strategy 30% 2.10 3.00 3.00 3.00 3.00 5.00 4.10 3.20 Application ownership experience 20% 4.05 2.40 3.46 3.31 3.34 4.60 4.15 4.30 Corporate strategy 30% 2.10 3.80 2.55 2.65 2.75 3.40 3.30 3.40 MARKET PRESENCE 0% 3.53 1.65 1.30 2.00 2.58 3.40 2.20 3.25 Customer base 80% 3.50 1.50 1.00 2.00 2.50 3.00 1.50 3.00 Employees 10% 4.75 1.50 1.50 1.50 3.25 5.00 5.00 5.00 Financial performance 10% 2.50 3.00 3.50 2.50 2.50 5.00 5.00 3.50 All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008 10 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals Figure 3 Forrester Wave™: Enterprise CRM Suites Q3 ’08 (Cont.) RightNow Technologies Oracle PeopleSoft CRM salesforce.com Oracle Siebel Pegasystems Weighting Forrester’s SAP CURRENT OFFERING 50% 3.71 4.27 2.91 3.25 3.33 4.10 Sales 5% 4.03 4.65 3.72 3.85 4.57 4.92 Marketing 5% 3.45 4.41 1.88 3.13 2.19 3.48 Customer service 5% 3.90 4.32 4.15 4.35 3.26 3.59 Field service 5% 2.70 4.50 0.00 0.27 2.26 4.00 eCommerce 5% 2.53 3.71 0.27 1.00 0.44 4.18 Partner channel management 5% 3.46 4.91 1.25 2.80 3.95 4.66 Analytics 10% 4.02 4.66 3.48 3.49 1.86 3.96 Customer data management 10% 3.43 4.03 2.31 2.68 2.36 3.57 Internationalization 5% 4.67 4.67 4.01 4.34 3.68 5.00 Industry business process support 5% 3.34 4.14 1.30 2.34 1.71 4.52 Architecture and platform 15% 4.08 4.53 4.66 4.05 4.04 4.49 Usability 20% 4.16 4.27 3.27 3.57 4.87 4.17 Cost 5% 2.40 2.00 3.00 4.20 4.60 2.50 STRATEGY 50% 2.99 3.95 3.10 4.19 4.17 4.19 Time-to-value 20% 1.00 1.00 3.00 5.00 5.00 2.00 Product strategy 30% 3.00 5.00 3.00 4.10 4.10 4.80 Application ownership experience 20% 4.35 4.29 3.48 4.25 4.32 4.25 Corporate strategy 30% 3.40 4.65 3.00 3.70 3.60 5.00 MARKET PRESENCE 0% 3.25 4.90 1.90 1.80 4.00 4.10 Customer base 80% 3.00 5.00 1.50 1.50 4.00 4.00 Employees 10% 5.00 5.00 3.00 3.00 3.00 5.00 Financial performance 10% 3.50 4.00 4.00 3.00 5.00 4.00 All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. THE RESULTS: ENTERPRISE BUYERS HAVE MANY CHOICES TO SIFT THROUGH The evaluation uncovered a market in which: · Oracle’s Siebel and SAP CRM still oﬀer the most complete solutions with better usability. During the past three years, SAP has worked steadily to ﬁll out its CRM oﬀering, resulting in end-to-end process integration support that no longer comes at the expense of missing CRM August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 11 For Business Process & Applications Professionals functionality. Meanwhile, Oracle has promoted the Siebel product and brand as its most fully featured solution, with a breadth and depth of functionality for many industry verticals. In their most current releases, both vendors have moved to address a primary complaint of buyers: poor usability. Siebel 8.1 features the Siebel User Interface, which can be highly personalized, uses embedded analytics, and is task-driven. SAP CRM 2007’s UI is ﬂexible to support varying roles. The product oﬀers drag-and-drop personalization embedded across the entire solution, which allows any section of any page to be rearranged by the end user. · Microsoft, salesforce, RightNow, and Oracle CRM On Demand prove enterprise credibility. The top two vendors are being chased by a pack of strong players, who have now proven their ability to serve enterprise-class organizations. RightNow and salesforce.com, which are SaaS solutions, are much faster to deploy, and easier to change, than traditional on-premise oﬀerings; Microsoft recently launched its own SaaS solution, Microsoft Dynamics CRM Online; and Oracle CRM On Demand is gaining traction in the market as a SaaS companion to Oracle’s Siebel. Although these players are not fully featured across the board, they are gaining acceptance from enterprise buyers looking for fast time-to-value solutions. · Oracle E-Business Suite and Oracle PeopleSoft CRM are good options for ERP customers. Oracle continues to support two other important CRM customer franchises. Oracle E-Business Suite (EBS) customers are attracted to the beneﬁts of EBS CRM’s ease of integration into the rest of the Oracle EBS suite. Similarly, companies currently using PeopleSoft products are attracted to PeopleSoft CRM for its integration beneﬁts. Both products oﬀer strong capabilities across the broad footprint of most CRM functionalities, including marketing, sales, service, ﬁeld service, and partner channel management, but they are less robust for customer data management and eCommerce. · Amdocs, Chordiant, ciboodle, and Pegasystems ﬁll process gaps. As enterprises begin to understand the importance of truly integrating end-to-end customer-facing processes from front oﬃce to back oﬃce, they are turning to solutions with native BPM capabilities that can support highly unique — and ﬂexible — process ﬂows. Pegasystems oﬀers robust BPM capabilities. Upstart ciboodle (formerly Graham Technology) has pushed into the CRM market with focus on the intersection of business process modeling, customer service, and customer interaction management. Chordiant oﬀers a process-centric platform combined with advanced decisioning tools to orchestrate multichannel interactions. Amdocs has achieved success in the telecommunications sector by integrating customer service management processes with customer billing, using its deep professional services capabilities to achieve process integration. · Infor CRM Epiphany and Consona’s Onyx CRM work to regain market momentum. Both Epiphany and Onyx have languished in recent years due in part to buyer concerns about the long- term viability of these two products. Epiphany was acquired by Infor and is now being repromoted to the market as Infor CRM Epiphany. Infor, a $2 billion global company, has made © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008 12 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals investments in the product to make it easier to integrate with Infor’s ERP solutions and has added marketing resource management (MRM) capabilities. Similarly, the acquisition of Onyx by Consona, a $100 million company, means that buyers can have more conﬁdence in vendor viability when considering the beneﬁts of Onyx’s modern process-centric and Microsoft-oriented architecture. And Consona anticipates announcing a major product revamp in early 2009. This evaluation of the enterprise CRM suites market is intended to be a starting point only. We encourage readers to view detailed product evaluations and adapt the criteria weightings to ﬁt their individual needs through the Forrester Wave Excel-based vendor comparison tool. VENDOR PROFILES Leaders: A Range Of Solutions To Fit Diﬀerent Needs · SAP CRM continues to improve functionality and usability for the SAP user community. SAP views customer relationship management as a mission-critical business strategy in order to gain persistent competitive advantage, ultimately leading to sustainable, proﬁtable growth. To meet this need, SAP has steadily built out comprehensive functionality focused on improving usability and deepening support for strategic business processes as part of the SAP Business Suite. With the release of SAP CRM 2007, the vendor oﬀers a product that is strong across the board for sales, marketing, partner channel management, customer service, and analytics. But it oﬀers less robust support for customer data management requirements. SAP CRM 2007 now features a very strong user interface. Particular strengths include ease of use, icons and cues that are consistent with standards, and a UI that supports multiple user roles and channels. SAP CRM oﬀers some deployment ﬂexibility through its SaaS CRM solution. However, the SaaS product supports only a limited subset of capabilities compared with the on-premise version. These include core sales, service, and marketing functionality, supporting end-to-end business processes with integration to SAP ERP. The on-premise product can scale to support global deployments and oﬀers many industry-speciﬁc process solutions. Cost, complexity, and lengthy implementation schedules have been drawbacks in the past, however the new SAP CRM 2007 is making progress on this front. SAP has seen initial results with quick deployments of SAP CRM 2007. SAP CRM is best suited for global buyers committed to SAP and its ERP platform who need to support end-to-end industry processes. · Oracle’s Siebel maintains a lead in across-the-board best-in-class CRM functionality. Oracle is intent on sustaining Siebel’s leadership position in the CRM market. In addition to Oracle’s Siebel for enterprise customers, the product family also includes Oracle’s Siebel CRM Professional Edition for the midmarket and Oracle CRM On Demand. Oracle’s Siebel vision is to provide robust capabilities that empower users to better address customer needs, enable businesses to be more responsive to growth, and create a superior ownership experience for the August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 13 For Business Process & Applications Professionals enterprise. The Siebel product for enterprise-class customers has achieved best-of-breed status for most CRM functionalities, with the exception of eCommerce. Usability has been improved through Siebel Task UI, a wizard-style interface where the user is driven through the ﬂow by navigating via a “next,” “previous,” “pause,” and “cancel” toolbar. Siebel oﬀers deployment ﬂexibility through its sister solution Oracle CRM On Demand, with whom it shares a common code base. Oracle Siebel boasts good industry-vertical adaptations that are increasingly being integrated with other Oracle products to oﬀer end-to-end industry solutions. For example, Siebel 8.1 features application integration architecture (AIA) process integration packs (PIPs) that enable the integration of business processes between Siebel CRM and other Oracle applications. Application complexity, high cost, and lengthy implementation schedules are drawbacks. However, Oracle Siebel is working to address this concern and has introduced enhancements to improve time-to-value in its latest release. The product is best suited for buyers who value advanced functionality tailored for speciﬁc industries, customer insight through strong analytics and customer data management, and the ability to support global organizations. · Microsoft Dynamics CRM shines by oﬀering ﬂexibility to enterprise buyers. Microsoft is trying to exploit its desktop applications strength in large enterprises and promote its now-more- robust business applications to this sector. Its strategy for growth is to oﬀer buyers a choice of both on-premise and SaaS service deployment, a ﬂexible user interface, a choice of payment options, and a strong partner community. Buyer interest in Microsoft solutions is high in the SMB market and is growing in the enterprise segment. The product provides sound, but not industry-leading, capabilities in sales, marketing, and customer service, but it is weaker in eCommerce, partner channel management, and ﬁeld service. Buyers have a full range of deployment options: on-premise, SaaS, on-premise hosted, or hybrid. The solution’s code is the same regardless of deployment choice, so migration from one deployment type to another is relatively easy. There are no industry-speciﬁc solution sets, although Microsoft is working with its extensive network of ISVs to develop industry solutions on the Microsoft Dynamics platform. Enterprise buyers will be attracted to Microsoft Dynamics CRM if they have made a commitment to a Microsoft infrastructure in order to lower their TCO in buying and managing business technologies. Buyers also like Microsoft Dynamics CRM’s usability, lower price, and its quick time-to-value compared with traditional CRM applications. · Salesforce proves the credibility of SaaS for enterprise-class organizations. Salesforce.com is growing quickly by making CRM solutions available through the SaaS deployment model. The company’s strategy for growth in the CRM solutions sector is to focus on helping companies that want to roll out business solutions quickly while minimizing their overall IT risks and implementation costs. The San Francisco-based company claims to have grown its customer base to more than 45,000 and is gaining ground in attracting enterprise-class organizations to © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008 14 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals its solution, in addition to its strength in the SMB sector. The salesforce application is an easy- to-use tool with deep SFA capabilities. The product also boasts strong functionality in partner relationship management and sound support for customer service. Where the solution is weaker, however, is in support for marketing, ﬁeld service, customer analytics, and eCommerce. The application is built on top of a modern architecture, allowing for robust scalability, reliability and availability, and openness to connect to other applications via Web services. However, the product is only available in SaaS deployment, so organizations selecting salesforce must be committed to the SaaS deployment model. It lacks industry-speciﬁc vertical solutions, with the exception of Wealth Management in the ﬁnancial services segment. Along these lines, the vendor relies on its partner ecosystem (AppExchange) to complement its shortcomings in the areas where the application is not robust. Salesforce is an application best suited for businesses that are looking for an easy-to-use, rapidly deployable sales management and customer service CRM application, and who are committed to the SaaS as deployment approach. · RightNow CRM remains focused on improving the customer experience for B2C enterprises. RightNow Technologies is gaining success by oﬀering a CRM suite solution available through the SaaS deployment model. The company’s mission is to help companies grow their businesses by delivering improved customer experiences while lowering operating costs. This core concept of enabling customers to compete on customer experience has been RightNow’s guiding principle since inception. RightNow CRM’s key strengths are customer service and internationalization. Its low upfront application costs are attractive to businesses that are hesitant to commit large amounts of capital to a CRM solution. Drawbacks to the solution, however, are weak support for ﬁeld service and eCommerce. Although the vast majority of customers select RightNow CRM in SaaS deployment, the product is also available in on-premise deployment and the code base is the same — allowing buyers the ﬂexibility to migrate from one deployment method to another. RightNow provides very strong support for the CRM processes in the public sector and sound support for the retail sector, but it lacks support for industry-speciﬁc CRM processes for most other sectors. Customer references report high levels of satisfaction with the company and the solution. It is best suited for B2C organizations in need of a customer-service-centric CRM suite solution with a rapid time-to-value. · Oracle CRM On Demand oﬀers expanded functionality and CRM 2.0 capabilities. This product has achieved success in the market by oﬀering the same beneﬁts as other CRM SaaS solutions: quick time-to-value, usability, and low upfront costs. This value proposition is attractive to SMB buyers and is ﬁnding increasing acceptance in units of enterprise-class organizations. Product functionality has been enhanced during the last 18 months. It has very strong SFA capabilities and provides sound support for marketing, partner channel management, customer service, and analytics. But it lacks ﬁeld service and eCommerce capabilities. Oracle CRM is innovating with new capabilities such as social CRM (Fusion Edge applications) to increase collaboration, innovation, and adoption of CRM within organizations. August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 15 For Business Process & Applications Professionals In combination with its sister products, Oracle’s Siebel and Siebel CRM Professional Edition, Oracle CRM On Demand lets customers choose among enterprise-grade SaaS, hosted, packaged, and SOA-based component applications. The product generally does not oﬀer industry-speciﬁc solutions. However, the vendor has plans to add more vertical industry capabilities in the future. Oracle CRM On Demand is best suited for businesses that want a SaaS deployment method and that are committed to the Oracle platform and Oracle technologies. Strong Performers: Business Process Integration · Oracle’s E-Business Suite CRM delivers integration beneﬁts. Oracle’s E-Business Suite, a comprehensive enterprise application suite, includes a broad range of CRM capabilities. Its vision for growing in the CRM sector is to oﬀer incremental improvements to features and functions and emphasize its ﬁt for companies that desire the simplicity and lower total cost of ownership of a suite of front- and back-oﬃce applications. The EBS CRM solution provides capabilities across all major CRM functionalities. It is strong in sales, ﬁeld service, and partner channel management, and it has the ability to scale for global deployments. Areas of relative weakness include eCommerce and customer data management. Oracle is investing heavily in a next- generation product strategy, Fusion Applications, to fully modernize its technology architecture. The solution oﬀers on-premise, or on-premise hosted, deployment options; however, it does not oﬀer a SaaS deployment alternative. The solution provides sound support for industry-speciﬁc CRM business processes. For example, it provides very strong support for the manufacturing, high-tech, and retail sectors. On the other hand, it provides weak support for the ﬁnance and insurance sector business processes. E-Business Suite CRM is best suited for buyers committed to Oracle for platform and applications that need comprehensive multinational capabilities. · Oracle’s PeopleSoft CRM keys on integration advantages. Oracle’s PeopleSoft CRM product line has a signiﬁcant base of loyal customers who value the integration beneﬁts and usability of PeopleSoft’s HR and ERP suite. Through delivered integration to Oracle applications and technologies, Oracle’s vision for PeopleSoft products to continue to help customers join together business processes. Oracle’s PeopleSoft CRM solution oﬀers a broad range of functionality across all the major components of CRM, with particular strengths in sales, customer service, and analytics. It has less robust, but sound, capability for marketing, ﬁeld service, eCommerce, and customer data management. The solution does not oﬀer a SaaS deployment option. It provides very strong support for the public sector, particularly education, and strong support for the utilities and telecommunications sectors. PeopleSoft CRM is well suited for existing PeopleSoft customers who need a broad-based CRM platform to build on. · Consona’s Onyx CRM builds UI and product feature enhancements. Onyx was one of the ﬁrst enterprise CRM solutions to adopt a ﬂexible, three-tier architecture with tight alignment to © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008 16 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals Microsoft technologies and to include native BPM capabilities. The company was taken private by Consona Corporation (formerly M2M) in August 2006, which has helped to allay buyer concerns about the long-term viability of the product and company. The corporate strategy for Consona CRM is to focus on remaining a ﬁnancially stable and proﬁtable vendor for its customers, and on increasing the service and value it provides to its current customer base. The product’s key strengths center on usability, internationalization, customer service, SFA, and architecture. Conversely, the product’s primary weaknesses are in eCommerce and ﬁeld service. Consona is pursuing ongoing research and design activities to develop Onyx CRM’s next-generation UI, and acquired KNOVA, a suite of self-service, contact center, forums, and help desk applications, in early 2007, The next release of Onyx CRM, planned for Q1 2009, is expected to be the most feature-rich release in the product’s history. The solution is available through both on-premise and hosted on-premise deployment models; however, there is no SaaS deployment option. It provides sound support for selected CRM processes in the ﬁnance and insurance, utility, and public sectors, but the solution generally does not oﬀer industry-speciﬁc capabilities. Onyx CRM is best suited for buyers who want a ﬂexible CRM solution — with BPM capabilities — that leverages Microsoft infrastructure technologies. · Pegasystems Customer Process Manager oﬀers a dynamic business process platform. In the past, Pegasystems has been viewed by most buyers as a pure-play leader in the human- centric business process management suites (BPMS) market.9 Now, through its CRM oﬀering, Pegasystems oﬀers speciﬁc support for customer-facing processes. Pegasystems’ strategy for growth is to lead the process-centric CRM market with solutions and methodologies that enable business agility. Its greatest strengths are its comprehensive architecture and BPM platform, which orchestrates highly dynamic business procedures. Customer Process Manager oﬀers sound solutions sales, customer service, and analytics, but its packaged CRM functionality is limited in the areas of marketing, ﬁeld service, and customer data management. The solution is oﬀered through both an on-premise and hosted on-premise deployment methods, but there is no SaaS option. Pegasystems generally does not oﬀer industry-speciﬁc solutions; however, it provides strong support for selected processes in the ﬁnance and insurance industry, healthcare, and the public sector. Customer Process Manager is best suited for buyers — especially in ﬁnancial services and healthcare organizations — who want to strengthen their ability to support rules-based customer sales and service processes. · ciboodle oﬀers BPM strengths for orchestrating customer interactions. Formerly Graham Technology, ciboodle was acquired by the Sword Group in April 2008. Under its former name, the company had achieved a growing reputation as a leader in the ﬁeld of customer interaction management, with focus on contact centers.10 The company continues to focus on the intersection of business process modeling with customer service, but ciboodle is now expanding its functional footprint to compete in the CRM enterprise suites arena. Its goal is to become the August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 17 For Business Process & Applications Professionals preferred provider of customer interaction management software for speciﬁc consumer-centric markets: ﬁnancial services, telco, utilities and retail. The solution’s value proposition rests on the ciboodle Process Platform to support enterprise-scale organizational agility. The product provides strong support for customer service but generally weaker support for other functional areas of CRM such as sales, marketing ﬁeld service, analytics, and customer data management. The solution does not oﬀer a SaaS deployment option or industry vertical solutions. It’s a good ﬁt for buyers who are looking for a vendor that can bring business process acumen to solving customer-service centric CRM challenges. · Infor CRM Epiphany oﬀers marketing strengths and integration with Infor ERP solutions. The Infor CRM solution is based primarily on the functionality of Epiphany, a product Infor acquired through its acquisition of SSA in mid-2006 (SSA had acquired Epiphany in August 2005). The Infor CRM Epiphany strategy for growth focuses primarily on enhancing marketing applications for use by nontechnical people in the ﬁnancial services, insurance, telecommunications, retail, hospitality, travel, leisure, and manufacturing industries, and on building pre-integrations with Infor ERP solutions. Infor CRM Epiphany’s primary strengths are its marketing applications that support users who want to launch customized and highly targeted campaigns quickly and easily. In May 2008, Infor CRM Epiphany launched an MRM solution. The product oﬀers sound capabilities across other functional areas of CRM, including sales, customer service, and analytics, but provides minimal support for partner channel management, eCommerce, and customer data management. Infor CRM Epiphany does not oﬀer a SaaS deployment option or industry-speciﬁc solutions. The solution is best suited for buyers who need strength in marketing campaign management and inbound marketing, including interaction management and analytics. · Chordiant Software Cx Suite excels as an evangelist for customer experience management. Chordiant has built upon a BPM-oriented platform to focus on the needs of companies in three core verticals — telco, insurance/healthcare, and ﬁnancial services — that all need to orchestrate thousands of multichannel customer interactions each day. Chordiant’s decision management tools let companies analyze data from many customer touchpoints so that they can understand outcomes and apply rules to improve each interaction. Chordiant Software Cx Suite provides strong support for marketing and customer service. Support for sales functionality is sound, but it lacks capabilities in other CRM functional areas such as ﬁeld service, analytics, and customer data management. Future product enhancements for Cx Suite will focus on building upon centralized decisioning capabilities, primarily for outbound communications and inbound marketing. The product does not oﬀer a SaaS deployment option. It provides strong support for ﬁnance and insurance/healthcare CRM processes but does not oﬀer solutions speciﬁcally for other industry verticals such as the manufacturing sector. But a unique feature of the solution is the Chordiant © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008 18 The Forrester Wave™: Enterprise CRM Suites, Q3 2008 For Business Process & Applications Professionals Mesh collaborative development environment oﬀered to customers to foster co-development of solutions that are highly tuned to speciﬁc industry requirements. Chordiant Cx Suite is good ﬁt for very large B2C-centric organizations, with complex customer interaction channels, that are looking for the means to coordinate an intentional and consistent customer experience at every point of contact. Contenders: Industry Expertise · Amdocs is a stand-out with integrated customer-centric processes for telecom companies. Amdocs primary customers are large telecommunications services providers, to which it oﬀers applications to support billing, CRM, self-service, order management, mediation, and content revenue management. Amdocs’ vision is to enable customers to realize their integrated customer management strategies through becoming agile, aligned, and customer-centric. As the telecommunications service provider market experiences more consolidation, greater competition from new entrants, and the increasing complexity of quadruple-play oﬀerings, Amdocs continues to grow its oﬀering of modular integrated software and services across BSS and OSS. The key strengths of Amdocs CES Customer Management are in customer service and ﬁeld service. The company lags behind other vendors in marketing, partner channel management, analytics, and eCommerce, but it partners with SAS to ﬁll these gaps. Amdocs does not oﬀer a SaaS deployment option. The company has a large professional services organization to customize the solution for complex customer environments. Amdocs is best suited for high-transaction, consumer-intensive industries with complex customer service requirements — speciﬁcally, telecommunications service providers. SUPPLEMENTAL MATERIAL Online Resource The online version of Figure 3 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. Data Sources Used In This Forrester Wave Forrester used a combination of three data sources to assess the strengths and weaknesses of each solution: · Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation criteria. Once we analyzed the completed vendor surveys, we conducted vendor calls where necessary to gather details of vendor qualiﬁcations. · Vendor strategy brieﬁngs. Forrest conducted brieﬁngs with each vendor to learn about the vendor strategy for participating in the market, its espoused key diﬀerentiators, and its August 29, 2008 | Updated: September 2, 2008 © 2008, Forrester Research, Inc. Reproduction Prohibited The Forrester Wave™: Enterprise CRM Suites, Q3 2008 19 For Business Process & Applications Professionals product development road map for the future. During some brieﬁngs, Forrester also received demonstrations of the vendor’s product functionality to validate details of product capabilities. · Customer reference survey. To validate product and vendor qualiﬁcations, Forrester also conducted a survey of three to ﬁve of each vendor’s current customers. The total number of customers surveyed was 165. The Forrester Wave Methodology We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. From that initial pool of vendors, we then narrow our ﬁnal list. We choose these vendors based on: 1) product ﬁt; 2) customer success; and 3) Forrester client demand. We eliminate vendors that have limited customer references and products that don’t ﬁt the scope of our evaluation. After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we gather details of product qualiﬁcations through a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor oﬀerings and strategies. We set default weightings to reﬂect our analysis of the needs of large user companies — and/or other scenarios as outlined in the Forrester Wave document — and then score the vendors based on a clearly deﬁned scale. These default weightings are intended only as a starting point, and we encourage readers to adapt the weightings to ﬁt their individual needs through the Excel-based tool. The ﬁnal scores generate the graphical depiction of the market based on current oﬀering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. ENDNOTES 1 As a consequence of the forces that propel enterprise investments in CRM solutions oﬀset by the factors that create cautious buying attitudes, growth in expenditures for CRM technologies will match the pace for overall spending on business software applications. See the October 20, 2006, “CRM Market Size And Forecast, 2006 To 2010” report. 2 Forrester evaluated leading enterprise CRM suites vendors across 493 criteria and found that Oracle’s Siebel CRM and SAP’s mySAP CRM are the clear Leaders. They oﬀer broad and deep functional capabilities, industry specialization, and the scalability to support global organizations. Nevertheless, these Leaders are challenged by a diverse set of Strong Performers. RightNow Technologies and salesforce.com oﬀer software- as-a-service (SaaS) deployment with excellent usability, low upfront costs, and quick time-to-value, albeit with some functionality limitations. Meanwhile, Microsoft Dynamics CRM provides a growing breadth of functionality and the opportunity to leverage the Microsoft platform to lower total cost of ownership (TCO). See the February 5, 2007, “The Forrester Wave™: Enterprise CRM Suites, Q1 2007” report. © 2008, Forrester Research, Inc. Reproduction Prohibited August 29, 2008 | Updated: September 2, 2008

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